Document:

exv10w1

Exhibit 10.1

QUIKSILVER, INC.

2000 STOCK INCENTIVE PLAN1

(As Amended and Restated through March 22, 2011)

ARTICLE ONE

GENERAL PROVISIONS

1.1. PURPOSE OF THE PLAN

     This amended and restated 2000 Stock Incentive Plan is intended to promote the interests of
Quiksilver, Inc., a Delaware corporation, by providing eligible persons in the Corporation’s
service with the opportunity to acquire a proprietary interest, or otherwise increase their
proprietary interest, in the Corporation as an incentive for them to remain in such service.

     Capitalized terms not otherwise defined herein shall have the meanings assigned to such terms
in the attached Appendix.

1.2. STRUCTURE OF THE PLAN

     A. The Plan as hereby amended and restated is divided into four separate equity incentive
programs:

     - the Discretionary Option Grant Program, under which eligible persons may, at the
discretion of the Plan Administrator, be granted options to purchase shares of Common Stock,

     - the Restricted Stock Program, under which eligible persons may be awarded restricted
shares of Common Stock by and at the discretion of the Plan Administrator, that vest upon,
among other things, the completion of a designated service period and/or the attainment of
pre-established performance milestones or other criteria,

     - the Restricted Stock Unit Program, under which eligible persons may be awarded
restricted stock units by and at the discretion of the Plan Administrator, that vest upon,
among other things, the completion of a designated service period and/or the attainment of
pre-established performance milestones or other criteria, and

     - the Director Automatic Grant Program under which Eligible Directors shall
automatically receive option grants and restricted shares of Common Stock at designated
intervals over their period of Board service.

 

			
	1	 	All share amounts in this document have
been revised to reflect a 2 for 1 stock split effected through a stock dividend
on April 30, 2003 and a 2 for 1 stock split effected through a stock dividend
on April 27, 2005.

 

 

     B. The provisions of Articles One and Six shall apply to all equity programs under the Plan
and shall govern the interests of all persons under the Plan.

1.3. ADMINISTRATION OF THE PLAN

     A. The Primary Committee shall have sole and exclusive authority to administer the
Discretionary Option Grant, Restricted Stock and Restricted Stock Unit Programs with respect to
Section 16 Insiders. Administration of the Discretionary Option Grant, Restricted Stock and
Restricted Stock Unit Programs with respect to all other persons eligible to participate in those
programs may, at the Board’s discretion, be vested in the Primary Committee or a Secondary
Committee, or the Board may retain the power to administer those programs with respect to all such
persons. However, any discretionary Awards to members of the Primary Committee must be authorized
and approved by a disinterested majority of the Board.

     B. Members of the Primary Committee or any Secondary Committee shall serve for such period of
time as the Board may determine and may be removed by the Board at any time. The Board may also at
any time terminate the functions of any Secondary Committee and reassume all powers and authority
previously delegated to such committee.

     C. Each Plan Administrator shall, within the scope of its administrative functions under the
Plan, have full power and authority (subject to the provisions of the Plan) to establish such rules
and regulations as it may deem appropriate for proper administration of the Discretionary Option
Grant, Restricted Stock and Restricted Stock Unit Programs and to make such determinations under,
and issue such interpretations of, the provisions of those programs and any outstanding Awards
thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator within the
scope of its administrative functions under the Plan shall be final and binding on all parties who
have an interest in the Discretionary Option Grant, Restricted Stock and Restricted Stock Unit
Programs under its jurisdiction or any Award thereunder.

     D. Service on the Primary Committee or the Secondary Committee shall constitute service as a
Board member, and members of each such committee shall accordingly be entitled to full
indemnification and reimbursement as Board members for their service on such committee. No member
of the Primary Committee or the Secondary Committee shall be liable for any act or omission made in
good faith with respect to the Plan or any Award under the Plan.

     E. Administration of the Director Automatic Grant Program shall be self-executing in
accordance with the terms of that program, and no Plan Administrator shall exercise any
discretionary functions with respect to any Award under that program.

1.4. ELIGIBILITY

     A. The persons eligible to participate in the Discretionary Option Grant, Restricted Stock and
Restricted Stock Unit Programs are as follows:

          (i) Employees,

          (ii) non-employee members of the Board or the board of directors of any Parent or Subsidiary,
and

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          (iii) consultants and other independent advisors who provide services to the Corporation (or
any Parent or Subsidiary).

     B. Each Plan Administrator shall, within the scope of its administrative jurisdiction under
the Plan, have full authority to determine (i) with respect to Awards made under the Discretionary
Option Grant Program, which eligible persons are to receive such Awards, the time or times when
those Awards are to be made, the number of shares to be covered by each such Award, the status of
any awarded option as either an Incentive Option or a Non-Statutory Option, the exercise price per
share in effect for each Award (subject to the limitations set forth in Article Two), the time or
times when each Award is to vest and become exercisable and the maximum term for which the Award is
to remain outstanding and (ii) with respect to Awards under the Restricted Stock and Restricted
Stock Unit Programs, which eligible persons are to receive such Awards, the time or times when the
Awards are to be made, the number of shares subject to each Award, the vesting schedule applicable
to the shares subject to such Award, and the cash consideration, if any, payable for such shares.

     C. The Plan Administrator shall have the absolute discretion to grant options, Restricted
Stock and Restricted Stock Units in accordance with the Discretionary Option Grant Program, the
Restricted Stock Program and the Restricted Stock Unit Program.

     D. Eligible Directors for purposes of the Director Automatic Grant Program shall be limited to
members of the Board who are not, at the time of such determination, employees of the Corporation
(or any Parent or Subsidiary).

1.5. STOCK SUBJECT TO THE PLAN

     A. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired
Common Stock, including shares repurchased by the Corporation on the open market. The number of
shares of Common Stock reserved for issuance over the term of the Plan shall not exceed 43,744,836
shares. Such share reserve consists of (i) the number of shares estimated to remain available for
issuance, as of the Plan Effective Date, under the Predecessor Plans as last approved by the
Corporation’s stockholders, including the shares subject to outstanding options under those
Predecessor Plans, (ii) an increase of 2,000,000 shares approved by the Corporation’s stockholders
in connection with the adoption of this Plan, (iii) an increase of 2,800,000 shares approved by the
Corporation’s stockholders on March 30, 2001, (iv) an increase of 2,400,000 shares approved by the
Corporation’s stockholders on March 26, 2002 (v) an increase of 3,200,000 shares approved by the
Corporation’s stockholders on March 28, 2003, (vi) an increase of 5,600,000 shares approved by the
Corporation’s stockholders on March 26, 2004, (vii) an increase of 1,500,000 shares approved by the
Corporation’s stockholders on March 24, 2005, (viii) an increase of 1,000,000 shares approved by
the Corporation’s stockholders on March 24, 2006, (ix) an increase of 2,000,000 shares approved by
the Corporation’s stockholders on March 16, 2007, (x) an increase of 300,000 shares approved by the
Corporation’s stockholders on March 26, 2010 and (xi) an increase of 10,000,000 shares approved by
the Corporation’s stockholders on March 22, 2011.

     B. No one person participating in the Plan may receive Awards for more than 800,000 shares of
Common Stock in the aggregate per calendar year. To the extent required by

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Section 162(m) of the Code, shares subject to options or stock appreciation rights which are
canceled shall continue to be counted against the limit.

     C. The maximum number of shares of Common Stock reserved for issuance pursuant to Awards of
Restricted Stock and Restricted Stock Units under the Plan is 11,100,000.

     D. Shares of Common Stock subject to outstanding Awards under the Plan (including options
incorporated into this Plan from the Predecessor Plans) shall be available for subsequent issuance
under the Plan to the extent those Awards expire or terminate for any reason prior to the issuance
of the shares of Common Stock subject to those Awards. Unvested shares issued under the Plan and
subsequently canceled or repurchased by the Corporation at the original exercise or issue price
paid per share pursuant to the Corporation’s repurchase rights under the Plan shall be added back
to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly
be available for subsequent reissuance under the Plan. However, should the exercise price of an
option under the Plan be paid with shares of Common Stock or should shares of Common Stock
otherwise issuable under the Plan be withheld by the Corporation in satisfaction of the withholding
taxes incurred in connection with the exercise of an option or the issuance of shares under the
Plan, then the number of shares of Common Stock available for issuance under the Plan shall be
reduced by the gross number of shares for which the option is exercised or the gross number of
shares issued under the Plan, and not by the net number of shares of Common Stock issued to the
holder of such option or stock issuance. Shares of Common Stock underlying one or more stock
appreciation rights exercised under the Plan shall NOT be available for subsequent issuance under
the Plan. Notwithstanding the foregoing, the number of shares of Common Stock subject to
Surrendered Options in excess of the number of shares of Common Stock subject to Replacement
Options shall not be available for subsequent issuance under the Plan. For this purpose, the term
“Surrendered Options” means the options that are surrendered to the Corporation in connection with
the one-time stock option exchange described in Section 2.5 below, and the term “Replacement
Options” means the options which are issued by the Corporation in exchange for the Surrendered
Options in connection with such exchange.

     E. If any change is made to the Common Stock by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation’s receipt of consideration, appropriate
adjustments shall be made by the Plan Administrator to (i) the maximum number and/or class of
securities issuable under the Plan, (ii) the maximum number and/or class of securities for which
any one person may be granted Awards under the Plan per calendar year, (iii) the number and/or
class of securities for which grants are subsequently to be made under the Director Automatic Grant
Program to new and continuing Eligible Directors, (iv) the number and/or class of securities and
the exercise or base price per share (or any other cash consideration payable per share) in effect
under each outstanding Award under the Discretionary Option Grant and Director Automatic Grant
Programs, (v) the number and/or class of securities and exercise price per share in effect under
each outstanding option incorporated into this Plan from the Predecessor Plans, (vi) the number
and/or class of securities subject to each outstanding Award under the Restricted Stock and
Restricted Stock Unit Programs and the cash consideration (if any) payable per share thereunder,
and (vii) the maximum number of shares which may be issued pursuant to Awards of Restricted Stock
and Restricted Stock Units under the Plan. Such

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adjustments to the outstanding Awards are to be effected in a manner which shall preclude the
enlargement or dilution of rights and benefits under those Awards. The adjustments determined by
the Plan Administrator shall be final, binding and conclusive.

ARTICLE TWO

DISCRETIONARY OPTION GRANT PROGRAM

2.1. OPTION TERMS

     Each option shall be evidenced by one or more documents in the form approved by the Plan
Administrator; provided, however, that each such document shall comply with the terms specified
below. Each document evidencing an Incentive Option shall, in addition, be subject to the
provisions of the Plan applicable to such options.

     A. EXERCISE PRICE.

          1. The exercise price per share shall be fixed by the Plan Administrator but shall not be less
than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option
grant date. The Plan Administrator may not reset the exercise price of outstanding options or
stock appreciation rights and may not grant new options or stock appreciation rights in exchange
for the cancellation of outstanding options or stock appreciation rights with a higher exercise
price.

          2. The exercise price shall become immediately due upon exercise of the option and shall be
payable in one or more of the forms specified below:

               (i) cash or check made payable to the Corporation,

               (ii) shares of Common Stock valued at Fair Market Value on the Exercise Date and held for the
period (if any) necessary to avoid any additional charges to the Corporation’s earnings for
financial reporting purposes, or

               (iii) to the extent the option is exercised for vested shares, through a special sale and
remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable
instructions to (a) a Corporation-designated brokerage firm to effect the immediate sale of the
purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement
date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus
all applicable federal, state and local income and employment taxes required to be withheld by the
Corporation by reason of such exercise and (b) the Corporation to deliver the certificates for the
purchased shares directly to such brokerage firm in order to complete the sale.

          Except to the extent such sale and remittance procedure is utilized, payment of the exercise
price for the purchased shares must be made on the Exercise Date.

     B. EXERCISE AND TERM OF OPTIONS. Each option shall be exercisable at such time or times,
during such period and for such number of shares as shall be determined by the

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Plan Administrator and set forth in the documents evidencing the option. However, no option
shall have a term in excess of ten (10) years measured from the option grant date.

     C. EFFECT OF TERMINATION OF SERVICE.

          1. The following provisions shall govern the exercise of any options held by the Optionee at
the time of cessation of Service or death:

               (i) Any option outstanding at the time of the Optionee’s cessation of Service for any reason
shall remain exercisable for such period of time thereafter as shall be determined by the Plan
Administrator and set forth in the documents evidencing the option or otherwise specifically
authorized by the Plan Administrator in its sole discretion pursuant to an express written
agreement with Optionee, but no such option shall be exercisable after the expiration of the option
term.

               (ii) Any option held by the Optionee at the time of death and exercisable in whole or in part
at that time may be subsequently exercised by the personal representative of the Optionee’s estate
or by the person or persons to whom the option is transferred pursuant to the Optionee’s will or
the laws of inheritance or by the Optionee’s designated beneficiary or beneficiaries of that
option.

               (iii) Should the Optionee’s Service be terminated for Misconduct or should the Optionee
otherwise engage in Misconduct while holding one or more outstanding options under this Article
Two, then all those options shall terminate immediately and cease to be outstanding.

               (iv) During the applicable post-Service exercise period, the option may not be exercised in
the aggregate for more than the number of vested shares for which that option is at the time
exercisable. No additional shares shall vest under the option following the Optionee’s cessation
of Service, except to the extent (if any) specifically authorized by the Plan Administrator in its
sole discretion pursuant to an express written agreement with the Optionee. Upon the expiration of
the applicable exercise period or (if earlier) upon the expiration of the option term, the option
shall terminate and cease to be outstanding for any shares for which the option has not been
exercised.

          2. The Plan Administrator shall have complete discretion, exercisable either at the time an
option is granted or at any time while the option remains outstanding, to:

               (i) extend the period of time for which the option is to remain exercisable following the
Optionee’s cessation of Service from the limited exercise period otherwise in effect for that
option to such greater period of time as the Plan Administrator shall deem appropriate, but in no
event beyond the expiration of the option term, and/or

               (ii) permit the option to be exercised, during the applicable post- Service exercise period,
not only with respect to the number of vested shares of Common Stock for which such option is
exercisable at the time of the Optionee’s cessation of Service but also with respect to one or more
additional installments in which the Optionee would have vested had the Optionee continued in
Service.

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     D. STOCKHOLDER RIGHTS. The holder of an option shall have no stockholder rights with respect
to the shares subject to the option until such person shall have exercised the option, paid the
exercise price and become a holder of record of the purchased shares.

     E. REPURCHASE RIGHTS. The Plan Administrator shall have the discretion to grant options which
are exercisable for unvested shares of Common Stock. Should the Optionee cease Service while
holding such unvested shares, the Corporation shall have the right to repurchase, at the exercise
price paid per share, any or all of those unvested shares. The terms upon which such repurchase
right shall be exercisable (including the period and procedure for exercise and the appropriate
vesting schedule for the purchased shares) shall be established by the Plan Administrator and set
forth in the document evidencing such repurchase right.

     F. TRANSFERABILITY OF OPTIONS. The transferability of options granted under the Plan shall be
governed by the following provisions:

               (i) Incentive Options. During the lifetime of the Optionee, Incentive Options shall
be exercisable only by the Optionee and shall not be assignable or transferable other than by will
or the laws of inheritance following the Optionee’s death.

               (ii) Non-Statutory Options. Non-Statutory Options shall be subject to the same
limitation on transfer as Incentive Options, except that the Plan Administrator may structure one
or more Non-Statutory Options so that the option may be assigned in whole or in part during the
Optionee’s lifetime by gift or pursuant to a domestic relations order to one or more Family Members
of the Optionee or to a trust established exclusively for Optionee and/or one or more such Family
Members. The assigned portion may only be exercised by the person or persons who acquire a
proprietary interest in the option pursuant to the assignment. The terms applicable to the
assigned portion shall be the same as those in effect for the option immediately prior to such
assignment and shall be set forth in such documents issued to the assignee as the Plan
Administrator may deem appropriate.

               (iii) Beneficiary Designation. Notwithstanding the foregoing, the Optionee may
designate one or more persons as the beneficiary or beneficiaries of his or her outstanding options
under this Article Two (whether Incentive Options or Non-Statutory Options), and those options
shall, in accordance with such designation, automatically be transferred to such beneficiary or
beneficiaries upon the Optionee’s death while holding those options. Such beneficiary or
beneficiaries shall take the transferred options subject to all the terms and conditions of the
applicable agreement evidencing each such transferred option, including (without limitation) the
limited time period during which the option may be exercised following the Optionee’s death.

2.2. INCENTIVE OPTIONS

     The terms specified below, together with any additions, deletions or changes thereto imposed
from time to time pursuant to the provisions of the Code governing Incentive Options, shall be
applicable to all Incentive Options. Except as modified by the provisions of this Section 2.2, all
the provisions of Articles One, Two and Six shall be applicable to Incentive Options.

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Options which are specifically designated as Non-Statutory Options when issued under the Plan
shall not be subject to the terms of this Section 2.2.

     A. ELIGIBILITY. Incentive Options may only be granted to Employees.

     B. DOLLAR LIMITATION. The aggregate Fair Market Value of the shares of Common Stock
(determined as of the respective date or dates of grant) for which one or more options granted to
any Employee under the Plan (or any other option plan of the Corporation or any Parent or
Subsidiary) may for the first time become exercisable as Incentive Options during any one calendar
year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the
Employee holds two (2) or more such options which become exercisable for the first time in the same
calendar year, then for purposes of the foregoing limitation on the exercisability of those options
as Incentive Options, such options shall be deemed to become first exercisable in that calendar
year on the basis of the chronological order in which they were granted, except to the extent
otherwise provided under applicable law or regulation.

     C. 10% STOCKHOLDER. If any Employee to whom an Incentive Option is granted is a 10%
Stockholder, then the exercise price per share shall not be less than one hundred ten percent
(110%) of the Fair Market Value per share of Common Stock on the option grant date, and the option
term shall not exceed five (5) years measured from the option grant date.

2.3. CORPORATE TRANSACTION/CHANGE IN CONTROL/HOSTILE TAKE-OVER

     A. No Award outstanding under the Discretionary Option Grant Program at the time of a
Corporate Transaction shall vest and become exercisable on an accelerated basis if and to the
extent that (i) such Award is, in connection with the Corporate Transaction, assumed by the
successor corporation (or parent thereof) or otherwise continued in full force and effect pursuant
to the express terms of the Corporate Transaction or (ii) such Award is replaced with a cash
incentive program of the successor corporation which preserves the spread (the excess of the Fair
Market Value of those shares over the exercise price in effect for the shares) existing at the time
of the Corporate Transaction on the shares of Common Stock as to which the Award is not otherwise
at that time vested and exercisable and provides for subsequent payout in accordance with the same
exercise/vesting schedule applicable to those shares or (iii) the acceleration of such Award is
subject to other limitations imposed by the Plan Administrator. However, if none of the foregoing
conditions are satisfied, each Award outstanding under the Discretionary Option Grant Program at
the time of the Corporate Transaction shall automatically accelerate so that each such Award shall,
immediately prior to the effective date of the Corporate Transaction, vest and become exercisable
as to all shares of Common Stock at the time subject to such Award and may be exercised for any or
all of those shares as fully vested shares of Common Stock.

     B. All outstanding repurchase rights under the Discretionary Option Grant Program shall
automatically terminate, and the shares of Common Stock subject to those terminated rights shall
immediately vest in full, in the event of any Corporate Transaction, except to the extent: (i)
those repurchase rights are to be assigned to the successor corporation (or parent thereof) in
connection with the Corporate Transaction or otherwise continue in full force and effect pursuant
to the express terms of the Corporate Transaction or (ii) such accelerated vesting is precluded by
other limitations imposed by the Plan Administrator.

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     C. Immediately following the consummation of the Corporate Transaction, all outstanding Awards
under the Discretionary Option Grant Program shall terminate and cease to be outstanding, except to
the extent assumed by the successor corporation (or parent thereof) in connection with the
Corporate Transaction or otherwise expressly continued in full force and effect pursuant to the
express terms of the Corporate Transaction.

     D. Each Award which is assumed in connection with a Corporate Transaction or otherwise
continued in effect shall be appropriately adjusted, immediately after such Corporate Transaction,
to apply to the number and class of securities which would have been issuable to the Optionee in
consummation of such Corporate Transaction had the Award been exercised immediately prior to such
Corporate Transaction. Appropriate adjustments to reflect such Corporate Transaction shall also be
made to (i) the exercise price payable per share under each outstanding Award, provided the
aggregate exercise price payable for such securities shall remain the same, (ii) the maximum number
and/or class of securities available for issuance over the remaining term of the Plan, and (iii)
the maximum number and/or class of securities for which any one person may be granted Awards under
the Plan per calendar year. To the extent the actual holders of the Corporation’s outstanding
Common Stock receive cash consideration for their Common Stock in consummation of the Corporate
Transaction, the successor corporation may, in connection with the assumption of the outstanding
Awards under the Discretionary Option Grant Program, substitute one or more shares of its own
common stock with a fair market value equivalent to the cash consideration paid per share of Common
Stock in such Corporate Transaction.

     E. The Plan Administrator shall have the discretionary authority to structure one or more
outstanding Awards under the Discretionary Option Grant Program so that those Awards shall,
immediately prior to the effective date of such Corporate Transaction, vest and become exercisable
for all the shares of Common Stock at the time subject to those Awards and may be exercised for any
or all of those shares as fully vested shares of Common Stock, whether or not those Awards are to
be assumed or otherwise continued in full force and effect pursuant to the terms of the Corporate
Transaction. In addition, the Plan Administrator shall have the discretionary authority to
structure one or more of the Corporation’s repurchase rights under the Discretionary Option Grant
Program so that those rights shall immediately terminate at the time of such Corporate Transaction
and shall not be assignable to the successor corporation (or parent thereof), and the shares
subject to those terminated rights shall accordingly vest in full at the time of such Corporate
Transaction.

     F. The Plan Administrator shall have full power and authority to structure one or more
outstanding Awards under the Discretionary Option Grant Program so that those Awards shall
immediately vest and become exercisable for all the shares of Common Stock at the time subject to
those Awards in the event the Optionee’s Service is subsequently terminated by reason of an
Involuntary Termination within a designated period (not to exceed eighteen (18) months) following
the effective date of any Corporate Transaction in which those Awards do not otherwise vest on an
accelerated basis. Any Awards so accelerated shall remain exercisable as to fully vested shares
until the expiration or sooner termination of their term. In addition, the Plan Administrator may
structure one or more of the Corporation’s repurchase rights under the Discretionary Option Grant
Program so that those rights shall immediately terminate with respect

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to any shares held by the Optionee at the time of his or her Involuntary Termination, and the
shares subject to those terminated repurchase rights shall accordingly vest in full at that time.

     G. The Plan Administrator shall have the discretionary authority to structure one or more
outstanding Awards under the Discretionary Option Grant Program so that those Awards shall,
immediately prior to the effective date of a Change in Control or Hostile Take-Over, as the case
may be, vest and become exercisable for all the shares of Common Stock at the time subject to those
Awards and may be exercised for any or all of those shares as fully vested shares of Common Stock.
In addition, the Plan Administrator shall have the discretionary authority to structure one or more
of the Corporation’s repurchase rights under the Discretionary Option Grant Program so that those
rights shall terminate automatically upon the consummation of such Change in Control or Hostile
Take-Over, as the case may be, and the shares subject to those terminated rights shall thereupon
vest in full. Alternatively, the Plan Administrator may condition the automatic acceleration of one
or more outstanding Awards under the Discretionary Option Grant Program and the termination of one
or more of the Corporation’s outstanding repurchase rights under such program upon the Involuntary
Termination of the Optionee’s Service within a designated period (not to exceed eighteen (18)
months) following the effective date of such Change in Control or Hostile Take-Over, as the case
may be. Each Award so accelerated shall remain exercisable for fully vested shares until the
expiration or sooner termination of their term.

     H. The portion of any Incentive Option accelerated in connection with a Corporate Transaction
or Change in Control or Hostile Take-Over shall remain exercisable as an Incentive Option only to
the extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the
extent such dollar limitation is exceeded, the accelerated portion of such option shall be
exercisable as a Nonstatutory Option under the Federal tax laws.

     I. Awards outstanding shall in no way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

2.4. STOCK APPRECIATION RIGHTS

     A. The Plan Administrator shall have full power and authority to grant to selected Optionees
tandem stock appreciation rights and/or limited stock appreciation rights.

     B. The following terms shall govern the grant and exercise of tandem stock appreciation
rights:

          (i) One or more Optionees may be granted the right, exercisable upon such terms as the Plan
Administrator may establish, to elect between the exercise of the underlying option for shares of
Common Stock and the surrender of that option in exchange for a distribution from the Corporation
in an amount equal to the excess of (a) the Fair Market Value (on the option surrender date) of the
number of shares in which the Optionee is at the time vested under the surrendered option (or
surrendered portion thereof) over (b) the aggregate exercise price payable for such shares.

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               (ii) No such option surrender shall be effective unless it is approved by the Plan
Administrator, either at the time of the actual option surrender or at any earlier time. If the
surrender is so approved, then the distribution to which the Optionee shall be entitled may be made
in shares of Common Stock valued at Fair Market Value on the option surrender date, in cash, or
partly in shares and partly in cash, as the Plan Administrator shall in its sole discretion deem
appropriate.

               (iii) If the surrender of an option is not approved by the Plan Administrator, then the
Optionee shall retain whatever rights the Optionee had under the surrendered option (or surrendered
portion thereof) on the option surrender date and may exercise such rights at any time prior to the
later of (a) five (5) business days after the receipt of the rejection notice or (b) the last day
on which the option is otherwise exercisable in accordance with the terms of the documents
evidencing such option, but in no event may such rights be exercised more than ten (10) years after
the option grant date.

     C. The following terms shall govern the grant and exercise of limited stock appreciation
rights:

               (i) One or more Section 16 Insiders may be granted limited stock appreciation rights with
respect to their outstanding options.

               (ii) Upon the occurrence of a Hostile Take-Over, each individual holding one or more options
with such a limited stock appreciation right shall have the unconditional right (exercisable for a
thirty (30)-day period following such Hostile Take-Over) to surrender each such option to the
Corporation. In return for the surrendered option, the Optionee shall receive a cash distribution
from the Corporation in an amount equal to the excess of (A) the Take-Over Price of the shares of
Common Stock at the time subject to such option (whether or not the option is otherwise at that
time exercisable for those shares) over (B) the aggregate exercise price payable for those shares.
Such cash distribution shall be paid within five (5) days following the option surrender date.

               (iii) At the time such limited stock appreciation right is granted, the Plan Administrator
shall pre-approve any subsequent exercise of that right in accordance with the terms of this
Paragraph C. Accordingly, no further approval of the Plan Administrator or the Board shall be
required at the time of the actual option surrender and cash distribution.

2.5. ONE-TIME EXCHANGE.

     Notwithstanding any other provision of the Plan to the contrary, upon approval of the
Corporation’s stockholders, the Plan Administrator may provide for, and the Corporation may
implement, a one-time only option exchange offer, pursuant to which certain outstanding
Non-Statutory Options could, at the election of the person holding such Non-Statutory Option, be
tendered to the Corporation for cancellation in exchange for the issuance of a lesser amount of
Non-Statutory Options with a lower exercise price, provided that such one-time only option exchange
offer is commenced within twelve (12) months of the date of such stockholder approval.

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ARTICLE THREE

RESTRICTED STOCK PROGRAM

3.1. RESTRICTED STOCK TERMS

     A. ISSUANCES. Shares of Restricted Stock may be issued under the Restricted Stock Program at
the discretion of the Plan Administrator through direct and immediate issuances without any
intervening option grants. Each such issuance of Restricted Stock shall be evidenced by a
Restricted Stock Agreement that complies with the terms specified below and such other provisions
as the Plan Administrator shall determine. Participants shall have no rights with respect to the
shares of Restricted Stock covered by a Restricted Stock Agreement until the Participant has paid
the full purchase price, if any, to the Corporation and has executed and delivered to the
Corporation the applicable Restricted Stock Agreement.

     B. PURCHASE PRICE.

          1. The purchase price per share of Restricted Stock issued under the Restricted Stock Program
shall be fixed by the Plan Administrator in its sole discretion, including no consideration or such
minimum consideration as may be required by applicable law.

          2. Shares of Restricted Stock may be issued under the Restricted Stock Program for any of the
following items of consideration that the Plan Administrator may deem appropriate in each
individual instance:

               (i) cash or check made payable to the Corporation; or

               (ii) any other valid form of consideration permissible under the Delaware General Corporation
Law at the time such shares are issued.

     C. VESTING PROVISIONS

          1. Shares of Restricted Stock issued under the Restricted Stock Program may, in the discretion
of the Plan Administrator, vest in one or more installments over the Participant’s period of
Service and/or upon attainment of specified performance objectives or such other criteria as the
Plan Administrator shall determine. The elements of the vesting schedule applicable to any
unvested shares of Restricted Stock issued under the Restricted Stock Program shall be determined
by the Plan Administrator and incorporated into the Restricted Stock Agreement. Notwithstanding
the foregoing, Awards of Restricted Stock issued subject to time-based vesting under the Restricted
Stock Program may not be made with a vesting schedule providing for full vesting in less than three
years from the date awarded. Awards of Restricted Stock issued subject to performance-based
vesting, as provided in Section 3.1.C.2 below, may not vest unless the Participant remains in the
Corporation’s Service for at least one year following the date awarded.

          2. The Plan Administrator shall also have the discretionary authority, consistent with Code
Section 162(m), to structure one or more Awards under the Restricted Stock Program so that the
shares of Restricted Stock subject to those Awards shall vest upon the

12

 

achievement of certain pre-established corporate performance goals based on one or more of the
following criteria: (i) return on total shareholder equity; (ii) earnings or net income per share
of Common Stock; (iii) net income or operating income; (iv) earnings before interest, taxes,
depreciation, amortization and stock-based compensation costs, or operating income before
depreciation and amortization; (v) sales or revenue targets; (vi) return on assets, capital or
investment; (vii) cash flow; (viii) market share; (ix) cost reduction goals; (x) budget
comparisons; (xi) implementation or completion of projects or processes strategic or critical to
the Corporation’s business operations; (xii) measures of customer satisfaction; (xiii) any
combination of, or a specified increase in, any of the foregoing; and (xiv) the formation of joint
ventures, research and development collaborations, marketing or customer service collaborations, or
the completion of other corporate transactions intended to enhance the Corporation’s revenue or
profitability or expand its customer base; provided, however, that for purposes of items (ii),
(iii), (iv) and (vii) above, the Plan Administrator may, at the time the Awards under the
Restricted Stock Program are made, specify certain adjustments to such items as reported in
accordance with generally accepted accounting principles in the U.S. (“GAAP”), which will exclude
from the calculation of those performance goals one or more of the following: certain charges
related to acquisitions, stock-based compensation, employer payroll tax expense on certain stock
option exercises, settlement costs, restructuring costs, gains or losses on strategic investments,
non-operating gains or losses, certain other non-cash charges, valuation allowance on deferred tax
assets, and the related income tax effects, purchases of property and equipment, and any
extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30,
provided that such adjustments are in conformity with those reported by the Corporation on a
non-GAAP basis. In addition, such performance goals may be based upon the attainment of specified
levels of the Corporation’s performance under one or more of the measures described above relative
to the performance of other entities and may also be based on the performance of any of the
Corporation’s business groups or divisions or any Parent or Subsidiary. Performance goals may
include a minimum threshold level of performance below which no award will be earned, levels of
performance at which specified portions of an award will be earned and a maximum level of
performance at which an award will be fully earned. The Plan Administrator may provide that, if
the actual level of attainment for any performance objective is between two specified levels, the
amount of the Award attributable to that performance objective shall be interpolated on a
straight-line basis.

          3. Any new, substituted or additional securities or other property (including money paid other
than as a regular cash dividend) which the Participant may have the right to receive with respect
to the Participant’s unvested shares of Restricted Stock by reason of any stock dividend, stock
split, recapitalization, combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation’s receipt of consideration shall be
issued subject to (i) the same vesting requirements applicable to the Participant’s unvested shares
of Restricted Stock and (ii) such escrow arrangements as the Plan Administrator shall deem
appropriate.

          4. The Participant shall have full voting rights with respect to any shares of Restricted
Stock issued to the Participant under the Restricted Stock Program, whether or not the
Participant’s interest in those shares is vested. Unless otherwise provided by the Plan
Administrator in the Restricted Stock Agreement, Participant shall also have the right to receive
any regular cash dividends paid on such shares. The Plan Administrator may apply any

13

 

restrictions to the dividends that the Plan Administrator deems appropriate. Without limiting
the generality of the preceding sentence, if the grant or vesting of shares of Restricted Stock is
designed to comply with the requirements of the performance-based exception from the tax
deductibility limitations of Code Section 162(m), the Plan Administrator may apply any restrictions
it deems appropriate to the payment of dividends declared with respect to such shares of Restricted
Stock, such that the dividends and/or the shares of Restricted Stock maintain eligibility for such
exception.

          5. The effect which death, Permanent Disability, termination of Service (other than for
Misconduct) or other event designated by the Plan Administrator is to have upon the vesting
schedule of a Restricted Stock Award shall be determined by the Plan Administrator and incorporated
into the Restricted Stock Agreement.

          6. Should the Participant’s Service be terminated for Misconduct or should the Participant
otherwise engage in Misconduct while holding one or more unvested shares of Restricted Stock, then
all such unvested shares of Restricted Stock shall be immediately surrendered to the Corporation
for cancellation, and the Participant shall have no further stockholder rights with respect to
those shares. To the extent the surrendered shares of Restricted Stock were previously issued to
the Participant for consideration paid in cash, cash equivalent or otherwise, the Corporation shall
repay to the Participant the same form of consideration as the Participant paid for the surrendered
shares.

          7. Should the Participant cease to remain in Service while holding one or more unvested shares
of Restricted Stock issued under the Restricted Stock Program or should the performance objectives
or other criteria not be attained with respect to one or more such unvested shares of Restricted
Stock, then those shares shall be immediately surrendered to the Corporation for cancellation, and
the Participant shall have no further stockholder rights with respect to those shares. To the
extent the surrendered shares were previously issued to the Participant for consideration paid in
cash, cash equivalent or otherwise, the Corporation shall repay to the Participant the same form of
consideration as the Participant paid for the surrendered shares.

          8. In the event of the Participant’s death, Permanent Disability, termination of Service
(other than for Misconduct), retirement or a Corporate Transaction or Change in Control, the Plan
Administrator may in its discretion waive the surrender and cancellation of one or more unvested
shares of Restricted Stock (or other assets attributable thereto) which would otherwise occur upon
the cessation of the Participant’s Service or the non-attainment of the performance objectives or
other criteria applicable to those shares. The Plan Administrator shall not otherwise have
discretion to waive the surrender and cancellation of unvested shares of Restricted Stock (or other
assets attributable thereto) which would otherwise occur pursuant to a previously determined
vesting schedule. Any such waiver shall result in the immediate vesting of the Participant’s
interest in the shares of Restricted Stock as to which the waiver applies. Such waiver may be
effected at any time, whether before or after the Participant’s cessation of Service or the
attainment or non-attainment of the applicable performance objectives or other criteria. However,
no vesting requirements tied to the attainment of performance objectives may be waived with respect
to shares that were intended at the time of issuance to qualify as

14

 

performance-based compensation under Code Section 162(m), except as otherwise provided in
Section 3.2.D of this Article Three.

3.2. CORPORATE TRANSACTION/CHANGE IN CONTROL

     A. No shares of Restricted Stock shall vest at the time of a Corporate Transaction on an
accelerated basis if and to the extent that (i) the Restricted Stock Agreement is, in connection
with the Corporate Transaction, continued or assumed by the successor corporation (or parent
thereof) or otherwise continued in full force and effect pursuant to the express terms of the
Corporate Transaction, (ii) substitution of new agreements of comparable value covering shares of
the successor corporation (or parent thereof) in exchange for such shares of Restricted Stock, with
appropriate adjustments as to the number and kind of shares and purchase price, is provided for
pursuant to the express terms of the Corporate Transaction or (iii) such accelerated vesting is
precluded by other limitations imposed by the Plan Administrator. However, if none of the
foregoing conditions are satisfied, immediately prior to the effective date of the Corporate
Transaction, all the shares of Restricted Stock shall automatically vest in full.

     B. The Plan Administrator shall have the discretionary authority, exercisable either at the
time the unvested shares of Restricted Stock are issued or at any time while they remain
outstanding under the Plan, to provide that the unvested shares of Restricted Stock shall
immediately vest upon a Corporate Transaction or Change in Control or upon an event or events
associated with or following such transactions, including termination of Service.

     C. If the Restricted Stock Agreement is continued or assumed by a successor corporation (or
parent thereof) or otherwise continued in full force and effect pursuant to the terms of the
Corporate Transaction or such accelerated vesting is precluded by other limitations imposed by the
Plan Administrator, each outstanding Award under the Restricted Stock Program in effect shall be
adjusted immediately after the consummation of that Corporate Transaction to apply to the number
and class of securities into which the shares of Restricted Stock subject to the Award immediately
prior to the Corporate Transaction would have been converted upon consummation of such Corporate
Transaction had those shares actually been outstanding and vested at that time, and appropriate
adjustments shall also be made to the consideration (if any) payable per share thereunder, provided
that the aggregate amount of such consideration shall remain the same.

     D. The Plan Administrator’s authority under Paragraph B of this Section 3.2 shall also extend
to any Awards intended to qualify as performance-based compensation under Code Section 162(m), even
though the automatic vesting of those Awards pursuant to Paragraph B of this Section 3.2 may result
in their loss of performance-based status under Code Section 162(m).

3.3. TRANSFERABILITY OF RESTRICTED STOCK

     Unvested shares of Restricted Stock may not be assigned, transferred, pledged or otherwise
encumbered or disposed of other than by will or the laws of inheritance following the Participant’s
death. Upon vesting, and after all other conditions and restrictions applicable to such shares of
Restricted Stock have been satisfied or lapse (including satisfaction of any applicable Withholding
Tax) pursuant to the applicable Restricted Stock Agreement, such shares

15

 

of Restricted Stock shall become freely transferable (subject to any restrictions under
applicable securities laws) by Participant.

3.4. DELIVERY OF SHARES/LEGENDS

     Unvested shares of Restricted Stock may, in the Plan Administrator’s discretion, be issued in
book entry or certificate form and shall remain in the possession or control of the Corporation
until such shares have vested, and all other conditions and restrictions applicable to such shares
have been satisfied or lapse (including satisfaction of any applicable Withholding Tax), in
accordance with the terms of the Restricted Stock Agreement. If issued in certificate form, such
certificates shall include such restrictive legends as deemed appropriate by the Plan
Administrator. The Plan Administrator may require a stock power endorsed in blank with respect to
shares of Restricted Stock whether or not certificated.

ARTICLE FOUR

RESTRICTED STOCK UNIT PROGRAM

4.1. RESTRICTED STOCK UNIT TERMS

     A. ISSUANCES. Restricted Stock Units which entitle the Participant to receive shares of
Common Stock underlying those units over the Participant’s period of Service and/or upon attainment
of specified performance objectives or such other criteria as the Plan Administrator shall
determine may be issued under the Restricted Stock Unit Program at the discretion of the Plan
Administrator. Each such issuance of Restricted Stock Units shall be evidenced by a Restricted
Stock Unit Agreement that complies with the terms specified below and such other provisions as the
Plan Administrator shall determine. Participants shall have no rights with respect to the
Restricted Stock Units covered by a Restricted Stock Unit Agreement until the Participant has paid
the full purchase price, if any, to the Corporation and has executed and delivered to the
Corporation the applicable Restricted Stock Unit Agreement.

     B. PURCHASE PRICE.

          1. The purchase price for Restricted Stock Units issued under the Restricted Stock Unit
Program shall be fixed by the Plan Administrator in its sole discretion, including no consideration
or such minimum consideration as may be required by applicable law.

          2. Restricted Stock Units may be issued under the Restricted Stock Unit Program for any of the
following items of consideration that the Plan Administrator may deem appropriate in each
individual instance:

               (i) cash or check made payable to the Corporation; or

               (ii) any other valid form of consideration permissible under the Delaware General Corporation
Law at the time such units are issued.

16

 

     C. VESTING PROVISIONS

          1. Restricted Stock Units issued under the Restricted Stock Unit Program may, in the
discretion of the Plan Administrator, vest in one or more installments over the Participant’s
period of Service and/or upon attainment of specified performance objectives or such other criteria
as the Plan Administrator shall determine. The elements of the vesting schedule applicable to any
unvested Restricted Stock Units issued under the Restricted Stock Unit Program shall be determined
by the Plan Administrator and incorporated into the Restricted Stock Unit Agreement.
Notwithstanding the foregoing, Awards of Restricted Stock Units issued subject to time-based
vesting under the Restricted Stock Unit Program may not be made with a vesting schedule providing
for full vesting in less than three years from the date awarded. Awards of Restricted Stock Units
issued subject to performance-based vesting, as provided in Section 4.1.C.2 below, may not vest
unless the Participant remains in the Corporation’s Service for at least one year following the
date awarded.

          2. The Plan Administrator shall also have the discretionary authority, consistent with Code
Section 162(m), to structure one or more Awards under the Restricted Stock Unit Program so that the
Restricted Stock Units subject to those Awards shall vest upon the achievement of certain
pre-established corporate performance goals based on one or more of the following criteria: (i)
return on total shareholder equity; (ii) earnings or net income per share of Common Stock; (iii)
net income or operating income; (iv) earnings before interest, taxes, depreciation, amortization
and stock-based compensation costs, or operating income before depreciation and amortization; (v)
sales or revenue targets; (vi) return on assets, capital or investment; (vii) cash flow; (viii)
market share; (ix) cost reduction goals; (x) budget comparisons; (xi) implementation or completion
of projects or processes strategic or critical to the Corporation’s business operations; (xii)
measures of customer satisfaction; (xiii) any combination of, or a specified increase in, any of
the foregoing; and (xiv) the formation of joint ventures, research and development collaborations,
marketing or customer service collaborations, or the completion of other corporate transactions
intended to enhance the Corporation’s revenue or profitability or expand its customer base;
provided, however, that for purposes of items (ii), (iii), (iv) and (vii) above, the Plan
Administrator may, at the time the Awards under the Restricted Stock Unit Program are made, specify
certain adjustments to such items as reported in accordance with GAAP, which will exclude from the
calculation of those performance goals one or more of the following: certain charges related to
acquisitions, stock-based compensation, employer payroll tax expense on certain stock option
exercises, settlement costs, restructuring costs, gains or losses on strategic investments,
non-operating gains or losses, certain other non-cash charges, valuation allowance on deferred tax
assets, and the related income tax effects, purchases of property and equipment, and any
extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30,
provided that such adjustments are in conformity with those reported by the Corporation on a
non-GAAP basis. In addition, such performance goals may be based upon the attainment of specified
levels of the Corporation’s performance under one or more of the measures described above relative
to the performance of other entities and may also be based on the performance of any of the
Corporation’s business groups or divisions or any Parent or Subsidiary. Performance goals may
include a minimum threshold level of performance below which no award will be earned, levels of
performance at which specified portions of an award will be earned and a maximum level of
performance at which an award will be fully earned. The Plan Administrator may provide that, if
the actual level of attainment for any performance objective is between two specified levels, the

17

 

amount of the Award attributable to that performance objective shall be interpolated on a
straight-line basis.

          3. The Participant shall not have any stockholder rights with respect to the shares of Common
Stock subject to a Restricted Stock Unit until that Award vests, all other conditions and
restrictions applicable to such Restricted Stock Unit have been satisfied or lapsed (including
satisfaction of any applicable Withholding Tax) pursuant to the applicable Restricted Stock Unit
Agreement, and the shares of Common Stock are actually issued thereunder. However,
dividend-equivalent units may be paid or credited, either in cash or in actual or phantom shares of
Common Stock, on outstanding Restricted Stock Unit Awards, subject to such terms and conditions as
the Plan Administrator may deem appropriate.

          4. The effect which death, Permanent Disability, termination of Service (other than for
Misconduct) or other event designated by the Plan Administrator is to have upon the vesting
schedule of a Restricted Stock Unit Award shall be determined by the Plan Administrator and
incorporated into the Restricted Stock Unit Agreement.

          5. Should the Participant’s Service be terminated for Misconduct or should the Participant
otherwise engage in Misconduct while holding one or more unvested Restricted Stock Units, then all
such unvested Restricted Stock Units shall be immediately and automatically canceled, no shares of
Common Stock will be issued in satisfaction of those units, and the Participant shall have no
further rights with respect to those units. To the extent the canceled Restricted Stock Units were
previously issued to the Participant for consideration paid in cash, cash equivalent or otherwise,
the Corporation shall repay to the Participant the same form of consideration as the Participant
paid for the canceled units.

          6. Should the Participant cease to remain in Service while holding one or more unvested
Restricted Stock Units issued under the Restricted Stock Unit Program or should the performance
objectives not be attained with respect to one or more such unvested Restricted Stock Units, then
those units shall be immediately and automatically canceled, no shares of Common Stock will be
issued in satisfaction of those units, and the Participant shall have no further rights with
respect to those units. To the extent the canceled Restricted Stock Units were previously issued
to the Participant for consideration paid in cash, cash equivalent or otherwise, the Corporation
shall repay to the Participant the same form of consideration as the Participant paid for the
canceled units.

          7. Outstanding Restricted Stock Units under the Restricted Stock Unit Program shall
automatically terminate, and no shares of Common Stock shall actually be issued in satisfaction of
those units, if the performance goals or other criteria established for such units or the Service
requirements established for such units are not attained or satisfied. The Plan Administrator,
however, shall have the discretionary authority to issue vested shares of Common Stock under one or
more outstanding Restricted Stock Units as to which the designated performance goals or other
criteria or Service requirements have not been attained or satisfied, but only in the event of the
Participant’s death, Permanent Disability, termination of Service (other than for Misconduct),
retirement or a Corporate Transaction or Change in Control. The Plan Administrator shall not
otherwise have discretion to waive the surrender and cancellation of unvested Restricted Stock
Units (or other assets attributable thereto) which would otherwise

18

 

occur pursuant to a previously determined vesting schedule. However, no vesting requirements
tied to the attainment of performance goals may be waived with respect to Awards of Restricted
Stock Units which were at the time of grant intended to qualify as performance-based compensation
under Code Section 162(m), except as otherwise provided in Section 4.2.D of this Article Four.

	4.2.	 	CORPORATE TRANSACTION/CHANGE IN CONTROL

     A. No Restricted Stock Units shall vest at the time of a Corporate Transaction on an
accelerated basis if and to the extent that (i) the Restricted Stock Unit Agreement is, in
connection with the Corporate Transaction, continued or assumed by the successor corporation (or
parent thereof) or otherwise continued in full force and effect pursuant to the express terms of
the Corporate Transaction, (ii) substitution of new agreements of comparable value covering shares
of the successor corporation (or parent thereof) in exchange for such Restricted Stock Units, with
appropriate adjustments as to the number and kind of shares and purchase price, is provided for
pursuant to the terms of the Corporate Transaction or (iii) such accelerated vesting is precluded
by other limitations imposed by the Plan Administrator. However, if none of the foregoing
conditions are satisfied, immediately prior to the effective date of the Corporate Transaction, all
the unvested Restricted Stock Units shall automatically vest in full.

     B. The Plan Administrator shall have the discretionary authority, exercisable either at the
time the unvested Restricted Stock Units are issued or at any time while they remain outstanding
under the Plan, to provide that the unvested Restricted Stock Units shall immediately vest upon a
Corporate Transaction or Change in Control or upon an event or events associated with or following
such transactions, including termination of Service.

     C. If the Restricted Stock Unit Agreement is continued or assumed by a successor corporation
(or parent thereof) or otherwise continued in full force and effect pursuant to the express terms
of the Corporate Transaction or such accelerated vesting is precluded by other limitations imposed
by the Plan Administrator, each outstanding Award under the Restricted Stock Unit Program in effect
shall be adjusted immediately after the consummation of that Corporate Transaction to apply to the
number and class of securities into which the shares of Common Stock underlying those Restricted
Stock Units subject to the Award immediately prior to the Corporate Transaction would have been
converted in consummation of such Corporate Transaction had those units actually been outstanding
and vested at that time, and appropriate adjustments shall also be made to the consideration (if
any) payable per unit thereunder, provided that the aggregate amount of such consideration shall
remain the same.

     D. The Plan Administrator’s authority under Paragraph B of this Section 4.2 shall also extend
to any Awards intended to qualify as performance-based compensation under Code Section 162(m), even
though the automatic vesting of those Awards pursuant to Paragraph B of this Section 4.2 may result
in their loss of performance-based status under Code Section 162(m).

