Document:

Exhibit 10.2

Exhibit 10.2

AR
FINANCING FACILITY CONTRACT — GENERAL CONDITIONS

Contract n°

GENERAL CONDITIONS

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GE FACTOFRANCE AR Financing Facility Contract

These General Conditions as well as the Specific Conditions executed on the same date are together
defined as the “Contract”. For the avoidance of doubt, in the event of conflict between these two
documents, the terms of the Specific Conditions will prevail.

Article 1
— Purpose, Scope of application

1-1
Services provided by the AR Facility Provider —  Exclusive
Rights — Subject to the conditions
set forth below, and for all of the Originator’s commercial or professional receivables falling
within the scope of application specified in the Specific Conditions, (the “Relevant Receivables”),
the AR Facility Provider shall be responsible for (a) the payment of such receivables against
subrogation by crediting a Current Account, (b) financing receivables prior to their collection,
(c) if the Mandates are revoked and such revocation becomes effective in accordance with the
Specific Conditions: account-keeping on behalf of its clients (referred to herein as “Debtor”),
ensuring day-to-day collection and cashing of the receivables. Consequently, the Originator
undertakes not to enter into or execute any agreement that would grant rights to third parties over
such receivables.

1-2 Global arrangement — Unless otherwise provided, this Contract shall apply to any and all
receivables relating to firm sales of goods or to the provision of services by the Originator in
the normal course of its business in accordance with orders received.

1-3
Excluded items — The following invoices are excluded from the scope of application:

a) interim
invoices issued in the context of works or related contracts, where payment — even after
unconditional acceptance — is subject to verification of the performance of a strict liability
obligation,

b) invoices related to supplies or services carried out by a subcontractor,

c) invoices issued in respect of Debtor that are also suppliers of the Originator or with which the
Originator maintains a relationship of dependence or interdependence. (This latter refers in
particular to natural or legal persons which have direct or indirect financial ties with the
Originator or which have common officers, either officially or de facto) and more generally all
invoices related to affiliated companies of the Originator.

d) invoices which do not meet the additional eligibility criteria listed in the Specific
Conditions.

The Originator is responsible for respecting these exclusions. The AR Facility Provider shall not
be responsible for verifying their application.

Article 2
— Guarantee against insolvency risk — Recourse against the Originator

2-1 Benefit — If the Mandates are revoked and such revocation becomes effective in accordance with
the Specific Conditions: In order to be entitled to benefit from this guarantee, the Originator
must obtain the AR Facility Provider’s prior approval on an outstanding amount (tax-included) for
each of its private Debtor. Within the limit of the guarantees in force, the AR Facility Provider
shall be responsible for the receivables in the event of non-payment linked exclusively to the
Debtors’ insolvency. Such insolvency is proved by the commencement of a protection procedure
(procédure de sauvegarde) or judicial restructuring procedure (procédure de redressement
judiciaire) or judicial liquidation procedure (procédure de liquidation judiciaire). Provided that
the receivable is not being disputed and that the Originator complies with its obligations under
the Contract, the AR Facility Provider’s guarantee may be implemented. However, in the event that
the relevant receivable is rejected in whole or in part by judicial decision after the AR Facility
Provider has assumed responsibility for the receivable, the Originator agrees promptly to reimburse
the amount of the principal and interest corresponding to that receivable.

2-2
Procedures — Scope— If the Mandates are revoked and such revocation becomes effective in
accordance with the Specific Conditions: Guarantee requests shall be made through the AR Facility
Provider’s Telematic Services, in accordance with the terms set out in the Specific Conditions and
procedures described in the Client
Guide which has been given to the Originator. The replies shall be sent to the Originator through
any telematic system and shall be confirmed by delivery of a monthly statement. Unless an effective
date is stipulated, any guarantee shall apply retroactively to the outstanding amount existing in
the AR Facility Provider’s records as of the date of issuance of the guarantee.