	4.3.	 	TRANSFERABILITY OF RESTRICTED STOCK UNITS

     Until vested, Restricted Stock Units may not be assigned, transferred, pledged or otherwise
encumbered or disposed of other than by will or the laws of inheritance following the

19

 

Participant’s death. Upon vesting, and after all other conditions and restrictions applicable
to such Common Stock subject to such Restricted Stock Units have been satisfied or lapse (including
satisfaction of any applicable Withholding Tax) pursuant to the applicable Restricted Stock Unit
Agreement, the shares of Common Stock subject to such Restricted Stock Unit shall become freely
transferable (subject to any restrictions under applicable securities laws) by Participant.

	4.4.	 	DELIVERY OF SHARES/COMPLIANCE WITH SECTION 409A

     A. Upon vesting and satisfaction of all other conditions and restrictions applicable to the
Restricted Stock Units (including satisfaction of any applicable Withholding Tax) pursuant to the
applicable Restricted Stock Unit Agreement, certificates representing the shares of Common Stock
underlying such Restricted Stock Units shall be issued to Participant.

     B. Notwithstanding the foregoing, the Plan Administrator may permit or require a Participant
to defer such Participant’s delivery of shares of Common Stock that would otherwise be due to such
Participant with respect to the Restricted Stock Units. If any such deferral or election is
required or permitted, the Plan Administrator shall, in its sole discretion, establish rules and
procedures for such delivery deferrals which shall be consistent with the requirements of Code
Section 409A and the Treasury regulations and rules promulgated thereunder, and including the
requirement that the deferral election be entered into at the time of the grant and that the
delivery date thereof be consistent with a permissible distribution date under Code Section 409A.

ARTICLE FIVE

DIRECTOR AUTOMATIC GRANT PROGRAM

	5.1.	 	TERMS

     This Article Five of the Plan was amended and restated effective as of March 26, 2010. All
options outstanding under the Automatic Option Grant Program on March 26, 2010 continued in full
force and effect in accordance with the existing terms of the agreements evidencing those options,
and no change in this Article Five affected those options.

     A. GRANT/ISSUANCE DATES. Grants and issuances under this amended and restated Article Five
shall be made on the dates specified below:

          1. On the date of each annual meeting of stockholders, beginning with the 2010 Annual Meeting
of Stockholders, each individual who is to continue to serve as an Eligible Director, whether or
not that individual is standing for re-election to the Board at that particular annual meeting,
shall automatically be issued 15,000 shares of Restricted Stock and granted a Non-Statutory Option
to purchase 25,000 shares of Common Stock, provided that such individual has served as an Eligible
Director for at least six (6) months. There shall be no limit on the number of such annual option
grants and Restricted Stock Awards any one Eligible Director may receive over his or her period of
Board Service.

20

 

          2. Each individual who is first elected or appointed as an Eligible Director at any time on or
after the 2010 Annual Meeting of Stockholders, other than at an annual meeting of stockholders,
shall, on the date he or she commences Service as an Eligible Director, automatically be issued
15,000 shares of Restricted Stock and granted a Non-Statutory Option to purchase 25,000 shares of
Common Stock.

          3. Each such issuance of Restricted Stock pursuant to the Director Automatic Grant Program
shall be evidenced by a Restricted Stock Agreement that complies with the terms specified below.
Participants shall have no rights with respect to the shares of Restricted Stock covered by a
Restricted Stock Agreement until the Participant has executed and delivered to the Corporation the
applicable Restricted Stock Agreement.

     B. OPTION EXERCISE PRICE

          1. The exercise price per share for each option granted under this Article Five shall be equal
to one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option
grant date.

          2. The exercise price shall be payable in one or more of the alternative forms authorized
under the Discretionary Option Grant Program. Except to the extent the sale and remittance
procedure specified thereunder is utilized, payment of the exercise price for the purchased shares
must be made on the Exercise Date.

     C. OPTION TERM. Each option shall have a term of seven (7) years measured from the option
grant date.

     D. EXERCISE AND VESTING OF OPTIONS. Each option shall be immediately exercisable and fully
vested as of the grant date for any or all of the option shares.

     E. TRANSFERABILITY OF OPTIONS. Each option granted under the Director Automatic Grant Program
may be assigned in whole or in part during the Optionee’s lifetime by gift or pursuant to a
domestic relations order to one or more Family Members of the Optionee or to a trust established
exclusively for Optionee and/or one or more such Family Members. The assigned portion may only be
exercised by the person or persons who acquire a proprietary interest in the option pursuant to the
assignment. The terms applicable to the assigned portion shall be the same as those in effect for
the option immediately prior to such assignment and shall be set forth in such documents issued to
the assignee as the Plan Administrator may deem appropriate. The Optionee may also designate one
or more persons as the beneficiary or beneficiaries of his or her outstanding options under this
Article Five, and those options shall, in accordance with such designation, automatically be
transferred to such beneficiary or beneficiaries upon the Optionee’s death while holding those
options. Such beneficiary or beneficiaries shall take the transferred options subject to all the
terms and conditions of the applicable agreement evidencing each such transferred option, including
(without limitation) the limited time period during which the option may be exercised following the
Optionee’s death.

     F. TERMINATION OF BOARD SERVICE. The following provisions shall govern the exercise of any
outstanding options under the Director Automatic Grant Program held by the Optionee at the time the
Optionee ceases to serve as a Board member:

21

 

          (i) Subject to (ii) below, the Optionee (or, in the event of Optionee’s death, the personal
representative of the Optionee’s estate or the person or persons to whom the option is transferred
pursuant to the Optionee’s will or the laws of inheritance or the designated beneficiary or
beneficiaries of such option) shall have a twelve (12)-month period following the date of such
cessation of Board service in which to exercise each such option.

          (ii) In no event shall the option remain exercisable after the expiration of the option term.
Upon the expiration of the twelve (12)-month exercise period or (if earlier) upon the expiration of
the option term, the option shall terminate and cease to be outstanding for any shares for which
the option has not been exercised.

     G. VESTING OF RESTRICTED STOCK. Each Restricted Stock Award under the Director Automatic
Grant Program shall vest in a series of three successive annual installments over the three-year
period measured from the grant date of such Award.

          1. The annual vesting dates for Restricted Stock Awards pursuant to Section 5.1.A.1 shall be
as follows:

               (i) 5,000 shares of Restricted Stock shall vest on the earlier of (i) the first anniversary of
the grant date of such Award or (ii) the day immediately preceding the date of the first annual
meeting of stockholders following the grant date of such Award;

               (ii) 5,000 shares of Restricted Stock shall vest on the earlier of (i) the second anniversary
of the grant date of such Award or (ii) the day immediately preceding the date of the second annual
meeting of stockholders following the grant date of such Award; and

               (iii) 5,000 shares of Restricted Stock shall vest on the earlier of (i) the third anniversary
of the grant date of such Award or (ii) the day immediately preceding the date of the third annual
meeting of stockholders following the grant date of such Award.

          2. The annual vesting dates for Restricted Stock Awards pursuant to Section 5.1.A.2 shall be
as follows:

               (i) 5,000 shares of Restricted Stock shall vest on the first anniversary of the grant date of
such Award;

               (ii) 5,000 shares of Restricted Stock shall vest on the second anniversary of the grant date
of such Award; and

               (iii) 5,000 shares of Restricted Stock shall vest on the third anniversary of the grant date
of such Award.

The Board member shall not vest in any additional shares of Restricted Stock following his or her
cessation of Service as a Board member; provided, however, that each Restricted Stock Award held by
an Eligible Director under the Director Automatic Grant Program will immediately vest in full upon
his or her cessation of Board Service by reason of death or Permanent Disability. Upon the
cessation of Service of any Board member while holding one or more unvested shares of Restricted
Stock issued under the Director Automatic Grant Program,

22

 

those unvested shares of Restricted Stock shall be immediately surrendered to the Corporation for
cancellation, and the Board member shall have no further stockholder rights with respect to those
shares.

          3. Unvested shares of Restricted Stock may be issued in book entry or certificate form and
shall remain in the possession or control of the Corporation until such shares have vested, and all
other conditions and restrictions applicable to such shares have been satisfied or lapse (including
satisfaction of any applicable Withholding Tax), in accordance with the terms of the Restricted
Stock Agreement. If issued in certificate form, such certificates shall include restrictive
legends. A stock power endorsed in blank with respect to shares of Restricted Stock whether or not
certificated will be required.

     H. TRANSFERABILITY OF RESTRICTED STOCK. Unvested shares of Restricted Stock may not be
assigned, transferred, pledged or otherwise encumbered or disposed of other than by will or the
laws of inheritance following the Participant’s death. Upon vesting, and after all other
conditions and restrictions applicable to such shares of Restricted Stock have been satisfied or
lapse (including satisfaction of any applicable Withholding Tax) pursuant to the applicable
Restricted Stock Agreement, such shares of Restricted Stock shall become freely transferable
(subject to any restrictions under applicable securities laws) by Participant.

	5.2.	 	CORPORATE TRANSACTION/CHANGE IN CONTROL/HOSTILE TAKE-OVER

     A. In the event of a Corporate Transaction while the Eligible Director remains a Board member,
the following provisions shall apply:

          (i) Immediately following the consummation of the Corporate Transaction, each automatic option
grant shall terminate and cease to be outstanding, except to the extent assumed by the successor
corporation (or parent thereof) or otherwise continued in full force and effect pursuant to the
express terms of the Corporate Transaction.

          (ii) The shares of Restricted Stock subject to any outstanding Restricted Stock Award made to
such Eligible Director under the Director Automatic Grant Program which remain unvested at the time
of such Corporate Transaction shall, immediately prior to the effective date of the Corporate
Transaction, automatically vest in full.

     B. In the event of a Change in Control while the Eligible Director remains a Board member, the
following provisions shall apply:

          (i) Each automatic option grant to such Eligible Director under the Director Automatic Grant
Program shall remain exercisable for such option shares until the expiration or sooner termination
of the option term or the surrender of the option in connection with a Hostile Take-Over.

          (ii) The shares of Restricted Stock subject to any outstanding Restricted Stock Award made to
such Eligible Director under the Director Automatic Grant Program which remain unvested at the time
of such Change in Control shall, immediately prior to the effective date of the Change in Control,
automatically vest in full.

23

 

     C. Upon the occurrence of a Hostile Take-Over while the Eligible Director remains a Board
member, the Eligible Director shall have a thirty (30)-day period in which to surrender to the
Corporation each of his or her outstanding option grants under the Director Automatic Grant
Program. The Eligible Director shall in return be entitled to a cash distribution from the
Corporation in an amount equal to the excess of (i) the Take-Over Price of the shares of Common
Stock at the time subject to each surrendered option (whether or not the Eligible Director is
otherwise at the time vested in those shares) over (ii) the aggregate exercise price payable for
such shares. Such cash distribution shall be paid within five (5) days following the surrender of
the option to the Corporation. No approval or consent of the Board or any Plan Administrator shall
be required at the time of the actual option surrender and cash distribution.

     D. Each option which is assumed in connection with a Corporate Transaction or otherwise
continued in full force or effect shall be appropriately adjusted, immediately after such Corporate
Transaction, to apply to the number and class of securities which would have been issuable to the
Eligible Director in consummation of such Corporate Transaction had the option been exercised
immediately prior to such Corporate Transaction. Appropriate adjustments to reflect such Corporate
Transaction shall also be made to (i) the exercise price payable per share under each outstanding
option, provided the aggregate exercise price payable for such securities shall remain the same and
(ii) the number and/or class of securities for which grants are subsequently to be made under the
Director Automatic Grant Program to new and continuing Eligible Directors. To the extent the
actual holders of the Corporation’s outstanding Common Stock receive cash consideration for their
Common Stock in consummation of the Corporate Transaction, the successor corporation may, in
connection with the assumption of the outstanding options under the Director Automatic Grant
Program, substitute one or more shares of its own common stock with a fair market value equivalent
to the cash consideration paid per share of Common Stock in such Corporate Transaction.

     E. The existence of any Awards under the Director Automatic Grant Program shall in no way
affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its
capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

	5.3.	 	REMAINING TERMS

     A. The remaining terms of each option granted under the Director Automatic Grant Program shall
be the same as the terms in effect for option grants made under the Discretionary Option Grant
Program.

     B. The remaining terms of each Restricted Stock Award under the Director Automatic Grant
Program shall be the same as the terms in effect for Restricted Stock Awards under the Restricted
Stock Program.

24

 

ARTICLE SIX

MISCELLANEOUS

	6.1.	 	TAX WITHHOLDING

     A. The Corporation’s obligation to deliver shares of Common Stock upon the issuance, exercise
or vesting of Awards under the Plan shall be subject to the satisfaction of all applicable federal,
state and local income and employment tax withholding requirements.

     B. The Plan Administrator may, in its discretion, provide any or all Optionees or Participants
to whom Awards are made under the Plan (other than Awards made under the Director Automatic Grant
Program) with the right to use either or both of the following methods to satisfy all or part of
the Withholding Taxes to which those holders may become subject in connection with the issuance,
exercise or vesting of those Awards:

          Stock Withholding: The election to have the Corporation withhold, from the shares of Common
Stock otherwise issuable upon the issuance, exercise or vesting of those Awards, a portion of those
shares with an aggregate Fair Market Value equal to the percentage of the Withholding Taxes (not to
exceed one hundred percent (100%)) designated by the Optionee or Participant and make a cash
payment equal to such Fair Market Value directly to the appropriate taxing authorities on such
individual’s behalf.

          Stock Delivery: The election to deliver to the Corporation, at the time the Award is issued,
exercised or vests, one or more shares of Common Stock previously acquired by such Optionee or
Participant (other than in connection with the option issuance, exercise or vesting triggering the
Withholding Taxes) with an aggregate Fair Market Value equal to the percentage of the Withholding
Taxes (not to exceed one hundred percent (100%)) designated by such holder. The shares of Common
Stock so delivered shall not be added to the shares of Common Stock authorized for issuance under
the Plan.

	6.2.	 	EFFECTIVE DATE AND TERM OF THE PLAN

     A. The Plan became effective on the Plan Effective Date. Awards may be granted under the
Discretionary Option Grant Program, the Restricted Stock Program, the Restricted Stock Unit Program
and the Director Automatic Grant Program.

     B. The Plan shall serve as the successor to the Predecessor Plans, and no further option
grants shall be made under the Predecessor Plans after the Plan Effective Date. All options
outstanding under the Predecessor Plans on the Plan Effective Date were incorporated into the Plan
at that time and shall be treated as outstanding options under the Plan. However, each outstanding
option so incorporated shall continue to be governed solely by the terms of the documents
evidencing such option, and no provision of the Plan shall be deemed to affect or otherwise modify
the rights or obligations of the holders of such incorporated options with respect to their
acquisition of shares of Common Stock.

     C. One or more provisions of the Plan, including (without limitation) the option/vesting
acceleration provisions of Article Two relating to Corporate Transactions, Change

25

 

in Control and Hostile Take-Over may, in the Plan Administrator’s discretion, be extended to
one or more options incorporated from the Predecessor Plans which do not otherwise contain such
provisions.

     D. The Plan was restated by the Board on March 26, 2010 to reflect all prior amendments.

     E. The Plan shall terminate upon the earliest to occur of (i) February 5, 2019, (ii) the date
on which all shares available for issuance under the Plan shall have been issued as fully-vested
shares or (iii) the termination of all outstanding Awards in connection with a Corporate
Transaction. Should the Plan terminate on February 5, 2019, then all Awards outstanding at that
time shall continue to have force and effect in accordance with the provisions of the documents
evidencing such Awards.

	6.3.	 	AMENDMENT OF THE PLAN.

     Except as provided below, the Board shall have complete and exclusive power and authority to
amend, modify, suspend or terminate the Plan in any or all respects. However, no such amendment,
modification, suspension or termination shall adversely affect the rights and obligations with
respect to Awards at the time outstanding under the Plan unless the Optionee or the Participant
consents to such amendment or modification or, unless approved by the stockholders, permit the Plan
Administrator to reset the exercise price of outstanding options or grant new Awards in exchange
for the cancellation of outstanding options with a higher exercise price. In addition, stockholder
approval will be required for any amendment to the Plan that would (i) materially increase the
benefits accruing to the Optionees and Participants under the Plan or materially reduce the price
at which shares of Common Stock may be issued or purchased under the Plan, (ii) materially increase
the aggregate number of securities that may be issued under the Plan, (iii) materially modify the
requirements as to eligibility for participation in the Plan, (iv) materially extend the term of
the Plan or (v) expand the type of awards available for issuance under the Plan, then to the extent
required by applicable law, or deemed necessary or advisable by the Plan Administrator or the Board
of Directors, such amendment shall be subject to stockholder approval.

	6.4.	 	USE OF PROCEEDS

     Any cash proceeds received by the Corporation from the sale of shares of Common Stock under
the Plan shall be used for general corporate purposes.

	6.5.	 	REGULATORY APPROVALS

     A. The implementation of the Plan, the grant of any Award and the issuance of shares of Common
Stock in connection with the issuance, exercise or vesting of any Award shall be subject to the
Corporation’s procurement of all approvals and permits required by regulatory authorities having
jurisdiction over the Plan, Awards made under the Plan and the shares of Common Stock issuable
pursuant to those Awards.

     B. No shares of Common Stock or other assets shall be issued or delivered under the Plan
unless and until there shall have been compliance with all applicable requirements of

26

 

Federal and state securities laws, including the filing and effectiveness of the Form S-8
registration statement for the shares of Common Stock issuable under the Plan, and all applicable
listing requirements of any stock exchange on which Common Stock is then listed for trading.

	6.6.	 	NO EMPLOYMENT/SERVICE RIGHTS

     Nothing in the Plan shall confer upon the Optionee or the Participant any right to continue in
Service for any period of specific duration or interfere with or otherwise restrict in any way the
rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of
the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate
such person’s Service at any time for any reason, with or without cause.

27

 

APPENDIX

     The following definitions shall be in effect under the Plan:

     A. Award shall mean any of the following stock or stock-based awards authorized for
issuance or grant under the Plan: stock option, stock appreciation right, Restricted Stock or
Restricted Stock Unit award.

     B. Board shall mean the Corporation’s Board of Directors.

     C. Change in Control shall mean a change in ownership or control of the Corporation
effected through either of the following transactions:

          (i) the acquisition, directly or indirectly by any person or related group of persons (other
than the Corporation or a person that directly or indirectly controls, is controlled by, or is
under common control with, the Corporation), of beneficial ownership (within the meaning of Rule
13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer
made directly to the Corporation’s stockholders, or

          (ii) a change in the composition of the Board over a period of thirty-six (36) consecutive
months or less such that a majority of the Board members ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who either (A) have been Board
members continuously since the beginning of such period or (B) have been elected or nominated for
election as Board members during such period by at least a majority of the Board members described
in clause (A) who were still in office at the time the Board approved such election or nomination.

     D. Code shall mean the Internal Revenue Code of 1986, as amended.

     E. Common Stock shall mean the Corporation’s common stock.

     F. Corporate Transaction shall mean either of the following stockholder- approved
transactions to which the Corporation is a party:

          (i) a merger or consolidation in which securities possessing more than fifty percent (50%) of
the total combined voting power of the Corporation’s outstanding securities are transferred to a
person or persons different from the persons holding those securities immediately prior to such
transaction, or

          (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s
assets in complete liquidation or dissolution of the Corporation.

     G. Corporation shall mean Quiksilver, Inc., a Delaware corporation, and any corporate
successor to all or substantially all of the assets or voting stock of Quiksilver, Inc. which shall
by appropriate action adopt the Plan.

28

 

     H. Director Automatic Grant Program shall mean the director automatic grant program in
effect under Article Five of the Plan for the Eligible Directors.

     I. Discretionary Option Grant Program shall mean the discretionary option grant
program in effect under Article Two of the Plan.

     J. Eligible Director shall mean a Board member who is not, at the time of such
determination, an employee of the Corporation (or any Parent or Subsidiary) and who is accordingly
eligible to participate in the Director Automatic Grant Program in accordance with the eligibility
provisions of Articles One and Five.

     K. Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance.

     L. Exercise Date shall mean the date on which the Corporation shall have received
written notice of the option exercise.

     M. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

          (i) If the Common Stock is at the time traded on the Nasdaq Global Select Market (or the
Nasdaq Global Market), then the Fair Market Value shall be the closing selling price per share of
Common Stock at the close of regular hours trading (i.e., before after-hours trading begins) on the
Nasdaq Global Stock Market (or the Nasdaq Global Market) on the date in question, as such price is
reported by The Wall Street Journal. If there is no closing selling price for the Common Stock on
the date in question, then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

          (ii) If the Common Stock is at the time listed on any other Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock at the close of regular
hours trading (i.e., before after-hours trading begins) on the date in question on the Stock
Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as
such price is officially quoted in the composite tape of transactions on such exchange. If there
is no closing selling price for the Common Stock on the date in question, then the Fair Market
Value shall be the closing selling price on the last preceding date for which such quotation
exists.

          (iii) If the Common Stock is at the time not listed on any established stock exchange,
the Fair Market Value shall be determined by the Board in good faith.

     N. Family Member means, with respect to a particular Optionee or Participant, any
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or
sister-in-law.

     O. Hostile Take-Over shall mean the acquisition, directly or indirectly, by any person
or related group of persons (other than the Corporation or a person that directly or

29

 

indirectly controls, is controlled by, or is under common control with, the Corporation) of
beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing
more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding
securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders
which the Board does not recommend such stockholders to accept.

     P. Incentive Option shall mean an option which satisfies the requirements of Code
Section 422.

     Q. Involuntary Termination shall mean the termination of the Service of any individual
which occurs by reason of:

          (i) such individual’s involuntary dismissal or discharge by the Corporation for reasons other
than Misconduct, or

          (ii) such individual’s voluntary resignation following (A) a change in his or her position
with the Corporation which materially reduces his or her duties and responsibilities or the level
of management to which he or she reports, (B) a reduction in his or her level of compensation
(including base salary, fringe benefits and target bonus under any corporate-performance based
bonus or incentive programs) by more than twenty percent (20%) or (C) a relocation of such
individual’s place of employment by more than fifty (50) miles, provided and only if such change,
reduction or relocation is effected by the Corporation without the individual’s consent.

     R. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by the Optionee or Participant, any unauthorized use or disclosure by such person of
confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any
other intentional misconduct by such person adversely affecting the business or affairs of the
Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not
be deemed to be inclusive of all the acts or omissions which the Corporation (or any Parent or
Subsidiary) may consider as grounds for the dismissal or discharge of any Optionee, Participant or
other person in the Service of the Corporation (or any Parent or Subsidiary).

     S. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

     T. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

     U. Optionee shall mean any person to whom an option is granted under the Discretionary
Option Grant or Director Automatic Grant Program.

     V. Parent shall mean any corporation (other than the Corporation) in an unbroken chain
of corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

30

 

     W. Participant shall mean any person who is issued shares of Restricted Stock under
the Restricted Stock Program or under the Director Automatic Grant Program, and any person who is
issued Restricted Stock Units under the Restricted Stock Unit Program.

     X. Permanent Disability Or Permanently Disabled shall mean the inability of the
Optionee or the Participant to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which is both (i) expected to result in death
or determined to be total and permanent by two (2) physicians selected by the Corporation or its
insurers and acceptable to the Optionee or the Participant (or the Optionee’s or Participant’s
legal representative), and (ii) to the extent the Optionee is eligible to participate in the
Corporation’s long-term disability plan, entitles the Optionee or the Participant to the payment of
long-term disability benefits from the Corporation’s long-term disability plan. The process for
determining a Permanent Disability in accordance with the foregoing shall be completed no later
than the later of (i) the close of the calendar year in which the Optionee’s or the Participant’s
Service terminates by reason of the physical or mental impairment triggering the determination
process or (ii) the fifteenth day of the third calendar month following such termination of
Service. However, solely for purposes of the Director Automatic Grant Program, Permanent Disability
or Permanently Disabled shall mean the inability of the Eligible Director to perform his or her
usual duties as a Board member by reason of any medically determinable physical or mental
impairment expected to result in death or to be of continuous duration of twelve (12) months or
more.

     Y. Plan shall mean the Corporation’s 2000 Stock Incentive Plan, as amended and
restated and set forth in this document.

     Z. Plan Administrator shall mean the particular entity, whether the Primary Committee,
the Board or the Secondary Committee, which is authorized to administer the Discretionary Option
Grant, Restricted Stock and Restricted Stock Unit Programs with respect to one or more classes of
eligible persons, to the extent such entity is carrying out its administrative functions under
those programs with respect to the persons under its jurisdiction.

     AA. Plan Effective Date shall mean March 31, 2000.

     BB. Predecessor Plans shall mean the Corporation’s (i) 1996 Stock Option Plan, (ii)
the 1998 Nonemployee Directors’ Stock Option Plan, (iii) the 1995 Nonemployee Directors’ Stock
Option Plan and (iv) the 1992 Nonemployee Directors’ Stock Option Plan, as each of those plans was
in effect immediately prior to the Plan Effective Date hereunder.

     CC. Primary Committee shall mean the committee of two (2) or more Eligible Directors
appointed by the Board to administer the Discretionary Option Grant, Restricted Stock and
Restricted Stock Unit Programs with respect to Section 16 Insiders.

     DD. Restricted Stock shall mean shares of Common Stock issued to a Participant
pursuant to the Restricted Stock or Director Automatic Grant Program, subject to such restrictions
and conditions as are established pursuant to such Restricted Stock or Director Automatic Grant
Program.

31

 

     EE. Restricted Stock Agreement shall mean the agreement entered into by the
Corporation and the Participant at the time of grant of Restricted Stock under the Restricted Stock
or Automatic Director Grant Programs.

     FF. Restricted Stock Program shall mean the discretionary Restricted Stock program
under Article Three of the Plan.

     GG. Restricted Stock Unit shall mean the right to receive one share of Common Stock
issued pursuant to the Restricted Stock Unit Program, subject to such restrictions and conditions
as are established pursuant to the Restricted Stock Unit Program.

     HH. Restricted Stock Unit Agreement shall mean the agreement entered into by the
Corporation and the Participant at the time of grant of Restricted Stock Units under the Restricted
Stock Unit Program.

     II. Restricted Stock Unit Program shall mean the discretionary Restricted Stock Unit
program under Article Four of the Plan.

     JJ. Secondary Committee shall mean a committee of one or more Board members appointed
by the Board to administer the Discretionary Option Grant, Restricted Stock and Restricted Stock
Unit Programs with respect to eligible persons other than Section 16 Insiders.

     KK. Section 16 Insider shall mean an officer or director of the Corporation subject to
the short-swing profit liability provisions of Section 16 of the 1934 Act.

     LL. Service shall mean the performance of services for the Corporation (or any Parent
or Subsidiary) by a person in the capacity of an Employee, an Eligible Director or a consultant or
independent advisor, except to the extent otherwise specifically provided in the documents
evidencing the Award made to such person. For purposes of the Plan, an Optionee or Participant
shall be deemed to cease Service immediately upon the occurrence of either of the following events:
(i) the Optionee or Participant no longer performs services in any of the foregoing capacities for
the Corporation or any Parent or Subsidiary; or (ii) the entity for which the Optionee or
Participant is performing such services ceases to remain a Parent or Subsidiary of the Corporation,
even though the Optionee or Participant may subsequently continue to perform services for that
entity.

     MM. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global Select
Market, the Nasdaq Global Market or the New York Stock Exchange.

     NN. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

     OO. Take-Over Price shall mean the greater of (i) the Fair Market Value per share of
Common Stock on the date the option is surrendered to the Corporation in connection with a Hostile
Take-Over or (ii) the highest reported price per share of Common Stock paid by the

32

 

tender offeror in effecting such Hostile Take-Over through the acquisition of Common Stock.
However, if the surrendered option is an Incentive Option, the Take-Over Price shall not exceed the
clause (i) price per share.

     PP. 10% Stockholder shall mean the owner of stock (as determined under Code Section
424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of
stock of the Corporation (or any Parent or Subsidiary).

     QQ. Withholding Taxes shall mean the federal, state and local income and employment
withholding taxes to which the Optionee or Participant may become subject in connection with the
issuance, exercise or vesting of an Award made to him or her under the Plan.

33

 

NOTICE OF GRANT OF STOCK OPTION

(Standard Form)

     Notice is hereby given of the following option grant (the “Option”) to purchase shares of the
Common Stock of Quiksilver, Inc. (the “Corporation”):

	 	 	 	 	 
	Optionee:

	 	 	 	Grant Date:
	Number of Options Shares:

	 	 	 	Exercise Price:
	Type of Option:

	 	o Incentive Stock Option
	 	Expiration Date:
	 

	 	o Non-Statutory Stock Option	 	 

     Exercise and Vesting Schedule: Subject to the limitations contained in this Option
and the Plan, this Option shall vest and become exercisable in installments as follows:

	 	 	 

	Number of Shares

(Installment)
	 	Date of Earliest Exercise

(Vesting)

     In no event shall the Option become exercisable for any additional Option Shares after
Optionee’s cessation of Service.

     Optionee understands and agrees that the Option is granted subject to and in accordance with
the terms of the Quiksilver, Inc. amended and restated 2000 Stock Incentive Plan (the “Plan”).
Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set
forth in the Stock Option Agreement attached hereto as Exhibit A. Optionee hereby
acknowledges having received and read a copy of the official Plan Summary and Prospectus for the
Plan. A copy of the Plan is available upon request made to the Corporate Secretary at the
Corporation’s principal offices.

     Employment/Services at Will. Nothing in this Notice or in the attached Stock Option
Agreement or in the Plan shall confer upon Optionee any right to continue in Service for any period
of specific duration or interfere with or otherwise restrict in any way the rights of the
Corporation (or any Parent or Subsidiary employing or retaining Optionee) or of Optionee, which
rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for any
reason, with or without cause.

     Definitions. All capitalized terms in this Notice shall have the meaning assigned to
them in this Notice or in the attached Stock Option Agreement.

Date: ____________________

	 	 	 	 	 	 	 
	 	 	QUIKSILVER, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 
	OPTIONEE

	 	 	Title:	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	 	 	ATTACHMENTS
	 

	 	 	 	 	 	 
	 	 	Exhibit A — Stock Option Agreement
	 

	 	 	 	 	 	 
	 	 	[Exhibit B — French Addendum (for French optionees only)]
	 

	 	 	 	 	 	 

 

 

EXHIBIT A

QUIKSILVER, INC.

STOCK OPTION AGREEMENT

R
E C I T A L S

          A. The Board has adopted the Plan for the purpose of retaining the services of selected
Employees, non-employee members of the Board (or the board of directors of any Parent or
Subsidiary) and consultants and other independent advisors who provide services to the Corporation
(or any Parent or Subsidiary).

          B. Optionee is to render valuable services to the Corporation (or a Parent or Subsidiary), and
this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in
connection with the Corporation’s grant of an option to Optionee.

          C. All capitalized terms in this Agreement shall have the meaning assigned to them in the
attached Appendix.

          NOW, THEREFORE, it is hereby agreed as follows:

          1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date,
an option to purchase up to the number of Option Shares specified in the Grant Notice. The Option
Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.

          2. Option Term. This option shall have a maximum term of ________ (___) years
measured from the Grant Date and shall accordingly expire at the close of business on the
Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6.

          3. Limited Transferability.

               (a) If this option is designated a Non-Statutory Option in the Grant Notice, then this option
may be assigned in whole or in part during Optionee’s lifetime only by gift or pursuant to a
domestic relations order to one or more Family Members of the Optionee or to a trust established
for the exclusive benefit of Optionee and/or one or more such Family Members. The assigned portion
shall be exercisable only by the person or persons who acquire a proprietary interest in the option
pursuant to such assignment. The terms applicable to the assigned portion shall be the same as
those in effect for this option immediately prior to such assignment.

               (b) Except as provided in Paragraph 3(a) above, this option shall be neither transferable nor
assignable by Optionee other than by will or the laws of inheritance following Optionee’s death and
may be exercised, during Optionee’s lifetime, only by Optionee. However, Optionee may designate
one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in
accordance with such designation, automatically be transferred to

(Standard Form)

A-1

 

such beneficiary or beneficiaries upon the Optionee’s death while holding this option. Such
beneficiary or beneficiaries shall take the transferred option subject to all the terms and
conditions of this Agreement, including (without limitation) the limited time period during which
this option may, pursuant to Paragraph 5, be exercised following Optionee’s death.

          4. Dates of Exercise. This option shall become exercisable for the Option Shares in
one or more installments as specified in the Grant Notice. As the option becomes exercisable for
such installments, those installments shall accumulate, and the option shall remain exercisable for
the accumulated installments until the Expiration Date or sooner termination of the option term
under Paragraph 5 or 6. Notwithstanding the foregoing, should the Optionee elect to exercise this
option during any period during which the Optionee is under investigation by the Corporation for
Misconduct, then any Option Shares acquired by the Optionee as a result of such exercise and/or the
net proceeds of any sale or sales of those acquired Option Shares (the gross sale proceeds less any
Exercise Price payment or withholding taxes due the Corporation in broker commissions) during such
period shall be held by the Corporation in escrow until such time as the investigation is
satisfactorily completed.

          5. Cessation of Service/Termination of Option. The option term specified in Paragraph
2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date
should any of the following provisions become applicable:

               (a) Should Optionee cease to remain in Service for any reason (other than death, Permanent
Disability or Misconduct) while holding this option, then Optionee shall have a period of three (3)
months (commencing with the date of such cessation of Service) during which to exercise this
option, but in no event shall this option be exercisable at any time after the Expiration Date.

               (b) Should Optionee die while holding this option, then the personal representative of
Optionee’s estate or the person or persons to whom the option is transferred pursuant to Optionee’s
will or the laws of inheritance shall have the right to exercise this option. However, if Optionee
has designated one or more beneficiaries of this option, then those persons shall have the
exclusive right to exercise this option following Optionee’s death. Any such right to exercise
this option shall lapse, and this option shall cease to be outstanding, upon the earlier of
(i) the expiration of the twelve (12)-month period measured from the date of Optionee’s death or
(ii) the Expiration Date.

               (c) Should Optionee cease Service by reason of Permanent Disability while holding this option,
then Optionee shall have a period of twelve (12) months (commencing with the date of such cessation
of Service) during which to exercise this option. In no event shall this option be exercisable at
any time after the Expiration Date.

               (d) The applicable post-Service exercise period in effect for this option pursuant to the
foregoing provisions of this Paragraph 5 shall automatically be extended by an additional period of
time equal in duration to any interval within that otherwise applicable post-Service exercise
period in which the exercise of this option or the immediate sale of the Option Shares acquired
hereunder cannot be effected in compliance with applicable federal and state

(Standard Form)

A-2

 

securities laws, but in no event shall such an extension result in the continuation of this
option beyond the Expiration Date.

               (e) During the limited period of post-Service exercisability, this option may not be exercised
in the aggregate for more than the number of Option Shares for which the option is exercisable at
the time of Optionee’s cessation of Service. Upon the expiration of such limited exercise period
or (if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding
for any exercisable Option Shares for which the option has not been exercised. However, this
option shall, immediately upon Optionee’s cessation of Service for any reason, terminate and cease
to be outstanding with respect to any Option Shares for which this option is not otherwise at that
time exercisable.

               (f) Should Optionee’s Service be terminated for Misconduct or should Optionee otherwise engage
in any Misconduct while this option is outstanding, then this option shall terminate immediately
and cease to remain outstanding.

          6. Special
Acceleration of Option.

               (a) This option, to the extent outstanding at the time of a Corporate Transaction but not
otherwise fully exercisable, shall NOT vest or become exercisable on an accelerated basis if and to
the extent: (i) this option is, in connection with the Corporate Transaction, to be assumed by the
successor corporation (or parent thereof) or otherwise continued in full force and effect pursuant
to the terms of the Corporate Transaction or (ii) this option is to be replaced with a cash
incentive program of the successor corporation which preserves the spread existing at the time of
the Corporate Transaction on any Option Shares for which this option is not otherwise at that time
exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise
Price payable for such shares) and provides for subsequent payout in accordance with the same
option exercise/vesting schedule for those Option Shares set forth in the Grant Notice. However,
if none of the foregoing conditions apply to this option at the time of the Corporate Transaction,
then this option shall automatically accelerate so that such option shall, immediately prior to the
effective date of that Corporate Transaction, become exercisable for all the shares of Common Stock
at the time subject to this option and may be exercised for any or all of those shares as fully
vested shares of Common Stock.

               (b) Immediately following the Corporate Transaction, this option shall terminate and cease to
be outstanding, except to the extent assumed by the successor corporation (or parent thereof) in
connection with the Corporate Transaction or otherwise continued in full force and effect pursuant
to the terms of the Corporate Transaction.

               (c) If this option is assumed in connection with a Corporate Transaction or otherwise
continued in effect, then this option shall be appropriately adjusted, immediately after such
Corporate Transaction, to apply to the number and class of securities which would have been
issuable to Optionee in consummation of such Corporate Transaction had the option been exercised
immediately prior to such Corporate Transaction, and appropriate adjustments shall also be made to
the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the
extent the actual holders of the Corporation’s outstanding Common

(Standard Form)

A-3

 

Stock receive cash consideration for their Common Stock in consummation of the Corporate
Transaction, the successor corporation may, in connection with the assumption of this option,
substitute one or more shares of its own common stock with a fair market value equivalent to the
cash consideration paid per share of Common Stock in such Corporate Transaction.

               (d) This Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

          7. Adjustment in Option Shares. Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or
class of securities subject to this option and (ii) the Exercise Price in order to reflect such
change and thereby preclude a dilution or enlargement of benefits hereunder.

          8. Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.

          9. Manner of Exercising Option.

               (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

                    (i) Execute and deliver to the Corporation a Notice of Exercise for the Option Shares for
which the option is exercised.

                    (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the following
forms:

                         (A) cash or check made payable to the Corporation;

                         (B) shares of Common Stock valued at Fair Market Value on the Exercise Date and held by
Optionee (or any other person or persons exercising the option) for the period, if any, necessary
to avoid any charge to the Corporation’s earnings for financial reporting purposes; or

                         (C) through a special sale and remittance procedure pursuant to which Optionee (or any other
person or persons exercising the option) shall concurrently provide irrevocable instructions to (i)
a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and
remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient
funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable
Federal, state and local income and employment taxes required to be withheld by the Corporation by
reason of such exercise and

(Standard Form)

A-4

 

(ii) the Corporation to deliver the certificates for the purchased shares directly to such
brokerage firm in order to complete the sale.

               Except to the extent the sale and remittance procedure is utilized in connection with the
option exercise, payment of the Exercise Price must accompany the Notice of Exercise delivered to
the Corporation in connection with the option exercise.

                    (iii) Furnish to the Corporation appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option.

                    (iv) Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or
retaining Optionee) for the satisfaction of all Federal, state and local income and employment tax
withholding requirements applicable to the option exercise.

               (b) As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf
of Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.

               (c) In no event may this option be exercised for any fractional shares.

          10. Compliance with Laws and Regulations.

               (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Corporation and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or over-the-counter
market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and issuance.

               (b) The inability of the Corporation to obtain approval from any regulatory body having
authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common
Stock pursuant to this option shall relieve the Corporation of any liability with respect to the
non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such approvals.

          11. Successors and Assigns. Except to the extent otherwise provided in Paragraphs 3
and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the
Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal
representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option
designated by Optionee.

          12. Notices. Any notice required to be given or delivered to the Corporation under
the terms of this Agreement shall be in writing and addressed to the Corporation at its principal
corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the address indicated below Optionee’s signature line on

(Standard Form)

A-5

 

the Grant Notice. All notices shall be deemed effective upon personal delivery or upon
deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

          13. Construction. This Agreement and the option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All
decisions of the Plan Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest in this option.

          14. Governing Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State’s
conflict-of-laws rules.

          15. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan.

          16. Additional Terms Applicable to an Incentive Option. In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also
apply to the grant:

               (a) This option shall cease to qualify for favorable tax treatment as an Incentive Option if
(and to the extent) this option is exercised for one or more Option Shares: (A) more than three (3)
months after the date Optionee ceases to be an Employee for any reason other than death or
Permanent Disability or (B) more than twelve (12) months after the date Optionee ceases to be an
Employee by reason of Permanent Disability.

               (b) No installment under this option shall qualify for favorable tax treatment as an Incentive
Option if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the
Common Stock for which such installment first becomes exercisable hereunder would, when added to
the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or
other securities for which this option or any other Incentive Options granted to Optionee prior to
the Grant Date (whether under the Plan or any other option plan of the Corporation or any Parent or
Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand
Dollars ($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000) limitation
be exceeded in any calendar year, this option shall nevertheless become exercisable for the excess
shares in such calendar year as a Non-Statutory Option.

               (c) Should the exercisability of this option be accelerated upon a Corporate Transaction, then
this option shall qualify for favorable tax treatment as an Incentive Option only to the extent the
aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which this
option first becomes exercisable in the calendar year in which the Corporate Transaction occurs
does not, when added to the aggregate value (determined as of the

(Standard Form)

A-6

 

respective date or dates of grant) of the Common Stock or other securities for which this
option or one or more other Incentive Options granted to Optionee prior to the Grant Date (whether
under the Plan or any other option plan of the Corporation or any Parent or Subsidiary) first
become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in
the aggregate. Should the applicable One Hundred Thousand Dollar ($100,000) limitation be exceeded
in the calendar year of such Corporate Transaction, the option may nevertheless be exercised for
the excess shares in such calendar year as a Non-Statutory Option.

               (d) Should Optionee hold, in addition to this option, one or more other options to purchase
Common Stock which become exercisable for the first time in the same calendar year as this option,
then, for purposes of the foregoing limitations on the exercisability of such options as Incentive
Options, this option and each of those other options shall be deemed to become first exercisable in
that calendar year on the basis of the chronological order in which they were granted, except to
the extent otherwise provided under applicable law or regulation.

(Standard Form)

A-7

 

Exhibit A-1

NOTICE OF EXERCISE

          I hereby notify Quiksilver, Inc. (the “Corporation”) that I elect to purchase ______________
shares of the Corporation’s Common Stock (the “Purchased Shares”) at the option exercise price of
$__________ per share (the “Exercise Price”) pursuant to that certain option (the “Option”) granted
to me under the Corporation’s amended and restated 2000 Stock Incentive Plan on _______________,
_____

          Concurrently with the delivery of this Exercise Notice to the Corporation, I shall hereby pay
to the Corporation the Exercise Price for the Purchased Shares in accordance with the provisions of
my agreement with the Corporation (or other documents) evidencing the Option and shall deliver
whatever additional documents may be required by such agreement as a condition for exercise.
Alternatively, I may utilize the special broker-dealer sale and remittance procedure specified in
my agreement to effect payment of the Exercise Price.

____________________, ________

Date

	 	 	 	 	 	 
	 	 	 	 
	 

	 	Optionee	 	 	 
	 
	 	 	 	 	 
	 

	 	Address:	 	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 
	Print name in exact manner it is to appear on the stock
certificate:
	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 
	Address to which certificate is to be sent, if different from
address above:
	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 
	Social Security Number:
	 	 	 	 	 
	 	 	 	 

(Standard Form)

A-8

 

APPENDIX

     The following definitions shall be in effect under the Agreement:

     A. Agreement shall mean this Stock Option Agreement.

     B. Board shall mean the Corporation’s Board of Directors.

     C. Code shall mean the Internal Revenue Code of 1986, as amended.

     D. Common Stock shall mean shares of the Corporation’s common stock.

     E. Corporate Transaction shall mean either of the following stockholder-approved
transactions to which the Corporation is a party:

     (i) a merger or consolidation in which securities possessing
more than fifty percent (50%) of the total combined voting power of
the Corporation’s outstanding securities are transferred to a person
or persons different from the persons holding those securities
immediately prior to such transaction, or

     (ii) the sale, transfer or other disposition of all or
substantially all of the Corporation’s assets in complete
liquidation or dissolution of the Corporation.

     F. Corporation shall mean Quiksilver, Inc., a Delaware corporation, and any successor
corporation to all or substantially all of the assets or voting stock of Quiksilver, Inc. which
shall by appropriate action adopt the Plan.

     G. Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance.

     H. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

     I. Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.

     J. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

     K. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

     (i) If the Common Stock is at the time traded on the Nasdaq
Global Select Market (or the Nasdaq Global Market), then the Fair
Market Value shall be the closing selling price per share of

(Standard Form)

A-9

 

Common Stock at the close of regular hours trading (i.e., before
after-hours trading begins) on the Nasdaq Global Stock Market (or
the Nasdaq Global Market) on the date in question, as such price is
reported by The Wall Street Journal. If there is no closing selling
price for the Common Stock on the date in question, then the Fair
Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

     (ii) If the Common Stock is at the time listed on any other
Stock Exchange, then the Fair Market Value shall be the closing
selling price per share of Common Stock at the close of regular
hours trading (i.e., before after-hours trading begins) on the date
in question on the Stock Exchange determined by the Plan
Administrator to be the primary market for the Common Stock, as such
price is officially quoted in the composite tape of transactions on
such exchange. If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be
the closing selling price on the last preceding date for which such
quotation exists.

     (iii) If the Common Stock is at the time not listed on
any established stock exchange, the Fair Market Value shall be
determined by the Board in good faith.

          L. Family Member shall mean, with respect to the Optionee, any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law.

          M. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

          N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

          O. Incentive Option shall mean an option which satisfies the requirements of Code
Section 422.

          P. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional
misconduct by Optionee adversely affecting the business or affairs of the Corporation (or any
Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be
inclusive of all the acts or omissions which the Corporation (or any Parent or Subsidiary) may
consider as grounds for the dismissal or discharge of Optionee or any other individual in the
Service of the Corporation (or any Parent or Subsidiary).

(Standard Form)

A-10

 

          Q. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

          R. Notice of Exercise shall mean the notice of exercise in substantially the form
attached hereto as Exhibit A-1.

          S. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

          T. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

          U. Parent shall mean any corporation (other than the Corporation) in an unbroken chain
of corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

          V. Permanent Disability Or Permanently Disabled shall mean the inability of the
Optionee to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which is both (i) expected to result in death or determined to be
total and permanent by two (2) physicians selected by the Corporation or its insurers and
acceptable to the Optionee (or the Optionee’s legal representative), and (ii) to the extent the
Optionee is eligible to participate in the Corporation’s long-term disability plan, entitles the
Optionee to the payment of long-term disability benefits from the Corporation’s long-term
disability plan. The process for determining a Permanent Disability in accordance with the
foregoing shall be completed no later than the later of (i) the close of the calendar year in which
the Optionee’s Service terminates by reason of the physical or mental impairment triggering the
determination process or (ii) the fifteenth day of the third calendar month following such
termination of Service.

          W. Plan shall mean the Corporation’s amended and restated 2000 Stock Incentive Plan.

          X. Plan Administrator shall mean either the Board or a committee of the Board acting
in its capacity as administrator of the Plan.

          Y. Service shall mean the Optionee’s performance of services for the Corporation (or
any Parent or Subsidiary) in the capacity of an Employee, a non-employee member of the board of
directors or a consultant or independent advisor. An Optionee shall be deemed to cease Service
immediately upon the occurrence of either of the following events: (i) the Optionee no longer
performs services in any of the foregoing capacities for the Corporation or any Parent or
Subsidiary; or (ii) the entity for which the Optionee is performing such services ceases to remain
a Parent or Subsidiary of the Corporation, even though the Optionee may subsequently continue to
perform services for that entity.

          Z. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global Select
Market, the Nasdaq Global Market or the New York Stock Exchange.

(Standard Form)

A-11

 

          AA.
Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

(Standard Form)

A-12

 

EXHIBIT
B

FRENCH
OPTIONS AGREEMENT ADDENDUM

FRENCH PLAN TERMS

This Addendum contains the terms of options granted to employees and officers under the Quiksilver,
Inc. 2000 Stock Incentive Plan (“the Plan”) to eligible French Employees and officers (“the French
Plan”). The terms of the French Plan are identical to the Plan except as provided below:

	1.	 	For the purposes of any options granted in accordance with the French Plan, the terms of the
Plan shall be deemed incorporated by reference to this Addendum.
	 
	2.	 	For the purposes of the French Plan, options granted in accordance with the French Plan
(“French Options”) may be designated as Qualifying French Stock Options within the meaning of
the conditions set forth in the French Commercial Code (articles L 225-177 to L 225-186-1).
	 
	3.	 	The per share exercise price of French Options determined in accordance with the French Plan
shall not be less than 95% of the average Fair Market Value during the 20 trading days
preceding the date of option grant.
	 
	4.	 	The employees and officers to whom French Options may be granted according to the French Plan
are restricted as follows:
	 
	 	 	French Options may not be granted to persons holding more than 10% of the share
capital of the Corporation.
	 
	 	 	French Options may only be granted to employees or “Président du Conseil
d’administration”, “Directeur Général”, “Directeurs Généraux Délégués”, Members of
the “Directoire”, “Gérant” of a “Société par actions”, or other officers (in
particular Président du Conseil de Surveillance) being otherwise a salaried employee
of any Parent or Subsidiary of the Corporation where:

	 	(i)	 	at least 10% of the employer company share capital or of the voting rights is
held, directly or indirectly, by the Corporation;
	 
	 	(ii)	 	the employer company holds, directly or indirectly, at least 10% of the share
capital or of the voting rights of the Corporation; or
	 
	 	(iii)	 	at least 50% of the employer company share capital or of the voting rights is
held, directly or indirectly, by a company which itself holds, directly or
indirectly, at least 50% of the capital of the Corporation.

	5.	 	The period during which French Options may be exercised following date of death under the
French Plan is six (6) months.

B-1

 

	6.	 	Option adjustments under the French Plan include the following:
	 
	 	 	“In all cases, the modification of the exercise price or number of options under the
French Plan shall be made in accordance with article L 225-181 of the French
Commercial Code.”
	 
	7.	 	In the case of French Options to acquire treasury shares, the Corporation shall procure
sufficient shares of Common Stock available for transfer to satisfy the exercise of such
options (which have neither lapsed nor been exercised) to the full extent possible, before the
Optionee has the right to exercise the French Option.
	 
	8.	 	No French Options may be granted before the end of the period of 20 trading days following a
dividend distribution or increase of authorized capital or before or after 10 trading days of
the publication of consolidated or, if none, annual accounts or between the date that the
Corporation’s officers have knowledge of any information which could significantly affect the
value of the shares of Common Stock and 10 trading days after the information has been
publicized.
	 
	9.	 	In accepting the grant of French Options, the Optionee undertakes that he or she will notify
the employer company in writing with respect to the date of option exercise and share sale at
least seven (7) days prior to and seven (7) days following either event.
	 
	10.	 	The French Options shall not become exercisable for the Option Shares before the first
anniversary of the Grant Date.
	 
	11.	 	The sale or transfer as bearer shares of shares of Common Stock purchased upon exercise of
French Options shall be restricted until the fourth anniversary of the Grant Date.
	 
	12.	 	Under the French Plan, in no event shall the number of shares of Common Stock subject to
outstanding unexercised options exceed one-third (1/3) of the Corporation’s authorized shares.

B-2

 

FRENCH
RESTRICTED STOCK ADDENDUM

FRENCH PLAN TERMS

This Addendum contains the terms of restricted stock granted to employees and officers under the
Quiksilver, Inc. 2000 Stock Incentive Plan (“the Plan”) to eligible French Employees and officers
(“the French Plan”). The terms of the French Plan are identical to the Plan except as provided
below:

	1.	 	For the purposes of any restricted stock granted in accordance with the French Plan, the
terms of the Plan shall be deemed incorporated by reference to this Addendum.
	 
	2.	 	For the purposes of the French Plan, restricted shares granted in accordance with the French
Plan (“French Restricted Stock”) may be designated as Qualifying French Restricted Stock
within the meaning of the conditions set forth in the French Commercial Code (articles L
225-197-1 and s.).
	 
	3.	 	The employees and officers to whom French Restricted Stock may be granted according to the
French Plan are restricted as follows:
	 
	 	 	French Restricted Stock may not be granted to persons holding more than 10% of the share
capital of the Corporation.
	 
	 	 	French Restricted Stock may only be granted to employees or “Président du Conseil
d’administration”, “Directeur Général”, “Directeurs Généraux Délégués”, Members of the
“Directoire”, “Gérant” of a “Société par actions”, “Président” of a “société par actions
simplifiée” or other officers (in particular Président du Conseil de Surveillance) being
otherwise a salaried employee of any Parent or Subsidiary of the Corporation where:

	 	(i)	 	at least 10% of the employer company share capital or of the voting rights is
held, directly or indirectly, by the Corporation;
	 
	 	(ii)	 	the employer company holds, directly or indirectly, at least 10% of the share
capital or of the voting rights of the Corporation; or
	 
	 	(iii)	 	at least 50% of the employer company share capital or of the voting rights is
held, directly or indirectly, by a company which itself holds, directly or
indirectly, at least 50% of the capital of the Corporation.

	4.	 	According to the article L.225-197-1 of the French Commercial Code, no shares of the French
Restricted Stock shall vest before the second anniversary of the Grant Date. During the
vesting period the Participant shall not be entitled to any rights (e.g., voting rights, cash
dividends, etc.) with respect to the shares of French Restricted Stock. By way of exception,
in the event of the death or permanent disability of second or third category of the
Participant, all of the French Restricted Stock shall accelerate and vest immediately
according to the articles L. 225-197-3 and L. 225-197-1 of the French Commercial Code and all
restrictions shall lapse immediately.

B-3

 

	5.	 	Restricted Stock adjustments under the French Plan include the following:
	 
	 	 	“In all cases, the modification of the number of shares of the French Restricted
Stock under the French Plan shall be made in accordance with the ‘instruction DGI of
10 November 2006, 5F-17-06’”
	 
	6.	 	According to the article L.225-197-3 of the French Commercial Code, the sale of the vested
shares of the French Restricted stock shall be restricted until the second anniversary of the
Vesting Date.
	 
	7.	 	According to the article L.225-197-1 of the French Commercial Code, the sale of the shares of
the French Restricted Stock shall be restricted before or after 10 trading days of the
publication of consolidated or, if none, annual accounts or between the date that the
Corporation’s officers have knowledge of any information which could significantly affect the
value of the shares of Common Stock and 10 trading days after the information has been
publicized.
	 
	8.	 	Under the French Plan, in no event shall the number of shares of the French Restricted Stock
granted to the Participants exceed ten percent (10%) of the Corporation’s authorized shares.

B-4

 

NOTICE OF GRANT OF STOCK OPTION

(Selected Officer Form)

     Notice is hereby given of the following option grant (the “Option”) to purchase shares of the
Common Stock of Quiksilver, Inc. (the “Corporation”):

	 	 	 	 	 	 
	Optionee:

	 	 	 	Grant Date:	 
	Number of Options Shares:

	 	 	 	Exercise Price:	 
	Type of Option:

	 	___Incentive Stock Option
	 	Expiration Date:	 
	 

	 	___Non-Statutory Stock Option	 	 	 

     Exercise and Vesting Schedule: Subject to the limitations contained in this Option
and the Plan, this Option shall vest and become exercisable in installments as follows:

	 	 	 

	Number of Shares

(Installment)
	 	Date of Earliest Exercise

(Vesting)
	 
	 	 

     In no event shall the Option become exercisable for any additional Option Shares after
Optionee’s cessation of Service.

     Optionee understands and agrees that the Option is granted subject to and in accordance with
the terms of the Quiksilver, Inc. amended and restated 2000 Stock Incentive Plan (the “Plan”).
Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set
forth in the Stock Option Agreement attached hereto as Exhibit A. Optionee hereby
acknowledges having received and read a copy of the official Plan Summary and Prospectus for the
Plan. A copy of the Plan is available upon request made to the Corporate Secretary at the
Corporation’s principal offices.

     Employment/Services at Will. Nothing in this Notice or in the attached Stock Option
Agreement or in the Plan shall confer upon Optionee any right to continue in Service for any period
of specific duration or interfere with or otherwise restrict in any way the rights of the
Corporation (or any Parent or Subsidiary employing or retaining Optionee) or of Optionee, which
rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for any
reason, with or without cause.

     Definitions. All capitalized terms in this Notice shall have the meaning assigned to
them in this Notice or in the attached Stock Option Agreement.

Date: ____________________

	 	 	 	 	 	 	 
	 	 	QUIKSILVER, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 
	OPTIONEE

	 	 	Title:	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	 	 	ATTACHMENTS
	 

	 	 	 	 	 	 
	 	 	Exhibit A — Stock Option Agreement
	 

	 	 	 	 	 	 
	 	 	[Exhibit B — French Addendum (for French optionees only)]
	 

	 	 	 	 	 	 

 

 

EXHIBIT A

QUIKSILVER, INC.

STOCK OPTION AGREEMENT

R
E C I T A L S

     A. The Board has adopted the Plan for the purpose of retaining the services of selected
Employees, non-employee members of the Board (or the board of directors of any Parent or
Subsidiary) and consultants and other independent advisors who provide services to the Corporation
(or any Parent or Subsidiary).

     B. Optionee is to render valuable services to the Corporation (or a Parent or Subsidiary), and
this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in
connection with the Corporation’s grant of an option to Optionee.

     C. All capitalized terms in this Agreement shall have the meaning assigned to them in the
attached Appendix.

     NOW, THEREFORE, it is hereby agreed as follows:

     1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date,
an option to purchase up to the number of Option Shares specified in the Grant Notice. The Option
Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.

     2. Option Term. This option shall have a maximum term of _____ (___) years measured
from the Grant Date and shall accordingly expire at the close of business on the Expiration Date,
unless sooner terminated in accordance with Paragraph 5 or 6.

     3. Limited Transferability.

          (a) If this option is designated a Non-Statutory Option in the Grant Notice, then this option
may be assigned in whole or in part during Optionee’s lifetime only by gift or pursuant to a
domestic relations order to one or more Family Members of the Optionee or to a trust established
for the exclusive benefit of Optionee and/or one or more such Family Members. The assigned portion
shall be exercisable only by the person or persons who acquire a proprietary interest in the option
pursuant to such assignment. The terms applicable to the assigned portion shall be the same as
those in effect for this option immediately prior to such assignment.

          (b) Except as provided in Paragraph 3(a) above, this option shall be neither transferable nor
assignable by Optionee other than by will or the laws of inheritance following Optionee’s death and
may be exercised, during Optionee’s lifetime, only by Optionee. However, Optionee may designate
one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in
accordance with such designation, automatically be transferred to

(Selected Officer Form)

A-1

 

such beneficiary or beneficiaries upon the Optionee’s death while holding this option. Such
beneficiary or beneficiaries shall take the transferred option subject to all the terms and
conditions of this Agreement, including (without limitation) the limited time period during which
this option may, pursuant to Paragraph 5, be exercised following Optionee’s death.

     4. Dates of Exercise. This option shall become exercisable for the Option Shares in
one or more installments as specified in the Grant Notice. As the option becomes exercisable for
such installments, those installments shall accumulate, and the option shall remain exercisable for
the accumulated installments until the Expiration Date or sooner termination of the option term
under Paragraph 5 or 6. Notwithstanding the foregoing, should the Optionee elect to exercise this
option during any period during which the Optionee is under investigation by the Corporation for
Misconduct, then any Option Shares acquired by the Optionee as a result of such exercise and/or the
net proceeds of any sale or sales of those acquired Option Shares (the gross sale proceeds less any
Exercise Price payment or withholding taxes due the Corporation in broker commissions) during such
period shall be held by the Corporation in escrow until such time as the investigation is
satisfactorily completed.

     5. Cessation of Service/Termination of Option. The option term specified in Paragraph
2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date
should any of the following provisions become applicable:

          (a) Should Optionee cease to remain in Service by reason of Optionee terminating his or her
Service with the Corporation for other than Good Reason, as such term is defined in Optionee’s
employment agreement in effect on the date of grant of this option (the “Employment Agreement”),
while holding this option, then Optionee shall have a period of three (3) months (commencing with
the date of such cessation of Service) during which to exercise this option, but in no event shall
this option be exercisable at any time after the Expiration Date.

          (b) Should Optionee die while holding this option, then the personal representative of
Optionee’s estate or the person or persons to whom the option is transferred pursuant to Optionee’s
will or the laws of inheritance shall have the right to exercise this option. However, if Optionee
has designated one or more beneficiaries of this option, then those persons shall have the
exclusive right to exercise this option following Optionee’s death. Any such right to exercise
this option shall lapse, and this option shall cease to be outstanding, upon the earlier of
(i) the expiration of the twelve (12)-month period measured from the date of Optionee’s death or
(ii) the Expiration Date.

          (c) Should Optionee cease Service by reason of Permanent Disability while holding this option,
then Optionee shall have a period of twelve (12) months (commencing with the date of such cessation
of Service) during which to exercise this option. In no event shall this option be exercisable at
any time after the Expiration Date.

          (d) Should Optionee cease Service by reason of termination by the Corporation without Cause
(other than as a result of Optionee’s death, Permanent Disability or Misconduct), as such term is
defined in the Employment Agreement, or by Optionee for Good Reason, as such term is defined in the
Employment Agreement, while holding this option, then Optionee shall have a period of twelve (12)
months (commencing with the date of such cessation

(Selected
Officer Form)

A-2

 

of Service) during which to exercise this option. In no event shall this option be
exercisable at any time after the Expiration Date.

          (e) The applicable post-Service exercise period in effect for this option pursuant to the
foregoing provisions of this Paragraph 5 shall automatically be extended by an additional period of
time equal in duration to any interval within that otherwise applicable post-Service exercise
period in which the exercise of this option or the immediate sale of the Option Shares acquired
hereunder cannot be effected in compliance with applicable federal and state securities laws, but
in no event shall such an extension result in the continuation of this option beyond the Expiration
Date.

          (f) During the limited period of post-Service exercisability, this option may not be exercised
in the aggregate for more than the number of Option Shares for which the option is exercisable at
the time of Optionee’s cessation of Service. Upon the expiration of such limited exercise period
or (if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding
for any exercisable Option Shares for which the option has not been exercised. However, this
option shall, immediately upon Optionee’s cessation of Service for any reason, terminate and cease
to be outstanding with respect to any Option Shares for which this option is not otherwise at that
time exercisable.

          (g) Should Optionee’s Service be terminated for Misconduct or Cause, as such term is defined
in the Employment Agreement, or should Optionee otherwise engage in any Misconduct while this
option is outstanding, then this option shall terminate immediately and cease to remain
outstanding.

     6. Special Acceleration of Option.

          (a) This option, to the extent outstanding at the time of a Corporate Transaction but not
otherwise fully exercisable, shall NOT vest or become exercisable on an accelerated basis if and to
the extent: (i) this option is, in connection with the Corporate Transaction, to be assumed by the
successor corporation (or parent thereof) or otherwise continued in full force and effect pursuant
to the terms of the Corporate Transaction or (ii) this option is to be replaced with a cash
incentive program of the successor corporation which preserves the spread existing at the time of
the Corporate Transaction on any Option Shares for which this option is not otherwise at that time
exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise
Price payable for such shares) and provides for subsequent payout in accordance with the same
option exercise/vesting schedule for those Option Shares set forth in the Grant Notice. However,
if none of the foregoing conditions apply to this option at the time of the Corporate Transaction,
then this option shall automatically accelerate so that such option shall, immediately prior to the
effective date of that Corporate Transaction, become exercisable for all the shares of Common Stock
at the time subject to this option and may be exercised for any or all of those shares as fully
vested shares of Common Stock.

          (b) Immediately following the Corporate Transaction, this option shall terminate and cease to
be outstanding, except to the extent assumed by the successor corporation

(Selected
Officer Form)

A-3

 

(or parent thereof) in connection with the Corporate Transaction or otherwise continued in
full force and effect pursuant to the terms of the Corporate Transaction.

          (c) If this option is assumed in connection with a Corporate Transaction or otherwise
continued in effect, then this option shall be appropriately adjusted, immediately after such
Corporate Transaction, to apply to the number and class of securities which would have been
issuable to Optionee in consummation of such Corporate Transaction had the option been exercised
immediately prior to such Corporate Transaction, and appropriate adjustments shall also be made to
the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the
extent the actual holders of the Corporation’s outstanding Common Stock receive cash consideration
for their Common Stock in consummation of the Corporate Transaction, the successor corporation may,
in connection with the assumption of this option, substitute one or more shares of its own common
stock with a fair market value equivalent to the cash consideration paid per share of Common Stock
in such Corporate Transaction.

          (d) This Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

          (e) This option, to the extent outstanding at the time Optionee ceases Service with the
Corporation by reason of Optionee’s death, Permanent Disability, termination by the Corporation
without Cause (as defined in the Employment Agreement) or termination by Optionee for Good Reason
(as defined in the Employment Agreement) but not otherwise fully exercisable, shall automatically
accelerate so that this option shall immediately prior to such termination of Service, become
exercisable for all of the Option Shares at the time subject to this option and may be exercised
for any or all of those Option Shares as fully vested shares of Common Stock.

     7. Adjustment in Option Shares. Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or
class of securities subject to this option and (ii) the Exercise Price in order to reflect such
change and thereby preclude a dilution or enlargement of benefits hereunder.

     8. Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.

     9. Manner of Exercising Option.

          (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

(Selected
Officer Form)

A-4

 

               (i) Execute and deliver to the Corporation a Notice of Exercise for the Option Shares for
which the option is exercised.

               (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the following
forms:

                    (A) cash or check made payable to the Corporation;

                    (B) shares of Common Stock valued at Fair Market Value on the Exercise Date and held by
Optionee (or any other person or persons exercising the option) for the period, if any, necessary
to avoid any charge to the Corporation’s earnings for financial reporting purposes; or

                    (C) through a special sale and remittance procedure pursuant to which Optionee (or any other
person or persons exercising the option) shall concurrently provide irrevocable instructions to (i)
a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and
remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient
funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable
Federal, state and local income and employment taxes required to be withheld by the Corporation by
reason of such exercise and (ii) the Corporation to deliver the certificates for the purchased
shares directly to such brokerage firm in order to complete the sale.

          Except to the extent the sale and remittance procedure is utilized in connection with the
option exercise, payment of the Exercise Price must accompany the Notice of Exercise delivered to
the Corporation in connection with the option exercise.

               (iii) Furnish to the Corporation appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option.

               (iv) Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or
retaining Optionee) for the satisfaction of all Federal, state and local income and employment tax
withholding requirements applicable to the option exercise.

          (b) As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf
of Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.

          (c) In no event may this option be exercised for any fractional shares.

     10. Compliance with Laws and Regulations.

          (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Corporation and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock

(Selected
Officer Form)

A-5

 

exchange (or over-the-counter market, if applicable) on which the Common Stock may be listed
for trading at the time of such exercise and issuance.

          (b) The inability of the Corporation to obtain approval from any regulatory body having
authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common
Stock pursuant to this option shall relieve the Corporation of any liability with respect to the
non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such approvals.

     11. Successors and Assigns. Except to the extent otherwise provided in Paragraphs 3
and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the
Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal
representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option
designated by Optionee.

     12. Notices. Any notice required to be given or delivered to the Corporation under
the terms of this Agreement shall be in writing and addressed to the Corporation at its principal
corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant
Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S.
mail, postage prepaid and properly addressed to the party to be notified.

     13. Construction. This Agreement and the option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All
decisions of the Plan Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest in this option.

     14. Governing Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State’s
conflict-of-laws rules.

     15. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan.

     16. Additional Terms Applicable to an Incentive Option. In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also
apply to the grant:

          (a) This option shall cease to qualify for favorable tax treatment as an Incentive Option if
(and to the extent) this option is exercised for one or more Option Shares: (A) more than three (3)
months after the date Optionee ceases to be an Employee for any reason

(Selected
Officer Form)

A-6

 

other than death or Permanent Disability or (B) more than twelve (12) months after the date
Optionee ceases to be an Employee by reason of Permanent Disability.

          (b) No installment under this option shall qualify for favorable tax treatment as an Incentive
Option if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the
Common Stock for which such installment first becomes exercisable hereunder would, when added to
the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or
other securities for which this option or any other Incentive Options granted to Optionee prior to
the Grant Date (whether under the Plan or any other option plan of the Corporation or any Parent or
Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand
Dollars ($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000) limitation
be exceeded in any calendar year, this option shall nevertheless become exercisable for the excess
shares in such calendar year as a Non-Statutory Option.

          (c) Should the exercisability of this option be accelerated upon a Corporate Transaction, then
this option shall qualify for favorable tax treatment as an Incentive Option only to the extent the
aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which this
option first becomes exercisable in the calendar year in which the Corporate Transaction occurs
does not, when added to the aggregate value (determined as of the respective date or dates of
grant) of the Common Stock or other securities for which this option or one or more other Incentive
Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option
plan of the Corporation or any Parent or Subsidiary) first become exercisable during the same
calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should the
applicable One Hundred Thousand Dollar ($100,000) limitation be exceeded in the calendar year of
such Corporate Transaction, the option may nevertheless be exercised for the excess shares in such
calendar year as a Non-Statutory Option.

          (d) Should Optionee hold, in addition to this option, one or more other options to purchase
Common Stock which become exercisable for the first time in the same calendar year as this option,
then, for purposes of the foregoing limitations on the exercisability of such options as Incentive
Options, this option and each of those other options shall be deemed to become first exercisable in
that calendar year on the basis of the chronological order in which they were granted, except to
the extent otherwise provided under applicable law or regulation.

(Selected
Officer Form)

A-7

 

Exhibit A-1

NOTICE OF EXERCISE

     I hereby notify Quiksilver, Inc. (the “Corporation”) that I elect to purchase ______________
shares of the Corporation’s Common Stock (the “Purchased Shares”) at the option exercise price of
$__________ per share (the “Exercise Price”) pursuant to that certain option (the “Option”) granted
to me under the Corporation’s amended and restated 2000 Stock Incentive Plan on _______________,
_____

     Concurrently with the delivery of this Exercise Notice to the Corporation, I shall hereby pay
to the Corporation the Exercise Price for the Purchased Shares in accordance with the provisions of
my agreement with the Corporation (or other documents) evidencing the Option and shall deliver
whatever additional documents may be required by such agreement as a condition for exercise.
Alternatively, I may utilize the special broker-dealer sale and remittance procedure specified in
my agreement to effect payment of the Exercise Price.

________________________, ________

Date

	 	 	 	 	 
	 	 	 	 
	 

	 	Optionee	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	Print name in exact manner it is to 

appear on the stock certificate:

	 	 	 
	 
	 	 	 	 
	Address to which certificate is to

	 	 	 
	be sent, if different from address above:

	 	 	 
	 

	 	 	 
	 
	Social Security Number:

	 	 	 

(Selected Officer Form)

A-8

 

APPENDIX

     The following definitions shall be in effect under the Agreement:

     A. Agreement shall mean this Stock Option Agreement.

     B. Board shall mean the Corporation’s Board of Directors.

     C. Code shall mean the Internal Revenue Code of 1986, as amended.

     D. Common Stock shall mean shares of the Corporation’s common stock.

     E. Corporate Transaction shall mean either of the following stockholder-approved
transactions to which the Corporation is a party:

     (i) a merger or consolidation in which securities possessing
more than fifty percent (50%) of the total combined voting power of
the Corporation’s outstanding securities are transferred to a person
or persons different from the persons holding those securities
immediately prior to such transaction, or

     (ii) the sale, transfer or other disposition of all or
substantially all of the Corporation’s assets in complete
liquidation or dissolution of the Corporation.

     F. Corporation shall mean Quiksilver, Inc., a Delaware corporation, and any successor
corporation to all or substantially all of the assets or voting stock of Quiksilver, Inc. which
shall by appropriate action adopt the Plan.

     G. Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance.

     H. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

     I. Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.

     J. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

     K. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

     (i) If the Common Stock is at the time traded on the Nasdaq
Global Select Market (or the Nasdaq Global Market), then the Fair
Market Value shall be the closing selling price per share of

(Selected Officer Form)

A-9

 

Common Stock at the close of regular hours trading (i.e.,
before after-hours trading begins) on the Nasdaq Global Stock Market
(or the Nasdaq Global Market) on the date in question, as such price
is reported by The Wall Street Journal. If there is no closing
selling price for the Common Stock on the date in question, then the
Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

     (ii) If the Common Stock is at the time listed on any other
Stock Exchange, then the Fair Market Value shall be the closing
selling price per share of Common Stock at the close of regular
hours trading (i.e., before after-hours trading begins) on the date
in question on the Stock Exchange determined by the Plan
Administrator to be the primary market for the Common Stock, as such
price is officially quoted in the composite tape of transactions on
such exchange. If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be
the closing selling price on the last preceding date for which such
quotation exists.

     (iii) If the Common Stock is at the time not listed on
any established stock exchange, the Fair Market Value shall be
determined by the Board in good faith.

     L. Family Member shall mean, with respect to the Optionee, any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law.

     M. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

     N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

     O. Incentive Option shall mean an option which satisfies the requirements of Code
Section 422.

     P. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional
misconduct by Optionee adversely affecting the business or affairs of the Corporation (or any
Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be
inclusive of all the acts or omissions which the Corporation (or any Parent or Subsidiary) may
consider as grounds for the dismissal or discharge of Optionee or any other individual in the
Service of the Corporation (or any Parent or Subsidiary).

(Selected Officer Form)

A-10

 

     Q. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

     R. Notice of Exercise shall mean the notice of exercise in substantially the form
attached hereto as Exhibit A-1.

     S. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

     T. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

     U. Parent shall mean any corporation (other than the Corporation) in an unbroken chain
of corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

     V. Permanent Disability Or Permanently Disabled shall mean the inability of the
Optionee to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which is both (i) expected to result in death or determined to be
total and permanent by two (2) physicians selected by the Corporation or its insurers and
acceptable to the Optionee (or the Optionee’s legal representative), and (ii) to the extent the
Optionee is eligible to participate in the Corporation’s long-term disability plan, entitles the
Optionee to the payment of long-term disability benefits from the Corporation’s long-term
disability plan. The process for determining a Permanent Disability in accordance with the
foregoing shall be completed no later than the later of (i) the close of the calendar year in which
the Optionee’s Service terminates by reason of the physical or mental impairment triggering the
determination process or (ii) the fifteenth day of the third calendar month following such
termination of Service.

     W. Plan shall mean the Corporation’s amended and restated 2000 Stock Incentive Plan.

     X. Plan Administrator shall mean either the Board or a committee of the Board acting
in its capacity as administrator of the Plan.

     Y. Service shall mean the Optionee’s performance of services for the Corporation (or
any Parent or Subsidiary) in the capacity of an Employee, a non-employee member of the board of
directors or a consultant or independent advisor. An Optionee shall be deemed to cease Service
immediately upon the occurrence of either of the following events: (i) the Optionee no longer
performs services in any of the foregoing capacities for the Corporation or any Parent or
Subsidiary; or (ii) the entity for which the Optionee is performing such services ceases to remain
a Parent or Subsidiary of the Corporation, even though the Optionee may subsequently continue to
perform services for that entity.

     Z. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global Select
Market, the Nasdaq Global Market or the New York Stock Exchange.

(Selected Officer Form)

A-11

 

     AA. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

(Selected Officer Form)

A-12

 

EXHIBIT B

FRENCH OPTIONS AGREEMENT ADDENDUM

FRENCH PLAN TERMS

This Addendum contains the terms of options granted to employees and officers under the Quiksilver,
Inc. 2000 Stock Incentive Plan (“the Plan”) to eligible French Employees and officers (“the French
Plan”). The terms of the French Plan are identical to the Plan except as provided below:

	1.	 	For the purposes of any options granted in accordance with the French Plan, the terms of the
Plan shall be deemed incorporated by reference to this Addendum.
	 
	2.	 	For the purposes of the French Plan, options granted in accordance with the French Plan
(“French Options”) may be designated as Qualifying French Stock Options within the meaning of
the conditions set forth in the French Commercial Code (articles L 225-177 to L 225-186-1).
	 
	3.	 	The per share exercise price of French Options determined in accordance with the French Plan
shall not be less than 95% of the average Fair Market Value during the 20 trading days
preceding the date of option grant.
	 
	4.	 	The employees and officers to whom French Options may be granted according to the French Plan
are restricted as follows:
	 
	 	 	French Options may not be granted to persons holding more than 10% of the share
capital of the Corporation.
	 
	 	 	French Options may only be granted to employees or “Président du Conseil
d’administration”, “Directeur Général”, “Directeurs Généraux Délégués”, Members of
the “Directoire”, “Gérant” of a “Société par actions”, or other officers (in
particular Président du Conseil de Surveillance) being otherwise a salaried employee
of any Parent or Subsidiary of the Corporation where:
	 
		 	(i) at least 10% of the employer company share capital or of the voting rights is
held, directly or indirectly, by the Corporation;
	 
		 	(ii) the employer company holds, directly or indirectly, at least 10% of the share
capital or of the voting rights of the Corporation; or
	 
		 	(iii) at least 50% of the employer company share capital or of the voting rights is
held, directly or indirectly, by a company which itself holds, directly or
indirectly, at least 50% of the capital of the Corporation.
	 
	5.	 	The period during which French Options may be exercised following date of death under the
French Plan is six (6) months.

B-1

 

	6.	 	Option adjustments under the French Plan include the following:
	 
	 	 	“In all cases, the modification of the exercise price or number of options under the
French Plan shall be made in accordance with article L 225-181 of the French
Commercial Code.”
	 
	7.	 	In the case of French Options to acquire treasury shares, the Corporation shall procure
sufficient shares of Common Stock available for transfer to satisfy the exercise of such
options (which have neither lapsed nor been exercised) to the full extent possible, before the
Optionee has the right to exercise the French Option.
	 
	8.	 	No French Options may be granted before the end of the period of 20 trading days following a
dividend distribution or increase of authorized capital or before or after 10 trading days of
the publication of consolidated or, if none, annual accounts or between the date that the
Corporation’s officers have knowledge of any information which could significantly affect the
value of the shares of Common Stock and 10 trading days after the information has been
publicized.
	 
	9.	 	In accepting the grant of French Options, the Optionee undertakes that he or she will notify
the employer company in writing with respect to the date of option exercise and share sale at
least seven (7) days prior to and seven (7) days following either event.
	 
	10.	 	The French Options shall not become exercisable for the Option Shares before the first
anniversary of the Grant Date.
	 
	11.	 	The sale or transfer as bearer shares of shares of Common Stock purchased upon exercise of
French Options shall be restricted until the fourth anniversary of the Grant Date.
	 
	12.	 	Under the French Plan, in no event shall the number of shares of Common Stock subject to
outstanding unexercised options exceed one-third (1/3) of the Corporation’s authorized shares.

B-2

 

FRENCH RESTRICTED STOCK ADDENDUM

FRENCH PLAN TERMS

This Addendum contains the terms of restricted stock granted to employees and officers under the
Quiksilver, Inc. 2000 Stock Incentive Plan (“the Plan”) to eligible French Employees and officers
(“the French Plan”). The terms of the French Plan are identical to the Plan except as provided
below:

	1.	 	For the purposes of any restricted stock granted in accordance with the French Plan, the
terms of the Plan shall be deemed incorporated by reference to this Addendum.
	 
	2.	 	For the purposes of the French Plan, restricted shares granted in accordance with the French
Plan (“French Restricted Stock”) may be designated as Qualifying French Restricted Stock
within the meaning of the conditions set forth in the French Commercial Code (articles L
225-197-1 and s.).
	 
	3.	 	The employees and officers to whom French Restricted Stock may be granted according to the
French Plan are restricted as follows:
	 
	 	 	French Restricted Stock may not be granted to persons holding more than 10% of the share
capital of the Corporation.
	 
	 	 	French Restricted Stock may only be granted to employees or “Président du Conseil
d’administration”, “Directeur Général”, “Directeurs Généraux Délégués”, Members of the
“Directoire”, “Gérant” of a “Société par actions”, “Président” of a “société par actions
simplifiée” or other officers (in particular Président du Conseil de Surveillance) being
otherwise a salaried employee of any Parent or Subsidiary of the Corporation where:
	 
		 	(i) at least 10% of the employer company share capital or of the voting rights is
held, directly or indirectly, by the Corporation;
	 
		 	(ii) the employer company holds, directly or indirectly, at least 10% of the share
capital or of the voting rights of the Corporation; or
	 
		 	(iii) at least 50% of the employer company share capital or of the voting rights is
held, directly or indirectly, by a company which itself holds, directly or
indirectly, at least 50% of the capital of the Corporation.
	 
	4.	 	According to the article L.225-197-1 of the French Commercial Code, no shares of the French
Restricted Stock shall vest before the second anniversary of the Grant Date. During the
vesting period the Participant shall not be entitled to any rights (e.g., voting rights, cash
dividends, etc.) with respect to the shares of French Restricted Stock. By way of exception,
in the event of the death or permanent disability of second or third category of the
Participant, all of the French Restricted Stock shall accelerate and vest immediately
according to the articles L. 225-197-3 and L. 225-197-1 of the French Commercial Code and all
restrictions shall lapse immediately.

B-3

 

	5.	 	Restricted Stock adjustments under the French Plan include the following:
	 
	 	 	“In all cases, the modification of the number of shares of the French Restricted
Stock under the French Plan shall be made in accordance with the ‘instruction DGI of
10 November 2006, 5F-17-06’”
	 
	6.	 	According to the article L.225-197-3 of the French Commercial Code, the sale of the vested shares of the French Restricted stock shall be restricted until the second anniversary of the
Vesting Date.
	 
	7.	 	According to the article L.225-197-1 of the French Commercial Code, the sale of the shares of
the French Restricted Stock shall be restricted before or after 10 trading days of the
publication of consolidated or, if none, annual accounts or between the date that the
Corporation’s officers have knowledge of any information which could significantly affect the
value of the shares of Common Stock and 10 trading days after the information has been
publicized.
	 
	8.	 	Under the French Plan, in no event shall the number of shares of the French Restricted Stock
granted to the Participants exceed ten percent (10%) of the Corporation’s authorized shares.

B-4

 

NOTICE OF GRANT OF

NON-EMPLOYEE DIRECTOR AUTOMATIC STOCK OPTION

(Annual Meeting and Initial Grant Form)

     Notice is hereby given of the following option grant (the “Option”) to purchase shares of
the Common Stock of Quiksilver, Inc. (the “Corporation”):

	 	 	 	 	 	 	 	 	 

	Optionee:

	 	 	 	 	 	Grant Date:
	 	 
	Number of Options Shares:

	 	25,000	 	Exercise Price:	 	 
	Type of Option:

	 	o Incentive Stock Option
	 	Expiration Date:	 	 
	 

	 	þ Non-Statutory Stock Option
	 	 	 	 

     Exercise and Vesting Schedule: The option shall be fully vested and exercisable
immediately upon grant.

     Optionee understands and agrees that the Option is granted subject to and in accordance with
the terms of the Director Automatic Grant Program under the Quiksilver, Inc. amended and restated
2000 Stock Incentive Plan (the “Plan”). Optionee further agrees to be bound by the terms of the
Plan and the terms of the Option as set forth in the Automatic Stock Option Agreement attached
hereto as Exhibit A. Optionee hereby acknowledges having received and read a copy of the
official Plan Summary and Prospectus for the Plan. A copy of the Plan is available upon request
made to the Corporate Secretary at the Corporation’s principal offices.

     Impairment of Rights. Nothing in this Notice or in the attached Automatic Stock
Option Agreement or in the Plan shall interfere with or otherwise restrict in any way the rights of
the Corporation and the Corporation’s stockholders to remove Optionee from the Board at any time in
accordance with the provisions of applicable law.

     Definitions. All capitalized terms in this Notice shall have the meaning assigned to
them in this Notice or in the attached Stock Option Agreement.

Date: ____________________

	 	 	 	 	 	 	 
	 	 	QUIKSILVER, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 
	OPTIONEE

	 	 	Title:	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	 	 	ATTACHMENTS
	 

	 	 	 	 	 	 
	 	 	Exhibit A —
Automatic Stock Option Agreement
	 

	 	 	 	 	 	 
	 	 	 
	 

	 	 	 	 	 	 

 

EXHIBIT A

AUTOMATIC STOCK OPTION AGREEMENT

R E C I T A L S

     A. The Corporation has implemented an automatic grant program under the Plan pursuant to which
eligible non-employee members of the Board will automatically receive option grants at periodic
intervals over their period of Board service to provide such individuals with a meaningful
incentive to continue to serve as members of the Board.

     B. Optionee is an eligible non-employee Board member, and this Agreement is executed pursuant
to, and is intended to carry out the purposes of, the Plan in connection with the automatic grant
of an option to purchase shares of Common Stock under the Plan.

     C. All capitalized terms in this Agreement shall have the meaning assigned to them in the
attached Appendix.

     NOW, THEREFORE, it is hereby agreed as follows:

     1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date,
a Non-Statutory Option to purchase up to the number of Option Shares specified in the Grant Notice.
The Option Shares shall be purchasable from time to time during the option term specified in
Paragraph 2 at the Exercise Price.

     2. Option Term. This option shall have a maximum term of seven (7) years measured
from the Grant Date and shall accordingly expire at the close of business on the Expiration Date,
unless sooner terminated in accordance with Paragraph 5 or 6.

     3. Limited Transferability.

          (a) This option may be assigned in whole or in part during Optionee’s lifetime only by gift or
pursuant to a domestic relations order to one or more Family Members of the Optionee or to a trust
established for the exclusive benefit of Optionee and/or one or more such Family Members. The
assigned portion shall be exercisable only by the person or persons who acquire a proprietary
interest in the option pursuant to such assignment. The terms applicable to the assigned portion
shall be the same as those in effect for this option immediately prior to such assignment.

          (b) Except as provided in Paragraph 3(a) above, this option shall be neither transferable nor
assignable by Optionee other than by will or the laws of inheritance following Optionee’s death and
may be exercised, during Optionee’s lifetime, only by Optionee. However, Optionee may designate
one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in
accordance with such designation, automatically be transferred to such beneficiary or beneficiaries
upon the Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take
the transferred option subject to all the terms and

(Non-Employee Director)

A-1

 

conditions of this Agreement, including (without limitation) the limited time period during
which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death.

     4. Dates of Exercise. This option shall be fully vested and immediately exercisable
for the Option Shares and shall remain so until the Expiration Date or sooner termination of the
option term under Paragraph 5 or 6.

     5. Cessation of Board Service/Termination of Option. Should Optionee’s Service as a
Board member cease while this option is outstanding, then the option term specified in Paragraph 2
shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date in
accordance with the following provisions:

          (a) Should Optionee cease to serve as a Board member for any reason while this option is
outstanding, then the period during which this option may be exercised shall be reduced to a twelve
(12)-month period measured from the date of such cessation of Board Service, but in no event shall
this option be exercisable at any time after the Expiration Date. During such limited period of
exercisability, Optionee (or the person or persons to whom this option is transferred pursuant to a
permitted transfer under Paragraph 3) may exercise this option with respect to any Option Shares
for which the option has not been exercised. Upon the expiration of such limited exercise period
or (if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding
for any exercisable Option Shares for which the option has not been exercised.

          (b) The applicable post-Service exercise period in effect for this option pursuant to the
foregoing provisions of this Paragraph 5 shall automatically be extended by an additional period of
time equal in duration to any interval within that otherwise applicable post-Service exercise
period in which the exercise of this option or the immediate sale of the Option Shares acquired
hereunder cannot be effected in compliance with applicable federal and state securities laws, but
in no event shall such an extension result in the continuation of this option beyond the Expiration
Date.

     6. Corporate
Transaction/Hostile Take-Over.

          (a) Immediately following a Corporate Transaction, this option shall terminate and cease to be
outstanding, except to the extent assumed by the successor corporation (or parent thereof) in
connection with the Corporate Transaction or otherwise continued in full force and effect pursuant
to the terms of the Corporate Transaction.

          (b) If this option is assumed in connection with a Corporate Transaction or otherwise
continued in effect, then this option shall be appropriately adjusted, immediately after such
Corporate Transaction, to apply to the number and class of securities which would have been
issuable to Optionee in consummation of such Corporate Transaction had the option been exercised
immediately prior to such Corporate Transaction, and appropriate adjustments shall also be made to
the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the
extent the actual holders of the Corporation’s outstanding Common Stock receive cash consideration
for their Common Stock in consummation of the Corporate Transaction, the successor corporation may,
in connection with the assumption of this option,

(Non-Employee Director)

A-2

 

substitute one or more shares of its own common stock with a fair market value equivalent to
the cash consideration paid per share of Common Stock in such Corporate Transaction.

          (c) This Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

          (d) Upon the occurrence of a Hostile Take-Over while Optionee remains a Board member, the
Optionee shall have a thirty (30)-day period immediately following the consummation of the Hostile
Take-Over in which to surrender to the Corporation this option in exchange for a cash distribution
from the Corporation in an amount equal to the excess of (i) the Take-Over Price of the shares of
Common Stock at the time subject to this option less (ii) the aggregate Exercise Price payable for
such shares. This Paragraph 6(d) limited stock appreciation right shall in all events terminate
upon the expiration or sooner termination of the option term and may not be assigned or transferred
by Optionee, except to the extent the option is transferred in accordance with the provisions of
this Agreement.

          (e) To exercise the Paragraph 6(d) limited stock appreciation right, Optionee must, during the
applicable thirty (30)-day exercise period, provide the Corporation with written notice of the
option surrender in which there is specified the number of Option Shares as to which the option is
being surrendered. Such notice must be accompanied by the return of Optionee’s copy of this
Agreement, together with any written amendments to such Agreement. The cash distribution shall be
paid to Optionee within five (5) business days following such delivery date. The exercise of such
limited stock appreciation right in accordance with the terms of this Paragraph 6 has been
pre-approved pursuant to the express provisions of the Director Automatic Grant Program, and
neither the approval of the Plan Administrator nor the consent of the Board shall be required at
the time of the actual option surrender and cash distribution. Upon receipt of the cash
distribution, this option shall be canceled with respect to the shares subject to the surrendered
option (or the surrendered portion) and Optionee shall cease to have any further right to acquire
those Option Shares under this Agreement. This option shall, however, remain outstanding for the
balance of the Option Shares (if any) in accordance with the terms and provisions of this
Agreement, and the Corporation shall accordingly issue a replacement stock option agreement
(substantially in the same form as this Agreement) for those remaining Option Shares.

     7. Adjustment
in Option Shares. Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or
class of securities subject to this option and (ii) the Exercise Price in order to reflect such
change and thereby preclude a dilution or enlargement of benefits hereunder.

     8. Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.

(Non-Employee Director)

A-3

 

     9. Manner of Exercising Option.

          (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

               (i) Execute and deliver to the Corporation a Notice of Exercise for the Option Shares for
which the option is exercised.

               (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the following
forms:

                    (A) cash or check made payable to the Corporation;

                    (B) shares of Common Stock valued at Fair Market Value on the Exercise Date and held by
Optionee (or any other person or persons exercising the option) for the period, if any, necessary
to avoid any charge to the Corporation’s earnings for financial reporting purposes; or

                    (C) through a special sale and remittance procedure pursuant to which Optionee (or any other
person or persons exercising the option) shall concurrently provide irrevocable instructions to (i)
a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and
remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient
funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable
Federal, state and local income and employment taxes required to be withheld by the Corporation by
reason of such exercise and (ii) the Corporation to deliver the certificates for the purchased
shares directly to such brokerage firm in order to complete the sale.

          Except to the extent the sale and remittance procedure is utilized in connection with the
option exercise, payment of the Exercise Price must accompany the Notice of Exercise delivered to
the Corporation in connection with the option exercise.

               (iii) Furnish to the Corporation appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option.

               (iv) Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or
retaining Optionee) for the satisfaction of all Federal, state and local income and employment tax
withholding requirements applicable to the option exercise.

          (b) As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf
of Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.

          (c) In no event may this option be exercised for any fractional shares.

(Non-Employee Director)

A-4

 

     10. Compliance with Laws and Regulations.

          (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Corporation and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or over-the-counter
market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and issuance.

          (b) The inability of the Corporation to obtain approval from any regulatory body having
authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common
Stock pursuant to this option shall relieve the Corporation of any liability with respect to the
non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such approvals.

     11. Successors and Assigns. Except to the extent otherwise provided in Paragraphs 3
and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the
Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal
representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option
designated by Optionee.

     12. Notices. Any notice required to be given or delivered to the Corporation under
the terms of this Agreement shall be in writing and addressed to the Corporation at its principal
corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant
Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S.
mail, postage prepaid and properly addressed to the party to be notified.

     13. Construction. This Agreement and the option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All
decisions of the Plan Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest in this option.

     14. Governing Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State’s
conflict-of-laws rules.

     15. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan.

(Non-Employee Director)

A-5

 

Exhibit A-1

NOTICE OF EXERCISE

     I hereby notify Quiksilver, Inc. (the “Corporation”) that I elect to purchase                     
shares of the Corporation’s Common Stock (the “Purchased Shares”) at the option exercise price of
$                     per share (the “Exercise Price”) pursuant to that certain option (the “Option”) granted
to me under the Corporation’s amended and restated 2000 Stock Incentive Plan on                     , ___.

     Concurrently with the delivery of this Exercise Notice to the Corporation, I shall hereby pay
to the Corporation the Exercise Price for the Purchased Shares in accordance with the provisions of
my agreement with the Corporation (or other documents) evidencing the Option and shall deliver
whatever additional documents may be required by such agreement as a condition for exercise.
Alternatively, I may utilize the special broker-dealer sale and remittance procedure specified in
my agreement to effect payment of the Exercise Price.

                    ,
___

Date

	 	 	 	 	 
	 	 	 	 
	 

	 	Optionee	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	Print name in exact manner it is to 

appear on the stock certificate:

	 	 	 
	 
	 	 	 	 
	Address to which certificate is to

	 	 
	 
	be sent, if different from address above:

	 	 	 
	 

	 	 	 
	 
	Social Security Number:

	 	 	 

(Non-Employee Director)

A-6

 

APPENDIX

     The following definitions shall be in effect under the Agreement:

     A. Agreement shall mean this Stock Option Agreement.

     B. Board shall mean the Corporation’s Board of Directors.

     C. Code shall mean the Internal Revenue Code of 1986, as amended.

     D. Common Stock shall mean shares of the Corporation’s common stock.

     E. Corporate Transaction shall mean either of the following stockholder-approved
transactions to which the Corporation is a party:

     (i) a merger or consolidation in which securities possessing
more than fifty percent (50%) of the total combined voting power of
the Corporation’s outstanding securities are transferred to a person
or persons different from the persons holding those securities
immediately prior to such transaction, or

     
(ii) the sale, transfer or other disposition of all or
substantially all of the Corporation’s assets in complete
liquidation or dissolution of the Corporation.

     F. Corporation shall mean Quiksilver, Inc., a Delaware corporation, and any successor
corporation to all or substantially all of the assets or voting stock of Quiksilver, Inc. which
shall by appropriate action adopt the Plan.

     G. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

     H. Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.

     I. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

     J. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

     
(i) If the Common Stock is at the time traded on the Nasdaq
Global Select Market (or the Nasdaq Global Market), then the Fair
Market Value shall be the closing selling price per share of Common
Stock at the close of regular hours trading (i.e., before
after-hours trading begins) on the Nasdaq Global Stock Market (or
the Nasdaq Global Market) on the date in question, as such price is
reported by The Wall Street Journal. If there is no closing selling

 (Non-Employee Director)

A-7

 

price for the Common Stock on the date in question, then the
Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

          (ii) If the Common Stock is at the time listed on any other
Stock Exchange, then the Fair Market Value shall be the closing
selling price per share of Common Stock at the close of regular
hours trading (i.e., before after-hours trading begins) on the date
in question on the Stock Exchange determined by the Plan
Administrator to be the primary market for the Common Stock, as such
price is officially quoted in the composite tape of transactions on
such exchange. If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be
the closing selling price on the last preceding date for which such
quotation exists.

          (iii) If the Common Stock is at the time not listed on
any established stock exchange, the Fair Market Value shall be
determined by the Board in good faith.

     K. Family Member shall mean, with respect to the Optionee, any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law.

     L. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

     M. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

     N. Hostile Take-Over shall mean the acquisition, directly or indirectly, by any person
or related group of persons (other than the Corporation or a person that directly or indirectly
controls, is controlled by, or is under common control with, the Corporation) of beneficial
ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities
pursuant to a tender or exchange offer made directly to the Corporation’s stockholders which the
Board does not recommend such stockholders to accept.

     O. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

     P. Notice of Exercise shall mean the notice of exercise in substantially the form
attached hereto as Exhibit A-1.

     Q. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

(Non-Employee Director)

A-8

 

     R. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

     S. Parent shall mean any corporation (other than the Corporation) in an unbroken chain
of corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

     T. Permanent Disability shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or has lasted or can be expected to last for a continuous
period of twelve (12) months or more.

     U. Plan shall mean the Corporation’s amended and restated 2000 Stock Incentive Plan.

     V. Plan Administrator shall mean either the Board or a committee of the Board acting
in its capacity as administrator of the Plan.

     W. Service shall mean the Optionee’s performance of services for the Corporation (or
any Parent or Subsidiary) in the capacity of an Employee, a non-employee member of the board of
directors or a consultant or independent advisor. An Optionee shall be deemed to cease Service
immediately upon the occurrence of either of the following events: (i) the Optionee no longer
performs services in any of the foregoing capacities for the Corporation or any Parent or
Subsidiary; or (ii) the entity for which the Optionee is performing such services ceases to remain
a Parent or Subsidiary of the Corporation, even though the Optionee may subsequently continue to
perform services for that entity.

     X. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global Select
Market, the Nasdaq Global Market or the New York Stock Exchange.