2-3
Recourse against the Originator — The Originator shall remain jointly and severally liable for
any and all receivables which are assigned in the cases below:

a) absence of guarantee or outstanding amounts exceeding the amount of the guarantee, within the
limit of the excess amounts as of the date of default of the Debtor or the date of revocation of
the guarantee, whichever is earlier,

b) default in payment of a guaranteed receivable upon maturity due to an objection based on the
Originator’s relations with the Debtor or with third parties, or a reduction in the amount
collected due to a foreign exchange loss,

c) receivables which are not within the scope of application or for which the Originator may
benefit from another guarantee granted by a credit insurance company or a credit establishment
authorised to conduct business in France,

d) deductibles (franchises) provided under the Specific Conditions, up to the amount of the said
deductibles,

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e) if several guarantees were issued to the Originator relating to the same Debtor, especially with
respect to accounts or sub-accounts created to isolate an activity or for any other reason, the
guarantees shall not be cumulative. Consequently, and in respect of the relevant Debtor, the
highest guarantee will be used to determine the amount of the AR Facility Provider’s liability, as
regards accumulated outstanding amounts on all accounts or sub-accounts opened in the name of the
Originator.

2-4 Changes in the guarantees — The AR Facility Provider may, at any time, notify the Originator of
changes in the guarantees — and especially an increase or decrease — with immediate effect but
without any retroactive effect, except for increases.

2-5 Cashed amounts — Any amount entered as a credit on the Current Accounts (where the outstanding
amounts of transferred receivables are recorded) in the AR Facility Provider’s books shall be
applied first against the guaranteed outstanding amount. Through the renewal process, receivables
whose amount exceeds the ceiling of guaranteed outstanding amounts shall therefore be covered upon
the actual collection of the said receivables, on the basis of their due dates. The renewal process
shall cease to apply if the guarantee is revoked. In case of reduction, it shall only apply to the
new amount.

2-6 Amounts recovered — After the revocation of a guarantee or in the event of insolvency of the
Debtor, any amount whatsoever recovered by one or other party shall be applied on a pro rata basis
to the guaranteed and non guaranteed outstanding amount registered in the AR Facility Provider’s
accounting records. Since the guarantees are issued on the basis of tax inclusive amounts, the
Originator agrees to refund to the AR Facility Provider the amount of recoverable VAT pro rata the
guaranteed outstanding amount. Such reimbursement shall occur immediately upon receipt of a
document certifying that the receivable cannot be collected or on the date of the court decision
approving the restructuring plan and deciding that the Debtor may continue to conduct business or
ordering the judicial liquidation of the Purchaser.

2-7 Disputes— In the event of a dispute concerning a guarantee, the Originator must provide any and
all documents originating from the AR Facility Provider in support of its request.

Article 3 : Assignment of the receivables

3-1 Time limit — The Originator agrees to assign its receivables prior to their due date and no
later than thirty calendar days after issuance of the invoices.

3-2 Subrogation — In consideration of the payments made by the AR Facility Provider by way of a
credit entered in the Current Account, the Originator shall subrogate the AR Facility Provider in
all of its rights and actions related to the receivables, in accordance with Article 1250 of the
Civil Code. The AR Facility Provider shall remain the sole owner of any assigned receivable, even
in the event that the Current Account is debited and until the said receivable shall have been
actually reimbursed. The Originator shall prepare a subrogation receipt in accordance with the form
approved by the AR Facility Provider and shall attach thereto a copy of the invoices as well as the
details of all items presented on an attached list or any other medium by mutual consent of the
parties.

3-3 Validity — The Originator warrants the legal validity of each of the subrogation receipts, and
in particular the existence and validity of the receivables and the enforceability of the
assignment of such receivables against the Debtors and any and all other third parties, in such
manner that the subrogation shall in no way be ineffective, whether in law or in fact.

3-4 Information to be provided to Purchasers — If the Mandates are revoked and such revocation
becomes effective in accordance with the Specific Conditions:

	 	-	 	the Originator shall inform its Debtors as follows by letter in a form approved by the
AR Facility Provider. To that effect, the Originator shall insert in the body of its
invoices a reference to the Specific Conditions which shall state that, as a result of the
subrogation, only payments made to the AR Facility Provider will discharge the Debtors;
	 
	 	-	 	the AR Facility Provider is fully authorized at any time to notify the Debtors and all
third parties of the existence of the Contract and its capacity as subrogate.

3-5 Attachment — If the receivables assigned to the AR Facility Provider are subject to attachment
(or any other equivalent procedures) on application by a third party presenting itself as the
creditor of the Originator,

	 	•	 	against a Debtor,
	 
	 	•	 	against the AR Facility Provider,

the AR Facility Provider may, until it is notified of the full release and discharge of the
attachment, transfer the amounts available in the Current Account to the credit of a deferred
availability account up to the total amount of the attachment. The same shall apply to all
available amounts noted after each payment by way of subrogation effected after the attachment.