     Y. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

     Z. Take-Over Price shall mean the greater of (i) the Fair Market Value per share of
Common Stock on the date the option is surrendered to the Corporation in connection with a Hostile
Take-Over or (ii) the highest reported price per share of Common Stock paid by the tender offeror
in effecting such Hostile Take-Over through the acquisition of Common Stock.

     AA. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

(Non-Employee Director)

A-9

 

QUIKSILVER, INC.

RESTRICTED STOCK AGREEMENT

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

Director:                     

Grant Date:                     

Number of Shares of

Restricted Stock Granted: 15,000

          THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) dated as of [                    ], 20___(the
“Grant Date”) is entered into by and between Quiksilver, Inc., a Delaware corporation (the
“Corporation”), and the Director specified above, pursuant to the Director Automatic Grant Program
under the Quiksilver, Inc. amended and restated 2000 Stock Incentive Plan (the “Plan”).
Capitalized terms used herein and not otherwise defined in the attached Appendix or elsewhere
herein shall have the meaning assigned to such terms in the Plan.

          NOW, THEREFORE, in consideration of services rendered and to be rendered by the Director, and
the mutual promises made herein and the mutual benefits to be derived therefrom, the parties agree
as follows:

     1. Grant. Subject to the terms of this Agreement, the Corporation hereby grants to
the Director an aggregate of 15,000 restricted shares of Common Stock of the Corporation (the
“Restricted Stock”).

     2. Vesting.

          (a) Time Vesting. Subject to Section 7 below, the Restricted Stock shall vest, and
restrictions shall lapse, as follows:

               (i) 5,000 shares of Restricted Stock shall vest on the first anniversary of the Grant Date or,
if this grant is being made on the date of an annual meeting of stockholders of the Corporation, on
the day immediately preceding the date of the first annual meeting of stockholders of the
Corporation following the Grant Date, if earlier than such first anniversary;

               (ii) 5,000 shares of Restricted Stock shall vest on the second anniversary of the Grant Date
or, if this grant is being made on the date of an annual meeting of stockholders of the
Corporation, on the day immediately preceding the date of the second annual meeting of stockholders
of the Corporation following the Grant Date, if earlier than such second anniversary;

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

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               (iii) 5,000 shares of Restricted Stock shall vest on the third anniversary of the Grant Date
or, if this grant is being made on the date of an annual meeting of stockholders of the
Corporation, on the day immediately preceding the date of the third annual meeting of stockholders
of the Corporation following the Grant Date, if earlier than such third anniversary.

          (b) Acceleration of Vesting Upon Corporate Transaction/Change in Control. All of the
Restricted Stock shall accelerate and vest and all restrictions shall lapse, immediately prior to
the effective date of a Corporate Transaction or Change in Control.

          (c) Acceleration of Vesting Upon Death or Permanent Disability. In the event of the
death or Permanent Disability of Director, all of the Restricted Stock shall accelerate and vest
and all restrictions shall lapse immediately prior to such death or Permanent Disability.

     3. Continuance of Service. Vesting of the Restricted Stock requires continued Service
of the Director as a member of the Corporation’s Board of Directors from the Grant Date through
each applicable vesting date as a condition to the vesting of the applicable installment of the
Restricted Stock and the rights and benefits under this Agreement. Nothing contained in this
Agreement or the Plan constitutes a service commitment by the Corporation, confers upon the
Director any right to remain in service to the Corporation, interferes in any way with the right of
the Corporation at any time to terminate such services, or affects the right of the Corporation to
increase or decrease the Director’s other compensation or benefits. Nothing in this section,
however, is intended to adversely affect any independent contractual right of the Director without
his or her consent thereto.

     4. Dividend and Voting Rights. After the Grant Date, the Director shall be entitled
to voting rights and any regular cash dividends with respect to the shares of Restricted Stock even
though such shares are not vested, provided that such rights shall terminate immediately as to any
shares of Restricted Stock that are forfeited pursuant to Section 7 below.

     5. Restrictions on Transfer. Prior to the time that they have become vested, neither
shares of the Restricted Stock, nor any interest therein, amount payable in respect thereof, or
Restricted Property (as defined in Section 8 hereof) may be sold, assigned, transferred, pledged or
otherwise disposed of, alienated or encumbered (collectively, a “Transfer”), either voluntarily or
involuntarily. The Transfer restrictions in the preceding sentence shall not apply to (i)
transfers to the Corporation, or (ii) transfers by will or the laws of descent and distribution.
After any shares of Restricted Stock have vested, the Director shall be permitted to Transfer such
shares of Restricted Stock, subject to applicable securities law requirements, the Corporation’s
insider trading policies, and other applicable laws and regulations.

     6. Stock Certificates.

          (a) Book Entry Form. The Corporation shall issue the shares of Restricted Stock
either: (i) in certificate form as provided in Section 6(b) below; or (ii) in book entry form,
registered in the name of the Director with notations regarding the applicable restrictions on
transfer imposed under this Agreement.

          (b) Certificates to be Held by Corporation; Legend. Any certificates representing
shares of Restricted Stock that may be delivered to the Director by the Corporation

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

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prior to vesting shall be redelivered to the Corporation to be held by the Corporation until
the restrictions on such shares shall have lapsed and the shares shall thereby have become vested
or the shares represented thereby have been forfeited hereunder. Such certificates shall bear the
following legend:

“The ownership of this certificate and the shares of stock evidenced
hereby and any interest therein are subject to substantial
restrictions on transfer under an Agreement entered into between the
registered owner and Quiksilver, Inc. A copy of such Agreement is
on file in the office of the Secretary of Quiksilver, Inc.”

          (c) Delivery of Certificates Upon Vesting. Promptly after shares of Restricted Stock
have vested, and all other conditions and restrictions applicable to such Restricted Stock have
been satisfied or lapse (including satisfaction of any applicable Withholding Taxes), the
Corporation shall, as applicable, either remove the notations on any shares of Restricted Stock
issued in book entry form which have vested or deliver to the Director a certificate or
certificates evidencing the number of shares of Restricted Stock which have vested (or, in either
case, such lesser number of shares as may be permitted pursuant to Section 9). The Director (or
the beneficiary or personal representative of the Director in the event of the Director’s death or
Permanent Disability, as the case may be) shall deliver to the Corporation any representations or
other documents or assurances as the Corporation may deem desirable to assure compliance with all
applicable legal and accounting requirements. The shares so delivered shall no longer be
Restricted Stock hereunder.

          (d) Stock Power; Power of Attorney. Concurrently with the execution and delivery of
this Agreement, the Director shall deliver to the Corporation an executed stock power in the form
attached hereto as Exhibit A, in blank, with respect to such shares. The Director, by
acceptance of the Restricted Stock, shall be deemed to appoint, and does so appoint by execution of
this Agreement, the Corporation and each of its authorized representatives as the Director’s
attorney(s)-in-fact to effect any transfer of unvested forfeited shares of Restricted Stock (or
shares otherwise reacquired by the Corporation hereunder) to the Corporation as may be required
pursuant to the Plan or this Agreement and to execute such documents as the Corporation or such
representatives deem necessary or advisable in connection with any such transfer.

     7. Effect of Termination of Service. Subject to earlier vesting as provided in
Section 2 hereof, if the Director ceases to provide Service to the Corporation as a member of the
Corporation’s Board of Directors, the Director’s shares of Restricted Stock (and related Restricted
Property as defined in Section 8 hereof) shall be forfeited to the Corporation to the extent such
shares have not become vested pursuant to Section 2 upon the date the Director’s Service as a
member of the Board of Directors terminates (the “Severance Date”), regardless of the reason for
such termination (whether with or without cause, voluntarily or involuntarily). Upon the
occurrence of any forfeiture of shares of Restricted Stock hereunder, such unvested, forfeited
shares and related Restricted Property shall be automatically transferred to the Corporation,
without any other action by the Director. No additional consideration shall be paid by the
Corporation with respect to such transfer. The Corporation may exercise its powers under Section
6(d) hereof and take any other action necessary or advisable to evidence such transfer.

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

3

 

The Director shall deliver any additional documents of transfer that the Corporation may
request to confirm the transfer of such unvested, forfeited shares and related Restricted Property
to the Corporation.

     8. Adjustments Upon Specified Events. If any change is made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class, appropriate adjustment
shall be made to the number and/or class of securities in effect under this Agreement. Such
adjustments to the outstanding Restricted Stock are to be effected in a manner which shall preclude
the enlargement or dilution of rights and benefits under this Agreement. The adjustments
determined by the Corporation shall be final, binding and conclusive. If any adjustment shall be
made pursuant to the foregoing or any dividend other than a regular cash dividend is declared and
the shares of Restricted Stock are not fully vested upon such event or prior thereto, the
restrictions applicable to such shares of Restricted Stock shall continue in effect with respect to
any consideration or other securities (the “Restricted Property” and, for the purposes of this
Agreement, “Restricted Stock” shall include “Restricted Property,” unless the context otherwise
requires) received in respect of such Restricted Stock. Such Restricted Property shall vest at
such times and in such proportion as the shares of Restricted Stock to which the Restricted
Property is attributable vest, or would have vested pursuant to the terms hereof if such shares of
Restricted Stock had remained outstanding.

     9. Taxes.

          (a) Tax Withholding. The Corporation shall be entitled to require a cash payment by
or on behalf of the Director and/or to deduct from other compensation payable to the Director any
sums required with respect to Withholding Taxes. Alternatively, the Director or other person in
whom the Restricted Stock vests may irrevocably elect, in such manner and at such time or times
prior to any applicable tax date as may be permitted or required under rules established by the
Corporation, to have the Corporation withhold and reacquire shares of Restricted Stock at their
Fair Market Value at the time of vesting to satisfy all or part of the minimum Withholding Taxes of
the Corporation with respect to such vesting. Any election to have shares so held back and
reacquired shall be subject to such rules and procedures, which may include prior approval of the
Corporation, as the Corporation may impose, and shall not be available if the Director makes or has
made an election pursuant to Section 83(b) of the Code with respect to such Restricted Stock.

          (b) Tax Consequences to Director. Director acknowledges that the issuance and the
vesting of the Restricted Stock may have significant and adverse tax consequences for Director and
that Director has been advised by the Corporation to review the Questions and Answers on Federal
Income Tax Consequences portion of the Corporation’s Stock Plan Summary and Prospectus and to
consult Director’s personal tax advisor regarding the consequences of the issuance and vesting of
the Restricted Stock to Director.

     10. Notices. Any notice to be given under the terms of this Agreement shall be in
writing and addressed to the Corporation at its principal office to the attention of the Secretary,
and to the Director at the Director’s last address reflected on the Corporation’s records. Any
notice shall be delivered in person or shall be enclosed in a properly sealed envelope, addressed

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

4

 

as aforesaid, registered or certified, and deposited (postage and registry or certification
fee prepaid) in a post office or branch office regularly maintained by the United States
Government. Any such notice shall be given only when received, but shall be deemed to have been
duly given five business days after the date mailed in accordance with the foregoing provisions of
this Section 10.

     11. Plan. The Restricted Stock and all rights of the Director under this Agreement
are subject to the terms and conditions of the provisions of the Plan, incorporated herein by
reference. The Director agrees to be bound by the terms of the Plan and this Agreement. The
Director acknowledges having read and understanding the Plan, the Plan Summary and Prospectus for
the Plan, and this Agreement.

     12. Entire Agreement. This Agreement and the Plan together constitute the entire
agreement and supersede all prior understandings and agreements, written or oral, of the parties
hereto with respect to the subject matter hereof. The Plan and this Agreement may be amended
pursuant to Section 6.3 of the Plan. Such amendment must be in writing and signed by the
Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to
the extent such waiver does not adversely affect the interests of the Director hereunder, but no
such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a
waiver of any other provision hereof.

     13. Counterparts. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

     14. Section Headings. The section headings of this Agreement are for convenience of
reference only and shall not be deemed to alter or affect any provision hereof.

     15. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware without regard to conflict of law principles
thereunder.

[Signature page follows]

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

5

 

     IN WITNESS WHEREOF, the Corporation has caused this Agreement to be executed on its behalf by
a duly authorized officer and the Director has hereunto set his or her hand as of the date and year
first above written.

	 	 	 	 	 
	 	QUIKSILVER, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Print Name:  	 	 
	 	 	Its:   	 	 
	 
	 	 	DIRECTOR

	 
	 	 	 	 
	 	 	Signature 	 	 
	 
	 	 	 	 
	 	 	Print Name:  	 	 
	 

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

6

 

APPENDIX

     The following definitions shall be in effect under the Agreement:

     A. “Board” shall mean the Corporation’s Board of Directors.

     B. “Change in Control” shall mean a change in ownership or control of the Corporation effected
through either of the following transactions.

          (i) the acquisition, directly or indirectly, by any person or related group of persons (other
than the Corporation or a person that directly controls, is controlled by, or is under common
control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the
1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power
of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to
the Corporation’s stockholders, or

          (ii) a change in the composition of the Board over a period of thirty-six (36) consecutive
months or less such that a majority of the Board members ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who either (A) have been Board
members continuously since the beginning of such period or (b) have been elected or nominated for
election as Board members during such period by at least a majority of the Board members described
in clause (A) who were still in office at the time the Board approved such election or nomination.

     C. “Common Stock” shall mean the Corporation’s common stock.

     D. “Corporate Transaction” shall mean either of the following stockholder-approved
transactions to which the Corporation is a party:

          (i) a merger or consolidation in which securities possessing more than fifty percent (50%) of
the total combined voting power of the Corporation’s outstanding securities are transferred to a
person or persons different from the persons holding those securities immediately prior to such
transaction, or

          (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s
assets in complete liquidation or dissolution of the Corporation.

     E. “Fair Market Value” per share of Common Stock on any relevant date shall be determined in
accordance with the following provisions:

          (i) If the Common Stock is at the time traded on the Nasdaq Global Select Market (or the
Nasdaq Global Market), then the Fair Market Value shall be the closing selling price per share of
Common Stock at the close of regular hours trading (i.e., before after-hours trading begins) on the
Nasdaq Global Stock Market (or the Nasdaq Global Market) on the date in question, as such price is
reported by The Wall Street Journal. If there is no closing selling price for the Common Stock on
the date in question, then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

7

 

          (ii) If the Common Stock is at the time listed on any other Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock at the close of regular
hours trading (i.e., before after-hours trading begins) on the date in question on the Stock
Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as
such price is officially quoted in the composite tape of transactions on such exchange. If there
is no closing selling price for the Common Stock on the date in question, then the Fair Market
Value shall be the closing selling price on the last preceding date for which such quotation
exists.

          (iii) If the Common Stock is at the time not listed on any established stock exchange,
the Fair Market Value shall be determined by the Board in good faith.

     F. “Permanent Disability” or “Permanently Disabled” shall mean the inability of the Director
to perform his or her usual duties as a Board member by reason of any medically determinable
physical or mental impairment expected to result in death or to be of continuous duration of twelve
(12) months or more.

     G. “Service” shall mean the performance of services for the Corporation by a person in the
capacity of a member of the Corporation’s Board of Directors.

     H. “Stock Exchange” shall mean the American Stock Exchange, the Nasdaq Global Select Market,
the Nasdaq Global Market or the New York Stock Exchange.

     I. “Withholding Taxes” shall mean the federal, state and local income and employment
withholding taxes to which the Director may become subject in connection with the issuance or
vesting of shares of Restricted Stock or upon the disposition of shares acquired pursuant to this
Agreement.

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

8

 

CONSENT OF SPOUSE

     In consideration of the execution of the foregoing Restricted Stock Agreement by Quiksilver,
Inc., I,                     , the spouse of the Director therein named, do hereby join with
my spouse in executing the foregoing Restricted Stock Agreement and do hereby agree to be bound by
all of the terms and provisions thereof and of the Plan.

Dated:                     , 20___

	 	 	 	 	 
	 	 	 
	 	Signature of Spouse

 	 
	 	 	 
	 	Print Name	 

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

9

 

STOCK POWER

     FOR VALUE RECEIVED and pursuant to that certain Restricted Stock Agreement between Quiksilver,
Inc., a Delaware corporation (the “Corporation”), and the individual named below (the “Individual”)
dated as of ______________, 20___, the Individual, hereby sells, assigns and transfers to the
Corporation, an aggregate __________ shares of Common Stock of the Corporation, standing in the
Individual’s name on the books of the Corporation and represented by stock certificate number(s)
__________ to which this instrument is attached, and hereby irrevocably constitutes and appoints
________________________ as his or her attorney in fact and agent to transfer such shares on the
books of the Corporation, with full power of substitution in the premises.

Dated ______________, _________

	 	 	 	 	 
	 	 	 
	 	Signature

 	 
	 	 	 
	 	Print Name	 
	 

     (Instruction: Please do not fill in any blanks other than the signature line. The purpose of
the assignment is to enable the Corporation to exercise its sale/purchase option set forth in the
Restricted Stock Agreement without requiring additional signatures on the part of the Individual.)

(Non-Employee Director Automatic Grant — Annual Meeting and Initial Grant Form)

10

 

F
O R M

QUIKSILVER,
INC.

RESTRICTED STOCK AGREEMENT

(Employee Grant)

	 	 	 

	Participant:

	 	_______________
	 
	 	 
	Grant Date:

	 	_______________
	 
	 	 
	Number of Shares of
	 	 
	Restricted Stock Granted:

	 	_______________

          THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) dated as of [_______________], 20___ (the
“Grant Date”) is entered into by and between Quiksilver, Inc., a Delaware corporation (the
“Corporation”), and the Participant specified above, pursuant to the Restricted Stock Program under
the Quiksilver, Inc. amended and restated 2000 Stock Incentive Plan (the “Plan”). Capitalized
terms used herein and not otherwise defined in the attached Appendix or elsewhere herein shall have
the meaning assigned to such terms in the Plan.

          NOW, THEREFORE, in consideration of services rendered and to be rendered by the Participant,
and the mutual promises made herein and the mutual benefits to be derived therefrom, the parties
agree as follows:

     1. Grant. Subject to the terms of this Agreement, the Corporation hereby grants to
the Participant an aggregate of __________ restricted shares of Common Stock of the Corporation
(the “Restricted Stock”).

     2. Vesting.

          (a) Vesting. Subject to Section 7 below, the Restricted Stock shall vest, and
restrictions shall lapse, as follows:

[Insert Vesting Provisions]

          (b) Acceleration of Vesting Upon Corporate Transaction. No shares of the Restricted
Stock shall vest at the time of a Corporate Transaction on an accelerated basis if and to the
extent that (i) this Agreement is, in connection with the Corporate Transaction, continued or
assumed by the successor corporation (or parent thereof) or otherwise continued in full force and
effect pursuant to the express terms of the Corporate Transaction, or (ii) substitution of new
agreements of comparable value covering shares of the successor corporation (or parent thereof) in
exchange for such shares of Restricted Stock, with appropriate adjustments as to the number and
kind of shares and purchase price, is provided for pursuant to the express terms of the Corporation
Transaction. However, if none of the foregoing conditions are satisfied,

(Employee Grant Form)

1

 

immediately prior to the effective date of the Corporate Transaction, all of the
Restricted Stock shall accelerate and vest and all restrictions shall lapse, immediately prior to
the effective date of the Corporate Transaction. In addition, if this Agreement is continued or
assumed by a successor corporation (or parent thereof) or otherwise continued in full force and
effect pursuant to the express terms of the Corporate Transaction or new agreements of comparable
value covering shares of the successor corporation (or parent thereof) are substituted in exchange
for the shares of Restricted Stock, and the successor corporation (or parent thereof) terminates
Participant as an employee, other than for Misconduct, all of the Restricted Stock shall accelerate
and vest and all restrictions shall lapse immediately prior to such termination of Participant as
an employee of the successor corporation (or parent thereof).

          (c) Acceleration of Vesting Upon Change in Control. In the event that the Corporation
terminates Participant as an Employee, other than for Misconduct, following a Change in Control,
all of the Restricted Stock shall accelerate and vest and all restrictions shall lapse, immediately
prior to such termination of Participant as an Employee.

          (d) Acceleration of Vesting Upon Death or Permanent Disability. In the event of the
death or Permanent Disability of Participant, all of the Restricted Stock shall accelerate and vest
and all restrictions shall lapse immediately prior to such death or Permanent Disability.

     3. Continuance of Service. Vesting of the Restricted Stock requires continued Service
of the Participant from the Grant Date through each applicable vesting date as a condition to the
vesting of the applicable installment of the Restricted Stock and the rights and benefits under
this Agreement. Nothing contained in this Agreement or the Plan constitutes an employment or
service commitment by the Corporation, affects the Participant’s status as an employee at will who
is subject to termination without cause, confers upon the Participant any right to remain employed
by or in service to the Corporation (or any Parent or Subsidiary), interferes in any way with the
right of the Corporation (or any Parent or Subsidiary) at any time to terminate such employment or
services, or affects the right of the Corporation (or any Parent or Subsidiary) to increase or
decrease the Participant’s other compensation or benefits. Nothing in this section, however, is
intended to adversely affect any independent contractual right of the Participant without his or
her consent thereto.

     4. Dividend and Voting Rights. After the Grant Date, the Participant shall be
entitled to voting rights and any regular cash dividends with respect to the shares of Restricted
Stock even though such shares are not vested, provided that such rights shall terminate immediately
as to any shares of Restricted Stock that are forfeited pursuant to Section 7 below.

     5. Restrictions on Transfer. Prior to the time that they have become vested, neither
shares of the Restricted Stock, nor any interest therein, amount payable in respect thereof, or
Restricted Property (as defined in Section 8 hereof) may be sold, assigned, transferred, pledged or
otherwise disposed of, alienated or encumbered (collectively, a “Transfer”), either voluntarily or
involuntarily. The Transfer restrictions in the preceding sentence shall not apply to (i)
transfers to the Corporation, or (ii) transfers by will or the laws of descent and distribution.
After any shares of Restricted Stock have vested, the Participant shall be permitted to Transfer
such shares of Restricted Stock, subject to applicable securities law requirements, the
Corporation’s insider trading policies, and other applicable laws and regulations.

(Employee Grant Form)

2

 

     6. Stock Certificates.

          (a) Book Entry Form. The Corporation shall issue the shares of Restricted Stock
either: (i) in certificate form as provided in Section 6(b) below; or (ii) in book entry form,
registered in the name of the Participant with notations regarding the applicable restrictions on
transfer imposed under this Agreement.

          (b) Certificates to be Held by Corporation; Legend. Any certificates representing
shares of Restricted Stock that may be delivered to the Participant by the Corporation prior to
vesting shall be redelivered to the Corporation to be held by the Corporation until the
restrictions on such shares shall have lapsed and the shares shall thereby have become vested or
the shares represented thereby have been forfeited hereunder. Such certificates shall bear the
following legend:

“The ownership of this certificate and the shares of stock evidenced
hereby and any interest therein are subject to substantial
restrictions on transfer under an Agreement entered into between the
registered owner and Quiksilver, Inc. A copy of such Agreement is
on file in the office of the Secretary of Quiksilver, Inc.”

          (c) Delivery of Certificates Upon Vesting. Promptly after shares of Restricted Stock
have vested, and all other conditions and restrictions applicable to such Restricted Stock have
been satisfied or lapse (including satisfaction of any applicable Withholding Taxes), the
Corporation shall, as applicable, either remove the notations on any shares of Restricted Stock
issued in book entry form which have vested or deliver to the Participant a certificate or
certificates evidencing the number of shares of Restricted Stock which have vested (or, in either
case, such lesser number of shares as may be permitted pursuant to Section 9). The Participant (or
the beneficiary or personal representative of the Participant in the event of the Participant’s
death or Permanent Disability, as the case may be) shall deliver to the Corporation any
representations or other documents or assurances as the Corporation may deem desirable to assure
compliance with all applicable legal and accounting requirements. The shares so delivered shall no
longer be Restricted Stock hereunder.

          (d) Stock Power; Power of Attorney. Concurrently with the execution and delivery of
this Agreement, the Participant shall deliver to the Corporation an executed stock power in the
form attached hereto, in blank, with respect to such shares. The Participant, by acceptance of the
Restricted Stock, shall be deemed to appoint, and does so appoint by execution of this Agreement,
the Corporation and each of its authorized representatives as the Participant’s attorney(s)-in-fact
to effect any transfer of unvested forfeited shares of Restricted Stock (or shares otherwise
reacquired by the Corporation hereunder) to the Corporation as may be required pursuant to the Plan
or this Agreement and to execute such documents as the Corporation or such representatives deem
necessary or advisable in connection with any such transfer.

(Employee Grant Form)

3

 

     7. Effect of Termination of Service; Misconduct.

          (a) Termination of Service. Subject to earlier vesting as provided in Section 2
hereof, if the Participant ceases to provide Service to the Corporation (or a Parent or
Subsidiary), the Participant’s shares of Restricted Stock (and related Restricted Property as
defined in Section 8 hereof) shall be forfeited to the Corporation to the extent such shares have
not become vested pursuant to Section 2 upon the date the Participant’s Service terminates,
regardless of the reason for such termination (whether with or without cause, voluntarily or
involuntarily).

          (b) Misconduct. Subject to earlier vesting as provided in Section 2 hereof, if the
Participant engages in Misconduct, the Participant’s shares of Restricted Stock (and related
Restricted Property as defined in Section 8 hereof) shall be forfeited to the Corporation to the
extent such shares have not become vested pursuant to Section 2 immediately prior to the date the
Participant first engaged in Misconduct.

          (c) Forfeiture Procedures. Upon the occurrence of any forfeiture of shares of
Restricted Stock under this Section 7, such unvested, forfeited shares and related Restricted
Property shall be automatically transferred to the Corporation, without any other action by the
Participant. No additional consideration shall be paid by the Corporation with respect to such
transfer. The Corporation may exercise its powers under Section 6(d) hereof and take any other
action necessary or advisable to evidence such transfer. The Participant shall deliver any
additional documents of transfer that the Corporation may request to confirm the transfer of such
unvested, forfeited shares and related Restricted Property to the Corporation.

     8. Adjustments Upon Specified Events. If any change is made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares, Corporate Transaction (not resulting in acceleration of vesting pursuant to Section 2(b))
or other change affecting the outstanding Common Stock as a class, appropriate adjustment shall be
made to the number and/or class of securities in effect under this Agreement. Such adjustments to
the outstanding Restricted Stock are to be effected in a manner which shall preclude the
enlargement or dilution of rights and benefits under this Agreement. The adjustments determined by
the Corporation shall be final, binding and conclusive. If any adjustment shall be made pursuant
to the foregoing or any dividend other than a regular cash dividend is declared and the shares of
Restricted Stock are not fully vested upon such event or prior thereto, the restrictions applicable
to such shares of Restricted Stock shall continue in effect with respect to any consideration or
other securities (the “Restricted Property” and, for the purposes of this Agreement, “Restricted
Stock” shall include “Restricted Property,” unless the context otherwise requires) received in
respect of such Restricted Stock. Such Restricted Property shall vest at such times and in such
proportion as the shares of Restricted Stock to which the Restricted Property is attributable vest,
or would have vested pursuant to the terms hereof if such shares of Restricted Stock had remained
outstanding.

     9. Taxes.

          (a) Tax Withholding. The Corporation (or any Parent or Subsidiary last employing the
Participant) shall be entitled to require a cash payment by or on behalf of the Participant and/or
to deduct from other compensation payable to the Participant any sums

(Employee Grant Form)

4

 

required with respect to Withholding Taxes. Alternatively, the Participant or other person in
whom the Restricted Stock vests may irrevocably elect, in such manner and at such time or times
prior to any applicable tax date as may be permitted or required under rules established by the
Corporation, to have the Corporation withhold and reacquire shares of Restricted Stock at their
Fair Market Value at the time of vesting to satisfy all or part of the minimum Withholding Taxes of
the Corporation (or any Parent or Subsidiary) with respect to such vesting. Any election to have
shares so held back and reacquired shall be subject to such rules and procedures, which may include
prior approval of the Corporation, as the Corporation may impose, and shall not be available if the
Participant makes or has made an election pursuant to Section 83(b) of the Code with respect to
such Restricted Stock.

          (b) Tax Consequences to Participant. Participant acknowledges that the issuance and
the vesting of the Restricted Stock may have significant and adverse tax consequences for
Participant and that Participant has been advised by the Corporation to review the Questions and
Answers on Federal Income Tax Consequences portion of the Corporation’s Stock Plan Summary and
Prospectus and to consult Participant’s personal tax advisor regarding the consequences of the
issuance and vesting of the Restricted Stock to Participant.

     10. Notices. Any notice to be given under the terms of this Agreement shall be in
writing and addressed to the Corporation at its principal office to the attention of the Secretary,
and to the Participant at the Participant’s last address reflected on the Corporation’s payroll
records. Any notice shall be delivered in person or shall be enclosed in a properly sealed
envelope, addressed as aforesaid, registered or certified, and deposited (postage and registry or
certification fee prepaid) in a post office or branch office regularly maintained by the United
States Government. Any such notice shall be given only when received, but if the Participant is no
longer an Employee shall be deemed to have been duly given five business days after the date mailed
in accordance with the foregoing provisions of this Section 10.

     11. Plan. The Restricted Stock and all rights of the Participant under this Agreement
are subject to the terms and conditions of the provisions of the Plan, incorporated herein by
reference. The Participant agrees to be bound by the terms of the Plan and this Agreement. The
Participant acknowledges having read and understanding the Plan, the Plan Summary and Prospectus
for the Plan, and this Agreement. Unless otherwise expressly provided in other sections of this
Agreement, provisions of the Plan that confer discretionary authority on the Board or the Committee
do not (and shall not be deemed to) create any rights in the Participant unless such rights are
expressly set forth herein or otherwise in the sole discretion of the Board or the Committee so
conferred by appropriate action of the Board or the Committee under the Plan after the date hereof.

     12. Entire Agreement. This Agreement and the Plan together constitute the entire
agreement and supersede all prior understandings and agreements, written or oral, of the parties
hereto with respect to the subject matter hereof. The Plan and this Agreement may be amended
pursuant to Section 6.3 of the Plan. Such amendment must be in writing and signed by the
Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to
the extent such waiver does not adversely affect the interests of the Participant hereunder, but
no such waiver shall operate as or be construed to be a subsequent waiver of the same
provision or a waiver of any other provision hereof.

(Employee Grant Form)

5

 

     13. Counterparts. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

     14. Section Headings. The section headings of this Agreement are for convenience of
reference only and shall not be deemed to alter or affect any provision hereof.

     15. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware without regard to conflict of law principles
thereunder.

          IN WITNESS WHEREOF, the Corporation has caused this Agreement to be executed on its behalf by
a duly authorized officer and the Participant has hereunto set his or her hand as of the date and
year first above written.

	 	 	 	 	 
	 	QUIKSILVER, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Print Name:	 	 	 
	 	 	Its: 	 	 
	 

	 	 	 	 
	 

	 	PARTICIPANT	 
	 	 	 	 
	 

	 	 	 
	 

	 	Signature	 
	 
	 	 	 
	 	 	 	 
	 

	 	 	 
	 

	 	Print Name	 

(Employee Grant Form)

6

 

APPENDIX

     The following definitions shall be in effect under the Agreement:

     A. “Board” shall mean the Corporation’s Board of Directors.

     B. “Change in Control” shall mean a change in ownership or control of the Corporation effected
through either of the following transactions.

          (i) the acquisition, directly or indirectly, by any person or related group of persons (other
than the Corporation or a person that directly controls, is controlled by, or is under common
control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the
1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power
of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to
the Corporation’s stockholders, or

          (ii) a change in the composition of the Board over a period of thirty-six (36) consecutive
months or less such that a majority of the Board members ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who either (A) have been Board
members continuously since the beginning of such period or (b) have been elected or nominated for
election as Board members during such period by at least a majority of the Board members described
in clause (A) who were still in office at the time the Board approved such election or nomination.

     C. “Committee” shall mean the Compensation Committee of the Board of Directors.

     D. “Common Stock” shall mean the Corporation’s common stock.

     E. “Corporate Transaction” shall mean either of the following stockholder-approved
transactions to which the Corporation is a party:

          (i) a merger or consolidation in which securities possessing more than fifty percent (50%) of
the total combined voting power of the Corporation’s outstanding securities are transferred to a
person or persons different from the persons holding those securities immediately prior to such
transaction, or

          (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s
assets in complete liquidation or dissolution of the Corporation.

     F. “Employee” shall mean any individual who is in the employ of the Corporation (or any Parent
or Subsidiary), subject to the control and direction of the employer entity as to both the work to
be performed and the manner and method of performance.

     G. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

(Employee Grant Form)

7

 

          (i) If the Common Stock is at the time traded on the Nasdaq Global Select Market (or the
Nasdaq Global Market), then the Fair Market Value shall be the closing selling price per share of
Common Stock at the close of regular hours trading (i.e., before after-hours trading begins) on the
Nasdaq Global Stock Market (or the Nasdaq Global Market) on the date in question, as such price is
reported by The Wall Street Journal. If there is no closing selling price for the Common Stock on
the date in question, then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

          (ii) If the Common Stock is at the time listed on any other Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock at the close of regular
hours trading (i.e., before after-hours trading begins) on the date in question on the Stock
Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as
such price is officially quoted in the composite tape of transactions on such exchange. If there
is no closing selling price for the Common Stock on the date in question, then the Fair Market
Value shall be the closing selling price on the last preceding date for which such quotation
exists.

          (iii) If the Common Stock is at the time not listed on any established stock exchange,
the Fair Market Value shall be determined by the Board in good faith.

     H. “Misconduct” shall mean the commission of any act of fraud, embezzlement or dishonesty by
the Participant, any unauthorized use or disclosure by such person of confidential information or
trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct
by such person adversely affecting the business or affairs of the Corporation (or any Parent or
Subsidiary) in a material manner. The foregoing definitions shall not be deemed to be inclusive of
all the acts or omissions which the Corporation (or any Parent or Subsidiary) may consider as
grounds for the dismissal or discharge of any Participant or other person in the Service of the
Corporation (or any Parent or Subsidiary).

     I. “Parent” shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

     J. “Permanent Disability” or “Permanently Disabled” shall mean the inability of the
Participant to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which is both (i) expected to result in death or determined to be
total and permanent by two (2) physicians selected by the Corporation or its insurers and
acceptable to the Participant (or the Participant’s legal representative), and (ii) to the extent
the Participant is eligible to participate in the Corporation’s long-term disability plan, entitles
the Participant to the payment of long-term disability benefits from the Corporation’s long-term
disability plan. The process for determining a Permanent Disability in accordance with the
foregoing shall be completed no later than the later of (i) the close of the calendar year in which
the Participant’s Service terminates by reason of the physical or mental
impairment triggering the determination process or (ii) the fifteenth day of the third
calendar month following such termination of Service.

(Employee Grant Form)

8

 

     K. “Service” shall mean the performance of services for the Corporation (or any Parent or
Subsidiary) by a person in the capacity of an Employee. Participant shall be deemed to cease
Service immediately upon the occurrence of either of the following events: (i) the Participant no
longer performs services in the capacity of an Employee for the Corporation or any Parent or
Subsidiary; or (ii) the entity for which the Participant is performing such services ceases to
remain a Parent or Subsidiary of the Corporation, even though the Participant may subsequently
continue to perform services for that entity.

     L. “Stock Exchange” shall mean the American Stock Exchange, the Nasdaq Global Select Market,
the Nasdaq Global Market or the New York Stock Exchange.

     M. “Subsidiary” shall mean any corporation (other than the Corporation) in the unbroken chain
of corporations beginning with the Corporation, provided each corporation (other than the last
corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

     N. “Withholding Taxes” shall mean the federal, state and local income and employment
withholding taxes to which the Participant may become subject in connection with the issuance or
vesting of shares of Restricted Stock or upon the disposition of shares acquired pursuant to this
Agreement.

(Employee Grant Form)

9

 

CONSENT OF SPOUSE

     In consideration of the execution of the foregoing Restricted Stock Agreement by Quiksilver,
Inc., I, ___________________________, the spouse of the Participant therein named, do hereby join
with my spouse in executing the foregoing Restricted Stock Agreement and do hereby agree to be
bound by all of the terms and provisions thereof and of the Plan.

Dated: ________________, 20___

	 	 	 	 
	 
	 

	 	 	 
	 

	 	Signature of Spouse	 
	 
	 	 	 
	 
	 

	 	 	 
	 

	 	Print Name	 

(Employee Grant Form)

10

 

STOCK POWER

     FOR VALUE RECEIVED and pursuant to that certain Restricted Stock Agreement between Quiksilver,
Inc., a Delaware corporation (the “Corporation”), and the individual named below (the “Individual”)
dated as of ______________, 20___, the Individual, hereby sells, assigns and transfers to the
Corporation, an aggregate __________ shares of Common Stock of the Corporation, standing in the
Individual’s name on the books of the Corporation and represented by stock certificate number(s)
__________ to which this instrument is attached, and hereby irrevocably constitutes and appoints
________________________ as his or her attorney in fact and agent to transfer such shares on the
books of the Corporation, with full power of substitution in the premises.

Dated ______________, _________

	 	 	 	 

	 
	 

	 	 
	 

	 	Signature	 
	 
	 	 	 
	 
	 

	 	 	 
	 

	 	Print Name	 

(Instruction: Please do not fill in any blanks other than the signature line. The purpose of the
assignment is to enable the Corporation to exercise its sale/purchase option set forth in the
Restricted Stock Agreement without requiring additional signatures on the part of the Individual.)

(Employee Grant Form)

11exv10w1

Exhibit 10.1

Execution Version

 

Sensient Technologies Corporation

$25,000,000 3.77% Senior Notes, Series A, due November 28, 2016

$25,000,000 4.14% Senior Notes, Series B, due November 28, 2017

$25,000,000 4.47% Senior Notes, Series C, due November 28, 2018

 

Note Purchase Agreement

 

Dated as of March 22, 2011

 

 

 

 

Table of Contents

(Not a part of the Agreement)

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	Section 1.
	 	Authorization of Notes	 	 	 1	 
	 
	 	 	 	 	 	 
	Section 2.
	 	Sale and Purchase of Notes	 	 	 1	 
	 
	 	 	 	 	 	 
	Section 2.1.
	 	Purchase and Sale of Notes	 	 	1	 
	Section 2.2.
	 	Subsidiary Guaranties	 	 	2	 
	 
	 	 	 	 	 	 
	Section 3.
	 	Closing	 	 	 2	 
	 
	 	 	 	 	 	 
	Section 4.
	 	Conditions to Closing	 	 	 2	 
	 
	 	 	 	 	 	 
	Section 4.1.
	 	Representations and Warranties	 	 	2	 
	Section 4.2.
	 	Performance; No Default	 	 	3	 
	Section 4.3.
	 	Compliance Certificates	 	 	3	 
	Section 4.4.
	 	Opinions of Counsel	 	 	3	 
	Section 4.5.
	 	Purchase Permitted by Applicable Law, Etc.	 	 	3	 
	Section 4.6.
	 	Sale of Other Notes	 	 	4	 
	Section 4.7.
	 	Payment of Special Counsel Fees	 	 	4	 
	Section 4.8.
	 	Private Placement Number	 	 	4	 
	Section 4.9.
	 	Changes in Corporate Structure	 	 	4	 
	Section 4.10.
	 	Funding Instructions	 	 	4	 
	Section 4.11.
	 	Proceedings and Documents	 	 	4	 
	 
	 	 	 	 	 	 
	Section 5.
	 	Representations and Warranties of the Company	 	 	 4	 
	 
	 	 	 	 	 	 
	Section 5.1.
	 	Organization; Power and Authority	 	 	4	 
	Section 5.2.
	 	Authorization, Etc.	 	 	5	 
	Section 5.3.
	 	Disclosure	 	 	5	 
	Section 5.4.
	 	Organization of Subsidiaries; Affiliates	 	 	5	 
	Section 5.5.
	 	Financial Statements; Material Liabilities	 	 	6	 
	Section 5.6.
	 	Compliance with Laws, Other Instruments, Etc.	 	 	6	 
	Section 5.7.
	 	Governmental Authorizations, Etc.	 	 	6	 
	Section 5.8.
	 	Litigation; Observance of Agreements, Statutes and Orders	 	 	6	 
	Section 5.9.
	 	Taxes	 	 	7	 
	Section 5.10.
	 	Title to Property; Leases	 	 	7	 
	Section 5.11.
	 	Licenses, Permits, Etc.	 	 	7	 
	Section 5.12.
	 	Compliance with ERISA	 	 	8	 
	Section 5.13.
	 	Private Offering by the Company	 	 	8	 
	Section 5.14.
	 	Use of Proceeds; Margin Regulations	 	 	9	 
	Section 5.15.
	 	Existing Debt; Future Liens	 	 	9	 
	Section 5.16.
	 	Foreign Assets Control Regulations, Etc.	 	 	10	 

-i-

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	Section 5.17.
	 	Status under Certain Statutes	 	 	10	 
	Section 5.18.
	 	Environmental Matters	 	 	10	 
	 
	 	 	 	 	 	 
	Section 6.
	 	Representations of the Purchasers	 	 	11	 
	 
	 	 	 	 	 	 
	Section 6.1.
	 	Purchase for Investment	 	 	11	 
	Section 6.2.
	 	Source of Funds	 	 	11	 
	 
	 	 	 	 	 	 
	Section 7.
	 	Information as to the Company	 	 	13	 
	 
	 	 	 	 	 	 
	Section 7.1.
	 	Financial and Business Information	 	 	13	 
	Section 7.2.
	 	Officer’s Certificate	 	 	16	 
	Section 7.3.
	 	Visitation	 	 	16	 
	 
	 	 	 	 	 	 
	Section 8.
	 	Prepayment of the Notes	 	 	17	 
	 
	 	 	 	 	 	 
	Section 8.1.
	 	Maturity	 	 	17	 
	Section 8.2.
	 	Optional Prepayments	 	 	17	 
	Section 8.3.
	 	Change in Control	 	 	17	 
	Section 8.4.
	 	Allocation of Partial Prepayments	 	 	20	 
	Section 8.5.
	 	Maturity; Surrender, Etc.	 	 	20	 
	Section 8.6.
	 	Purchase of Notes	 	 	20	 
	Section 8.7.
	 	Make-Whole Amount	 	 	20	 
	 
	 	 	 	 	 	 
	Section 9.
	 	Affirmative Covenants	 	 	22	 
	 
	 	 	 	 	 	 
	Section 9.1.
	 	Compliance with Laws	 	 	22	 
	Section 9.2.
	 	Insurance	 	 	22	 
	Section 9.3.
	 	Maintenance of Properties	 	 	22	 
	Section 9.4.
	 	Payment of Taxes and Claims	 	 	23	 
	Section 9.5.
	 	Legal Existence, Etc.	 	 	23	 
	Section 9.6.
	 	Books and Records	 	 	23	 
	Section 9.7.
	 	Guaranty by Subsidiaries	 	 	23	 
	 
	 	 	 	 	 	 
	Section 10.
	 	Negative Covenants	 	 	25	 
	 
	 	 	 	 	 	 
	Section 10.1.
	 	Consolidated Adjusted Net Worth	 	 	25	 
	Section 10.2.
	 	Limitations on Debt	 	 	25	 
	Section 10.3.
	 	Fixed Charges Coverage Ratio	 	 	25	 
	Section 10.4.
	 	Negative Pledge	 	 	25	 
	Section 10.5.
	 	Mergers, Consolidations, Etc.	 	 	27	 
	Section 10.6.
	 	Sale of Assets	 	 	28	 
	Section 10.7.
	 	Transactions with Affiliates	 	 	29	 
	Section 10.8.
	 	Line of Business	 	 	30	 
	Section 10.9.
	 	Terrorism Sanctions Regulations	 	 	30	 
	 
	 	 	 	 	 	 
	Section 11.
	 	Events of Default	 	 	30	 

-ii-

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	Section 12.
	 	Remedies on Default, Etc.	 	 	32	 
	 
	 	 	 	 	 	 
	Section 12.1.
	 	Acceleration	 	 	32	 
	Section 12.2.
	 	Other Remedies	 	 	33	 
	Section 12.3.
	 	Rescission	 	 	33	 
	Section 12.4.
	 	No Waivers or Election of Remedies, Expenses, Etc.	 	 	33	 
	 
	 	 	 	 	 	 
	Section 13.
	 	Registration; Exchange; Substitution of Notes	 	 	34	 
	 
	 	 	 	 	 	 
	Section 13.1.
	 	Registration of Notes	 	 	34	 
	Section 13.2.
	 	Transfer and Exchange of Notes	 	 	34	 
	Section 13.3.
	 	Replacement of Notes	 	 	35	 
	 
	 	 	 	 	 	 
	Section 14.
	 	Payments on Notes	 	 	35	 
	 
	 	 	 	 	 	 
	Section 14.1.
	 	Place of Payment	 	 	35	 
	Section 14.2.
	 	Home Office Payment	 	 	35	 
	 
	 	 	 	 	 	 
	Section 15.
	 	Expenses, Etc.	 	 	36	 
	 
	 	 	 	 	 	 
	Section 15.1.
	 	Transaction Expenses	 	 	36	 
	Section 15.2.
	 	Survival	 	 	36	 
	 
	 	 	 	 	 	 
	Section 16.
	 	Survival of Representations and Warranties; Entire Agreement	 	 	36	 
	 
	 	 	 	 	 	 
	Section 17.
	 	Amendment and Waiver	 	 	37	 
	 
	 	 	 	 	 	 
	Section 17.1.
	 	Requirements	 	 	37	 
	Section 17.2.
	 	Solicitation of Holders of Notes	 	 	37	 
	Section 17.3.
	 	Binding Effect, Etc.	 	 	38	 
	Section 17.4.
	 	Notes Held by Company, Etc.	 	 	38	 
	 
	 	 	 	 	 	 
	Section 18.
	 	Notices	 	 	38	 
	 
	 	 	 	 	 	 
	Section 19.
	 	Reproduction of Documents	 	 	38	 
	 
	 	 	 	 	 	 
	Section 20.
	 	Confidential Information	 	 	39	 
	 
	 	 	 	 	 	 
	Section 21.
	 	Substitution of Purchaser	 	 	40	 
	 
	 	 	 	 	 	 
	Section 22.
	 	Miscellaneous	 	 	40	 
	 
	 	 	 	 	 	 
	Section 22.1.
	 	Successors and Assigns	 	 	40	 
	Section 22.2.
	 	Payments Due on Non-Business Days	 	 	40	 
	Section 22.3.
	 	Accounting Terms	 	 	40	 
	Section 22.4.
	 	Severability	 	 	41	 

-iii-

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	Section 22.5.
	 	Construction, Etc.	 	 	41	 
	Section 22.6.
	 	Counterparts	 	 	41	 
	Section 22.7.
	 	Governing Law	 	 	41	 
	Section 22.8.
	 	Jurisdiction and Process; Waiver of Jury Trial	 	 	41	 
	 
	 	 	 	 	 	 
	Signature
	 	 	 	 	43	 

	 	 	 	 	 

	Schedule A
	 	—	 	Information Relating to Purchasers
	 
	 	 	 	 
	Schedule B
	 	—	 	Defined Terms
	 
	 	 	 	 
	Schedule 5.3
	 	—	 	Disclosure Materials
	 
	 	 	 	 
	Schedule 5.4
	 	—	 	Subsidiaries of the Company and Ownership of Subsidiary Stock
	 
	 	 	 	 
	Schedule 5.5
	 	—	 	Financial Statements
	 
	 	 	 	 
	Schedule 5.15
	 	—	 	Existing Debt
	 
	 	 	 	 
	Schedule 6
	 	—	 	Existing Investments
	 
	 	 	 	 
	Annex A
	 	—	 	Existing Debt as of Date of Closing
	 
	 	 	 	 
	Exhibit 1(a)
	 	—	 	Form of 3.77% Senior Notes, Series A, due November 28, 2016
	 
	 	 	 	 
	Exhibit 1(b)
	 	—	 	Form of 4.14% Senior Notes, Series B, due November 28, 2017
	 
	 	 	 	 
	Exhibit 1(c)
	 	—	 	Form of 4.47% Senior Notes, Series C, due November 28, 2018
	 
	 	 	 	 
	Exhibit 2.2
	 	—	 	Form of Subsidiary Guaranty
	 
	 	 	 	 
	Exhibit 4.4(a)(i)
	 	—	 	Form of Opinion of Special Counsel for the Company
	 
	 	 	 	 
	Exhibit 4.4(a)(ii)
	 	—	 	Form of Opinion of General Counsel for the Company
	 
	 	 	 	 
	Exhibit 4.4(b)
	 	—	 	Form of Opinion of Special Counsel for the Purchasers

-iv-

 

Sensient Technologies Corporation

777 East Wisconsin Avenue

Milwaukee, Wisconsin 53202-5304

$25,000,000 3.77% Senior Notes, Series A, due November 28, 2016

$25,000,000 4.14% Senior Notes, Series B, due November 28, 2017

$25,000,000 4.47% Senior Notes, Series C, due November 28, 2018

Dated as of March 22, 2011

To Each of the Purchasers Listed in

   Schedule A Hereto:

Ladies and Gentlemen:

     Sensient Technologies Corporation, a Wisconsin corporation (the “Company”), agrees
with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and,
collectively, the “Purchasers”) as follows:

Section 1. Authorization of Notes.

     (a) The Company will authorize the issue and sale of (a) $25,000,000 aggregate principal
amount of its 3.77% Senior Notes, Series A, due November 28, 2016 (the “Series A Notes”), (b)
$25,000,000 aggregate principal amount of its 4.14% Senior Notes, Series B, due November 28, 2017
(the “Series B Notes”), and (c) $25,000,000 aggregate principal amount of its 4.47% Senior Notes,
Series C, due November 28, 2018 (the “Series C Notes”, and together with the Series B Notes and the
Series A Notes, the “Notes,” such term to include any such Notes issued in substitution therefor
pursuant to Section 13 of this Agreement). The Notes shall be substantially in the form set out in
Exhibit 1(a), 1(b) and 1(c). Certain capitalized and other terms used in this Agreement are
defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise
specified, to a Schedule or an Exhibit attached to this Agreement.

     (b) The Notes shall bear interest computed on the basis of a 360-day year of twelve 30-day
months) on the unpaid principal amount thereof from the date of issuance, payable semiannually, on
May 28 and November 28 in each year and on the maturity date of the Notes.

	 	 	Section 2. Sale and Purchase of Notes.

     Section 2.1. Purchase and Sale of Notes. Subject to the terms and conditions of this
Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from
the Company, at the Closing provided for in Section 3, Notes in the principal amount and in the
series specified opposite such
Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof. The
Purchasers’ obligations hereunder are several and not

 

 

joint obligations and no Purchaser shall have
any liability to any Person for the performance or non-performance of any obligation by any other
Purchaser hereunder.

     Section 2.2. Subsidiary Guaranties. The payment by the Company of all amounts due with
respect to the Notes and the performance by the Company of its obligations under this Agreement
may, from time to time at the election of the Company, be absolutely and unconditionally guaranteed
by any Subsidiary who delivers a guaranty pursuant to Section 9.7, (each, a “Subsidiary Guarantor”)
pursuant to the guaranty agreement substantially in the form of Exhibit 2.2 attached hereto and
made a part hereof (as the same may be amended, modified, extended or renewed, a “Subsidiary
Guaranty”).

Section 3. Closing.

     The execution and delivery of this Agreement will be made at the offices of Chapman and Cutler
LLP, 111 W. Monroe Street, Chicago, Illinois 60603, on March 22, 2011 (the “Execution Date”).

     The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the
offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois 60603, at 10:00 a.m.
Chicago time, at a closing (the “Closing”) on November 28, 2011 or on such other Business Day
thereafter on or prior to November 30, 2011 as may be agreed upon by the Company and the
Purchasers. At the Closing, the Company will deliver to each Purchaser the Notes of the series to
be purchased by such Purchaser in the form of a single Note of the Notes so to be purchased or such
greater number of Notes in denominations of at least $1,000,000 (or its equivalent in the relevant
currency of payment) as such Purchaser may request dated the date of the Closing and registered in
such Purchaser’s name or in the name of its nominee, against delivery by such Purchaser to the
Company or its order of immediately available funds in the amount of the purchase price therefor by
wire transfer of immediately available funds for the account of the Company to account number
4121091466 at Wells Fargo Bank, N.A., SWIFT: WFBIUS6S, Sixth Street and Marquette Avenue,
Minneapolis, Minnesota 554779, ABA no. 121000248 for credit to the account of the Company. If at
the Closing the Company shall fail to tender such Notes to any Purchaser as provided above in this
Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such
Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further
obligations under this Agreement, without thereby waiving any rights such Purchaser may have by
reason of such failure or such nonfulfillment.

Section 4. Conditions to Closing.

     Each Purchaser’s obligation to execute and deliver this Agreement and the obligations of each
Purchaser to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject
to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following
conditions:

     Section 4.1. Representations and Warranties. Except with respect to representations contained
in Section 5 which indicate otherwise, the representations and warranties of the

-2-

 

Company in this
Agreement shall be correct on the Execution Date and at the time of the Closing.

     Section 4.2. Performance; No Default. The Company shall have performed and complied with all
agreements and conditions contained in this Agreement required to be performed or complied with by
it prior to or at the Closing, and after giving effect to the issue and sale of the Notes (and the
application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of
Default shall have occurred and be continuing. Neither the Company nor any Subsidiary shall have
entered into any transaction since the date of this Agreement that would have been prohibited by
Section 10 had such Section applied since such date.

     Section 4.3. Compliance Certificates.

     (a) Officer’s Certificate. The Company shall have delivered to such Purchaser an Officer’s
Certificate, dated the date of the Closing, certifying that the conditions specified in Sections
4.1, 4.2 and 4.9 have been fulfilled.

     (b) Secretary’s Certificate. The Company shall have delivered to such Purchaser a certificate
of its Secretary or Assistant Secretary, dated the date of the Closing, certifying as to the
resolutions attached thereto and other corporate proceedings relating to the authorization,
execution and delivery of the Notes and this Agreement.

     Section 4.4. Opinions of Counsel. Such Purchaser shall have received opinions in form and
substance satisfactory to such Purchaser, dated the date of the Closing (a)(i) from Debevoise &
Plimpton LLP, special counsel for the Company, covering the matters set forth in Exhibit 4.4(a)(i)
and (ii) from John L. Hammond, Esq., General Counsel for the Company, covering the matters set
forth in Exhibit 4.4(a)(ii) and in each such case covering such other matters incident to the
transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the
Company hereby instructs its counsel to deliver such opinion to the Purchasers) and (b) from
Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions,
substantially in the form set forth in Exhibit 4.4(b) and covering such other matters incident to
such transactions as such Purchaser may reasonably request.

     Section 4.5. Purchase Permitted by Applicable Law, Etc. On the date of the Closing such
Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each
jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section
1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies
without restriction as to the character of the particular investment, (b) not violate any
applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of
Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or
liability under or
pursuant to any applicable law or regulation, which law or regulation was not in effect on the date
hereof. If requested by such Purchaser, such Purchaser shall have received an Officer’s
Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to
enable such Purchaser to determine whether such purchase is so permitted.

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     Section 4.6. Sale of Other Notes. Contemporaneously with the Closing, the Company shall
sell to each other Purchaser, and each other Purchaser shall purchase, the Notes to be purchased by
it at the Closing as specified in Schedule A; provided, that the condition set forth in this
Section 4.6 may be deemed satisfied notwithstanding the failure of any Purchaser to purchase the
Notes to be purchased by it as specified in Schedule A solely as a result of the bankruptcy,
insolvency or reorganization of such Purchaser or order of a Governmental Authority with
jurisdiction over such Purchaser.

     Section 4.7. Payment of Special Counsel Fees. Without limiting the provisions of Section
15.1, the Company shall have paid on or before the Execution Date and the date of the Closing the
fees, charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4 to
the extent reflected in a statement of such counsel rendered to the Company at least one Business
Day prior to each such date.

     Section 4.8. Private Placement Number. A Private Placement Number issued by Standard & Poor’s
CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National
Association of Insurance Commissioners) shall have been obtained for each series of the Notes.

     Section 4.9. Changes in Corporate Structure. The Company shall not have changed its
jurisdiction of incorporation or organization, as applicable, or been a party to any merger or
consolidation or succeeded to all or any substantial part of the liabilities of any other entity,
at any time following the date of the most recent financial statements referred to in Schedule 5.5.

     Section 4.10. Funding Instructions. At least three Business Days prior to the date of the
Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on
letterhead of the Company confirming the information specified in Section 3 including (a) the name
and address of the transferee bank, (b) such transferee bank’s ABA number and (c) the account name
and number into which the purchase price for the Notes is to be deposited.

     Section 4.11. Proceedings and Documents. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and instruments incident to
such transactions shall be reasonably satisfactory to such Purchaser and its special counsel, and
such Purchaser and its special counsel shall have received all such counterpart originals or
certified or other copies of such documents as such Purchaser or such special counsel may
reasonably request.

Section 5. Representations and Warranties of the Company.

     The Company represents and warrants to each Purchaser that:

     Section 5.1. Organization; Power and Authority. The Company is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of incorporation, and is
duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so
qualified or in good standing could not, individually or in the

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aggregate, reasonably be expected
to have a Material Adverse Effect. The Company has the corporate power and authority to own or
hold under lease the properties it purports to own or hold under lease, to transact the business it
transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to
perform the provisions hereof and thereof.

Section 5.2. Authorization, Etc. This Agreement and the Notes have been duly authorized by
all necessary corporate action on the part of the Company, and this Agreement constitutes, and upon
execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of
the Company enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally and (b) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law).

     Section 5.3. Disclosure. This Agreement and the documents, certificates or other writings
delivered to the Purchasers by or on behalf of the Company in connection with the transactions
contemplated hereby and identified in Schedule 5.3, and the financial statements listed in Schedule
5.5 (this Agreement and such documents, certificates or other writings and such financial
statements delivered to each Purchaser being referred to, collectively, as the “Disclosure
Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein not misleading in light of the
circumstances under which they were made. Since December 31, 2010, there has been no change in the
financial condition, operations, business, properties or prospects of the Company or any Subsidiary
except changes that individually or in the aggregate could not reasonably be expected to have a
Material Adverse Effect. There is no fact known to the Company that could reasonably be expected
to have a Material Adverse Effect that has not been set forth herein or in the Disclosure
Documents.

     Section 5.4. Organization of Subsidiaries; Affiliates. (a) Schedule 5.4 contains as of the
Execution Date (except as noted therein) complete and correct lists of (i) the Company’s
Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its
organization, and (ii) the Company’s Affiliates, other than Subsidiaries.

     (b) All of the outstanding shares of capital stock or similar equity interests of each
Subsidiary shown in Schedule 5.4 that are owned by the Company and its Subsidiaries have been
validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary
free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).

     (c) Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly
organized, validly existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal entity and is in good
standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each
such Subsidiary has the corporate or other power and authority to own or hold under lease the
properties it purports to own or hold under lease and to transact the business it transacts and
proposes to transact.

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     (d) No Subsidiary is a party to, or otherwise subject to, any legal, regulatory, contractual
or other restriction (other than this Agreement, the agreements listed on Schedule 5.4 and
customary limitations imposed by corporate law or similar statutes) restricting the ability of such
Subsidiary to pay dividends out of profits or make any other similar distributions of profits to
the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar
equity interests of such Subsidiary.

     Section 5.5. Financial Statements; Material Liabilities. The Company has delivered to each
Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule
5.5. All of said financial statements (including in each case the related schedules and notes)
fairly present in all material respects the consolidated financial position of the Company and its
Subsidiaries as of the respective dates specified in such financial statements and the consolidated
results of their operations and cash flows for the respective periods so specified and have been
prepared in accordance with GAAP consistently applied throughout the periods involved except as set
forth in the notes thereto (subject, in the case of any interim financial statements, to normal
year-end adjustments). The Company and its Subsidiaries do not have any Material liabilities that
are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.

     Section 5.6. Compliance with Laws, Other Instruments, Etc. The execution, delivery and
performance by the Company of this Agreement and the Notes will not (a) contravene, result in any
breach of, or constitute a default under, or result in the creation of any Lien in respect of any
property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan,
purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or
instrument to which the Company or any Subsidiary is bound or by which the Company or any
Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or
result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or
ruling of any court, arbitrator or Governmental Authority applicable to the Company or any
Subsidiary or (c) violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Subsidiary.

     Section 5.7. Governmental Authorizations, Etc. Except for the filing of a Current Report on
SEC Form 8-K with the SEC with respect to this Agreement and the transactions contemplated hereby,
no consent, approval or authorization of, or registration, filing or declaration with, any
Governmental Authority is required in connection with the execution, delivery or performance by the
Company of this Agreement or the Notes.

     Section 5.8. Litigation; Observance of Agreements, Statutes and Orders. (a) There are no
actions, suits, investigations or proceedings pending or, to the knowledge of the Company,
threatened against or affecting the Company or any Subsidiary or any property of the Company or any
Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect.

     (b) Neither the Company nor any Subsidiary is (i) in default under any term of any agreement
or instrument to which it is a party or by which it is bound, (ii) in violation of any

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order,
judgment, decree or ruling of any court, arbitrator or Governmental Authority or (iii) in violation
of any applicable law, ordinance, rule or regulation of any Governmental Authority (including,
without limitation, Environmental Laws, the USA Patriot Act or any of the other laws and
regulations that are referred to in Section 5.16), which default or violation, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect.

     Section 5.9. Taxes. The Company and its Subsidiaries have filed all tax returns that are
required to have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or their properties,
assets, income or franchises, to the extent such taxes and assessments have become due and payable
and before they have become delinquent, except for any taxes and assessments (a) the amount of
which is not individually or in the aggregate Material or (b) the amount, applicability or validity
of which is currently being contested in good faith by appropriate proceedings and with respect to
which the Company or a Subsidiary, as the case may be, has established adequate reserves in
accordance with GAAP. The Company knows of no basis for any other tax or assessment that could
reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on
the books of the Company and its Subsidiaries in respect of Federal, state or other taxes for all
fiscal periods are adequate. The Federal income tax liabilities of the Company and its
Subsidiaries have been finally determined (whether by reason of completed audits or the statute of
limitations having run) for all fiscal years up to and including the fiscal year ended December 31,
2003.

     Section 5.10. Title to Property; Leases. The Company and its Subsidiaries have good and
sufficient title to their respective properties that individually or in the aggregate are Material,
including all such properties reflected in the most recent audited balance sheet referred to in
Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date
(except as sold or otherwise disposed of in the ordinary course of business), in each case free and
clear of Liens prohibited by this Agreement.
All leases that individually or in the aggregate are Material are valid and subsisting and are in
full force and effect in all material respects.

     Section 5.11. Licenses, Permits, Etc. (a) The Company and its Subsidiaries own or possess all
licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service
marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are
Material, without known conflict with the rights of others.

     (b) To the best knowledge of the Company, no product of the Company or any of its Subsidiaries
infringes in any Material respect any license, permit, franchise, authorization, patent, copyright,
proprietary software, service mark, trademark, trade name or other right owned by any other Person.

     (c) To the best knowledge of the Company, there is no Material violation by any Person of any
right of the Company or any of its Subsidiaries with respect to any patent, copyright, proprietary
software, service mark, trademark, trade name or other right owned or used by the Company or any of
its Subsidiaries.

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     Section 5.12. Compliance with ERISA. (a) The Company and each ERISA Affiliate have operated
and administered each Plan in compliance with all applicable laws except for such instances of
noncompliance as have not resulted in and could not reasonably be expected to result in a Material
Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to
Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has
occurred or exists that could reasonably be expected to result in the incurrence of any such
liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the
rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to
Title I or IV of ERISA or to such penalty or excise tax provisions or to section 401(a)(29) or 412
of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be
individually or in the aggregate Material.

     (b) The present value of the aggregate benefit liabilities under each of the Plans subject to
Title IV of ERISA (other than Multiemployer Plans), determined as of the end of such Plan’s most
recently ended plan year on the basis of the actuarial assumptions specified for funding purposes
in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value
of the assets of such Plan allocable to such benefit liabilities by more than $5,000,000 in the
case of any single Plan and by more than $10,000,000 in the aggregate for all Plans. The term
“benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms “current
value” and “present value” have the meaning specified in section 3 of ERISA.

     (c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not
subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of
Multiemployer Plans that individually or in the aggregate are Material.

     (d) The expected post retirement benefit obligation (determined as of the last day of the
Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board
Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by
Section 4980B of the Code) of the Company and its Subsidiaries is not Material.

     (e) The execution and delivery of this Agreement and the issuance and sale of the Notes
hereunder will not involve any transaction that is subject to the prohibitions of section 406 of
ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of
the Code. The representation by the Company in the first sentence of this Section 5.12(e) is made
in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as
to the sources of the funds used to pay the purchase price of the Notes to be purchased by such
Purchaser.

     Section 5.13. Private Offering by the Company. Neither the Company nor anyone acting on its
behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy
any of the same from, or otherwise approached or negotiated in respect thereof with, any Person
other than the Purchasers, each of which has been offered the Notes at a private sale for
investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any
action that would subject the issuance or sale of the Notes to the registration requirements of

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Section 5 of the Securities Act or to the registration requirements of any securities or blue sky
laws of any applicable jurisdiction.

     Section 5.14. Use of Proceeds; Margin Regulations. The Company will apply the proceeds of the
sale of the Notes to repay existing Debt and for general corporate purposes and in compliance with
all laws referenced in Section 5.16. No part of the proceeds from the sale of the Notes hereunder
will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within
the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221),
or for the purpose of buying or carrying or trading in any securities under such circumstances as
to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any
broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not
constitute more than 2% of the value of the consolidated assets of the Company and its Subsidiaries
and the Company does not have any present intention that margin stock will constitute more than 2%
of the value of such assets. As used in this Section, the terms “margin stock” and “purpose of
buying or carrying” shall have the meanings assigned to them in said Regulation U.

     Section 5.15. Existing Debt; Future Liens. (a) Schedule 5.15 sets forth a complete and
correct list of all outstanding Debt of the Company and its Subsidiaries as of December 31, 2010
(including a description of the obligors and obligees, principal amount outstanding and collateral
therefor, if any, and Guaranty thereof, if any), since which date there has been no Material change
in the amounts, interest rates, sinking funds, installment payments or maturities of the Debt of
the Company or its Subsidiaries. Neither the Company nor any Subsidiary is in default and no
waiver of default is currently in effect, in the payment of any principal or interest on any Debt
of the Company or
such Subsidiary and no event or condition exists with respect to any Debt of the Company or any
Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one
or more Persons to cause such Debt to become due and payable before its stated maturity or before
its regularly scheduled dates of payment. Annex A to be attached hereto on the date of the Closing
will correctly describe all outstanding Debt and any Liens securing such Debt of the Company and
its Subsidiaries as of September 30, 2011, since which date there shall have been no Material
change in the amounts, interest rates, sinking funds, installment payments or maturities of the
Debt of the Company or its Subsidiaries as of the date of the Closing. Since the Execution Date,
there shall have been no Material change in the amounts, interest rates, sinking funds, installment
payments or maturities of the Debt of the Company or its Subsidiaries listed on Annex A.

     (b) Except as disclosed in Schedule 5.15, as of the Execution Date, neither the Company nor
any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a
contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be
subject to a Lien not permitted by Section 10.4.

     (c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any
provision contained in, any instrument evidencing Debt of the Company or such Subsidiary, any
agreement relating thereto or any other agreement (including, but not limited to, its charter or
other organizational document) which limits the amount of, or otherwise imposes restrictions on

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the
incurring of, Debt of the Company or any Subsidiary, except as of the Execution Date as
specifically indicated in Schedule 5.15.

     Section 5.16. Foreign Assets Control Regulations, Etc. (a) Neither the Company nor any
Affiliated Entity is (i) a Person whose name appears on the list of Specially Designated Nationals
and Blocked Persons published by the Office of Foreign Assets Control, U.S. Department of Treasury
(“OFAC”) (an “OFAC Listed Person”) or (ii) a department, agency or instrumentality of, or is
otherwise controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person
or (y) any Person, entity, organization, foreign country or regime that is subject to any OFAC
Sanctions Program (each OFAC Listed Person and each other Person, entity, organization and
government of a country described in clause (ii), a “Blocked Person”).

     (b) No part of the proceeds from the sale of the Notes hereunder constitutes or will
constitute funds obtained on behalf of any Blocked Person or will otherwise be used, directly by
the Company or indirectly through any Affiliated Entity, in connection with any investment in, or
any transactions or dealings with, any Blocked Person.

     (c) To the Company’s actual knowledge after making due inquiry, neither the Company nor any
Affiliated Entity (i) is under investigation by any Governmental Authority for, or has been charged
with, or convicted of, money laundering, drug trafficking, terrorist-related activities or other
money laundering predicate crimes under any applicable law (collectively, “Anti-Money Laundering
Laws”), (ii) has been assessed civil penalties under any Anti-Money Laundering Laws or (iii) has
had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws. The
Company has taken reasonable measures appropriate to the
circumstances (in any event as required by applicable law) to ensure that the Company and each
Affiliated Entity is and will continue to be in compliance with all applicable current and future
Anti-Money Laundering Laws.

     (d) No part of the proceeds from the sale of the Notes hereunder will be used, directly or
indirectly, for any improper payments to any governmental official or employee, political party,
official of a political party, candidate for political office, official of any public international
organization or any one else acting in an official capacity, in order to obtain, retain or direct
business or obtain any improper advantage. The Company has taken reasonable measures appropriate
to the circumstances (in any event as required by applicable law) to ensure that the Company and
each Affiliated Entity is and will continue to be in compliance with all applicable current and
future anti-corruption laws and regulations.

     Section 5.17. Status under Certain Statutes. Neither the Company nor any Subsidiary is
subject to regulation under the Investment Company Act of 1940, as amended, the ICC Termination Act
of 1995, as amended, or the Federal Power Act, as amended.

     Section 5.18. Environmental Matters. (a) Neither the Company nor any Subsidiary has knowledge
of any claim or has received any notice of any claim, and no proceeding has been instituted raising
any claim against the Company or any of its Subsidiaries or any of their respective real properties
now or formerly owned, leased or operated by any of them or other

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assets, alleging any damage to
the environment or violation of any Environmental Laws, except, in each case, such as could not
reasonably be expected to result in a Material Adverse Effect.

     (b) Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to
any claim, public or private, of violation of Environmental Laws or damage to the environment
emanating from, occurring on or in any way related to real properties now or formerly owned, leased
or operated by any of them or to other assets or their use, except, in each case, such as could not
reasonably be expected to result in a Material Adverse Effect.

     (c) Neither the Company nor any Subsidiary has stored any Hazardous Materials on real
properties now or formerly owned, leased or operated by any of them or has disposed of any
Hazardous Materials in a manner contrary to any Environmental Laws in each case in any manner that
could reasonably be expected to result in a Material Adverse Effect.

     (d) All buildings on all real properties now owned, leased or operated by the Company or any
Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply
could not reasonably be expected to result in a Material Adverse Effect.

Section 6. Representations of the Purchasers.

     Section 6.1. Purchase for Investment. Each Purchaser severally represents that it is
purchasing the Notes for its own account or for
one or more separate accounts maintained by such Purchaser or for the account of one or more
pension or trust funds and not with a view to the distribution thereof; provided that the
disposition of such Purchaser’s or their property shall at all times be within such Purchaser’s or
their control. Each Purchaser understands that the Notes have not been registered under the
Securities Act and may be resold only if registered pursuant to the provisions of the Securities
Act or if an exemption from registration is available, except under circumstances where neither
such registration nor such an exemption is required by law, and that the Company is not required to
register the Notes.

     Section 6.2. Source of Funds. Each Purchaser severally represents that at least one of the
following statements is an accurate representation as to each source of funds (a “Source”) to be
used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser
hereunder:

     (a) the Source is an “insurance company general account” (as the term is defined in the
United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in
respect of which the reserves and liabilities (as defined by the annual statement for life
insurance companies approved by the National Association of Insurance Commissioners (the
“NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any
employee benefit plan together with the amount of the reserves and liabilities for the
general account contract(s) held by or on behalf of any other employee benefit plans
maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the
same employee organization in the general account do not exceed ten percent (10%) of the
total reserves and liabilities of the general account

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(exclusive of separate account
liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such
Purchaser’s state of domicile; or

     (b) the Source is a separate account that is maintained solely in connection with such
Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to
any employee benefit plan (or its related trust) that has any interest in such separate
account (or to any participant or beneficiary of such plan (including any annuitant)) are
not affected in any manner by the investment performance of the separate account; or

     (c) the Source is either (i) an insurance company pooled separate account, within the
meaning of PTE 90-1, or (ii) a bank collective investment fund, within the meaning of the
PTE 91-38 and, except as have been disclosed by such Purchaser to the Company in writing
pursuant to this clause (c), no employee benefit plan or group of plans maintained by the
same employer or employee organization beneficially owns more than 10% of all assets
allocated to such pooled separate account or collective investment fund; or

     (d) the Source constitutes assets of an “investment fund” (within the meaning of Part V
of the QPAM Exemption) managed by a “qualified professional asset manager” or “QPAM” (within
the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are
included in such investment fund, when combined with the
assets of all other employee benefit plans established or maintained by the same employer or
by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such
employer or by the same employee organization and managed by such QPAM, exceed 20% of the
total client assets managed by such QPAM, the conditions of Part l(c) and (g) of the QPAM
Exemption are satisfied, neither the QPAM nor a Person controlling or controlled by the QPAM
(applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or
more interest in the Company and (i) the identity of such QPAM and (ii) the names of all
employee benefit plans whose assets are included in such investment fund have been disclosed
to the Company in writing pursuant to this clause (d); or

     (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of
PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within
the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of
the INHAM Exemption are satisfied, neither the INHAM nor a Person controlling or controlled
by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption)
owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the
name(s) of the employee benefit plan(s) whose assets constitute the Source have been
disclosed to the Company in writing pursuant to this clause (e); or

     (f) the Source is a governmental plan; or

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     (g) the Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been identified to
the Company in writing pursuant to this clause (g); or

     (h) the Source does not include assets of any employee benefit plan, other than a plan
exempt from the coverage of ERISA.

     As used in this Section 6.2, the terms “employee benefit plan”, “governmental plan”, and
“separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

Section 7. Information as to the Company.

     Section 7.1. Financial and Business Information. The Company shall deliver to each holder of
Notes that is an Institutional Investor:

     (a) Quarterly Statements — within 60 days (or such shorter period as is 15 days
greater than the period applicable to the filing of the Company’s Quarterly Report on Form
10-Q (the “Form 10-Q”) with the SEC regardless of whether the Company is subject to the
filing requirements thereof) after the end of each quarterly fiscal period in
each fiscal year of the Company (other than the last quarterly fiscal period of each such
fiscal year), duplicate copies of:

     (i) a consolidated balance sheet of the Company and its Subsidiaries as at the
end of such quarter, and

     (ii) consolidated statements of earnings, changes in shareholders’ equity and
cash flows of the Company and its Subsidiaries for such quarter and (in the case of
the second and third quarters) for the portion of the fiscal year ending with such
quarter,

setting forth in each case in comparative form the figures for the corresponding periods in
the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP
applicable to quarterly financial statements generally, and certified by a Senior Financial
Officer as fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows, subject to
changes resulting from year-end adjustments; provided that delivery within the time period
specified above of copies of the Company’s Form 10-Q prepared in compliance with the
requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of
this Section 7.1(a); and provided, further, that the Company shall be deemed to have made
such delivery of such Form 10-Q if it shall have timely made such Form 10-Q available on
“EDGAR” and on its home page on the worldwide web (at the date of this Agreement located at:
http//www.sensient-tech.com) and shall have given each Purchaser prior notice of such
availability on EDGAR and on its home page in connection with each delivery (such
availability and notice thereof being referred to as “Electronic Delivery”);

-13-

 

     (b) Annual Statements — within 105 days (or such shorter period as is 15 days greater
than the period applicable to the filing of the Company’s Annual Report on Form 10-K (the
“Form 10-K”) with the SEC regardless of whether the Company is subject to the filing
requirements thereof) after the end of each fiscal year of the Company, duplicate copies of,

     (i) a consolidated balance sheet of the Company and its Subsidiaries, as at the
end of such year, and

     (ii) consolidated statements of earnings, changes in shareholders’ equity and
cash flows of the Company and its Subsidiaries, for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP, and accompanied by:

     (1) an opinion thereon of independent public accountants of recognized
national standing, which opinion shall state that such financial statements
present fairly, in all material respects, the financial position of the
companies being reported upon and their results of operations and cash
flows and have been prepared in conformity with GAAP, and that the
examination of such accountants in connection with such financial statements
has been made in accordance with the standards of the Public Company
Oversight Board (United States), and that such audit provides a reasonable
basis for such opinion in the circumstances, and

     (2) a certificate of such accountants stating that they have reviewed
this Agreement and stating further whether, in making their audit, they have
become aware of any condition or event that then constitutes a Default or an
Event of Default, and, if they are aware that any such condition or event
then exists, specifying the nature and period of the existence thereof (it
being understood that such accountants shall not be liable, directly or
indirectly, for any failure to obtain knowledge of any Default or Event of
Default unless such accountants should have obtained knowledge thereof in
making an audit in accordance with generally accepted auditing standards or
did not make such an audit);

provided that the delivery within the time period specified above of the Company’s Form 10-K
for such fiscal year (together with the Company’s annual report to shareholders, if any,
prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the
requirements therefor and filed with the SEC, together with the accountant’s certificate
described in clause (2) above (the “Accountants’ Certificate”), shall be deemed to satisfy
the requirements of this Section 7.1(b); provided, further, that the Company shall be deemed
to have made such delivery of such Form 10-K if it shall have timely made Electronic
Delivery thereof, in which event the Company shall separately deliver, concurrently with
such Electronic Delivery, the Accountants’ Certificate;

-14-

 

     (c) SEC and Other Reports — promptly upon their becoming available, one copy of (i)
each financial statement, report, notice or proxy statement sent by the Company or any
Subsidiary to its principal lending banks as a whole (excluding information sent to such
banks in the ordinary course of administration of a bank facility, such as information
relating to pricing and borrowing availability or to its public securities holders
generally) and (ii) each regular or periodic report, each registration statement (without
exhibits except as expressly requested by such holder), and each prospectus and all
amendments thereto filed by the Company or any Subsidiary with the SEC and of all press
releases and other statements made available generally by the Company or any Subsidiary to
the public concerning developments that are Material;

     (d) Notice of Default or Event of Default — promptly, and in any event within five
days after a Responsible Officer becoming aware of the existence of any Default or Event of
Default or that any Person has given any notice or taken any action with respect to a
claimed default hereunder or that any Person has given any notice or taken any action with
respect to a claimed default of the type referred to in Section 11(f), a written notice
specifying the nature and period of existence thereof and what action the Company is taking
or proposes to take with respect thereto;

     (e) ERISA Matters — promptly, and in any event within five days after a Responsible
Officer becoming aware of any of the following, a written notice setting forth the nature
thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with
respect thereto:

     (i) with respect to any Plan, any reportable event, as defined in Section
4043(c) of ERISA and the regulations thereunder, for which notice thereof has not
been waived pursuant to such regulations as in effect on the date hereof; or

     (ii) the taking by the PBGC of steps to institute, or the threatening by the
PBGC of the institution of, proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan
that such action has been taken by the PBGC with respect to such Multiemployer Plan;
or

     (iii) any event, transaction or condition that could reasonably result in the
incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title
I or IV of ERISA or the penalty or excise tax provisions of the Code relating to
employee benefit plans, or in the imposition of any Lien on any of the rights,
properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV
of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken
together with any other such liabilities or Liens then existing, could reasonably be
expected to have a Material Adverse Effect;

-15-

 

     (f) Notices from Governmental Authority — promptly, and in any event within 30 days of
receipt thereof, copies of any notice to the Company or any Subsidiary from any Federal or
state Governmental Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse Effect; and

     (g) Requested Information — with reasonable promptness, such other data and
information relating to the business, operations, affairs, financial condition, assets or
properties of the Company or any of its Subsidiaries (including, but without limitation,
actual copies of the Company’s Form 10-Q and Form 10-K) or relating to the ability of the
Company to perform its obligations hereunder and under the Notes as from time to time may be
reasonably requested by any such holder of Notes, including, without limitation, such
information as is required by SEC Rule 144A under the Securities Act to be delivered to any
prospective transferee of the Notes.

     Section 7.2. Officer’s Certificate. Each set of financial statements delivered to a holder of
Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a
Senior Financial Officer setting forth (which, in the case of Electronic Delivery of such financial
statements, shall be by separate concurrent delivery of such certificate to each holder of Notes):

     (a) Covenant Compliance — the information (including detailed calculations) required
in order to establish whether the Company was in compliance with the requirements of Section
10.1 through Section 10.4, inclusive, and Section 10.6 during the quarterly or annual period
covered by the statements then being furnished (including with respect to each such Section,
where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as
the case may be, permissible under the terms of such Sections, and the calculation of the
amount, ratio or percentage then in existence); and

     (b) Event of Default — a statement that such Senior Financial Officer has reviewed the
relevant terms hereof and has made, or caused to be made, under his or her supervision, a
review of the transactions and conditions of the Company and its Subsidiaries from the
beginning of the quarterly or annual period covered by the statements then being furnished
to the date of the certificate and that such review shall not have disclosed the existence
during such period of any condition or event that constitutes a Default or an Event of
Default or, if any such condition or event existed or exists (including, without limitation,
any such event or condition resulting from the failure of the Company or any Subsidiary to
comply with any Environmental Law), specifying the nature and period of existence thereof
and what action the Company shall have taken or proposes to take with respect thereto.

     Section 7.3. Visitation. The Company shall permit the representatives of each holder of Notes
that is an Institutional Investor:

     (a) No Default — if no Default or Event of Default then exists, at the expense of such
holder and upon reasonable prior notice to the Company, to visit the principal

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executive
office of the Company, to discuss the affairs, finances and accounts of the Company and its
Subsidiaries with the Company’s officers, and (with the consent of the Company, which
consent will not be unreasonably withheld) its independent public accountants, and (with the
consent of the Company, which consent will not be unreasonably withheld) to visit the other
offices and properties of the Company and each Subsidiary, all at such reasonable times and
as often as may be reasonably requested in writing; and

     (b) Default — if a Default or Event of Default then exists, at the expense of the
Company, to visit and inspect any of the offices or properties of the Company or any
Subsidiary, to examine all their respective books of account, records, reports and other
papers, to make copies and extracts therefrom, and to discuss their respective affairs,
finances and accounts with their respective officers and independent public accountants (and
by this provision the Company authorizes said accountants to discuss the affairs,
finances and accounts of the Company and its Subsidiaries), all at such times and as often
as may be requested.

Section 8. Prepayment of the Notes.

     Section 8.1. Maturity. As provided therein, the entire unpaid principal balance of the Notes
shall be due and payable on the stated maturity date thereof.

     Section 8.2. Optional Prepayments. The Company may, at its option, upon notice as provided
below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less
than $1,000,000 or such lesser amount as shall be outstanding (but if in the case of a partial
prepayment, then against each series of Notes in proportion to the aggregate principal amount
outstanding on each series), at 100% of the principal amount so prepaid, together with interest
accrued thereon to the date of such prepayment, and the Make-Whole Amount determined for the
prepayment date with respect to such principal amount. The Company will give each holder of the
Notes written notice of each optional prepayment under this Section 8.2(a) not less than 30 days
and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall
specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to
be prepaid on such date, the principal amount of each such Note held by such holder to be prepaid
(determined in accordance with Section 8.4), and the interest to be paid on the prepayment date
with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a
Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such
prepayment (calculated as if the date of such notice were the date of the prepayment), setting
forth the details of such computation. Two Business Days prior to such prepayment, the Company
shall deliver to each holder of the Notes a certificate of a Senior Financial Officer specifying
the calculation of such Make-Whole Amount as of the specified prepayment date.

     Section 8.3. Change in Control.

     (a) Notice of Change in Control or Control Event. The Company will, within five Business Days
after any Responsible Officer has knowledge of the occurrence of any Change in

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Control or Control
Event, give written notice of such Change in Control or Control Event to each holder of Notes
unless notice in respect of such Change in Control (or the Change in Control contemplated by such
Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.3. If a Change
in Control has occurred, such notice shall contain and constitute an offer to prepay Notes as
described in subparagraph (c) of this Section 8.3 and shall be accompanied by the certificate
described in subparagraph (g) of this Section 8.3.

     (b) Condition to Company Action. The Company will not take any action that consummates or
finalizes a Change in Control unless (i) at least 30 days prior to such action it shall have given
to each holder of Notes written notice containing and constituting an offer to prepay Notes as
described in subparagraph (c) of this Section 8.3, accompanied by the certificate
described in subparagraph (g) of this Section 8.3, and (ii) contemporaneously with such action, it
prepays all Notes required to be prepaid in accordance with this Section 8.3.

     (c) Offer to Prepay Notes. The offer to prepay Notes contemplated by subparagraphs (a) and
(b) of this Section 8.3 shall be an offer to prepay, in accordance with and subject to this Section
8.3, all, but not less than all, the Notes held by each holder (in this case only, “holder” in
respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean
such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). If such
Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this
Section 8.3, such date shall be not less than 30 days and not more than 120 days after the date of
such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed
Prepayment Date shall be the first Business Day after the 45th day after the date of such offer).

     (d) Acceptance/Rejection. A holder of Notes may accept the offer to prepay made pursuant to
this Section 8.3 by causing a notice of such acceptance to be delivered to the Company not later
than 15 days after receipt by such holder of the most recent offer of prepayment. A failure by a
holder of Notes to respond to an offer to prepay made pursuant to this Section 8.3 shall be deemed
to constitute an acceptance of such offer by such holder.

     (e) Prepayment. Prepayment of the Notes to be prepaid pursuant to this Section 8.3 shall be
at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the
date of prepayment, plus the Make-Whole Amount determined for the prepayment date with respect to
such principal amount.

     (f) Deferral Pending Change in Control. The obligation of the Company to prepay Notes
pursuant to the offers required by subparagraph (c) and accepted in accordance with subparagraph
(d) of this Section 8.3 is subject to the occurrence of the Change in Control in respect of which
such offers and acceptances shall have been made. In the event that such Change in Control has not
occurred on the Proposed Prepayment Date in respect thereof, the prepayment shall be deferred
until, and shall be made on, the date on which such Change in Control occurs. The Company shall
keep each holder of Notes reasonably and timely informed of (i) any such deferral of the date of
prepayment, (ii) the date on which such Change in Control and the prepayment are expected to occur,
and (iii) any determination by the Company that efforts to effect such Change in Control have
ceased or been abandoned (in which case the offers

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and acceptances made pursuant to this Section
8.3 in respect of such Change in Control shall be deemed rescinded).

     (g) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.3 shall
be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated
the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made
pursuant to this Section 8.3; (iii) the principal amount of each Note offered to be prepaid; (iv)
the estimated Make-Whole Amount, if any, due in connection with such prepayment (calculated as if
the date of such notice were the date of the prepayment), setting forth the details of such
computation; (v) the interest that would be due on each Note offered to be prepaid, accrued to the
Proposed Prepayment Date; (vi) that the conditions of this Section 8.3
have been fulfilled; and (vii) in reasonable detail, the nature and date or proposed date of the
Change in Control.

     (h) Certain Definitions. “Change in Control” shall be deemed to have occurred if any person
(as such term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act as in effect on the
date of the Closing) or related persons constituting a group (as such term is used in Rule 13d-5
under the Exchange Act),

     (i) become the “beneficial owners” (as such term is used in Rule 13d-3 under the
Exchange Act as in effect on the date of the Closing), directly or indirectly, of more than
50% of the total voting power of all classes then outstanding of the Company’s Voting Stock,
or

     (ii) acquire after the date of the Closing (x) the power to elect, appoint or cause the
election or appointment of at least a majority of the members of the board of directors of
the Company, through beneficial ownership of the capital stock of the Company or otherwise,
or (y) all or substantially all of the properties and assets of the Company in a manner
which does not require compliance with Section 10.5(c).

     “Control Event” means:

     (1) the execution by the Company or any of its Subsidiaries or Affiliates of any
agreement or letter of intent with respect to any proposed transaction or event or series of
transactions or events which, individually or in the aggregate, may reasonably be expected
to result in a Change in Control,

     (2) the execution of any written agreement which, when fully performed by the parties
thereto, would result in a Change in Control, or

     (3) the making of any written offer by any person (as such term is used in Section
13(d) and Section 14(d)(2) of the Exchange Act as in effect on the date of the Closing) or
related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange
Act as in effect on the date of the Closing) to the holders of the common stock of the
Company, which offer, if accepted by the requisite number of holders, would result in a
Change in Control.

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     (i) All calculations contemplated in this Section 8.3 involving the capital stock of any
Person shall be made with the assumption that all convertible Securities of such Person then
outstanding and all convertible Securities issuable upon the exercise of any warrants, options and
other rights outstanding at such time were converted at such time and that all options, warrants
and similar rights to acquire shares of capital stock of such Person were exercised at such time.

     Section 8.4. Allocation of Partial Prepayments. In the case of each partial prepayment of the
Notes pursuant to Section 8.2, the principal amount of the Notes to be prepaid shall be (a)
allocated among each series of Notes in proportion to the aggregate unpaid principal amount of each
such series of Notes and (b)
allocated pro rata among all holders of each series of Notes at the time outstanding in accordance
with the unpaid principal amount thereof. All partial prepayments made pursuant to Section 8.3
shall be applied only to the Notes of the holders who have elected to participate in such
prepayment.

     Section 8.5. Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to
this Section 8, the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment (which shall be a Business Day), together with
interest on such principal amount accrued to such date, and with the Make-Whole Amount, if any.

     From and after such date, unless the Company shall fail to pay such principal amount when so
due and payable, together with the interest and Make-Whole Amount, if any, interest on such
principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to
the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any
prepaid principal amount of any Note.

     Section 8.6. Purchase of Notes. The Company will not and will not permit any Affiliate to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes
except (a) upon the payment or prepayment of the Notes in accordance with the terms of this
Agreement and the Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate
pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions.
Any such offer shall provide each holder with sufficient information to enable it to make an
informed decision with respect to such offer, and shall remain open for at least 15 Business Days.
If the holders of more than 25% of the principal amount of the Notes then outstanding accept such
offer, the Company shall promptly notify the remaining holders of such fact and the expiration date
for the acceptance by holders of Notes of such offer shall be extended by the number of days
necessary to give each such remaining holder at least 5 Business Days from its receipt of such
notice to accept such offer. The Company will promptly cancel all Notes acquired by it or any
Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of
this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

     Section 8.7. Make-Whole Amount. The term “Make-Whole Amount” means, with respect to any Note,
an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments
with respect to the Called Principal of such Note over the

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amount of such Called Principal;
provided, however, that the Make-Whole Amount may in no event be less than zero.

     For the purposes of determining the Make-Whole Amount, the following terms have the following
meanings:

     “Called Principal” means, with respect to any Note, the principal of such Note that is
to be prepaid pursuant to Section 8.2 or Section 8.3 or has become or is declared to be
immediately due and payable pursuant to Section 12.1, as the context requires.

     “Discounted Value” means, with respect to the Called Principal of any Note, the amount
obtained by discounting all Remaining Scheduled Payments with respect to such Called
Principal from their respective scheduled due dates to the Settlement Date with respect to
such Called Principal, in accordance with accepted financial practice and at a discount
factor (applied on the same periodic basis as that on which interest on the Notes is
payable) equal to the Reinvestment Yield with respect to such Called Principal.

     “Reinvestment Yield” means, with respect to the Called Principal of any Note, the sum
of (x) the Applicable Percentage plus (y) the yield to maturity implied by (i) the yields
reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the
Settlement Date with respect to such Called Principal, on the display designated as “Page
PX1” (or such other display as may replace Page PX1 on Bloomberg Financial Markets
(“Bloomberg”) or, if Page PX1 (or its successor screen on Bloomberg) is unavailable, the
Telerate Access Service screen which corresponds most closely to Page PX1 for the most
recently issued actively traded U.S. Treasury securities having a maturity equal to the
Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such
yields are not reported as of such time or the yields reported as of such time are not
ascertainable (including by way of interpolation), the Treasury Constant Maturity Series
Yields reported, for the latest day for which such yields have been so reported as of the
second Business Day preceding the Settlement Date with respect to such Called Principal, in
Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for
actively traded U.S. Treasury securities having a constant maturity equal to the Remaining
Average Life of such Called Principal as of such Settlement Date. Such implied yield will
be determined, if necessary, by (a) converting U.S. Treasury bill quotations to
bond-equivalent yields in accordance with accepted financial practice and (b) interpolating
linearly between (1) the actively traded U.S. Treasury security with the maturity closest to
and greater than such Remaining Average Life and (2) the actively traded U.S. Treasury
security with the maturity closest to and less than such Remaining Average Life. The
Reinvestment Yield shall be rounded to the number of decimal places as appears in the
interest rate of the applicable Note.

     “Remaining Average Life” means, with respect to any Called Principal, the number of
years (calculated to the nearest one-twelfth year) obtained by dividing (a) such Called
Principal into (b) the sum of the products obtained by multiplying (i) the principal
component of each Remaining Scheduled Payment with respect to such Called Principal

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by (ii)
the number of years (calculated to the nearest one-twelfth year) that will elapse between
the Settlement Date with respect to such Called Principal and the scheduled due date of such
Remaining Scheduled Payment.

     “Remaining Scheduled Payments” means, with respect to the Called Principal of any Note,
all payments of such Called Principal and interest thereon that would be due after the
Settlement Date with respect to such Called Principal if no payment of such Called Principal
were made prior to its scheduled due date, provided that if such Settlement Date is not a
date on which interest payments are due to be made under the terms of the Notes, then the
amount of the next succeeding scheduled interest payment
will be reduced by the amount of interest accrued to such Settlement Date and required
to be paid on such Settlement Date pursuant to Section 8.2, 8.3 or 12.1.

     “Settlement Date” means, with respect to the Called Principal of any Note, the date on
which such Called Principal is to be prepaid pursuant to Section 8.2 or Section 8.3 or has
become or is declared to be immediately due and payable pursuant to Section 12.1, as the
context requires.

Section 9. Affirmative Covenants.

     The Company covenants that so long as any of the Notes are outstanding:

     Section 9.1. Compliance with Laws. Without limiting Section 10.9, the Company will, and will
cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject, including, without limitation, ERISA, Environmental
Laws, the USA Patriot Act and the other laws and regulations that are referred to in
Section 5.16, and will obtain and maintain in effect all licenses, certificates, permits,
franchises and other governmental authorizations necessary to the ownership of their respective
properties or to the conduct of their respective businesses, in each case to the extent necessary
to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or
failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other
governmental authorizations could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

     Section 9.2. Insurance. The Company will, and will cause each of its Subsidiaries to,
maintain, with financially sound and reputable insurers, insurance with respect to their respective
properties and businesses against such casualties and contingencies, of such types, on such terms
and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves
are maintained with respect thereto) as is customary in the case of entities of established
reputations engaged in the same or a similar business and similarly situated.

     Section 9.3. Maintenance of Properties. The Company will, and will cause each of its
Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties
in good repair, working order and condition (other than ordinary wear and tear), so that the
business carried on in connection therewith may be properly conducted at all times; provided that
this Section 9.3 shall not prevent the Company or any Subsidiary from

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discontinuing the operation
and the maintenance of any of its properties if such discontinuance is desirable in the conduct of
its business and the Company has concluded that such discontinuance could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

     Section 9.4. Payment of Taxes and Claims. The Company will, and will cause each of its
Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and
discharge all taxes shown to be due and
payable on such returns and all other taxes, assessments, governmental charges, or levies imposed
on them or any of their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent and all claims for
which sums have become due and payable that have or might become a Lien on properties or assets of
the Company or any Subsidiary; provided that neither the Company nor any Subsidiary need pay any
such tax or assessment or claims if (a) the amount, applicability or validity thereof is contested
by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings,
and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP
on the books of the Company or such Subsidiary or (b) the nonpayment of all such taxes, assessments
and claims in the aggregate could not reasonably be expected to have a Material Adverse Effect.

     Section 9.5. Legal Existence, Etc. Subject to Section 10.5, the Company will at all times
preserve and keep in full force and effect its legal existence. Subject to Sections 10.5 and 10.6,
the Company will at all times preserve and keep in full force and effect the legal existence of
each of its Subsidiaries (unless merged into the Company or a Wholly-owned Subsidiary) and all
rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the
Company, the termination of or failure to preserve and keep in full force and effect such legal
existence, right or franchise could not, individually or in the aggregate, have a Material Adverse
Effect.

     Section 9.6. Books and Records. The Company will, and will cause each of its Subsidiaries to,
maintain proper books of record and account in conformity with GAAP and all applicable requirements
of any Governmental Authority having legal or regulatory jurisdiction over the Company, or such
Subsidiary, as the case may be.

     Section 9.7. Guaranty by Subsidiaries. (a) The Company may, at its election, at any time or
from time to time, cause any Subsidiary which is not then a Subsidiary Guarantor to become a
Subsidiary Guarantor by satisfying the following conditions:

     (i) deliver to each of the holders of the Notes of an executed counterpart of a
Subsidiary Guaranty, or joinder agreement in respect of an existing Subsidiary Guaranty, as
appropriate executed by such Subsidiary;

     (ii) deliver to each of the holders of the Notes of a certificate signed by the
president, a vice president or another authorized officer of such Subsidiary (A) making
representations and warranties to the effect of those contained in Sections 5.1, 5.2, 5.6
and 5.7, but with respect to such Subsidiary and such Subsidiary Guaranty, as applicable and
(B) certifying that at such time (and after giving effect to such Subsidiary Guaranty

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(1) no
Default or Event of Default shall have occurred and be continuing and (2) such Subsidiary
(x) will not be insolvent, (y) will not be engaged in any business or transaction, or about
to engage in any business or transaction, for which it has unreasonably small capital and
(z) does not intend to, and will not, hinder, delay or defraud any Person to which it is, or
will become, indebted, in each of the foregoing such
cases after taking into account the reasonable likelihood of having to perform under such
Subsidiary Guaranty;

     (iii) deliver to each of the holders of the Notes such documents and evidence with
respect to such Subsidiary as the Required Holders may reasonably request in order to
establish the existence and good standing of such Subsidiary and the authorization of the
transactions contemplated by such Subsidiary Guaranty;

     (iv) deliver to each holder of a Note an opinion or opinions of counsel to the combined
effect that the Subsidiary Guaranty of such Subsidiary has been duly authorized, executed
and delivered by such Subsidiary and constitutes a legal, valid and binding obligation
enforceable against such Subsidiary Guarantor in accordance with its terms, subject to
customary and reasonable exceptions and assumptions under the circumstances;

     (v) payment of all reasonable fees and expenses of the holders of the Notes, including,
without limitation, the reasonable fees of not more than one special counsel representing
all of the holders of the Notes, incurred in connection with the execution and delivery of
the Subsidiary Guaranty and the related opinion described above; and

     (vi) deliver to each holder of a Note of evidence of the appointment of the Company as
such Subsidiary’s agent to receive, for it and on it’s behalf service of process in the
State of New York with respect thereto.

     (b) The Company may further, from time to time at its discretion and upon written notice from
the Company to the holders of the Notes referring to this Section 9.7(b) (which notice shall
contain a certification (including setting forth the information (including reasonably detailed
computations) reasonably required to confirm the conclusions contained therein) by a Responsible
Officer as to the matters specified in clauses (i) and (ii) below) (the “Termination Notice”),
terminate the Subsidiary Guaranty issued by a Subsidiary Guarantor with effect from the date of
such notice, so long as no Default or Event of Default shall have occurred and then be continuing
or shall result therefrom.

     (c) The Company agrees that so long as any Subsidiary is a guarantor or a borrower under or
with respect to the Bank Credit Agreement or the 2009 Notes, such Subsidiary shall at all such
times be a Subsidiary Guarantor.

     (d) The Company agrees that it will not, nor will it permit any Subsidiary or Affiliate to,
directly or indirectly, pay or cause to be paid any consideration or remuneration, whether by way
of supplemental or additional interest, fee or otherwise, to any creditor of the Company or of any
Subsidiary Guarantor as consideration for or as an inducement to the entering into by any

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such
creditor of any release or discharge of any Subsidiary Guarantor with respect to any liability of
such Subsidiary Guarantor as an obligor or guarantor under or in respect of Debt of the Company,
unless such consideration or remuneration is concurrently paid, on the same terms, ratably to the
holders of all of the Notes then outstanding.

Section 10. Negative Covenants.

     The Company covenants that so long as any of the Notes are outstanding:

     Section 10.1. Consolidated Adjusted Net Worth. The Company will at all times keep and
maintain Consolidated Adjusted Net Worth at an amount not less than $625,000,000.

     Section 10.2. Limitations on Debt. (a) The Company will not permit the ratio of Consolidated
Total Net Debt to Consolidated EBITDA to exceed 3.50 to 1.00 for each twelve-month period ending on
the last day of each fiscal quarter of the Company.

     (b) The Company will not, and will not permit any Subsidiary to, create, issue, assume,
guarantee or otherwise incur or in any manner become liable in respect of any Priority Debt, unless
at the time of creation, issuance, assumption, guarantee or incurrence thereof and after giving
effect thereto and to the application of the proceeds thereof, (i) the aggregate amount of Debt of
the Company and its Subsidiaries secured by any Lien created or incurred within the limitations of
Section 10.4(h) would not exceed 10% of Consolidated Adjusted Net Worth, and (ii) the aggregate
amount of all Consolidated Priority Debt (including, without limitation, all Debt of the Company
and its Subsidiaries secured by any Lien created or incurred within the limitations of Section
10.4(h)) would not exceed 20% of Consolidated Adjusted Net Worth.

     (c) Any Person which becomes a Subsidiary after the date hereof shall for all purposes of this
Section 10.2 be deemed to have created, assumed or incurred at the time it becomes a Subsidiary all
Debt of such Person existing immediately after it becomes a Subsidiary.

     Section 10.3. Fixed Charges Coverage Ratio. The Company will keep and maintain the ratio of
Consolidated Net Earnings Available for Fixed Charges to Consolidated Fixed Charges for each period
of four consecutive fiscal quarters at not less than 2.00 to 1.00, with the demonstration of
compliance by the Company with this Section 10.3 to be made as at the end of each fiscal quarter.

     Section 10.4. Negative Pledge. The Company will not, and will not permit any of its
Subsidiaries to, create, assume, or suffer to exist any Lien on any asset now owned or hereafter
acquired, except:

     (a) Liens incurred to finance the acquisition of construction of, or for the purpose of
financing its physical plant, office buildings, machinery, equipment and other fixed assets
used in its business and not held for sale or lease in the ordinary course of its business;

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     (b) Liens incurred or deposits made in the ordinary course of business in order to
enable it to maintain self-insurance, or to participate in any fund in connection with
workers’ compensation, unemployment insurance, old-age pensions or other social security, or
to share in any privileges or other benefits available to corporations participating in any
such arrangement, or for any other purpose at any time required by law or regulation
promulgated by any governmental agency or office as a condition to the transaction of any
business or the exercise of any privilege or license, or from depositing its assets with any
surety company or clerk of any court, or in escrow, as collateral in connection with, or in
lieu of, any bond or appeal by it from any judgment or decree against it, or in connection
with any other proceedings in actions at law or in equity by or against it;

     (c) Liens securing any taxes or assessments, governmental charges or levies, if such
taxes or assessments, charges or levies shall not at any time be due and payable or if the
Company shall currently be contesting the validity thereof in good faith and by appropriate
proceedings;

     (d) Liens of any judgments, if such judgments shall not have remained un-discharged or
un-stayed on appeal or otherwise for more than sixty (60) days;

     (e) landlords’, lessors’, carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s, laborers’ or other similar statutory Liens; provided that the Company or any of
its Subsidiaries, as the case may be, is contesting the validity thereof in good faith and
by appropriate proceedings;

     (f) easements, rights-of-way, restrictions and other similar encumbrances which do not
Materially detract from the value of the property subject thereto or interfere with the
ordinary conduct of its business;

     (g) Liens existing on the Execution Date and securing Debt of the Company and its
Subsidiaries referred to in Schedule 5.15; and

     (h) other Liens created or incurred after the Execution Date given to secure Debt of
the Company or any Subsidiary in addition to the Liens permitted by the preceding clauses
(a) through (g) hereof; provided that (i) all Debt secured by any such Liens shall have been
incurred within the limitations provided in Section 10.2(b) and (ii) at the time of
creation, issuance, assumption, guarantee or incurrence of the Debt secured by any such Lien
and after giving effect thereto and to the application of the proceeds thereof, no Default
or Event of Default would exist; provided, that, without limiting the foregoing, in the
event that at any time the Company or any Subsidiary provides a Lien to or for the benefit
of the lenders under the Bank Credit Agreement or the administrative agent on their behalf
or the holders of the 2009 Notes for the purpose of securing obligations thereunder, then
the Company will (if it has provided such Lien), and will cause each of its Subsidiaries
that has provided such Lien to concurrently grant to or for
the benefit of the holders of Notes a similar first priority Lien (subject only to Liens
permitted by the Bank Credit Agreement and this Section 10.4, and ranking pari

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passu with the Lien provided to or for the benefit of the lenders under such Bank Credit
Agreement or the holders of the 2009 Notes), over the same assets and property of the
Company and such Subsidiary as those encumbered in respect of the Bank Credit Agreement or
the holders of the 2009 Notes (but only for so long as such obligations under the Bank
Credit Agreement or the 2009 Notes are secured by such Lien), in form and substance
reasonably satisfactory to the Required Holders with such security to be the subject of an
intercreditor agreement among the lenders under the Bank Credit Agreement or the
administrative agent on their behalf, the holders of the 2009 Notes and the holders of
Notes, which shall be reasonably satisfactory in form and substance to the Required Holders.

     Section 10.5. Mergers, Consolidations, Etc. The Company will not, and will not permit any
Subsidiary to, consolidate with or be a party to a merger with any other Person, or sell, lease or
otherwise dispose of all or substantially all of its assets; provided that:

     (a) any Subsidiary may merge or consolidate with or into the Company or any
Wholly-owned Subsidiary so long as in (i) any merger or consolidation involving the Company,
the Company shall be the surviving or continuing corporation and (ii) in any merger or
consolidation involving a Wholly-owned Subsidiary (and not the Company), the Wholly-owned
Subsidiary shall be the surviving or continuing corporation or limited liability company;

     (b) the Company may consolidate or merge with or into any other corporation if (i) the
corporation which results from such consolidation or merger (the “Surviving Person") is
organized under the laws of any state of the United States or the District of Columbia, (ii)
the due and punctual payment of the principal of and premium, if any, and interest on all of
the Notes, according to their tenor, and the due and punctual performance and observation of
all of the covenants in the Notes and this Agreement to be performed or observed by the
Company are expressly assumed in writing by the Surviving Person and the Surviving Person
shall furnish to the holders of the Notes an opinion of counsel satisfactory to the Required
Holders to the effect that the instrument of assumption has been duly authorized, executed
and delivered and constitutes the legal, valid and binding contract and agreement of the
Surviving Person enforceable in accordance with its terms, except as enforcement of such
terms may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws
affecting the enforcement of creditors’ rights generally and by general equitable
principles, (iii) each Subsidiary Guarantor shall have affirmed in writing its respective
obligations under its Subsidiary Guaranty, and (iv) at the time of such consolidation or
merger and immediately after giving effect thereto, no Default or Event of Default would
exist; and

     (c) the Company may sell or otherwise dispose of all or substantially all of its assets
(other than as provided in Section 10.6) to any Person for consideration which represents
the fair market value of such assets (as determined in good faith by the Board
of Directors of the Company) at the time of such sale or other disposition if (i) the
acquiring Person (the “Acquiring Person") is a corporation organized under the laws of any
state of the United States or the District of Columbia, (ii) the due and punctual

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payment of the principal of and premium, if any, and interest on all the Notes, according to
their tenor, and the due and punctual performance and observance of all of the covenants in
the Notes and in this Agreement to be performed or observed by the Company are expressly
assumed in writing by the Acquiring Person and the Acquiring Person shall furnish to the
holders of the Notes an opinion of counsel satisfactory to the Required Holders to the
effect that the instrument of assumption has been duly authorized, executed and delivered
and constitutes the legal, valid and binding contract and agreement of such Acquiring Person
enforceable in accordance with its terms, except as enforcement of such terms may be limited
by bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles, (iii) each
Subsidiary Guarantor shall have affirmed in writing its respective obligations under its
Subsidiary Guaranty, and (iv) at the time of such sale or disposition and immediately after
giving effect thereto, no Default or Event of Default would exist.

     Section 10.6. Sale of Assets. The Company will not, and will not permit any Subsidiary to,
sell, lease, transfer, abandon or otherwise dispose of assets, including, without limitation, by
way of an asset securitization or sale-leaseback transaction (except assets sold in the ordinary
course of business for fair market value and except as provided in Section 10.5(c)); provided that
the foregoing restrictions do not apply to:

     (a) the sale, lease, transfer or other disposition of assets of a Subsidiary to the
Company or a Wholly-owned Subsidiary; or

     (b) the abandonment of assets of the Company or a Subsidiary that are no longer useful
or intended to be used in the operation of the business of the Company and its Subsidiaries,
provided that such abandonment would not, individually or in the aggregate, have a Material
Adverse Effect;

     (c) the sale of assets for cash or other property to a Person or Persons other than an
Affiliate if all of the following conditions are met:

     (i) such assets (valued at net book value) do not, together with all other
assets of the Company and its Subsidiaries previously disposed of during the
twelve-month period then ending (other than in the ordinary course of business),
exceed 10% of Consolidated Total Assets, and such assets (valued at net book value)
do not, together with all other assets of the Company and its Subsidiaries
previously disposed of during the period from the date of this Agreement to and
including the date of the sale of such assets (other than in the ordinary course of
business), exceed 30% of Consolidated Total Assets, in each such case determined as
of the end of the immediately preceding fiscal year;

     (ii) in the opinion of a Senior Financial Officer of the Company, the sale is
for fair value and is in the best interests of the Company; and

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     (iii) immediately before and immediately after the consummation of the
transaction and after giving effect thereto, no Default or Event of Default would
exist;

provided, however, that for purposes of the foregoing calculation, there shall not be
included any assets the proceeds of which were or are applied within twelve months of the
date of sale of such assets to either (A) the acquisition of assets useful and intended to
be used in the operation of the business of the Company and its Subsidiaries as described in
Section 10.8 and having a fair market value (as determined in good faith by a Senior
Financial Officer of the Company) at least equal to that of the assets so disposed of or (B)
the prepayment on a pro rata basis of Senior Debt of the Company determined, in the case of
any Senior Debt of the Company denominated in a currency other than Dollars, on the basis of
the exchange rate published in The Wall Street Journal on the second Business Day before the
date of the applicable notice of prepayment. It is understood and agreed by the Company and
the holders of the Notes that if, and only if, any part or portion of any such proceeds are
offered to the prepayment of the Notes as hereinabove provided, then and in such event shall
such proceeds, or part or portion thereof, as the case may be, to the extent accepted as a
prepayment of the Notes by the holders thereof, be prepaid as and to the extent provided in
Section 8.2.

Without limiting the foregoing clause (B), the Company agrees that:

     (x) the timing and manner of any offer of prepayment to the holders of the
Notes shall be in the manner contemplated by Section 8.2; provided that any such
offered prepayment of the Notes pursuant to this Section 10.6 will not be subject to
the restrictions on minimum prepayment amounts and shall only be at 100% of the
principal amount thereof, together with interest accrued and unpaid thereon to the
date of such prepayment, and in no event with a Make-Whole Amount or other premium;

     (y) any holder of the Notes may decline any offer of prepayment pursuant to the
foregoing clause (b); and

     (z) if such offer is so accepted, the proceeds so offered towards the
prepayment of the Notes and accepted shall be prepaid and applied in the manner
provided in Section 8.2, excepting only that such prepayment shall be at 100% of the
principal amount thereof, together with interest accrued and unpaid thereon to the
date of such prepayment, without payment of Make-Whole Amount or other premium.

To the extent that any holder of the Notes declines such offer of prepayment, the Company
may use the remaining amount of such prepayment so declined for general corporate purposes.

     Section 10.7. Transactions with Affiliates. The Company will not and will not permit any
Subsidiary to enter into directly or indirectly any transaction or group of related transactions

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(including without limitation the purchase, lease, sale or exchange of properties of any kind
or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary),
except in the ordinary course and pursuant to the reasonable requirements of the Company’s or such
Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such
Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an
Affiliate.

     Section 10.8. Line of Business. The Company will not and will not permit any Subsidiary to
engage in any business if, as a result, the general nature of the business in which the Company and
its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the
general nature of the business in which the Company and its Subsidiaries, taken as a whole, are
engaged on the date of this Agreement.

     Section 10.9. Terrorism Sanctions Regulations. The Company will not and will not permit any
Affiliated Entity to (a) become a Blocked Person or (b) have any investments in or engage in any
dealings or transactions with any Blocked Person.

Section 11. Events of Default.

     An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:

     (a) the Company defaults in the payment of any principal or Make-Whole Amount, if any,
on any Note when the same becomes due and payable, whether at maturity or at a date fixed
for prepayment or by declaration or otherwise; or

     (b) the Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or

     (c) the Company defaults in the performance of or compliance with any term contained in
Section 7.1(d) or Sections 10.1 through 10.6; or

     (d) the Company or any Subsidiary Guarantor defaults in the performance of or
compliance with any term contained herein (other than those referred to in Sections 11(a),
(b) and (c)) or in any Subsidiary Guaranty and such default is not remedied within 30 days
after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default
and (ii) the Company receiving written notice of such default from any holder of a Note (any
such written notice to be identified as a “notice of default” and to refer specifically to
this Section 11(d)); or

     (e) any representation or warranty made in writing by or on behalf of the Company or
any Subsidiary Guarantor or by any officer of the Company or any Subsidiary Guarantor in
this Agreement or in any Subsidiary Guaranty or in any writing furnished in connection with
the transactions contemplated hereby proves to have been false or incorrect in any material
respect on the date as of which made; or

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     (f) (i) the Company or any Subsidiary is in default (as principal or as guarantor or
other surety) in the payment of any principal of or premium or make-whole amount or interest
on any Debt that is outstanding in an aggregate principal amount of at least $10,000,000 (or
its equivalent in the relevant currency of payment) beyond any period of grace provided with
respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of
or compliance with any term of any evidence of any Debt in an aggregate outstanding
principal amount of at least $10,000,000 (or its equivalent in the relevant currency of
payment) or of any mortgage, indenture or other agreement relating thereto or any other
condition exists, and as a consequence of such default or condition such Debt has become, or
has been declared (or one or more Persons are entitled to declare such Debt to be), due and
payable before its stated maturity or before its regularly scheduled dates of payment, or
(iii) as a consequence of the occurrence or continuation of any event or condition (other
than the passage of time or the right of the holder of Debt to convert such Debt into equity
interests), (1) the Company or any Subsidiary has become obligated to purchase or repay Debt
before its regular maturity or before its regularly scheduled dates of payment in an
aggregate outstanding principal amount of at least $10,000,000 (or its equivalent in the
relevant currency of payment), or (2) one or more Persons have the right to require the
Company or any Subsidiary so to purchase or repay such Debt; or

     (g) the Company or any Material Subsidiary (i) is generally not paying, or admits in
writing its inability to pay, its debts as they become due, (ii) files, or consents by
answer or otherwise to the filing against it of, a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any
bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction,
(iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment
of a custodian, receiver, trustee or other officer with similar powers with respect to it or
with respect to any substantial part of its property, (v) is adjudicated as insolvent or to
be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

     (h) a court or Governmental Authority of competent jurisdiction enters an order
appointing, without consent by the Company or any of its Material Subsidiaries, a custodian,
receiver, trustee or other officer with similar powers with respect to it or with respect to
any substantial part of its property, or constituting an order for relief or approving a
petition for relief or reorganization or any other petition in bankruptcy or for liquidation
or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering
the dissolution, winding-up or liquidation of the Company or any of its Material
Subsidiaries, or any such petition shall be filed against the Company or any of its Material
Subsidiaries and such petition shall not be dismissed within 60 days; or

     (i) a final judgment or judgments for the payment of money aggregating in excess of
$10,000,000 (or its equivalent in the relevant currency of payment) are rendered against one
or more of the Company and its Subsidiaries and which judgments are not, within 60 days
after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged
within 60 days after the expiration of such stay; or

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     (j) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the
Code for any plan year or part thereof or a waiver of such standards or extension of any
amortization period is sought or granted under section 412 of the Code, (ii) a notice of
intent to terminate any Plan shall have been or is reasonably expected to be filed with the
PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or
appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any
ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the
aggregate “amount of unfunded benefit liabilities” (within the meaning of section
4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA,
shall exceed $10,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is
reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty
or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or
any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any
Subsidiary establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that would increase the liability of the
Company or any Subsidiary thereunder; but only if any such event or events described in
clauses (i) through (vi) above, either individually or together with any other such event or
events, could reasonably be expected to have a Material Adverse Effect; or

     (k) any Subsidiary Guaranty shall cease to be in full force and effect for any reason
whatsoever, including, without limitation, a determination by any Governmental Authority
that such Subsidiary Guaranty is invalid, void or unenforceable or any Subsidiary Guarantor
which is a party to such Subsidiary Guaranty shall contest or deny in writing the validity
or enforceability of any of its obligations under such Subsidiary Guaranty, but excluding
any Subsidiary Guaranty which ceases to be in full force and effect in accordance with and
by reason of the express provisions of Section 9.7(b).

As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in section 3 of ERISA.

Section 12. Remedies on Default, Etc.

     Section 12.1. Acceleration. (a) If an Event of Default with respect to the Company described
in Section 11(g) or (h) (other than an Event of Default described in clause (i) of Section 11(g) or
described in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause
(i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become
immediately due and payable.

     (b) If any other Event of Default has occurred and is continuing, any holder or holders of
more than 51% in principal amount of the Notes at the time outstanding may at any time at its or
their option, by notice or notices to the Company, declare all the Notes then outstanding to be
immediately due and payable.

     (c) If any Event of Default described in Section 11(a) or (b) has occurred and is continuing,
any holder or holders of Notes at the time outstanding affected by such Event of

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Default may at any time, at its or their option, by notice or notices to the Company, declare all
the Notes held by it or them to be immediately due and payable.

          Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by
declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes,
plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest accrued
thereon at the Default Rate) and (ii) the sum of the Make-Whole Amount, if any, determined in
respect of such principal amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment, demand, protest or further
notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree,
that each holder of a Note has the right to maintain its investment in the Notes free from
repayment by the Company (except as herein specifically provided for), and that the provision for
payment of the Make-Whole Amount, if any, by the Company in the event that the Notes are prepaid or
are accelerated as a result of an Event of Default, is intended to provide compensation for the
deprivation of such right under such circumstances.

     Section 12.2. Other Remedies. If any Default or Event of Default has occurred and is
continuing, and irrespective of whether any Notes have become or have been declared immediately due
and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to
protect and enforce the rights of such holder by an action at law, suit in equity or other
appropriate proceeding, whether for the specific performance of any agreement contained herein or
in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in
aid of the exercise of any power granted hereby or thereby or by law or otherwise.

     Section 12.3. Rescission. At any time after any Notes have been declared due and payable
pursuant to Section 12.1(b) or (c), the holders of not less than 60% in principal amount of the
Notes then outstanding, by written notice to the Company, may rescind and annul any such
declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all
principal of and the Make-Whole Amount, if any, if any, on any Notes that are due and payable and
are unpaid other than by reason of such declaration, and all interest on such overdue principal and
the Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest
in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall
have paid any amounts which have become due solely by reason of such declaration, (c) all Events of
Default and Defaults, other than non-payment of amounts that have become due solely by reason of
such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment
or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No
rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of
Default or Default or impair any right consequent thereon.

     Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no
delay on the part of any holder of any Note in exercising any right, power or remedy shall operate
as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right,
power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be
exclusive of any other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the obligations of

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the Company under Section 15, the Company will pay to the holder of each Note on demand such
further amount as shall be sufficient to cover all costs and expenses of such holder incurred in
any enforcement or collection under this Section 12, including, without limitation, reasonable
attorneys’ fees, expenses and disbursements.

Section 13. Registration; Exchange; Substitution of Notes.

     Section 13.1. Registration of Notes. The Company shall keep at its principal executive office
a register for the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address of each transferee
of one or more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered shall be deemed and
treated as the owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to any holder of a
Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy
of the names and addresses of all registered holders of Notes.

     Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note to the Company at
the address and to the attention of the designated officer (all as specified in Section 18(iii))
for registration of transfer or exchange (and in the case of a surrender for registration of
transfer accompanied by a written instrument of transfer duly executed by the registered holder of
such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant
name, address and other information for notices of each transferee of such Note or part thereof),
within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s
expense (except as provided below), one or more new Notes (as requested by the holder thereof) in
exchange therefor, of the same series and in an aggregate principal amount equal to the unpaid
principal amount of the surrendered Note. Each such new Note shall be payable to such Person as
such holder may request and shall be substantially in the form of Exhibit 1(a), 1(b) or 1(c),
respectively. Each such new Note shall be dated and bear interest from the date to which interest
shall have been paid on the surrendered Note or dated the date of the surrendered Note if no
interest shall have been paid thereon. The Company may require payment of a sum sufficient to
cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes
shall not be transferred in denominations of less than $1,000,000 (or its equivalent in the
relevant currency of payment); provided that if necessary to enable the registration of transfer by
a holder of its entire holding of Notes, one Note may be in a denomination of less than $1,000,000
(or its equivalent in the relevant currency of payment). Any transferee, by its acceptance of a
Note registered in its name (or the name of its nominee), shall be deemed to have made the
representation set forth in Section 6.2.

-34-

 

     Section 13.3. Replacement of Notes. Upon receipt by the Company at the address and to the
attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from such Institutional
Investor of such ownership and such loss, theft, destruction or mutilation), and

     (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser
or another holder of a Note with a minimum net worth of at least $100,000,000 or a Qualified
Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to
be satisfactory), or

     (b) in the case of mutilation, upon surrender and cancellation thereof,

within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in
lieu thereof, a new Note of the same series, dated and bearing interest from the date to which
interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date
of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

Section 14. Payments on Notes.

     Section 14.1. Place of Payment. Subject to Section 14.2, payments of principal, or Make-Whole
Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New
York at the principal office of Citibank, N.A. in such jurisdiction. The Company may at any time,
by notice to each holder of a Note, change the place of payment of the Notes so long as such place
of payment shall be either the principal office of the Company in such jurisdiction or the
principal office of a bank or trust company in such jurisdiction.

     Section 14.2. Home Office Payment. So long as any Purchaser or its nominee shall be the
holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the
contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount,
if any, and interest by the method and at the address specified for such purpose below such
Purchaser’s name in Schedule A or by such other method or at such other address as such Purchaser
shall have from time to time specified to the Company in writing for such purpose, without the
presentation or surrender of such Note or the making of any notation thereon, except that upon
written request of the Company made concurrently with or reasonably promptly after payment or
prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation,
reasonably promptly after any such request, to the Company at its principal executive office or at
the place of payment most recently designated by the Company pursuant to Section 14.1. The Company
will make such payments in immediately available funds, no later than 1:00 p.m. New York, New York
time on the date due. If for any reason whatsoever the Company does not make any such payment by
such 1:00 p.m. transmittal time, such payment shall be deemed to have been made on the next
following Business Day and such payment shall bear interest at the Default Rate set forth in the
Note. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such
Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and
the last date to which interest has

-35-

 

been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes
pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2 to any
Institutional Investor that is the direct or indirect transferee of any Note purchased by a
Purchaser under this Agreement and that has made the same agreement relating to such Note as the
Purchasers have made in this Section 14.2.

Section 15. Expenses, Etc.

     Section 15.1. Transaction Expenses. Whether or not the transactions contemplated hereby are
consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of a
special counsel and, if reasonably required by the Required Holders, local or other counsel)
incurred by the Purchasers and each other holder of a Note in connection with such transactions and
in connection with any amendments, waivers or consents under or in respect of this Agreement, any
Subsidiary Guaranty or the Notes (whether or not such amendment, waiver or consent becomes
effective), including, without limitation: (a) the costs and expenses incurred in enforcing or
defending (or determining whether or how to enforce or defend) any rights under this Agreement, any
Subsidiary Guaranty or the Notes or in responding to any subpoena or other legal process or
informal investigative demand issued in connection with this Agreement, any Subsidiary Guaranty or
the Notes, or by reason of being a holder of any Note, and (b) the costs and expenses, including
financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company
or any Subsidiary or in connection with any work-out or restructuring of the transactions
contemplated hereby and by the Notes. The Company will pay, and will save each Purchaser and each
other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any,
of brokers and finders (other than those, if any, retained by a Purchaser or other holder in
connection with its purchase of the Notes).

     Section 15.2. Survival. The obligations of the Company under this Section 15 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this
Agreement or the Notes, and the termination of this Agreement.

Section 16. Survival of Representations and Warranties; Entire Agreement.

     All representations and warranties contained herein shall survive the execution and delivery
of this Agreement, any Subsidiary Guaranty and the Notes, the purchase or transfer by any Purchaser
of any Note or portion thereof or interest therein and the payment of any Note, and may be relied
upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on
behalf of such Purchaser or any other holder of a Note. All statements contained in any
certificate or other instrument delivered by or on behalf of the Company or a Subsidiary Guarantor
pursuant to this Agreement or a Subsidiary Guaranty shall be deemed representations and warranties
of the Company or such Subsidiary Guarantor under this Agreement or such Subsidiary Guaranty.
Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and
understanding between each Purchaser and the Company and supersede all prior agreements and
understandings relating to the subject matter hereof.

-36-

 

Section 17. Amendment and Waiver.

     Section 17.1. Requirements. This Agreement, each Subsidiary Guaranty and the Notes may be
amended, and the observance of any term hereof or of the Notes may be waived (either retroactively
or prospectively), with (and only with) the written consent of the Company and the Required
Holders, except that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5,
6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser
unless consented to by such Purchaser in writing, and (b) no such amendment or waiver may, without
the written consent of the holder of each Note at the time outstanding affected thereby, (i)
subject to the provisions of Section 12 relating to acceleration or rescission, change the amount
or time of any prepayment or payment of principal of, or reduce the rate or change the time of
payment or method of computation of interest or of the Make-Whole Amount on the Notes, (ii) change
the percentage of the principal amount of the Notes the holders of which are required to consent to
any such amendment or waiver, or (iii) amend any of Section 8, 11(a), 11(b), 12, 17 or 20.

     Section 17.2. Solicitation of Holders of Notes.

     (a) Solicitation. The Company will provide each holder of the Notes (irrespective of the
amount or series of Notes then owned by it) with sufficient information, sufficiently far in
advance of the date a decision is required, to enable such holder to make an informed and
considered decision with respect to any proposed amendment, waiver or consent in respect of any of
the provisions hereof or of a Subsidiary Guaranty or of the Notes. The Company will deliver
executed or true and correct copies of each amendment, waiver or consent effected pursuant to the
provisions of this Section 17 to each holder of outstanding Notes promptly following the date on
which it is executed and delivered by, or receives the consent or approval of, the requisite
holders of Notes.

     (b) Payment. The Company will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any
security or provide other credit support, to any holder of Notes as consideration for or as an
inducement to the entering into by any holder of Notes of any waiver or amendment of any of the
terms and provisions hereof or of a Subsidiary Guaranty unless such remuneration is concurrently
paid, or security is concurrently granted or other credit support concurrently provided, on the
same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to
such waiver or amendment.

     (c) Consent in Contemplation of Transfer. Any consent made pursuant to this Section 17.2 by
the holder of any Note that has transferred or has agreed to transfer such Note to the Company, any
Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written
consent as a condition to such transfer shall be void and of no force or effect except solely as to
such holder, and any amendments effected or waivers granted or to be effected or granted that would
not have been or would not be so effected or granted but for such consent (and the consents of all
other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring
holder.

-37-

 

     Section 17.3. Binding Effect, Etc. Any amendment or waiver consented to as provided in this
Section 17 applies equally to all holders of Notes and is binding upon them and upon each future
holder of any Note and upon the Company without regard to whether such Note has been marked to
indicate such amendment or waiver. No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or
impair any right consequent thereon. No course of dealing between the Company and the holder of
any Note nor any delay in exercising any rights hereunder, under a Subsidiary Guaranty or under any
Note shall operate as a waiver of any rights of any holder of such Note. As used herein, the term
“this Agreement” and references thereto shall mean this Agreement as it may from time to time be
amended or supplemented.

     Section 17.4. Notes Held by Company, Etc. Solely for the purpose of determining whether the
holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this Agreement, any
Subsidiary Guaranty or the Notes, or have directed the taking of any action provided herein or in
the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate
principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or
any of its Affiliates shall be deemed not to be outstanding.

Section 18. Notices.

     All notices and communications provided for hereunder shall be in writing and sent (a) by
telefacsimile if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), or (b) by registered or certified mail with return
receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with
charges prepaid). Any such notice must be sent:

          (i) if to any Purchaser or its nominee, to such Purchaser or nominee at the address
specified for such communications in Schedule A or at such other address as such Purchaser
or nominee shall have specified to the Company in writing,

          (ii) if to any other holder of any Note, to such holder at such address as such other
holder shall have specified to the Company in writing, or

          (iii) if to the Company, to the Company at its address set forth at the beginning
hereof to the attention of Treasurer, or at such other address as the Company shall have
specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

Section 19. Reproduction of Documents.

     This Agreement, each Subsidiary Guaranty and all documents relating thereto, including,
without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b)
documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial
statements, certificates and other information previously or hereafter furnished to

-38-

 

any Purchaser,
may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital or other
similar process and such Purchaser may destroy any original document so reproduced. The Company
agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall
be admissible in evidence as the original itself in any judicial or administrative proceeding
(whether or not the original is in existence and whether or not such reproduction was made by such
Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction
of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit
the Company or any other holder of Notes from contesting any such reproduction to the same extent
that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of
any such reproduction.

Section 20. Confidential Information.

     For the purposes of this Section 20, “Confidential Information” means information delivered to
any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions
contemplated by or otherwise pursuant to this Agreement or any Subsidiary Guaranty that is
proprietary in nature and that was clearly marked or labeled or otherwise adequately identified in
writing when received by such Purchaser as being confidential information of the Company or such
Subsidiary; provided that such term does not include information that (a) was publicly known or
otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes
publicly known through no act or omission by such Purchaser or any Person acting on such
Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by
the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser
under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the
confidentiality of such Confidential Information in accordance with procedures adopted by such
Purchaser in good faith to protect confidential information of third parties delivered to such
Purchaser; provided that such Purchaser may deliver or disclose Confidential Information to (i) its
directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such
disclosure reasonably relates to the administration of the investment represented by its Notes),
(ii) its financial advisors and other professional advisors who agree to hold confidential the
Confidential Information substantially in accordance with the terms of this Section 20, (iii) any
other holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such
Note or any part thereof or any participation therein (if such Person has agreed in writing prior
to its receipt of such Confidential Information to be bound by the provisions of this Section 20),
(v) any Person from which it offers to purchase any security of the Company (if such Person has
agreed in writing prior to its receipt of such Confidential Information to be bound by the
provisions of this Section 20), (vi) any federal or state regulatory authority having jurisdiction
over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any
nationally recognized rating agency that requires access to information about such Purchaser’s
investment portfolio or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect
compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to
any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser
is a party or (z) if an Event of Default has occurred and is continuing, to the extent such
Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in
the enforcement or for the protection of the rights and remedies under such

-39-

 

Purchaser’s Notes and
this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed
to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to
this Agreement. On reasonable request by the Company in connection with the delivery to any holder
of a Note of information required to be delivered to such holder under this Agreement or requested
by such holder (other than a holder that is a party to this Agreement or its nominee), such holder
will enter into an agreement with the Company embodying the provisions of this Section 20.

Section 21. Substitution of Purchaser.

     Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser
of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which
notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s
agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the
accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such
notice, any reference to such Purchaser in this Agreement (other than in this Section 21) shall be
deemed to refer to such Affiliate in lieu of such original Purchaser. In the event that such
Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to
such original Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company
of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement
(other than in this Section 21) shall no longer be deemed to refer to such Affiliate, but shall
refer to such original Purchaser, and such original Purchaser shall again have all the rights of an
original holder of the Notes under this Agreement.

Section 22. Miscellaneous.

     Section 22.1. Successors and Assigns. All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent holder of a Note)
whether so expressed or not.

     Section 22.2. Payments Due on Non-Business Days. Anything in this Agreement or the Notes to
the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice
of any optional prepayment specify a Business Day as the date fixed for such prepayment), any
payment of principal of or Make-Whole Amount, or interest on any Note that is due on a date other
than a Business Day shall be made on the next succeeding Business Day without including the
additional days elapsed in the computation of the interest payable on such next succeeding Business
Day; provided that if the maturity date of any Note is a date other than a Business Day, the
payment otherwise due on such maturity date shall be made on the next
succeeding Business Day and shall include the additional days elapsed in the computation of
interest payable on such next succeeding Business Day.

     Section 22.3. Accounting Terms. (a) All accounting terms used herein which are not expressly
defined in this Agreement have the meanings respectively given to them in accordance with GAAP.
Except as otherwise specifically provided herein, (i) all computations made pursuant to this
Agreement shall be made in accordance with GAAP and (ii) all financial

-40-

 

statements shall be prepared in accordance with GAAP; provided that in the event of any Accounting Practices Change, then the
Company’s compliance with the covenants set forth in Sections 10.2(a) and 10.3 shall be determined
on the basis of generally accepted accounting principles in effect immediately before giving effect
to the Accounting Practices Change, until such covenants are amended in a manner satisfactory to
the Company and the Required Holders in accordance with clause (b) of this Section 22.3 hereof.
For purposes of determining compliance with the financial covenants contained in this Agreement,
any election by the Company to measure an item of Debt using an amount other than par (as permitted
by FASB ASC 825-10 or any similar accounting standard) shall be disregarded and such determination
shall be made as if such election had not been made.

     (b) The Company shall notify the holders of the Notes of any Accounting Practices Change
promptly upon becoming aware of the same. Promptly following such notice, the Company and the
holders of the Notes shall negotiate in good faith in order to effect any adjustments to Sections
10.2(a) and 10.3 necessary to reflect the effects of such Accounting Practices Change.

     Section 22.4. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 22.5. Construction, Etc. Each covenant contained herein shall be construed (absent
express provision to the contrary) as being independent of each other covenant contained herein, so
that compliance with any one covenant shall not (absent such an express contrary provision) be
deemed to excuse compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person.

     For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be
deemed to be a part hereof.

     Section 22.6. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original but all of which together shall constitute one instrument. Each
counterpart may consist of a number of copies hereof, each signed by less than all, but together
signed by all, of the parties hereto.

     Section 22.7. Governing Law. This Agreement shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the law of the State of New York,
excluding choice-of-law principles of the law of such State that would permit the application of
the laws of a jurisdiction other than such State.

     Section 22.8. Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably
submits to the non-exclusive jurisdiction of any New York State or federal court

-41-

 

sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or
relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the
Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise,
any claim that it is not subject to the jurisdiction of any such court, any objection that it may
now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in
any such court and any claim that any such suit, action or proceeding brought in any such court has
been brought in an inconvenient forum.

     (b) The Company consents to process being served by or on behalf of any holder of Notes in any
suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof
by registered or certified mail (or any substantially similar form of mail), postage prepaid,
return receipt requested, to it at its address specified in Section 18 or at such other address of
which such holder shall then have been notified pursuant to said Section. The Company agrees that
such service upon receipt (i) shall be deemed in every respect effective service of process upon it
in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by
applicable law, be taken and held to be valid personal service upon and personal delivery to it.
Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt
furnished by the United States Postal Service or any reputable commercial delivery service.

     (c) Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve
process in any manner permitted by law, or limit any right that the holders of any of the Notes may
have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to
enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

     (d) The parties hereto hereby waive trial by jury in any action brought on or with respect
to this Agreement, the Notes or any other document executed in connection herewith or
therewith.

* * * * *

-42-

 

     If you are in agreement with the foregoing, please sign the form of agreement on a counterpart
of this Agreement and return it to the Company, whereupon this Agreement shall become a binding
agreement between you and the Company.

	 	 	 	 	 
	 	

Very truly yours,

Sensient Technologies Corporation

 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-43-

 

This Agreement is hereby accepted and agreed to

as of the date thereof.

	 	 	 	 	 
	 	

New York Life Insurance Company

 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	New York Life Insurance and Annuity 

     Corporation 	 
	 
	 	By New York Life Investment Management LLC,

     
Its Investment Manager

 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	New York Life Insurance and Annuity

     Corporation Institutionally Owned Life

     Insurance Separate Account (BOLI 30C) 

By New York Life Investment Management LLC,

       its Investment Manager

 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-44-

 

	 	 	 	 	 

This Agreement is hereby accepted and agreed to

as of the date thereof.

	 	 	 	 	 
	 	
Metropolitan Life Insurance Company

MetLife Investors Insurance Company

by Metropolitan Life Insurance Company, its

     Investment Manager

First MetLife Investors Insurance

     Company

by Metropolitan Life Insurance Company, its

     Investment Manager

 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-45-

 

Information Relating to Purchasers

	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount and 	 
	Name and Address of Purchaser	 	Series of Notes to be Purchased	 
	New York Life Insurance Company
	 	Series A	 	$	4,500,000	 
	c/o New York Life Investment Management LLC
	 	Series B	 	$	6,000,000	 
	51 Madison Avenue
	 	Series C	 	$	6,000,000	 
	2nd Floor, Room 208
	 	 	 	 	 	 	 	 
	New York, New York 10010-1603
	 	 	 	 	 	 	 	 
	Attention: Fixed Income Investors Group,
	 	 	 	 	 	 	 	 
	Private Finance, 2nd Floor
	 	 	 	 	 	 	 	 
	Fax #: (212) 447-4122
	 	 	 	 	 	 	 	 

Payments

All payments by wire or intrabank transfer of immediately available funds to:

JPMorgan Chase Bank

New York, New York 10019

ABA No. 021-000-021

Credit: New York Life Insurance Company

General Account No. 008-9-00687

with sufficient information (including issuer, PPN number, interest rate, maturity and
whether payment is of principal, premium, or interest) to identify the source and
application of such funds.

Notices

All notices with respect to payments and written confirmation of each such payment and any audit
confirmations, to be addressed:

New York Life Insurance Company

c/o New York Life Investment Management LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York 10010-1603

Attention: Securities Operation, Private Group, 2nd Floor

Fax #: (908) 840-3385

with a copy sent electronically to:

FIIGLibrary@nylim.com and TraditionalPVtOps@nylim.com

Schedule A

(to Note Purchase Agreement)

 

 

All other notices and communications to be addressed as first provided above, with a copy sent
electronically to:

FIIGLibrary@nylim.com and TraditionalPVtOps@nylim.com

and with a copy of any notices regarding defaults or Events of Default under the operative
documents to:

Office of General Counsel

Investment Section, Room 1016

Fax #: (212) 576-8340

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 13-5582869

Notes should be delivered to:

New York Life Investment Management LLC

51 Madison Avenue

New York, NY 10010

Attention: Rebecca Strutton, Esq.

A-2

 

	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount and 	 
	Name and Address of Purchaser	 	Series of Notes to be Purchased	 
	New York Life Insurance and Annuity
	 	Series A	 	$	8,000,000	 
	 Corporation
	 	Series B	 	$	5,500,000	 
	c/o New York Life Investment Management LLC
	 	Series C	 	$	5,500,000	 
	51 Madison Avenue
	 	 	 	 	 	 	 	 
	2nd Floor, Room 208
	 	 	 	 	 	 	 	 
	New York, New York 10010-1603
	 	 	 	 	 	 	 	 
	Attention: Fixed Income Investors Group,
	 	 	 	 	 	 	 	 
	Private Finance, 2nd Floor
	 	 	 	 	 	 	 	 
	Fax #: (212) 447-4122
	 	 	 	 	 	 	 	 

Payments

All payments by wire or intrabank transfer of immediately available funds to:

JPMorgan Chase Bank

New York, New York

ABA No. 021-000-021

Credit: New York Life Insurance and Annuity Corporation

General Account No. 323-8-47382

with sufficient information (including issuer, PPN number, interest rate, maturity and
whether payment is of principal, premium, or interest) to identify the source and
application of such funds.

Notices

All notices with respect to payments and written confirmation of each such payment and any audit
confirmations, to be addressed:

New York Life Insurance and Annuity Corporation

c/o New York Life Investment Management LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York 10010-1603

Attention: Securities Operation, Private Group, 2nd Floor

Fax #: (908) 840-3385

with a copy sent electronically to:

FIIGLibrary@nylim.com and TraditionalPVtOps@nylim.com

All other notices and communications to be addressed as first provided above, with a copy sent
electronically to:

FIIGLibrary@nylim.com and TraditionalPVtOps@nylim.com

and with a copy of any notices regarding defaults or Events of Default under the operative
documents to:

A-3

 

Office of General Counsel

Investment Section, Room 1016

Fax #: (212) 576-8340

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 13-3044743

Notes should be delivered to:

New York Life Investment Management LLC

51 Madison Avenue

New York, NY 10010

Attention: Rebecca Strutton, Esq.

A-4

 

	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount and 	 
	Name and Address of Purchaser	 	Series of Notes to be Purchased	 
	New York Life Insurance and Annuity
	 	Series B	 	$	1,000,000	 
	 Corporation Institutionally
	 	Series C	 	$	1,000,000	 
	Owned Life Insurance Separate Account
	 	 	 	 	 	 	 	 
	(BOLI 30C)
	 	 	 	 	 	 	 	 
	c/o New York Life Investment Management LLC
	 	 	 	 	 	 	 	 
	51 Madison Avenue
	 	 	 	 	 	 	 	 
	2nd Floor, Room 208
	 	 	 	 	 	 	 	 
	New York, New York 10010-1603
	 	 	 	 	 	 	 	 
	Attention: Fixed Income Investors Group,
	 	 	 	 	 	 	 	 
	Private Finance, 2nd Floor
	 	 	 	 	 	 	 	 
	Fax #: (212) 447-4122
	 	 	 	 	 	 	 	 

Payments

All payments by wire or intrabank transfer of immediately available funds to:

JPMorgan Chase Bank

New York, New York

ABA No. 021-000-021

Credit: NYLIAC SEPARATE BOLI 30C

General Account No. 304-6-23970

with sufficient information (including issuer, PPN number, interest rate, maturity and
whether payment is of principal, premium, or interest) to identify the source and
application of such funds.

Notices

All notices with respect to payments and written confirmation of each such payment and any audit
confirmations, to be addressed:

New York Life Insurance and Annuity Corporation

Institutionally Owned Life Insurance Separate Account

c/o New York Life Investment Management LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York 10010-1603

Attention: Securities Operation, Private Group, 2nd Floor

Fax #: (908) 840-3385

with a copy sent electronically to:

FIIGLibrary@nylim.com and TraditionalPVtOps@nylim.com

A-5

 

All other notices and communications to be addressed as first provided above, with a copy sent
electronically to:

FIIGLibrary@nylim.com and TraditionalPVtOps@nylim.com

and with a copy of any notices regarding defaults or Events of Default under the operative documents to:

Office of General Counsel

Investment Section, Room 1016

Fax #: (212) 576-8340

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 13-3044743

Notes should be delivered to:

New York Life Investment Management LLC

51 Madison Avenue

New York, NY 10010

Attention: Rebecca Strutton, Esq.

A-6

 

	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount and 	 
	Name and Address of Purchaser	 	Series of Notes to be Purchased	 
	Metropolitan Life Insurance Company
	 	Series A	 	$	12,500,000	 
	1095 Avenue of the Americas
	 	Series B	 	$	12,500,000	 
	New York, New York 10036
	 	 	 	 	 	 	 	 

Payments

All scheduled payments of principal and interest by wire transfer of immediately available funds
to:

	 	 	 	 

	 	Bank Name:
	 	JPMorgan Chase Bank
	 	ABA Routing #:
	 	021-000-021
	 	Account No.:
	 	002-2-410591
	 	Account Name:
	 	Metropolitan Life Insurance Company
	 	Reference:
	 	Sensient Technologies Corp. 3.77% DUE 11/28/16
	 	 
	 	Sensient Technologies Corp. 4.14% DUE 11/28/17

with sufficient information to identify the source and application of such funds, including
issuer, PPN#, interest rate, maturity and whether payment is of principal, interest, make
whole amount or otherwise.

For all payments other than scheduled payments of principal and interest, the Company shall
seek instructions from the holder, and in the absence of instructions to the contrary, will
make such payments to the account and in the manner set forth above.

Notices

All notices and communications:

Metropolitan Life Insurance Company

Investments, Private Placements

P. O. Box 1902

10 Park Avenue

Morristown, New Jersey 07962-1902

Attention: Director

Facsimile: (973) 355-4250

A-7

 

With a copy OTHER than with respect to deliveries of financial statements to:

Metropolitan Life Insurance Company

P. O. Box 1902

10 Park Avenue

Morristown, New Jersey 07962-1902

Attention: Chief Counsel — Securities Investments (PRIV)

Email: sec_invest_law@metlife.com

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 13-5581829

Notes should be delivered to:

Metropolitan Life Insurance Company

Securities Investments, Law Department

10 Park Avenue

Morristown, NJ 07962-1902

Attention: Thomas J. Pasuit, Esq.

A-8

 

	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount and 	 
	Name and Address of Purchaser	 	Series of Notes to be Purchased	 
	MetLife Investors Insurance Company
	 	Series C	 	$	9,500,000	 
	c/o Metropolitan Life Insurance Company
	 	 	 	 	 	 	 	 
	1095 Avenue of the Americas
	 	 	 	 	 	 	 	 
	New York, New York 10036
	 	 	 	 	 	 	 	 

Payments

All scheduled payments of principal and interest by wire transfer of immediately available funds
to:

	 	 	 	 

	 	Bank Name:
	 	JPMorgan Chase Bank
	 	ABA Routing #:
	 	021-000-021
	 	Account No.:
	 	323-8-90911
	 	Account Name:
	 	MetLife Investors Insurance Company
	 	Reference:
	 	Sensient Technologies Corp., 4.47% DUE 11/28/18

with sufficient information to identify the source and application of such funds, including
issuer, PPN#, interest rate, maturity and whether payment is of principal, interest, make
whole amount or otherwise.

For all payments other than scheduled payments of principal and interest, the Company shall
seek instructions from the holder, and in the absence of instructions to the contrary, will
make such payments to the account and in the manner set forth above.

Notices

All notices and communications:

MetLife Investors Insurance Company

c/o Metropolitan Life Insurance Company

Investments, Private Placements

P.O. Box 1902

10 Park Avenue

Morristown, New Jersey 07962-1902

Attention: Director

Facsimile (973) 355-4250

A-9

 

With a copy OTHER than with respect to deliveries of financial statements to:

MetLife Investors USA Insurance Company

c/o Metropolitan Life Insurance Company

P.O. Box 1902

10 Park Avenue

Morristown, New Jersey 07962-1902

Attention: Chief Counsel-Securities Investments (PRIV)

Email: sec_invest_law@metlife.com

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 43-1236042

Notes should be delivered to:

Metropolitan Life Insurance Company

Securities Investments, Law Department

10 Park Avenue

Morristown, NJ 07962-1902

Attention: Thomas J. Pasuit, Esq.

A-10

 

	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount and 	 
	Name and Address of Purchaser	 	Series of Notes to be Purchased	 
	First MetLife Investors Insurance Company
	 	Series C	 	$	3,000,000	 
	c/o Metropolitan Life Insurance Company
	 	 	 	 	 	 	 	 
	1095 Avenue of the Americas
	 	 	 	 	 	 	 	 
	New York, New York 10036
	 	 	 	 	 	 	 	 

Payments

All scheduled payments of principal and interest by wire transfer of immediately available funds
to:

	 	 	 	 

	 	Bank Name:
	 	JPMorgan Chase Bank
	 	ABA Routing #:
	 	021-000-021
	 	Account No.:
	 	323-8-90938
	 	Account Name:
	 	First MetLife Investors Insurance Company
	 	Reference:
	 	Sensient Technologies Corp., 4.47% DUE 11/28/18

with sufficient information to identify the source and application of such funds, including
issuer, PPN#, interest rate, maturity and whether payment is of principal, interest, make
whole amount or otherwise.

For all payments other than scheduled payments of principal and interest, the Company shall
seek instructions from the holder, and in the absence of instructions to the contrary, will
make such payments to the account and in the manner set forth above.

Notices

All notices and communications:

First MetLife Investors Insurance Company

c/o Metropolitan Life Insurance Company

Investments, Private Placements

P.O. Box 1902

10 Park Avenue

Morristown, New Jersey 07962-1902

Attention: Director

Facsimile (973) 355-4250

A-11

 

With a copy OTHER than with respect to deliveries of financial statements to:

First MetLife Investors Insurance Company

c/o Metropolitan Life Insurance Company

P.O. Box 1902

10 Park Avenue

Morristown, New Jersey 07962-1902

Attention: Chief Counsel-Securities Investments (PRIV)

Email: sec_invest_law@metlife.com

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 13-3690700

Notes should be delivered to:

Metropolitan Life Insurance Company

Securities Investments, Law Department

10 Park Avenue

Morristown, NJ 07962-1902

Attention: Thomas J. Pasuit, Esq.

A-12

 

Defined Terms

     As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:

     “2009 Notes” means those certain notes issued pursuant to the Note Purchase Agreement dated as
of November 19, 2009 among the Company and the purchasers named in Schedule A thereto.

     “Accountants’ Certificate” is defined in Section 7.1.

     “Accounting Practices Change” means any change in the Company’s accounting practices that is
permitted or required under the standards of the Financial Accounting Standards Board.

     “Acquiring Person” is defined in Section 10.5(c).

     “Affiliate” means, at any time, and with respect to any Person, any other Person that at such
time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is
under common Control with, such first Person, and with respect to the Company, shall include any
Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting
or equity interests of the Company or any Subsidiary or any corporation of which the Company and
its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of
any class of voting or equity interests. As used in this definition, “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or
otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a
reference to an Affiliate of the Company.

     “Affiliated Entity” means any of the Subsidiaries of the Company and any of their or the
Company’s respective Controlled Affiliates. As used in this definition, “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or
otherwise.

     “Anti-Money Laundering Laws” is defined in Section 5.16(b).

     “Applicable Percentage” means 0.50% (50 basis points).

     “Approved Jurisdiction” means the United States.

     “Bank Credit Agreement” means (a) collectively, that certain (i) $300,000,000 Revolving Credit
Facility Agreement dated June 15, 2007 among the Company, Wells Fargo Bank, National Association,
as agent, and the other lenders party thereto, and that certain (ii) $105,000,000 term credit
facility dated October 7, 2008 among the Company, Wells Fargo Bank, National Association, as agent,
and the other lenders party thereto, as either of which may

Schedule B

(to Note Purchase Agreement)

 

 

from time to time be amended, extended, renewed or replaced and (b) any other bank, credit or other
like commercial bank agreement between the Company and one or more commercial banks with the
largest commitment from such bank or banks to extend credit thereunder to the Company not being
less than U.S. $50,000,000.

     “Blocked Person” is defined in Section 5.16(a).

     “Business Day” means (a) for the purposes of Section 8.7 only, any day other than a Saturday,
a Sunday or a day on which commercial banks in New York City are required or authorized to be
closed, and (b) for the purposes of any other provision of this Agreement, any day other than a
Saturday, a Sunday or a day on which commercial banks in New York, New York or Milwaukee, Wisconsin
are required or authorized to be closed.

     “Capital Lease” means, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

     “Closing” is defined in Section 3.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time.

     “Company” means Sensient Technologies Corporation, a Wisconsin corporation, or any successor
that becomes such in the manner prescribed in Section 10.5.

     “Confidential Information” is defined in Section 20.

     “Consolidated Adjusted Net Worth” means, as of the date of any determination thereof the
aggregate amount of the capital stock accounts (net of treasury stock, at cost) (a) plus (or minus
in the case of a deficit) the surplus in retained earnings of the Company and its Subsidiaries as
determined in accordance with GAAP, and (b) minus all Investments of the Company and its
Subsidiaries other than Permitted Investments.

     “Consolidated Cash and Cash Equivalents” means, at any time;

     (a) cash in hand or on deposit with any acceptable bank;

     (b) certificates of deposit, maturing within one year after the relevant date of
calculation, issued by an acceptable bank;

     (c) any investment in marketable obligations issued or guaranteed by the government of
an Approved Jurisdiction or by an instrumentality or agency of the government of an Approved
Jurisdiction having an equivalent credit rating;

B-2

 

     (d) open market commercial paper:

     (i) for which a recognized trading market exists;

     (ii) issued in an Approved Jurisdiction;

     (iii) which matures within one year after the relevant date of calculation; and

     (iv) which has a credit rating of at least A-1 or P-1 (or the equivalent) by
any Rating Agency or, if no rating is available in respect of the commercial paper,
the issuer of which has, in respect of its long-term unsecured debt obligations, an
equivalent rating;

     (e) investments in money market funds which are:

     (i) liquidable within one month; and

     (ii) rated AAA or Aaa (or the equivalent) by any Rating Agency;

     (f) other short term instruments (other than open market commercial paper referred to
in paragraph (d) above) which:

     (i) mature within three months; and

     (ii) have a credit rating of at least A-1 or P-1 (or the equivalent) by any
Rating Agency; or

     (g) any other instrument, security or investment approved by the Required Holders;

in each case, to which any member of the Group is beneficially entitled at that time and which is
capable of being applied against Consolidated Total Debt. An “acceptable bank” for this purpose is
(a) a commercial bank or trust company which has, or which is a direct or indirect Subsidiary of a
Person which has, a rating of A or higher or A2 or higher or a comparable rating from a Rating
Agency for its long-term unsecured debt obligations, (b) with respect to assets of any foreign
Subsidiaries, any non-U.S. commercial bank or trust company that is a Subsidiary of a sovereign
entity which has a sovereign credit rating of A or higher or A2 or higher from a Rating Agency or
(c) has been approved by the Required Holders.

     “Consolidated EBITDA” for any period means the sum of (a) Consolidated Net Earnings during
such period plus (to the extent deducted in determining Consolidated Net Earnings) (b) all
provisions for any Federal, state, local or foreign income taxes made by the Company and its
Subsidiaries during such period, (c) all provisions for depreciation and amortization (other than
amortization of debt discount) made by the Company and its Subsidiaries during such period, and (d)
Consolidated Interest Expense during such period, but in any event excluding, to the

B-3

 

extent included in determining Consolidated Net Earnings, non-operating gains and losses
(including extraordinary or unusual gains and losses, gains and losses from the discontinuance of
operations, gains and losses arising from the sale of assets, other than in the ordinary course of
business, and other non-recurring gains and losses).

     “Consolidated Fixed Charges” for any period means on a consolidated basis the sum of (a) all
Rentals (other than Rentals on Capital Leases) payable during such period by the Company and its
Subsidiaries, and (b) all Interest Expense on all Debt of the Company and its Subsidiaries payable
during such period.

     “Consolidated Interest Expense” means all Interest Expense of the Company and its Subsidiaries
for any period after eliminating intercompany items.

     “Consolidated Net Earnings” for any period means the net earnings (or loss) of the Company and
its Subsidiaries determined on a consolidated basis in accordance with GAAP, after eliminating (a)
all offsetting debits and credits between the Company and its Subsidiaries, (b) any extraordinary
gains or losses, (c) any equity interest of the Company in the unremitted earnings of any Person
which is not a Subsidiary, (d) the net earnings of any Subsidiary to the extent the dividends or
distributions of such net earnings are not at the date of determination permitted by the terms of
its charter or any agreement, instrument, judgment, decree, order, statute, rule or other
regulation and (e) all other items required to be eliminated in the course of the preparation of
consolidated financial statements of the Company and its Subsidiaries in accordance with GAAP.

     “Consolidated Net Earnings Available for Fixed Charges” for any period means the sum of (a)
Consolidated Net Earnings during such period plus (to the extent deducted in determining
Consolidated Net Earnings), (b) all provisions for any Federal, state or other income taxes made by
the Company and its Subsidiaries during such period, and (c) Consolidated Fixed Charges during such
period.

     “Consolidated Priority Debt” means all Priority Debt of the Company and its Subsidiaries
determined on a consolidated basis eliminating inter-company items; provided that there shall be
excluded from any calculation of Consolidated Priority Debt, (a) Debt of a Subsidiary Guarantor
(other than Debt of a Subsidiary Guarantor secured by a Lien created or incurred within the
limitations of Section 10.4), for long as the Subsidiary Guaranty of such Subsidiary Guarantor
shall each remain in full force and effect and (b) Debt of the Company or any Subsidiary secured by
Liens incurred pursuant to the second proviso clause of Section 10.4(h).

     “Consolidated Total Assets” means as at the date of any determination thereof, total assets of
the Company and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

     “Consolidated Total Debt” means all Debt of the Company and its Subsidiaries determined on a
consolidated basis eliminating inter-company items.

B-4

 

     “Consolidated Total Net Debt” means at any time Consolidated Total Debt less Consolidated Cash
and Cash Equivalents.

     “Debt” with respect to any Person means, at any time, without duplication,

     (a) its liabilities for borrowed money;

     (b) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable arising in the ordinary course of business but including all
liabilities created or arising under any conditional sale or other title retention agreement
with respect to any such property);

     (c) (i) all liabilities appearing on its balance sheet in accordance with GAAP in
respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet
in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were
accounted for as Capital Leases;

     (d) all liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable for such
liabilities);

     (e) all its liabilities in respect of letters of credit or instruments serving a
similar function issued or accepted for its account by banks and other financial
institutions (whether or not representing obligations for borrowed money);

     (f) the aggregate Swap Termination Value of all Swap Contracts of such Person; and

     (g) any Guaranty of such Person with respect to liabilities of a type described in any
of clauses (a) through (f) hereof.

Debt of any Person shall include all obligations of such Person of the character described in
clauses (a) through (g) to the extent such Person remains legally liable in respect thereof,
notwithstanding that any such obligation is deemed to be extinguished under GAAP.

     “Default” means an event or condition the occurrence or existence of which would, with the
lapse of time or the giving of notice or both, become an Event of Default.

     “Default Rate” means the greater of (a)(i) 2% per annum above the rate of interest stated in
clause (a) of the first paragraph of the Notes or (ii) 2% over the rate of interest publicly
announced by Citibank, N.A. in New York, New York as its “base” or “prime” rate.

     “Disclosure Documents” is defined in Section 5.3.

     “Dollars” or “$” means lawful money of the United States of America.

B-5

 

     “Electronic Delivery” is defined in Section 7.1(a).

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including but
not limited to those related to Hazardous Materials.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as
a single employer together with the Company under section 414 of the Code.

     “Event of Default” is defined in Section 11.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and
the rules and regulations promulgated thereunder from time to time in effect.

     “Execution Date” is defined in Section 3.

     “Foreign Subsidiary” is defined in clause (j) of the definition of “Permitted Investments”.

     “Form 10-K” is defined in Section 7.1(b).

     “Form 10-Q” is defined in Section 7.1(a).

     “GAAP” means generally accepted accounting principles as in effect from time to time in the
United States of America.

     “Governmental Authority” means

     (a) the government of

     (i) the United States of America or any State or other political subdivision
thereof, or

     (ii) any other jurisdiction in which the Company or any Subsidiary conducts all
or any part of its business, or which asserts jurisdiction over any properties of
the Company or any Subsidiary, or

     (b) any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.

B-6

 

     “Guaranty” means, with respect to any Person, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person
in any manner, whether directly or indirectly, including (without limitation) obligations incurred
through an agreement, contingent or otherwise, by such Person:

     (a) to purchase such Debt or obligation or any property constituting security therefor;

     (b) to advance or supply funds (i) for the purchase or payment of such Debt or
obligation, or (ii) to maintain any working capital or other balance sheet condition or any
income statement condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such Debt or obligation;

     (c) to lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such Debt or obligation of the ability of any other Person to make
payment of the Debt or obligation; or

     (d) otherwise to assure the owner of such Debt or obligation against loss in respect
thereof.

In any computation of the Debt or other liabilities of the obligor under any Guaranty, the Debt or
other obligations that are the subject of such Guaranty shall be assumed to be direct obligations
of such obligor.

     “Hazardous Material” means any and all pollutants, toxic or hazardous wastes or any other
substances, including all substances listed in or regulated in any Environmental law that might
pose a hazard to health and safety, the removal of which may be required or the generation,
manufacture, refining, production, processing, treatment, storage, handling, transportation,
transfer, use, disposal, release, discharge, spillage, seepage, or filtration of which is or shall
be restricted, regulated, prohibited or penalized by any applicable law including, but not limited
to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum
products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

     “holder” means, with respect to any Note, the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 13.1.

     “Institutional Investor” means (a) any purchaser of a Note, (b) any holder of a Note holding
(together with one or more of its affiliates) more than 5% of the aggregate principal amount of the
Notes then outstanding, (c) any bank, trust company, savings and loan association or other
financial institution, any pension plan, any investment company, any insurance company, any broker
or dealer, or any other similar financial institution or entity, regardless of legal form, and (d)
any Related Fund of any holder of any Note.

B-7

 

     “Interest Expense” of the Company and its Subsidiaries for any period means all interest
(including the interest component on Rentals on Capital Leases) and all amortization of debt
discount and expense on any particular Debt (including, without limitation, payment-in-kind, zero
coupon and other like Securities) for which such calculations are being made. Computations of
Interest Expense on a pro forma basis for Debt having a variable interest rate shall be calculated
at the rate in effect on the date of any determination.

     “Investments” means all investments, in cash or by delivery of property, made directly or
indirectly in any property or assets or in any Person, whether by acquisition of shares of capital
stock, Debt or other obligations or Securities or by loan, advance, capital contribution or
otherwise.

     “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title retention agreement or
Capital Lease, upon or with respect to any property or asset of such Person (including in the case
of stock, stockholder agreements, voting trust agreements and all similar arrangements).

     “Make-Whole Amount” is defined in Section 8.7.

     “Material” means material in relation to the business, operations, affairs, financial
condition, assets or properties of the Company and its Subsidiaries taken as a whole.

     “Material Adverse Effect” means a material adverse effect on (a) the business, operations,
affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a
whole, or (b) the ability of the Company to perform its obligations under this Agreement and the
Notes, or (c) the validity or enforceability of this Agreement or the Notes.

     “Material Subsidiary” means any Subsidiary of the Company accounting for (a) at least 10% of
the Consolidated Net Earnings (determined in accordance with GAAP) of the Company during either one
of the two fiscal years immediately preceding the date of any determination hereof or (b) at least
10% of the Consolidated Total Assets of the Company during either one of the two fiscal years
immediately preceding the date of any determination hereof; provided, that each Subsidiary
Guarantor shall be deemed a Material Subsidiary.

     “Moody’s Investors Service” means Moody’s Investors Service, Inc. and any successor thereto.

     “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
section 4001(a)(3) of ERISA).

     “NAIC” means the National Association of Insurance Commissioners or any successor thereto.

     “Notes” is defined in Section 1.

B-8

 

     “OFAC” is defined in Section 5.16(a).

     “OFAC Listed Person” is defined in Section 5.16(a).

     “OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for
administering and enforcing. A list of OFAC Sanctions Programs may be found at
http://www.ustreas.gov/offices/enforcement/ofac/programs/.

     “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other
officer of the Company whose responsibilities extend to the subject matter of such certificate.

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any
successor thereto.

     “Permitted Investments” means:

     (a) Investments by the Company and its Subsidiaries in and to Subsidiaries, including
any Investment in a Person which, after giving effect to such Investment, will become a
Subsidiary;

     (b) Investments in property or assets to be used in the ordinary course of the business
of the Company and its Subsidiaries as described in Section 10.8 of this Agreement;

     (c) Investments of the Company existing as of the date of the Closing and described on
Schedule 6 hereto;

     (d) Investments in commercial paper of corporations organized under the laws of the
United States or any state thereof maturing in 270 days or less from the date of issuance
which, at the time of acquisition by the Company or any Subsidiary, is accorded a rating of
“A-1” by Standard & Poor’s Ratings Group or “P-1” by Moody’s Investors Service;

     (e) Investments in direct obligations of the United States of America or any agency or
instrumentality of the United States of America, the payment or guarantee of which
constitutes a full faith and credit obligation of the United States of America, in either
case, maturing within twelve months from the date of acquisition thereof;

     (f) Investments in certificates of deposit and time deposits maturing within one year
from the date of issuance thereof, either (1) issued by a bank or trust company organized
under the laws of the United States or any State thereof, Canada or any Province thereof, or
any other Permitted Jurisdiction, having in each such case capital, surplus and undivided
profits aggregating at least $100,000,000 (or the equivalent under local currency); provided
that at the time of acquisition thereof by the Company or a Subsidiary, the senior unsecured
long-term debt of such bank or trust company or of the holding company of such bank or trust
company is rated “A1” or better by Standard &

B-9

 

Poor’s Ratings Group, or “P1” or better by Moody’s Investors Service, or (2) issued by any
bank or trust company organized under the laws of the United States or any state thereof to
the extent that such Investments are fully insured by the Federal Depository Insurance
Corporation;

     (g) Investments in repurchase agreements with respect to any Security described in
clause (e) of this definition entered into with a depository institution or trust company
acting as principal described in clause (f) of this definition if such repurchase agreements
are by their terms to be performed by the repurchase obligor and such repurchase agreements
are deposited with a bank or trust company of the type described in clause (f) of this
definition;

     (h) Investments in (1) variable rate demand notes of any state of the United States or
any municipality organized under the laws of any state of the United States or any political
subdivision thereof which, at the time of acquisition by the Company, are accorded either of
the two highest ratings by Standard & Poor’s Ratings Group or Moody’s Investors Service,
Inc.; provided that in each such case, such notes permit the Company to require the issuer
thereof to repurchase such notes within not more than twelve (12) months from the date of
acquisition thereof by the Company, and (2) notes of any state of the United States or any
municipality thereof organized under the laws of any state of the United States or any
political subdivision thereof which are provided unconditional credit support by, and are
unconditionably putable within a period not to exceed one year from the date of acquisition
thereof by the Company to financial institutions rated “A” or better by Standard & Poor’s
Ratings Group or Moody’s Investors Service;

     (i) Investments in (1) preferred stocks which, at the date of acquisition by the
Company or any Subsidiary, are accorded one of the three highest ratings by Standard &
Poor’s Ratings Group or Moody’s Investors Services, Inc. or (2) adjustable rate preferred
stock funds rated “A-” or better by Standard & Poor’s Ratings Group or “A-3” or better by
Moody’s Investors Service; and

     (j) Investments by Subsidiaries of the Company organized under any jurisdiction other
than any state of the United States or the District of Columbia (in each such case a
“Foreign Subsidiary”) in direct obligations of the country in which such Foreign Subsidiary
is organized, in each such case maturing within twelve (12) months from the date of
acquisition thereof by such Foreign Subsidiary.

     “Permitted Jurisdiction” means any member state of the European Union (other than Greece) as
of April 30, 2004.

     “Person” means an individual, partnership, corporation, limited liability company,
association, trust, unincorporated organization, business entity or Governmental Authority.

     “Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title
I of ERISA that is or, within the preceding five years, has been established or

B-10

 

maintained, or to which contributions are or, within the preceding five years, have been made
or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company
or any ERISA Affiliate may have any liability.

     “Priority Debt” means (a) any Debt of the Company secured by a Lien created or incurred within
the limitations of Section 10.4(h) and (b) any Debt of the Company’s Subsidiaries (other than Debt
of a Subsidiary owing to another Wholly-owned Subsidiary).

     “property” or “properties” means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

     “Proposed Prepayment Date” is defined in Section 8.3(c).

     “Purchaser” is defined in the first paragraph of this Agreement.

     “QPAM Exemption” means Prohibited Transaction Class Exemption 84-14 issued by the United
States Department of Labor.

     “Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer”
within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

     “Rating Agency” means Standard & Poor’s Ratings Group or Moody’s Investors Service or any of
their respective subsidiaries.

     “Related Fund” means, with respect to any holder of any Note, any fund or entity that (a)
invests in Securities or bank loans, and (b) is advised or managed by such holder, the same
investment advisor as such holder or by an affiliate of such holder or such investment advisor.

     “Rentals” means and includes as of the date of any determination thereof all fixed payments
(including as such all payments which the lessee is obligated to make to the lessor on termination
of the lease or surrender of the property) payable by the Company or a Subsidiary, as lessee or
sublessee under a lease of real or personal property, but shall be exclusive of any amounts
required to be paid by the Company or a Subsidiary (whether or not designated as rents or
additional rents) on account of maintenance, repairs, insurance, taxes and similar charges. Fixed
rents under any so-called “percentage leases” shall be computed solely on the basis of the minimum
rents, if any, required to be paid by the lessee regardless of sales volume or gross revenues.

     “Required Holders” means, at any time, the holders of at least 51% in principal amount of all
of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates).

     “Responsible Officer” means any Senior Financial Officer and any other officer of the Company
with responsibility for the administration of the relevant portion of this Agreement.

B-11

 

     “SEC” shall mean the Securities and Exchange Commission of the United States, or any successor
thereto.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time in effect.

     “Senior Debt” means all Debt of the Company which is not expressed to be subordinate or junior
in rank to any other Debt of the Company.

     “Senior Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Company.

     “Series A Notes” is defined in Section 1.

     “Series B Notes” is defined in Section 1.

     “Series B Notes” is defined in Section 1.

     “Standard & Poor’s Ratings Group” means Standard & Poor’s Ratings Group, a division of The
McGraw-Hill Companies, Inc. and any successor thereto.

     “Subsidiary” means, as to any Person, any other Person in which such first Person or one or
more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient
equity or voting interests to enable it or them (as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing similar functions) of
such second Person, and any partnership or joint venture if more than a 50% interest in the profits
or capital thereof is owned by such Person or one or more of its Subsidiaries or such first Person
and one or more of its Subsidiaries (unless such partnership can and does ordinarily take major
business actions without the prior approval of such Person or one or more of its Subsidiaries).
Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a
Subsidiary of the Company.

     “Subsidiary Guarantor” is defined in Section 2.2.

     “Subsidiary Guaranty” is defined in Section 2.2.

     “Surviving Person” is defined in Section 10.5(b).

     “SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.

     “Swap Contract” means (a) any and all interest rate swap transactions, basis swap
transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index swaps or options,
bond or bond price or bond index swaps or options or forward foreign exchange transactions, cap
transactions, floor transactions, currency options, spot contracts or any other

B-12

 

similar transactions or any of the foregoing (including, but without limitation, any options
to enter into any of the foregoing), and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement.

     “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking
into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to-market
values(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts.

     “Synthetic Lease” means, at any time, any lease (including leases that may be terminated by
the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP
and (b) in respect of which the lessee retains or obtains ownership of the property so leased for
U.S. federal income tax purposes, other than any such lease under which such Person is the lessor.

     “USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act)
Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder
from time to time in effect.

     “Wholly-owned Subsidiary” means, at any time, any Subsidiary one hundred percent (100%) of all
of the equity interests (except directors’ qualifying shares) and voting interests of which are
owned by any one or more of the Company and the Company’s other Wholly-owned Subsidiaries at such
time.

B-13

 

Disclosure Materials

None.

Schedule 5.3

(to Note Purchase Agreement)

 

 

Subsidiaries of the Company and

Ownership of Subsidiary Stock

Sensient Technologies Corporation

	 	 	 
	Name	 	Incorporation
	Domestic
	 	 
	Pointing Color Inc.

	 	Delaware
	Sensient Colors LLC

	 	Delaware
	Sensient Dehydrated Flavors LLC

	 	Delaware
	Sensient Flavors International, Inc.

	 	Indiana
	Sensient Flavors LLC

	 	Delaware
	Sensient Food Colors LP

	 	Missouri
	Sensient Holding Company LLC

	 	Delaware
	Sensient Imaging Technologies Inc.

	 	California
	Sensient Technologies Holding Company LLC

	 	Delaware
	Sensient Wisconsin L.L.C.

	 	Wisconsin

Schedule 5.4

(to Note Purchase Agreement)

 

 

	 	 	 
	Name	 	Incorporation
	Foreign
	 	 
	Biolux Finance NV

	 	Belgium
	DC Flavours Limited

	 	United Kingdom
	LCW Polska Ltd (60% Owner)

	 	Poland
	Les Colorants Wackherr Do Brasil Ltda (50% Owner)

	 	Brazil
	Pointing Canada Limited

	 	Canada
	Pointing Chemicals Limited

	 	United Kingdom
	Pointing Holdings Limited

	 	United Kingdom
	Pointing International Ltd.

	 	United Kingdom
	Pointing Limited

	 	United Kingdom
	Promavil N.V.

	 	Belgium
	PT Sensient Technologies Indonesia

	 	Indonesia
	Sensient Colors Canada Limited

	 	Canada
	Sensient Colors S.A.

	 	Argentina
	Sensient Colors S.A. De C.V.

	 	Mexico
	Sensient Colors South Africa (Proprietary) Limited

	 	South Africa
	Sensient Colors UK Limited

	 	United Kingdom
	Sensient Cosmetic Technologies

	 	France
	Sensient Costa Rica S.r.l.

	 	Costa Rica
	Sensient Dehydrated Flavors B.V.

	 	Netherlands
	Sensient Dehydrated Flavors Canada, Inc.

	 	Canada
	Sensient Dehydrated Flavors Co. Ltd.

	 	China
	Sensient Dehydrated Flavors SAS

	 	France

5.4-2

 

	 	 	 
	Name	 	Incorporation
	Foreign
	 	 
	Sensient Essential Oils Germany GmbH

	 	Germany
	Sensient Finance (Alberta) Limited Partnership

	 	Canada
	Sensient Finance Ireland Limited

	 	Ireland
	Sensient Finance Luxembourg S.a.r.l.

	 	Luxembourg
	Sensient Flavors Austria GmbH

	 	Austria
	Sensient Flavors Belgium NV

	 	Belgium
	Sensient Flavors Biolux NV

	 	Belgium
	Sensient Flavors Canada, Inc.

	 	Canada
	Sensient Flavors Central America S.R.L.

	 	Costa Rica
	Sensient Flavors Finland OY

	 	Finland
	Sensient Flavors & Fragrances SAS

	 	France
	Sensient Flavors & Fragrances GmbH & Co KG

	 	Germany
	Sensient Flavors GmbH

	 	Germany
	Sensient Flavors Italy S.R.L.

	 	Italy
	Sensient Flavors Limited

	 	United Kingdom
	Sensient Flavors Mexico, S.A. De C.V.

	 	Mexico
	Sensient Flavors Poland Sp. Z o.O.

	 	Poland
	Sensient Flavors Romania S.R.L.

	 	Romania
	Sensient Flavors Scandinavia AB

	 	Sweden
	Sensient Flavors Strasbourg

	 	France
	Sensient Flavors Wales Limited

	 	United Kingdom
	Sensient Food Colors Czech Republic S.R.O.

	 	Czech Republic
	Sensient Food Colors France

	 	France

5.4-3

 

	 	 	 
	Name	 	Incorporation
	Foreign
	 	 
	Sensient Food Colors Germany GmbH

	 	Germany
	Sensient Food Colors Hungary KFT

	 	Hungary
	Sensient Food Colors Italy S.R.L.

	 	Italy
	Sensient Food Colors Poland Sp.Zo.O.

	 	Poland
	Sensient Food Colors Romania S.R.L.

	 	Romania
	Sensient Food Colors Smn D.O.O.

	 	Serbia & Montenegro
	Sensient Food Colors The Netherlands BV

	 	Netherlands
	Sensient Fragrances Guatemala, S.A.

	 	Guatemala
	Sensient Fragrances Mexico, S.A. De C.V.

	 	Mexico
	Sensient Fragrances, S.A.

	 	Spain
	Sensient Holding I B.V.

	 	Netherlands
	Sensient Holding II B.V.

	 	Netherlands
	Sensient Holding III B.V.

	 	Netherlands
	Sensient Holding (Alberta) Limited Partnership

	 	Canada
	Sensient Holding Luxembourg S.A.R.L.

	 	Luxembourg
	Sensient Holdings Malta Ltd

	 	Malta
	Sensient Holdings UK

	 	United Kingdom
	Sensient Imaging Technologies GmbH

	 	Germany
	Sensient Imaging Technologies Ltd

	 	Switzerland
	Sensient Imaging Technologies S.A. De C.V.

	 	Mexico
	Sensient India Private Limited

	 	India
	Sensient Technologies Asia Pacific PTE, Ltd.

	 	Singapore
	Sensient Technologies Australia Pty, Ltd.

	 	Australia

5.4-4

 

	 	 	 
	Name	 	Incorporation
	Foreign
	 	 
	Sensient Technologies Brazil Ltda.

	 	Brazil
	Sensient Technologies Colombia Ltda.

	 	Colombia
	Sensient Technologies Corp. (China) Ltd

	 	China
	Sensient Technologies Corporation (Japan)

	 	Japan
	Sensient Technologies Holding Deutschland GmbH

	 	Germany
	Sensient Technologies Hong Kong Ltd

	 	China
	Sensient Technologies Limited

	 	United Kingdom
	Sensient Technologies Luxembourg S.a.r.l.

	 	Luxembourg
	Sensient Technologies (Philippines), Inc.

	 	Philippines
	Sensient Technologies Real Estate GmbH

	 	Germany
	Sensient Technologies (Thailand), Ltd.

	 	Thailand
	Sensient Vermögensverwaltungsgesellschaft mbh

	 	Germany
	Societe Civile Immobiliere Griseda

	 	France
	Universal Holdings Cayman

	 	British West Indies

5.4-5

 

Financial Statements

Annual Financial Statement of Sensient Technologies Corporation on Form 10-K as of and for the
fiscal year ended December 31, 2010.

Schedule 5.5

(to Note Purchase Agreement)

 

Existing Debt

Sensient Technologies Long-Term Debt Summary

Debt Outstanding

In Thousands (USD)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Actual	 
	 	 	Currency	 	 	12/31/2010	 
	Long-term Debt Detail
	 	 	 	 	 	 	 	 
	6.68% senior notes due through January, 2011
	 	USD	 	$	2,142.858	 
	Term Loan due through June 2012
	 	USD	 	 	46,625.000	 
	4.91% senior notes due through May 2017
	 	USD	 	 	110,000.000	 
	7.17% & 7.31% senior notes due 11/2011 & 11/2013
	 	USD	 	 	55,000.000	 
	EUR senior notes series C D E due 11/2011 & 11/2013
	 	EUR	 	 	77,629.336	 
	Revolver -USD
	 	USD	 	 	—	 
	Revolver -CHF
	 	CHF	 	 	28,870.830	 
	Revolver -EUR
	 	EUR	 	 	—	 
	Unamortized Gain on Interest Rate Swaps
	 	USD	 	 	.343	 
	Capital lease obligations
	 	USD	 	 	.476	 
	 
	 	 	 	 	 	 	 
	Sub-total
	 	 	 	 	 	$	320,268.843	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notes and credit facilities payable 
 in foreign currencies (by foreign subs) 
	 	 	 	 	 	 	 	 
	China Capital Lease Obligations (CNY)
	 	CNY	 	 	1,654.740	 
	Cosmetics France — Capital Lease Obligations (EUR)
	 	EUR	 	 	1,959.331	 
	Dehydrated Flavors France
	 	EUR	 	 	477.289	 
	 
	 	 	 	 	 	 	 
	Sub-total 
	 	 	 	 	 	$	4,091.360	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Total Ltd 
	 	 	 	 	 	$	324,360.203	 
	 
	 	 	 	 	 	 	 

Schedule 5.15

(to Note Purchase Agreement)

 

 

Existing Investments

None.

Schedule 6

(to Note Purchase Agreement)

 

 

Existing Debt as of Closing

Annex A

(to Note Purchase Agreement)

 

 

[Form of Series A Note]

Sensient Technologies Corporation

3.77% Senior Note, Series A, due November 28, 2016

			
	 	 	 
	No. _________
	 	[Date]
	$____________
	 	PPN 81725T D#4

     For Value Received, the undersigned, Sensient Technologies Corporation
(herein called the “Company”), a corporation organized and existing under the laws of the
State of Wisconsin, hereby promises to pay to _______________, or registered assigns, the principal
sum of $ _____________ (or so much thereof as shall not have been prepaid) on November 28,
2016, with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid
balance hereof at the rate of (a) 3.77% per annum from the date hereof, payable semiannually, on
the twenty-eighth day of May and November in each year, commencing with the May or November next
succeeding the date hereof, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law, on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount (as
defined in the Note Purchase Agreement referred to below, at a rate per annum from time to time
equal to the greater of (i) 5.77% or (ii) 2% over the rate of interest publicly announced by
Citibank, N.A. from time to time in New York, New York as its “base” or “prime” rate, payable
semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at Citibank, N.A. or at such other place
as the Company shall have designated by written notice to the holder of this Note as provided in
the Note Purchase Agreement referred to below.

     This Note is one of a series of Senior Notes, Series A, issued pursuant to the Note Purchase
Agreement, dated as of March 22, 2011 (as from time to time amended, the “Note Purchase
Agreement”), among the Company and the Purchasers named therein and is entitled to the benefits
thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to
the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made
the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise
indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such
terms in the Note Purchase Agreement.

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the Company may treat
the person in whose name this Note is registered as the owner hereof for the

Exhibit 1(a)

(to Note Purchase Agreement)

 

 

purpose of receiving payment and for all other purposes, and the Company will not be affected by
any notice to the contrary.

     The Company will make required prepayments of the principal on the dates and in the amounts
specified in the Note Purchase Agreement. This Note is also subject to optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in the Note Purchase
Agreement, but not otherwise.

     If an Event of Default occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the law of the State of New York, excluding choice-of-law principles of the
law of such State that would require application of the laws of a jurisdiction other than such
State.

	 	 	 	 	 
	 	Sensient Technologies Corporation

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-1(a)-2

 

 

[Form of Series B Note]

Sensient Technologies Corporation

4.14% Senior Note, Series B, due November 28, 2017

	 	 	 

	 
	 	 
	No. _________

	 	[Date]
	$____________

	 	PPN 81725T E*7

     For Value Received, the undersigned, Sensient Technologies Corporation
(herein called the “Company”), a corporation organized and existing under the laws of the
State of Wisconsin, hereby promises to pay to _______________, or registered assigns, the principal
sum of $ _____________ (or so much thereof as shall not have been prepaid) on November 28,
2017, with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid
balance hereof at the rate of (a) 4.14% per annum from the date hereof, payable semiannually, on
the twenty-eighth day of May and November in each year, commencing with the May or November next
succeeding the date hereof, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law, on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount (as
defined in the Note Purchase Agreement referred to below, at a rate per annum from time to time
equal to the greater of (i) 6.14% or (ii) 2% over the rate of interest publicly announced by
Citibank, N.A. from time to time in New York, New York as its “base” or “prime” rate, payable
semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at Citibank, N.A. or at such other place
as the Company shall have designated by written notice to the holder of this Note as provided in
the Note Purchase Agreement referred to below.

     This Note is one of a series of Senior Notes, Series B, issued pursuant to the Note Purchase
Agreement, dated as of March 22, 2011 (as from time to time amended, the “Note Purchase
Agreement”), among the Company and the Purchasers named therein and is entitled to the benefits
thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to
the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made
the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise
indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such
terms in the Note Purchase Agreement.

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the Company may treat
the person in whose name this Note is registered as the owner hereof for the

Exhibit 1(b)

(to Note Purchase Agreement)

 

 

purpose of receiving payment and for all other purposes, and the Company will not be affected by
any notice to the contrary.

     The Company will make required prepayments of the principal on the dates and in the amounts
specified in the Note Purchase Agreement. This Note is also subject to optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in the Note Purchase
Agreement, but not otherwise.

     If an Event of Default occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the law of the State of New York, excluding choice-of-law principles of the
law of such State that would require application of the laws of a jurisdiction other than such
State.

	 	 	 	 	 
	 	Sensient Technologies Corporation

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-1(b)-2

 

 

[Form of Series C Note]

Sensient Technologies Corporation

4.47% Senior Note, Series C, due November 28, 2018

	 	 	 

	 
	 	 
	No. _________

	 	[Date]
	$____________

	 	PPN 81725T E@5

     For Value Received, the undersigned, Sensient Technologies Corporation
(herein called the “Company”), a corporation organized and existing under the laws of the
State of Wisconsin, hereby promises to pay to _______________, or registered assigns, the principal
sum of $ _____________ (or so much thereof as shall not have been prepaid) on November 28,
2018, with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid
balance hereof at the rate of (a) 4.47% per annum from the date hereof, payable semiannually, on
the twenty-eighth day of May and November in each year, commencing with the May or November next
succeeding the date hereof, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law, on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount (as
defined in the Note Purchase Agreement referred to below, at a rate per annum from time to time
equal to the greater of (i) 6.47% or (ii) 2% over the rate of interest publicly announced by
Citibank, N.A. from time to time in New York, New York as its “base” or “prime” rate, payable
semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at Citibank, N.A. or at such other place
as the Company shall have designated by written notice to the holder of this Note as provided in
the Note Purchase Agreement referred to below.

     This Note is one of a series of Senior Notes, Series C, issued pursuant to the Note Purchase
Agreement, dated as of March 22, 2011 (as from time to time amended, the “Note Purchase
Agreement”), among the Company and the Purchasers named therein and is entitled to the benefits
thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to
the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made
the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise
indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such
terms in the Note Purchase Agreement.

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the Company may treat
the person in whose name this Note is registered as the owner hereof for the

Exhibit 1(c)

(to Note Purchase Agreement)

 

 

purpose of receiving payment and for all other purposes, and the Company will not be affected by
any notice to the contrary.

     The Company will make required prepayments of the principal on the dates and in the amounts
specified in the Note Purchase Agreement. This Note is also subject to optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in the Note Purchase
Agreement, but not otherwise.

     If an Event of Default occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the law of the State of New York, excluding choice-of-law principles of the
law of such State that would require application of the laws of a jurisdiction other than such
State.

	 	 	 	 	 
	 	Sensient Technologies Corporation

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-1(c)-2

 

 

 

Guaranty Agreement

Dated as of _______________

	Re:  	 	$25,000,000 3.77% Senior Notes, Series A, due November 28, 2016

$25,000,000 4.14% Senior Notes, Series B, due November 28, 2017

$25,000,000 4.47% Senior Notes, Series C, due November 28, 2018

of

Sensient Technologies Corporation

 

Exhibit 2.2

(to Note Purchase Agreement)

 

 

Table of Contents

(Not a part of the Agreement)

	 	 	 	 	 
	Section	 	Heading	 	Page
	Parties

	 	 	 	1
	Recitals

	 	 	 	1
	Section 1.

	 	Definitions
	 	2
	Section 2.

	 	Guaranty of Notes and Note Purchase Agreement
	 	2
	Section 3.

	 	Guaranty of Payment and Performance
	 	2
	Section 4.

	 	General Provisions Relating to the Guaranty
	 	3
	Section 5.

	 	Representations and Warranties of the Guarantors
	 	8
	Section 6.

	 	Guarantor Covenants
	 	9
	Section 7.

	 	Payments Free and Clear of Taxes
	 	9
	Section 8.

	 	Governing Law
	 	12
	Section 9.

	 	Judgments
	 	13
	Section 10.

	 	Amendments, Waivers and Consents
	 	13
	Section 11.

	 	Notices; English Language
	 	14
	Section 12.

	 	Miscellaneous
	 	15
	Section 13.

	 	Indemnity
	 	16
	Signature

	 	 	 	17

-i-

 

Guaranty Agreement

	     Re: 	 	 $25,000,000 3.77% Senior Notes, Series A, due November 28, 2016

$25,000,000 4.14% Senior Notes, Series B, due November 28, 2017

$25,000,000 4.47% Senior Notes, Series C, due November 28, 2018

		 	of
	 	 	Sensient Technologies Corporation

     This Guaranty Agreement dated as of ________________ (the or this
“Guaranty”) is entered into on a joint and several basis by each of the undersigned, together with
any entity which may become a party hereto by execution and delivery of a Guaranty Supplement in
substantially the form set forth as Exhibit A hereto (a “Guaranty Supplement”) (which parties are
hereinafter referred to individually as a “Guarantor” and collectively as the “Guarantors”).

Recitals

     A. Each Guarantor is a subsidiary of Sensient Technologies Corporation, a Wisconsin
corporation (the “Company”).

     B. In order to refinance certain debt and for general corporate purposes, the Company has
entered into that certain Note Purchase Agreement dated as of March 22, 2011 (the “Note Purchase
Agreement”) among the Company and each of the purchasers named on Schedule A thereto (the “Initial
Note Purchasers”; the Initial Note Purchasers, together with their successors, assigns or any other
future holder of the Notes (as defined below), the “Holders”), providing for, inter alia, the issue
and sale by the Company to the Initial Note Purchasers of (a) $25,000,000 aggregate principal
amount of its 3.77% Senior Notes, Series A, due November 28, 2016 (the “Series A Notes”), (b)
$25,000,000 aggregate principal amount of its 4.14% Senior Notes, Series B, due November 28, 2017
(the “Series B Notes”), and (c) $25,000,000 aggregate principal amount of its 4.47% Senior Notes,
Series C, due November 28, 2018 (the “Series C Notes”, and together with the Series B Notes and the
Series A Notes, the “Notes”).

     C. Pursuant to Section 9.7 of the Note Purchase Agreement, the Company has elected to cause
each of the undersigned to enter into this Guaranty as security for the Notes.

     D. Each of the Guarantors is a Subsidiary of the Company and has derived substantial direct
and indirect benefit from the sale of the Notes to the Initial Note Purchasers.

     Now, therefore, as permitted by Section 9.7 of the Note Purchase Agreement and in
consideration of the premises and other good and valuable consideration, the receipt and
sufficiency whereof are hereby acknowledged, each Guarantor does hereby covenant and agree, jointly
and severally, as follows:

 

 

Section 1. Definitions.

     Capitalized terms used herein shall have the meanings set forth in the Note Purchase Agreement
unless herein defined or the context shall otherwise require.

Section 2. Guaranty of Notes and Note Purchase Agreement.

     (a) Subject to the limitation set forth in Section 2(b) hereof, each Guarantor jointly and
severally does hereby irrevocably, absolutely and unconditionally guarantee unto the Holders: (1)
the full and prompt payment of the principal of, premium, if any, and interest on the Notes from
time to time outstanding, as and when such payments shall become due and payable whether by lapse
of time, upon redemption or prepayment, by extension or by acceleration or declaration or otherwise
(including (to the extent legally enforceable) interest due on overdue payments of principal,
premium, if any, or interest at the rate set forth in the Notes and interest accruing at the then
applicable rate provided in the Notes after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to the Company, whether
or not a claim for post-filing or post-petition interest is allowed in such proceeding) in Federal
or other immediately available funds of the United States of America which at the time of payment
or demand therefor shall be legal tender for the payment of public and private debts, (2) the full
and prompt performance and observance by the Company of each and all of the obligations, covenants
and agreements required to be performed or owed by the Company under the terms of the Notes and the
Note Purchase Agreement and (3) the full and prompt payment, upon demand by any Holder, of all
costs and expenses, legal or otherwise (including attorneys’ fees), if any, as shall have been
expended or incurred in the protection or enforcement of any rights, privileges or liabilities in
favor of the Holders under or in respect of the Notes, the Note Purchase Agreement or under this
Guaranty or in any consultation or action in connection therewith or herewith and in each and every
case irrespective of the validity, regularity, or enforcement of any of the Notes or Note Purchase
Agreement or any of the terms thereof or any other like circumstance or circumstances.

     (b) The liability of each Guarantor under this Guaranty shall not exceed an amount equal to a
maximum amount as will, after giving effect to such maximum amount and all other liabilities of
such Guarantor, contingent or otherwise, result in the obligations of such Guarantor hereunder not
constituting a fraudulent transfer, obligation or conveyance.

Section 3. Guaranty of Payment and Performance.

     This is a guarantee of payment and performance and each Guarantor hereby waives, to the
fullest extent permitted by law, any right to require that any action on or in respect of any Note
or the Note Purchase Agreement be brought against the Company or any other Person or that resort be
had to any direct or indirect security for the Notes or for this Guaranty or any other remedy. Any
Holder may, at its option, proceed hereunder against any Guarantor in the first instance to collect
monies when due, the payment of which is guaranteed hereby, without first proceeding against the
Company or any other Person and without first resorting to any direct or indirect security for the Notes or for this Guaranty or any other remedy. The liability of
each Guarantor hereunder shall in no way be affected or impaired by any acceptance by any Holder of

-2-

 

any direct or indirect security for, or other guaranties of, any Debt, liability or obligation of
the Company or any other Person to any Holder or by any failure, delay, neglect or omission by any
Holder to realize upon or protect any such guarantees, Debt, liability or obligation or any notes
or other instruments evidencing the same or any direct or indirect security therefor or by any
approval, consent, waiver, or other action taken, or omitted to be taken by any such Holder.

     The covenants and agreements on the part of the Guarantors herein contained shall take effect
as joint and several covenants and agreements, and references to the Guarantors shall take effect
as references to each of them and none of them shall be released from liability hereunder by reason
of the guarantee ceasing to be binding as a continuing security on any other of them.

Section 4. General Provisions Relating to the Guaranty.

     (a) Each Guarantor hereby consents and agrees that any Holder or Holders from time to time,
with or without any further notice to or assent from any other Guarantor may, without in any manner
affecting the liability of any Guarantor under this Guaranty, and upon such terms and conditions as
any such Holder or Holders may deem advisable:

     (1) extend in whole or in part (by renewal or otherwise), modify, change, compromise,
release or extend the duration of the time for the performance or payment of any Debt,
liability or obligation of the Company or of any other Person secondarily or otherwise
liable for any Debt, liability or obligations of the Company on the Notes, or waive any
Default with respect thereto, or waive, modify, amend or change any provision of any other
agreement or this Guaranty; or

     (2) sell, release, surrender, modify, impair, exchange or substitute any and all
property, of any nature and from whomsoever received, held by, or for the benefit of, any
such Holder as direct or indirect security for the payment or performance of any Debt,
liability or obligation of the Company or of any other Person secondarily or otherwise
liable for any Debt, liability or obligation of the Company on the Notes; or

     (3) settle, adjust or compromise any claim of the Company against any other Person
secondarily or otherwise liable for any Debt, liability or obligation of the Company on the
Notes.

     Each Guarantor hereby ratifies and confirms any such extension, renewal, change, sale,
release, waiver, surrender, exchange, modification, amendment, impairment, substitution,
settlement, adjustment or compromise and that the same shall be binding upon it, and hereby waives,
to the fullest extent permitted by law, any and all defenses, counterclaims or offsets which it
might or could have by reason thereof, it being understood that such Guarantor shall at all times
be bound by this Guaranty and remain liable hereunder.

     (b) Each Guarantor hereby waives, to the fullest extent permitted by law:

     (1) notice of acceptance of this Guaranty by the Holders or of the creation, renewal or
accrual of any liability of the Company, present or future, or of the reliance of

-3-

 

such Holders upon this Guaranty (it being understood that every Debt, liability and obligation
described in Section 2 hereof shall conclusively be presumed to have been created,
contracted or incurred in reliance upon the execution of this Guaranty);

     (2) demand of payment by any Holder from the Company or any other Person indebted in
any manner on or for any of the Debt, liabilities or obligations hereby guaranteed; and

     (3) presentment for the payment by any Holder or any other Person of the Notes or any
other instrument, protest thereof and notice of its dishonor to any party thereto and to
such Guarantor.

     The obligations of each Guarantor under this Guaranty and the rights of any Holder to enforce
such obligations by any proceedings, whether by action at law, suit in equity or otherwise, shall
not be subject to any reduction, limitation, impairment or termination (other than by payment in
full of the Notes and the obligations of the Company under the Note Purchase Agreement), whether by
reason of any claim of any character whatsoever or otherwise and shall not be subject to any
defense, set-off, counterclaim (other than any compulsory counterclaim), recoupment or termination
whatsoever.

     (c) The obligations of the Guarantors hereunder shall be binding upon the Guarantors and their
successors and assigns, and shall remain in full force and effect until the entire principal,
interest and premium, if any, on the Notes and all other sums due pursuant to Section 2 shall have
been paid and such obligations shall not be affected, modified or impaired upon the happening from
time to time of any event, including without limitation any of the following, whether or not with
notice to or the consent of the Guarantors:

     (1) the genuineness, validity, regularity or enforceability of the Notes, the Note
Purchase Agreement or any other agreement or any of the terms of any thereof, the
continuance of any obligation on the part of the Company, any other Guarantors or any other
Person on or in respect of the Notes or under the Note Purchase Agreement or any other
agreement or the power or authority or the lack of power or authority of the Company to
issue the Notes or the Company to execute and deliver the Note Purchase Agreement or any
other agreement or of any other Guarantors to execute and deliver this Guaranty or any other
agreement or to perform any of its obligations hereunder or the existence or continuance of
the Company or any other Person as a legal entity; or

     (2) any default, failure or delay, willful or otherwise, in the performance by the
Company, any other Guarantor or any other Person of any obligations of any kind or character
whatsoever under the Notes, the Note Purchase Agreement, this Guaranty or any other
agreement; or

     (3) any creditors’ rights, bankruptcy, receivership or other insolvency proceeding of
the Company, any other Guarantor or any other Person or in respect of the property of the
Company, any other Guarantor or any other Person or any merger,

-4-

 

consolidation,
reorganization, dissolution, liquidation, the sale of all or substantially all of the assets
of or winding up of the Company, any other Guarantor or any other Person; or

     (4) impossibility or illegality of performance on the part of the Company, any other
Guarantor or any other Person of its obligations under the Notes, the Note Purchase
Agreement, this Guaranty or any other agreements; or

     (5) in respect of the Company, any other Guarantors or any other Person, any change of
circumstances, whether or not foreseen or foreseeable, whether or not imputable to the
Company, any other Guarantors or any other Person, or other impossibility of performance
through fire, explosion, accident, labor disturbance, floods, droughts, embargoes, wars
(whether or not declared), civil commotion, acts of God or the public enemy, delays or
failure of suppliers or carriers, inability to obtain materials, action of any Federal or
state regulatory body or agency, change of law or any other causes affecting performance, or
any other force majeure, whether or not beyond the control of the Company, any other
Guarantors or any other Person and whether or not of the kind hereinbefore specified; or

     (6) any attachment, claim, demand, charge, Lien, order, process, encumbrance or any
other happening or event or reason, similar or dissimilar to the foregoing, or any
withholding or diminution at the source, by reason of any taxes, assessments, expenses,
Debt, obligations or liabilities of any character, foreseen or unforeseen, and whether or
not valid, incurred by or against the Company, any Guarantor or any other Person or any
claims, demands, charges or Liens of any nature, foreseen or unforeseen, incurred by the
Company, any Guarantor or any other Person, or against any sums payable in respect of the
Notes or under the Note Purchase Agreement or this Guaranty, so that such sums would be
rendered inadequate or would be unavailable to make the payments herein provided; or

     (7) any order, judgment, decree, ruling or regulation (whether or not valid) of any
court of any nation or of any political subdivision thereof or any body, agency, department,
official or administrative or regulatory agency of any thereof or any other action,
happening, event or reason whatsoever which shall delay, interfere with, hinder or prevent,
or in any way adversely affect, the performance by the Company, any Guarantor or any other
Person of its respective obligations under or in respect of the Notes, the Note Purchase
Agreement, this Guaranty or any other agreement; or

     (8) the failure of any Guarantor to receive any benefit from or as a result of its
execution, delivery and performance of this Guaranty; or

     (9) any failure or lack of diligence in collection or protection, failure in
presentment or demand for payment, protest, notice of protest, notice of default and of
nonpayment, any failure to give notice to any Guarantor of failure of the Company, any
Guarantor or any other Person to keep and perform any obligation, covenant or agreement
under the terms of the Notes, the Note Purchase Agreement, this Guaranty or any other
agreement or failure to resort for payment to the Company, any other Guarantor

-5-

 

or to any other Person or to any other guaranty or to any property, security, Liens or other rights or
remedies; or

     (10) the acceptance of any additional security or other guaranty, the advance of
additional money to the Company or any other Person, the renewal or extension of the Notes
or amendments, modifications, consents or waivers with respect to the Notes, the Note
Purchase Agreement or any other agreement, or the sale, release, substitution or exchange of
any security for the Notes; or

     (11) any merger or consolidation of the Company, any other Guarantor or any other
Person into or with any other Person or any sale, lease, transfer or other disposition of
any of the assets of the Company, any other Guarantor or any other Person to any other
Person, or any change in the ownership of any shares of the Company, any other Guarantor or
any other Person; or

     (12) any defense whatsoever that: (i) the Company or any other Person might have to
the payment of the Notes (principal, premium, if any, or interest), other than payment
thereof in Federal or other immediately available funds, or (ii) the Company or any other
Person might have to the performance or observance of any of the provisions of the Notes,
the Note Purchase Agreement or any other agreement, whether through the satisfaction or
purported satisfaction by the Company, any other Guarantor or any other Person of its debts
due to any cause such as bankruptcy, insolvency, receivership, merger, consolidation,
reorganization, dissolution, liquidation, winding-up or otherwise, other than the defense of
indefeasible payment in full in cash of the Notes; or

     (13) any act or failure to act with regard to the Notes, the Note Purchase Agreement,
this Guaranty or any other agreement or anything which might vary the risk of any Guarantor
or any other Person; or

     (14) any other circumstance which might otherwise constitute a defense available to, or
a discharge of, any Guarantor or any other Person in respect of the obligations of any
Guarantor or other Person under this Guaranty or any other agreement, other than the defense
of indefeasible payment in full in cash of the Notes;

provided that the specific enumeration of the above-mentioned acts, failures or omissions shall not
be deemed to exclude any other acts, failures or omissions, though not specifically mentioned
above, it being the purpose and intent of this Guaranty and the parties hereto that the obligations
of each Guarantor shall be absolute and unconditional and shall not be discharged, impaired or
varied except by the payment of the principal of, premium, if any, and interest on the Notes in
accordance with their respective terms whenever the same shall become due and payable as in the
Notes provided and all other sums due and payable under the Note Purchase Agreement, at the place
specified in and all in the manner and with the effect provided in the Notes and the Note Purchase
Agreement, as each may be amended or modified from time to time. Without
limiting the foregoing, it is understood that repeated and successive demands may be made and
recoveries may be had hereunder as and when, from time to time, the Company shall default under or
in respect of the terms of the Notes or the Note Purchase Agreement and that

-6-

 

notwithstanding recovery hereunder for or in respect of any given default or defaults by the Company under the
Notes or the Note Purchase Agreement, this Guaranty shall remain in full force and effect and shall
apply to each and every subsequent default.

     (d) All rights of any Holder may be transferred or assigned at any time and shall be
considered to be transferred or assigned at any time or from time to time upon the transfer of such
Note whether with or without the consent of or notice to the Guarantors under this Guaranty or to
the Company.

     (e) To the extent of any payments made under this Guaranty, the Guarantors shall be subrogated
to the rights of the Holder or Holders upon whose Notes such payment was made, but each Guarantor
covenants and agrees that such right of subrogation shall be junior and subordinate in right of
payment to the prior indefeasible final payment in cash in full of all amounts due and owing by the
Company with respect to the Notes and the Note Purchase Agreement and by the Guarantors under this
Guaranty, and the Guarantors shall not take any action to enforce such right of subrogation, and
the Guarantors shall not accept any payment in respect of such right of subrogation, until all
amounts due and owing by the Company under or in respect of the Notes and the Note Purchase
Agreement and all amounts due and owing by the Guarantors hereunder have indefeasibly been finally
paid in cash in full. If any amount shall be paid to any Guarantor in violation of the preceding
sentence at any time prior to the indefeasible payment in cash in full of the Notes and all other
amounts payable under the Notes, the Note Purchase Agreement and this Guaranty, such amount shall
be held in trust for the benefit of the Holders and shall forthwith be paid to the Holders to be
credited and applied to the amounts due or to become due with respect to the Notes and all other
amounts payable under the Note Purchase Agreement and this Guaranty, whether matured or unmatured.
Each Guarantor acknowledges that it has received direct and indirect benefits from the financing
arrangements contemplated by the Note Purchase Agreement and that the waiver set forth in this
paragraph (e) is knowingly made as a result of the receipt of such benefits.

     (f) To the extent of any payments made under this Guaranty, each Guarantor making such payment
shall have a right of contribution from the other Guarantors, but such Guarantor covenants and
agrees that such right of contribution shall be subordinate in right of payment to the rights of
the Holders for which full payment has not been made or provided for and, to that end, such
Guarantor agrees not to claim or enforce any such right of contribution unless and until all of the
Notes and all other sums due and payable under the Note Purchase Agreement have been fully and
irrevocably paid and discharged.

     (g) Each Guarantor agrees that to the extent the Company, any other Guarantor or any other
Person makes any payment on any Note, which payment or any part thereof is subsequently
invalidated, voided, declared to be fraudulent or preferential, set aside, recovered, rescinded or
is required to be retained by or repaid to a trustee, receiver, or any other Person under any
bankruptcy code, common law, or equitable cause, then and to the extent of such payment, the
obligation or the part thereof intended to be satisfied shall be revived and continued
in full force and effect with respect to the Guarantors’ obligations hereunder, as if said payment
had not been made. The liability of the Guarantors hereunder shall not be reduced or discharged,
in whole or in part, by any payment to any Holder from any source that is thereafter paid,

-7-

 

returned
or refunded in whole or in part by reason of the assertion of a claim of any kind relating thereto,
including, but not limited to, any claim for breach of contract, breach of warranty, preference,
illegality, invalidity, or fraud asserted by any account debtor or by any other Person.

     (h) No Holder shall be under any obligation: (1) to marshal any assets in favor of the
Guarantors or in payment of any or all of the liabilities of the Company under or in respect of the
Notes or the obligations of the Guarantors hereunder or (2) to pursue any other remedy that the
Guarantors may or may not be able to pursue themselves and that may lighten the Guarantors’ burden,
any right to which each Guarantor hereby expressly waives.

     (i) The obligations of each Guarantor under this Guaranty rank pari passu in right of payment
with all other Debt of such Guarantor which is not secured or which is not expressly subordinated
in right of payment to any other Debt of such Guarantor.

Section 5. Representations and Warranties of the Guarantors.

     Each Guarantor represents and warrants to each Holder that:

     (a) Such Guarantor is a corporation or other legal entity duly organized, validly existing and
in good standing under the laws of its jurisdiction of organization, and is duly qualified as a
foreign corporation or other legal entity and is in good standing in each jurisdiction in which
such qualification is required by law, other than those jurisdictions as to which the failure to be
so qualified or in good standing would not, individually or in the aggregate, reasonably be
expected to have a material adverse effect on (1) the business, operations, affairs, financial
condition, assets or properties of such Guarantor and its subsidiaries, taken as a whole, or (2)
the ability of such Guarantor to perform its obligations under this Guaranty, or (3) the validity
or enforceability of this Guaranty (herein in this Section 5, a “Material Adverse Effect"). Such
Guarantor has the power and authority to own or hold under lease the properties it purports to own
or hold under lease, to transact the business it transacts and proposes to transact, to execute and
deliver this Guaranty and to perform the provisions hereof.

     (b) This Guaranty has been duly authorized by all necessary action on the part of such
Guarantor, and this Guaranty constitutes a legal, valid and binding obligation of such Guarantor
enforceable against such Guarantor in accordance with its terms, except as such enforceability may
be limited by (1) applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors’ rights generally and (2) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law).

     (c) The execution, delivery and performance by such Guarantor of this Guaranty will not (1)
contravene, result in any breach of, or constitute a default under, or result in the creation of
any Lien in respect of any property of such Guarantor or any of its subsidiaries under any
indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, charter document or
by-law, or any other agreement or instrument to which such Guarantor or any of its subsidiaries is
bound or by which such Guarantor or any of its subsidiaries or any of their respective properties
may be bound or affected, (2) conflict with or result in a breach of any of the terms,

-8-

 

conditions
or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to such Guarantor or any of its subsidiaries or (3) violate any provision of
any statute or other rule or regulation of any Governmental Authority applicable to the such
Guarantor or any of its subsidiaries.

     (d) No consent, approval or authorization of, or registration, filing or declaration with, any
Governmental Authority is required in connection with the execution, delivery or performance by
such Guarantor of this Guaranty.

     (e) Such Guarantor is solvent, has capital not unreasonably small in relation to its business
or any contemplated or undertaken transaction and has assets having a value both at fair valuation
and at present fair salable value greater than the amount required to pay its debts as they become
due and greater than the amount that will be required to pay its probable liability on its existing
debts as they become absolute and matured. Such Guarantor does not intend to incur, or believe or
should have believed that it will incur, debts beyond its ability to pay such debts as they become
due. Such Guarantor will not be rendered insolvent by the execution and delivery of, and
performance of its obligations under, this Guaranty. Such Guarantor does not intend to hinder,
delay or defraud its creditors by or through the execution and delivery of, or performance of its
obligations under, this Guaranty.

Section 6. Guarantor Covenants.

     From and after the date of issuance of the Notes by the Company and continuing so long as any
amount remains unpaid thereon each Guarantor agrees to comply with the terms and provisions of
Sections 9.1, 9.2, 9.3, 9.4 and 9.5 of the Note Purchase Agreement, insofar as such provisions
apply to such Guarantor, as if said Sections were set forth herein in full.

[Section 7. Payments Free and Clear of Taxes.]

[In the event any Guarantor is organized under the laws of any jurisdiction other than any

state of the United States or the District of Columbia, the following Section 7 shall be added to

the Guaranty]

     [All payments whatsoever under this Guaranty will be made by such Guarantor in lawful currency
of the United States of America (“U.S. Dollars") free and clear of, and without liability or
withholding or deduction for or on account of, any present or future Taxes of whatever nature
imposed or levied by or on behalf of any jurisdiction other than the United States (or any
political subdivision or taxing authority of or in such jurisdiction) (hereinafter a “Taxing
Jurisdiction"), unless the withholding or deduction of such Tax is compelled by law.

     If any deduction or withholding for any Tax of a Taxing Jurisdiction shall at any time be
required in respect of any amounts to be paid by a Guarantor under this Guaranty, such Guarantor
will pay to the relevant Taxing Jurisdiction the full amount required to be withheld, deducted or
otherwise paid before penalties attach thereto or interest accrues thereon and pay to each Holder
such additional amounts as may be necessary in order that the net amounts paid to such Holder
pursuant to the terms of this Guaranty after such deduction, withholding or payment

-9-

 

(including
without limitation any required deduction or withholding of Tax on or with respect to such
additional amount), shall be not less than the amounts then due and payable to such Holder under
the terms of this Guaranty before the assessment of such Tax, provided that no payment of any
additional amounts shall be required to be made for or on account of:

     (a) any Tax that would not have been imposed but for the existence of any present or
former connection between such Holder (or a fiduciary, settlor, beneficiary, member of,
shareholder of, or possessor of a power over, such Holder, if such Holder is an estate,
trust, partnership or corporation or any Person other than the Holder to whom the Notes or
any amount payable thereon is attributable for the purposes of such Tax) and the Taxing
Jurisdiction, other than the mere holding of the relevant Note or the receipt of payments
thereunder or in respect thereof, including without limitation such Holder (or such other
Person described in the above parenthetical) being or having been a citizen or resident
thereof, or being or having been present or engaged in trade or business therein or having
or having had an establishment, office, fixed base or branch therein, provided that this
exclusion shall not apply with respect to a Tax that would not have been imposed but for
such Guarantor, after the date of the Closing, opening an office in, moving an office to,
reincorporating in, or changing the Taxing Jurisdiction from or through which payments on
account of this Guaranty or the Notes are made to, the Taxing Jurisdiction imposing the
relevant Tax;

     (b) any Tax that would not have been imposed but for the delay or failure by such
Holder (following a written request by such Guarantor) in the filing with the relevant
Taxing Jurisdiction of Forms (as defined below) that are required to be filed by such Holder
to avoid or reduce such Taxes and that in the case of any of the foregoing would not result
in any confidential or proprietary income tax return information being revealed, either
directly or indirectly, to any Person and such delay or failure could have been lawfully
avoided by such Holder, provided that such Holder shall be deemed to have satisfied the
requirements of this clause (b) upon the good faith completion and submission of such Forms
as may be specified in a written request of such Guarantor no later than 60 days after
receipt by such Holder of such written request (accompanied by copies of such Forms and
related instructions, if any, all in the English language or with an English translation
thereof); or

     (c) any combination of clauses (a) and (b) above;

and provided further that in no event shall such Guarantor be obligated to pay such additional
amounts (i) to any Holder not resident in the United States of America or any other jurisdiction in
which an original Purchaser is resident for tax purposes on the date of the Closing in excess of
the amounts that such Guarantor would be obligated to pay if such Holder had been a resident of
the United States of America or such other jurisdiction, as applicable, for purposes of, and
eligible for the benefits of, any double taxation treaty at the time in effect between the United
States of America or such other jurisdiction and the relevant Taxing Jurisdiction or (ii) to any
Holder registered in the name of a nominee if under the law of the relevant Taxing Jurisdiction (or
the current regulatory interpretation of such law) securities held in the name of a nominee do

-10-

 

not
qualify for an exemption from the relevant Tax and such Guarantor shall have given timely notice of
such law or interpretation to such Holder.

     By acceptance of any Note, each Holder agrees that it will from time to time with reasonable
promptness (x) duly complete and deliver to or as reasonably directed by such Guarantor all such
forms, certificates, documents and returns provided to such Holder by such Guarantor (collectively,
together with instructions for completing the same, “Forms") required to be filed by or on behalf
of such Holder in order to avoid or reduce any such Tax pursuant to the provisions of an applicable
statute, regulation or administrative practice of the relevant Taxing Jurisdiction or of a tax
treaty between the United States and such Taxing Jurisdiction and (y) provide such Guarantor with
such information with respect to such Holder as such Guarantor may reasonably request in order to
complete any such Forms, provided that nothing in this Section 7 shall require any Holder to
provide information with respect to any such Form or otherwise if in the opinion of such Holder
such Form or disclosure of information would involve the disclosure of tax return or other
information that is confidential or proprietary to such Holder, and provided further that each such
Holder shall be deemed to have complied with its obligation under this paragraph with respect to
any Form if such Form shall have been duly completed and delivered by such Holder to such Guarantor
or mailed to the appropriate taxing authority, whichever is applicable, within 60 days following a
written request of such Guarantor (which request shall be accompanied by copies of such Form and
English translations of any such Form not in the English language) and, in the case of a transfer
of any Note, at least 90 days prior to the relevant interest payment date.

     On or before the date of the Closing such Guarantor will furnish you with copies of the
appropriate Form (and English translation if required as aforesaid) currently required to be filed
in a Taxing Jurisdiction pursuant to clause (b) of the first paragraph of this Section 7, if any,
and in connection with the transfer of any Note such Guarantor will furnish the transferee of such
Note with copies of any Form and English translation then required.

     If any payment is made by such Guarantor to or for the account of the Holder of any Note after
deduction for or on account of any Taxes, and increased payments are made by such Guarantor
pursuant to this Section 7, then, if such Holder at its sole discretion determines that it has
received or been granted a refund of such Taxes, such Holder shall, to the extent that it can do so
without prejudice to the retention of the amount of such refund, reimburse to such Guarantor such
amount as such Holder shall, in its sole discretion, determine to be attributable to the relevant
Taxes or deduction or withholding. Nothing herein contained shall interfere with the right of any
Holder to arrange its tax affairs in whatever manner it thinks fit and, in particular, no Holder
shall be under any obligation to claim relief from its corporate profits or similar tax liability
in respect of such Tax in priority to any other claims, reliefs, credits or deductions available to
it or (other than as set forth in clause (b) above) oblige any Holder to disclose any information
relating to its tax affairs or any computations in respect thereof.

     Such Guarantor will furnish the Holders, promptly and in any event within 60 days after the
date of any payment by such Guarantor of any Tax in respect of any amounts paid under this
Guaranty, the original tax receipt issued by the relevant taxation or other authorities involved
for all amounts paid as aforesaid (or if such original tax receipt is not available or must legally
be

-11-

 

kept in the possession of such Guarantor, a duly certified copy of the original tax receipt or
any other reasonably satisfactory evidence of payment), together with such other documentary
evidence with respect to such payments as may be reasonably requested from time to time by any
Holder.

     If such Guarantor makes payment to or for the account of any Holder and such Holder is
entitled to a refund of the Tax to which such payment is attributable upon the making of a filing
(other than a Form described above), then such Holder shall, as soon as practicable after receiving
written request from such Guarantor (which shall specify in reasonable detail and supply the refund
forms to be filed) use reasonable efforts to complete and deliver such refund forms to or as
directed by such Guarantor, subject, however, to the same limitations with respect to Forms as are
set forth above.

     The obligations of such Guarantor under this Section 7 shall survive the payment or transfer
of any Note and the provisions of this Section 7 shall also apply to successive transferees of the
Notes.]

Section 8. Governing Law.

     (a) This Guaranty shall be governed by and construed in accordance with the laws of the
State of New York applicable therein.

     (b) Each Guarantor irrevocably submits to the non-exclusive jurisdiction of any New York State
or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action
or proceeding arising out of or relating solely to this Guaranty or the Notes. To the fullest
extent permitted by applicable law, such Guarantor irrevocably waives and agrees not to assert, by
way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of
any such court, any objection that it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding brought in any such court and any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient forum.

     (c) Each Guarantor agrees, to the fullest extent permitted by applicable law, that a final
judgment in any suit, action or proceeding brought in any such court shall be conclusive and
binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts
of the United States of America or the State of New York (or any other courts to the jurisdiction
of which it or any of its assets is or may be subject) by a suit upon such judgment.

     (d) Each Guarantor consents to process being served in any suit, action or proceeding solely
by mailing a copy thereof by registered or certified or priority mail, postage prepaid, return
receipt requested, or delivering a copy thereof in the manner for delivery of notices specified in
Section 11, to ____________, as its agent for the purpose of accepting service of
any process in the United States. Such Guarantor agrees that such service upon receipt (i) shall
be deemed in every respect effective service of process upon it in any such suit, action or
proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to
be valid personal service upon and personal delivery to it. Notices hereunder shall be

-12-

 

conclusively presumed received as evidenced by a delivery receipt furnished by the United States
Postal Service or any reputable commercial delivery service.

     (e) Nothing in this Section 8 shall affect the right of any Holder to serve process in any
manner permitted by law, or limit any right that the Holders may have to bring proceedings against
such Guarantor in the courts of any appropriate jurisdiction or to enforce in any lawful manner a
judgment obtained in one jurisdiction in any other jurisdiction.

     (f) Each Guarantor hereby irrevocably appoints ____________ to receive for it, and on its
behalf, service of process in the United States.

     (g) The parties hereto hereby waive trial by jury in any action brought on or with respect
to this Guaranty, the Notes or any other document executed in connection herewith or
therewith.

[Section 9. Judgments.]

[In the event any Guarantor is organized under the laws of any jurisdiction other than any

state of the United States or the District of Columbia, the following Section 9 shall be added to

the Guaranty]

     [Any payment on account of an amount that is payable hereunder or in U.S. Dollars which is
made to or for the account of any Holder in any other currency, whether as a result of any judgment
or order or the enforcement thereof or the realization of any security or the liquidation of such
Guarantor, shall constitute a discharge of the obligation of such Guarantor under this Guaranty
only to the extent of the amount of U.S. Dollars which such Holder could purchase in the foreign
exchange markets in London, England, with the amount of such other currency in accordance with
normal banking procedures at the rate of exchange prevailing on the London Banking Day following
receipt of the payment first referred to above. If the amount of U.S. Dollars that could be so
purchased is less than the amount of U.S. Dollars originally due to such Holder, such Guarantor
agrees to the fullest extent permitted by law, to indemnify and save harmless such Holder from and
against all loss or damage arising out of or as a result of such deficiency. This indemnity shall,
to the fullest extent permitted by law, constitute an obligation separate and independent from the
other obligations contained in this Guaranty, shall give rise to a separate and independent cause
of action, shall apply irrespective of any indulgence granted by such Holder from time to time and
shall continue in full force and effect notwithstanding any judgment or order for a liquidated sum
in respect of an amount due hereunder or under the Notes or under any judgment or order. As used
herein the term “London Banking Day” shall mean any day other than Saturday or Sunday or a day on
which commercial banks are required or authorized by law to be closed in London, England.]

Section 10. Amendments, Waivers and Consents.

     (a) This Guaranty may be amended, and the observance of any term hereof may be waived (either
retroactively or prospectively), with (and only with) the written consent of each Guarantor and the
Required Holders.

-13-

 

     (b) The Guarantors will provide each Holder (irrespective of the amount of Notes then owned by
it) with sufficient information, sufficiently far in advance of the date a decision is required, to
enable such Holder to make an informed and considered decision with respect to any proposed
amendment, waiver or consent in respect of any of the provisions hereof. The Guarantors will
deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant
to the provisions of this Section 10 to each Holder promptly following the date on which it is
executed and delivered by, or receives the consent or approval of, the requisite Holders.

     (c) The Company will not directly or indirectly pay or cause to be paid any remuneration,
whether by way of fee or otherwise, or grant any security, to any Holder as consideration for or as
an inducement to the entering into by any Holder of any waiver or amendment of any of the terms and
provisions hereof unless such remuneration is concurrently paid, or security is concurrently
granted, on the same terms, ratably to each Holder even if such Holder did not consent to such
waiver or amendment.

     (d) Any amendment or waiver consented to as provided in this Section 10 applies equally to all
Holders and is binding upon them and upon each future holder and upon the Guarantors. No such
amendment or waiver will extend to or affect any obligation, covenant or agreement not expressly
amended or waived or impair any right consequent thereon. No course of dealing between the
Guarantors and any Holder nor any delay in exercising any rights hereunder shall operate as a
waiver of any rights of any Holder. As used herein, the term “this Guaranty” and references
thereto shall mean this Guaranty as it may from time to time be amended or supplemented.

     (e) Solely for the purpose of determining whether the Holders of the requisite percentage of
the aggregate principal amount of Notes then outstanding approved or consented to any amendment,
waiver or consent to be given under this Guaranty, Notes directly or indirectly owned by any
Guarantor, the Company or any of their respective subsidiaries or Affiliates shall be deemed not to
be outstanding.

Section 11. Notices; English Language.

     All notices and communications provided for hereunder shall be in writing and sent (a) by
telefacsimile if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), or (b) by registered or certified mail with return
receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with
charges prepaid). Any such notice must be sent:

     (1) if to an Initial Note Purchaser or such Initial Note Purchaser’s nominee, to such
Initial Note Purchaser or such Initial Note Purchaser’s nominee at the address specified for
such communications in Schedule A to the Note Purchase Agreement, or at such other address
as such Initial Note Purchaser or such Initial Note Purchaser’s nominee shall have specified
to any Guarantor or the Company in writing,

-14-

 

     (2) if to any other Holder, to such Holder at such address as such Holder shall have
specified to any Guarantor or the Company in writing, or

     (3) if to any Guarantor, to such Guarantor c/o the Company at its address set forth at
the beginning of the Note Purchase Agreement to the attention of ______________, or at such
other address as such Guarantor shall have specified to the Holders in writing.

Notices under this Section 11 will be deemed given only when actually received.

[In the event any Guarantor is organized under the laws of any jurisdiction other than any

state of the United States or the District of Columbia, the following paragraphs shall be added to

Section 11 of the Guaranty]

     [Each document, instrument, financial statement, report, notice or other communication
delivered in connection with this Guaranty shall be in English or accompanied by an English
translation thereof.]

     [This Guaranty has been prepared and signed in English and the parties hereto agree that the
English version hereof and thereof (to the maximum extent permitted by applicable law) shall be the
only version valid for the purpose of the interpretation and construction hereof and thereof
notwithstanding the preparation of any translation into another language hereof or thereof, whether
official or otherwise or whether prepared in relation to any proceedings which may be brought in
____________ or any other jurisdiction in respect hereof or thereof.]

	Section 12. Miscellaneous.

     (a) No remedy herein conferred upon or reserved to any Holder is intended to be exclusive of
any other available remedy or remedies, but each and every such remedy shall be cumulative and
shall be in addition to every other remedy given under this Guaranty now or hereafter existing at
law or in equity. No delay or omission to exercise any right or power
accruing upon any default, omission or failure of performance hereunder shall impair any such right
or power or shall be construed to be a waiver thereof but any such right or power may be exercised
from time to time and as often as may be deemed expedient. In order to entitle any Holder to
exercise any remedy reserved to it under the Guaranty, it shall not be necessary for such Holder to
physically produce its Note in any proceedings instituted by it or to give any notice, other than
such notice as may be herein expressly required.

     (b) The Guarantors will pay all sums becoming due under this Guaranty by the method and at the
address specified in the Note Purchase Agreement, or by such other method or at such other address
as any Holder shall have from time to time specified to the Guarantors in writing for such purpose,
without the presentation or surrender of this Guaranty or any Note.

     (c) Any provision of this Guaranty that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition  or unenforceability without invalidating the remaining provisions hereof, and any such prohibition

-15-

 

 or
unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.

     (d) If the whole or any part of this Guaranty shall be now or hereafter become unenforceable
against any one or more of the Guarantors for any reason whatsoever or if it is not executed by any
one or more of the Guarantors, this Guaranty shall nevertheless be and remain fully binding upon
and enforceable against each other Guarantor as if it had been made and delivered only by such
other Guarantors.

     (e) This Guaranty shall be binding upon each Guarantor and its successors and assigns and
shall inure to the benefit of each Holder and its successors and assigns so long as its Notes
remain outstanding and unpaid.

     (f) This Guaranty may be executed in any number of counterparts, each of which shall be an
original but all of which together shall constitute one instrument. Each counterpart may consist
of a number of copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.

Section 13. Indemnity.

     To the fullest extent of applicable law, each Guarantor shall indemnify and save each Holder
harmless from and against any losses which may arise by virtue of any of the obligations hereby
guaranteed being or becoming for any reason whatsoever in whole or in part void, voidable, contrary
to law, invalid, ineffective or otherwise unenforceable by the Holder or any of them in accordance
with its terms (all of the foregoing collectively, an “Indemnifiable Circumstance”). For greater
certainty, these losses shall include without limitation all obligations hereby guaranteed which
would have been payable by the Company but for the existence of an Indemnifiable Circumstance, net
of any withholding or deduction of or on account of any Relevant Tax in accordance with Section 7
hereof; provided, however, that the extent of the Guarantor’s aggregate liability under this
Section 13 shall not at any time exceed the amount (but for any Indemnifiable Circumstance) otherwise guaranteed pursuant to Section 2.

[Intentionally Blank]

-16-

 

     In Witness Whereof, the undersigned has caused this Guaranty
to be duly executed by an authorized representative as of this ___ day of _______________.

	 	 	 	 	 
	 	[Guarantor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[Guarantor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-17-

 

	 	 	 	 	 

	 	 	 	 	 
	 	Accepted and Agreed:

Sensient Technologies Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-18-

 

	 	 	 	 	 

Guaranty Supplement

To the Holders of the Notes (as hereinafter

      defined) of Sensient Technologies

      Corporation (the “Company”)

Ladies and Gentlemen:

     Whereas, in order to refinance certain debt and for general corporate purposes, the
Company issued (a) $25,000,000 aggregate principal amount of its 3.77% Senior Notes, Series A, due
November 28, 2016 (the “Series A Notes”), (b) $25,000,000 aggregate principal amount of its 4.14%
Senior Notes, Series B, due November 28, 2017 (the “Series B Notes”), and (c) $25,000,000 aggregate
principal amount of its 4.47% Senior Notes, Series C, due November 28, 2018 (the “Series C Notes”,
and together with the Series B Notes and the Series A Notes, the “Notes,”) pursuant to that certain
Note Purchase Agreement dated as of March 22, 2011 (the “Note Purchase Agreement”) among the
Company and each of the purchasers named on Schedule A thereto (the “Initial Note Purchasers”).

     Whereas, as pursuant to the terms of the Note Purchase Agreement, certain
subsidiaries of the Company may enter into a Guaranty Agreement as security for the Notes (the
“Guaranty”).

     Pursuant to Section 9.7 of the Note Purchase Agreement, the Company has agreed to cause the
undersigned, ______________, a ______________ organized under the laws of _______________ (the
“Additional Guarantor”), to join in the Guaranty. In accordance with the requirements of the
Guaranty, the Additional Guarantor desires to amend the definition of Guarantor (as the same may
have been heretofore amended) set forth in the Guaranty attached hereto so that at all times from
and after the date hereof, the Additional Guarantor shall be jointly and severally liable as set
forth in the Guaranty for the obligations of the Company under the Note Purchase Agreement and
Notes to the extent and in the manner set forth in the Guaranty.

     The undersigned is the duly elected ______________ of the Additional Guarantor, a subsidiary
of the Company, and is duly authorized to execute and deliver this Guaranty Supplement to each of
you. The execution by the undersigned of this Guaranty Supplement shall evidence its consent to
and acknowledgment and approval of the terms set forth herein and in the Guaranty and by such
execution the Additional Guarantor shall be deemed to have made in favor of the Holders the
representations and warranties set forth in Section 5 of the Guaranty.

     Upon execution of this Guaranty Supplement, the Guaranty shall be deemed to be amended as set
forth above. Except as amended herein, the terms and provisions of the Guaranty are hereby
ratified, confirmed and approved in all respects.

 

 

     Any and all notices, requests, certificates and other instruments (including the Notes) may
refer to the Guaranty without making specific reference to this Guaranty Supplement, but
nevertheless all such references shall be deemed to include this Guaranty Supplement unless the
context shall otherwise require.

     Dated: _________________, ____.

	 	 	 	 	 
	 	[Name of Additional Guarantor]

 	 
	 	By  	 	 
	 	 	Its 	 
	 	 	 	 

-2-

 

	 	 	 	 	 

Form of Opinion of Special Counsel for the Company

[Form assumes no Guaranty will be delivered at Closing]

November __, 2011

To each of the Addressees

listed on Schedule I hereto

Sensient Technologies Corporation

Dear Sirs:

     We have acted as special counsel to Sensient Technologies Corporation, a Wisconsin corporation
(the “Company”), in connection with (a) the negotiation, execution and delivery today of the Note
Purchase Agreement, dated as of March 22, 2011 (the “Note Purchase Agreement”), entered into by the
Company with each of the purchasers named in Schedule A thereto and (b) the Notes purchased by you
today pursuant thereto (the “Notes,” and together with the Note Purchase Agreement, the
“Documents”).

     The opinions expressed below are furnished to you at the request of the Company pursuant to
Section 4.4(a)(i) of the Note Purchase Agreement. Capitalized terms used herein without definition
have the respective meanings set forth in Schedule B to the Note Purchase Agreement. As used
herein, the term “Material Adverse Effect” means a material adverse effect on the business,
operations, property or condition (financial or otherwise) of the Company.

     In arriving at the opinions expressed below:

     (a) we have examined and relied on the originals, or copies certified or otherwise
identified to our satisfaction, of the Documents;

     (b) we have examined and relied on such corporate documents and records of the Company
and such other instruments and certificates of public officials, officers and
representatives of the Company and other Persons as we have deemed necessary or appropriate
for the purposes of this opinion;

     (c) we have examined and relied as to factual matters upon, and have assumed the
accuracy of, the representations and warranties contained in or made pursuant to the
Documents; and

     (d) we have made such investigations of law as we have deemed appropriate as a basis
for this opinion.

     In rendering the opinions expressed below, we have assumed, with your permission, without
independent investigation or inquiry, (a) the authenticity of all documents submitted to us as
originals, (b) the genuineness of all signatures on all documents that we examined, (c) the

Exhibit 4.4(a)(i)

(to Note Purchase Agreement)

 

 

conformity to authentic originals of documents submitted to us as certified, conformed or
photostatic copies, (d) the due incorporation or formation and valid existence of each party to the
Documents, (e) the corporate or other power and authority of each party to the Documents to enter
into and perform its obligations under the Documents, and (f) the due authorization, execution and
delivery of each of the Documents by each party thereto.

     Based upon and subject to the foregoing and the qualifications hereinafter set forth, we are
of the following opinion:

     1. Each of the Documents constitutes the legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms.

     2. No consent or authorization of, or approval by, notice to, filing with or other act by or
in respect of any United States federal or New York State governmental authority is required under
United States federal or New York State law to be obtained or made on or prior to the date hereof
by the Company in connection with its execution and delivery of, or performance of its obligations
under, the Documents or in connection with the validity or enforceability against it of the
Documents, except for (i) the filing of a Current Report on Form 8-K with respect to the Note
Purchase Agreement with the Securities and Exchange Commission, (ii) any such consents, approvals,
authorizations, registrations, filings or declarations that have been obtained or made and remain
in effect and (iii) those consents, authorizations, filings and other acts that, individually or in
the aggregate, if not made, obtained or done would not to our knowledge have a Material Adverse
Effect.

     3. The execution and delivery by the Company of the Documents, and the performance by the
Company of its obligations thereunder, will not violate any existing United States federal or New
York law, rule or regulation known by us to be applicable to the Company.

     4. The registration of the Notes under the Securities Act of 1933, as amended, is not required
for the offer, issuance, sale and delivery of the Notes by the Company in the manner contemplated
by the Note Purchase Agreement. We express no opinion as to when and under what circumstances the
Notes may otherwise be resold. No qualification of an indenture in respect of the Notes under the
Trust Indenture Act of 1939, as amended, is required in connection with such offer, issuance, sale
and delivery.

     Our opinion set forth above is subject to the effects of (a) bankruptcy, insolvency,
fraudulent conveyance, fraudulent transfer, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights or remedies generally, (b) general equitable principles
(whether considered in a proceeding in equity or at law), (c) an implied covenant of good faith,
reasonableness and fair dealing and standards of materiality and (d) limitations on the validity or
enforceability of indemnification, contribution or exculpation under applicable law (including
court decisions) or public policy. In addition, applicable laws and interpretations may affect the
validity or enforceability of certain provisions of the Documents, but such limitations do not, in
our opinion, make the remedies provided for therein inadequate for the practical realization of the
principal benefits intended to be provided thereby (subject to the other qualifications expressed
herein).

E-4.4(a)(i)-2

 

 

     Without limiting the foregoing, we express no opinion as to the validity, binding effect or
enforceability of (i) any provision of any Document that purports to waive, release or vary any
statutory right, (ii) any provision of any Document that purports to grant a right to collect any
post-judgment interest or a penalty or forfeiture or (iii) the waiver of inconvenient forum or
improper venue set forth in Section 22.8(a) of the Note Purchase Agreement. In addition, the
enforceability of any provision in any Document to the effect that (i) the terms thereof may not be
waived or modified except in writing or (ii) certain determinations made by one party shall have
conclusive effect, may be limited in certain circumstances.

     We express no opinion as to the laws of any jurisdiction other than the laws of the State of
New York and the federal laws of the United States of America, in each case that in our experience
are generally applicable to transactions of this type. In particular (and without limiting the
generality of the foregoing) we express no opinion as to (a) the laws of any country (other than
the federal laws of the United States of America), (b) the effect of such laws (whether limiting,
prohibitive or otherwise) on any of the rights or obligations of any holder of Notes or (c) whether
the choice of the law of the State of New York as the governing law in any Document would be given
effect by any court or governmental authority other than a New York State court. We have assumed,
with your permission, that the execution and delivery of each of the Documents by each of the
parties thereto and the performance of their respective obligations thereunder will not be illegal
or unenforceable or violate any fundamental public policy under, and that no such party has entered
therein with the intent to avoiding or a view to violating, applicable law (other than the laws of
the State of New York and the federal laws of the United States of America). In giving the
foregoing opinion, we express no opinion as to the effect (if any) of any law of any jurisdiction
(except the State of New York) in which any holder of any Notes is located which limits the rate of
interest that such holder may charge or collect.

     The opinions expressed herein are solely for your benefit and, without our prior consent,
neither our opinion nor this opinion letter may be disclosed publicly to or relied upon by any
other person, except that any holder of a Note (a) may show this opinion letter to a prospective
transferee, and provide a copy of this opinion letter to a transferee, of a Note transferred in
accordance with the Note Purchase Agreement and (b) may show a copy of this opinion letter to any
governmental authority pursuant to requirements of applicable law or regulations or the United
States National Association of Insurance Commissioners or any rating agency reviewing the
investment holdings of such holder.

     This opinion letter is limited to, and no opinion is implied or may be inferred beyond, the
matters expressly stated herein. The opinions expressed herein are rendered only as of the date
hereof, and we assume no responsibility to advise you of facts, circumstances, changes in law, or
other events or developments that hereafter may occur or be brought to our attention and that may
alter, affect or modify the opinions expressed herein.

Very truly yours,

E-4.4(a)(i)-3

 

 

Form of Opinion of General Counsel for the Company 

[Form assumes no Guaranty will be delivered at Closing]

November __, 2011

To each of the Addressees

listed on Schedule I hereto

Sensient Technologies Corporation

Dear Sirs:

     I am Senior Vice President, General Counsel and Secretary of Sensient Technologies
Corporation, a Wisconsin corporation (the “Company”), and I am furnishing this opinion to
you pursuant to Section 4.4(a)(ii) of the Note Purchase Agreement, dated as of March 22, 2011 (the
“Note Purchase Agreement”), entered into by the Company with each of the purchasers named
in Schedule A thereto. Unless otherwise defined herein, capitalized terms defined in the Note
Purchase Agreement are used herein as defined therein.

     In arriving at the opinions expressed below, I have examined and relied on the following
(including, but not limited to, the representations and warranties as to factual matters contained
therein):

	 	1.	 	originals, or copies certified or otherwise identified to my satisfaction, of
the Note Purchase Agreement and the Notes purchased by you today pursuant thereto
(collectively, the “Documents”);
	 
	 	2.	 	such corporate documents and records of the Company and such other instruments
and certificates of public officials, officers and representatives of the Company and
other Persons as I have deemed necessary or appropriate for the purposes of this
opinion; and

     I have made such investigations of law as I have deemed appropriate as a basis for this
opinion.

     In rendering the opinions expressed below, I have assumed, with your permission, without
independent investigation or inquiry, (a) the authenticity of all documents submitted to me
as originals, (b) the genuineness of all signatures (other than the signatures of officers
of the Company) on all documents that I examined and (c) the conformity to authentic
originals of documents submitted to us as certified, conformed or photostatic copies.

     Based upon and subject to the foregoing and the qualifications hereinafter set forth, I am of
the opinion that:

	1.	 	The Company is duly incorporated, validly existing and in good standing under the laws of the
State of Wisconsin and has the corporate power and authority to own and operate its

Exhibit 4.4(a)(ii)

(to Note Purchase Agreement)

 

 

	 	 	respective property, to lease the property it operates as lessee and to conduct the business in
which it is currently engaged. The Company is duly qualified as a foreign corporation and is in
good standing in each jurisdiction in which such qualification is required by law, other than
those jurisdictions as to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on
the business, operations, property or condition (financial or otherwise) of the Company.

	2.	 	The Company has the corporate power and authority to execute, deliver and perform its
obligations under the Documents and to issue and deliver the Notes. The execution, delivery
and performance by the Company of the Documents and the consummation of the transactions set
forth therein have been duly authorized and approved by all necessary corporate action of the
Company.

	3.	 	The Documents have been duly executed and delivered on behalf of the Company.

	4.	 	No consent or authorization of, or approval by, notice to, filing with or other act by or in
respect of any United States federal or Wisconsin governmental authority is required under
United States federal or Wisconsin law to be obtained or made on or prior to the date hereof
by the Company in connection with its execution and delivery of, or performance of its
obligations under, the Documents or in connection with the validity or enforceability against
it of the Documents, except for (i) the filing of a Current Report on Form 8-K with respect to
the Note Purchase Agreements with the Securities and Exchange Commission, (ii) any such
consents, approvals, authorizations, registrations, filings or declarations that have been
obtained or made and remain in effect and (iii) those consents, authorizations, filings and
other acts that, individually or in the aggregate, if not made, obtained or done would not to
my knowledge have a material adverse effect on the business, operations, property or condition
(financial or otherwise) of the Company.

	5.	 	The execution and delivery by the Company of the Documents, the issue and sale of the Notes,
and the performance by the Company of its obligations under the Documents, all as provided
therein, (x) will not violate (i) the articles of incorporation or bylaws of the Company, (ii)
any existing judgment, order or decree known to me of any arbitrator, court or other
governmental authority binding upon the Company or to which the Company is subject, (iii) any
existing law, rule or regulation of the United States or the State of Wisconsin applicable to
the Company or (iv) any material agreement known to me and binding upon the Company, and (y)
will not result in, or require, the creation or imposition of any Lien on any of the
properties or revenues of the Company. Neither the issuance of the Notes, nor the intended
use of the proceeds of the Notes (as set forth in Section 5.14 of the Note Purchase
Agreement), will violate Regulations T, U or X of the Federal Reserve Board.

	6.	 	To my knowledge, there are no pending or overtly threatened actions or proceedings against
the Company before any court, governmental agency or other regulatory authority or arbitrator
which purport to affect the legality, validity, binding effect or enforceability of the
Documents or which could reasonably be expected to have a Material Adverse Effect on the
financial condition or operations of the Company.

E-4.4(a)(ii)-2

 

 

	7.	 	None of the Company, any Person controlling the Company, or any Subsidiary of the Company is
an “Investment Company” within the meaning of the Investment Company Act of 1940.

	8.	 	The rates of interest provided in the Documents do not violate any law, rule or regulation of
the State of Wisconsin relating to interest or usury.

          I am admitted to the bar in the State of Wisconsin. I express no opinion as to the laws of
any jurisdiction other than the State of Wisconsin and the laws of the United States of America,
currently in effect, in each case that in my experience are generally applicable to transactions of
this type. Insofar as my foregoing opinions depend on matters governed by the laws of any other
jurisdiction, I have assumed, with your permission and without investigation, that the laws of such
other jurisdiction are the same as those of the State of Wisconsin. This opinion speaks only as of
the date hereof and I assume no responsibility to update my opinion due to any change in fact or
law.

          The opinions expressed herein are solely for your benefit and, without my prior consent,
neither my opinion nor this opinion letter may be disclosed publicly to or relied upon by any other
person, except that any holder of a Note (a) may show this opinion letter to a prospective
transferee, and provide a copy of this opinion letter to a transferee, of a Note transferred in
accordance with the Note Purchase Agreement and (b) may show a copy of this opinion letter
to any governmental authority pursuant to requirements of applicable law or regulations or the
United States National Association of Insurance Commissioners or any rating agency reviewing the
investment holdings of such holder.

Very truly yours,

E-4.4(a)(ii)-3

 

 

Form of Opinion of Special Counsel for the Purchasers

(Delivered to Purchasers only)

Exhibit 4.4(b)

(to Note Purchase Agreement)

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