3-6 Public and private sector contracts — Prior to any invoicing in connection with a public sector
contract, the Originator agrees to assign to the AR Facility Provider, pursuant to Art. L. 313-23
to L. 313-35 of the French Monetary and Financial Code, the public sector contract in connection
with which the invoice has been issued and to deliver to the AR

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Facility Provider a copy of the private sector contract or the sole original of the public sector
contract.

Article 4 : Disputes — Direct payments— Credits

4-1 Disputed receivables (disputes) — If the Mandates are revoked and such revocation becomes
effective in accordance with the Specific Conditions: If a Debtor disputes payment to the AR
Facility Provider of all or part of an assigned receivable, such receivable shall be deemed to be
disputed up to the relevant amount. The alleged defences to payment may relate to the receivable
itself such as, in particular, non-compliance (quality, quantity, lead times, etc.) of the goods
and services supplied with those ordered, defences not related to the order, such as set-off,
countermand, etc. Each party undertakes to inform the other party, as soon as possible, of any such
dispute as soon as the same comes to its attention.

4-2 Dealing with disputed receivables— From the issuance of a notice of dispute by the Debtor or by
the AR Facility Provider, the Originator shall have a maximum period of thirty calendar days to
obtain payment by the Debtor to the Dedicated Accounts (as this term is defined in the Specific
Conditions).

At the end of this thirty-day period and failing payment, the AR Facility Provider may debit the
Current Account by an amount not exceeding the amount of this receivable, and credit the Current
Account in which the outstanding amount of the assigned receivables is recorded in order to revoke
the subrogation by an amount equal to the available amount; provided in such case, that the
Originator shall acquire full title to such disputed receivable as of the date of such
credit/debit, subject to the conditions set out in Article 6-6 hereunder.

The period referred to in the previous two paragraphs shall not apply if the dispute concerns the
very existence of the receivable (absence of an order, failure to deliver...) or if the receivable
is being disputed in the context of legal proceedings.

4-3 Direct payments — If the Mandates are revoked and such revocation becomes effective in
accordance with the Specific Conditions: When payments are sent directly to the Originator for the
payment of receivables assigned to the AR Facility Provider, the Originator, which may only receive
them as agent for the AR Facility Provider, must send them to the AR Facility Provider upon
receipt. Failing this, the AR Facility Provider may debit the corresponding amount from the Current
Account, without prejudice to any other remedies.

4-4 Compliant credit notes — The Originator agrees not to change the scope of the rights attached
to an assigned receivable, without the AR Facility Provider’s consent. Such consent shall be deemed
to have been given in the case of issuance, in the normal course of business, of credit notes in
accordance with normal business practices. In any event, the Originator agrees to deliver to the AR
Facility Provider information about credit notes relating to the assigned receivables in accordance
with article 17-6.

4-5 Non compliant credit notes — Credit notes that do not comply with normal business practices
(for example the issuance of credit notes that materially affect the assigned receivables is not a
normal business practice) or issued in fraud of the AR Facility Provider’s rights, shall be deemed
unenforceable against the AR Facility Provider even where they have been credited to the Current
Account which records the outstanding amount of assigned receivables. Without prejudice to any and
all remedies existing against the Originator, this same rule shall apply, in particular, to all
unsubstantiated credit notes, to credit notes for which a written justification has not yet been
received and to all credit notes which are followed by later invoices issued without any reference
to the subrogation in favour of the AR Facility Provider.

Article 5 : Duty to inform

The Originator shall, as soon as possible once it has the knowledge of it, notify the AR Facility
Provider of any facts or events which may impact the AR Facility Provider’s title to the assigned
receivables. In the event that the Originator fails repeatedly or blatantly to comply with its
obligation to inform the AR Facility Provider, the AR Facility Provider may terminate this Contract
and claim reimbursement of all losses borne by the AR Facility Provider as a result of such
failure.

The Originator agrees to deliver, within 6 months after the end of each fiscal year, its balance
sheet duly certified by its statutory auditors when required by law, as well as any documents
attached thereto (annexes).

Article 6 — Current Account

6-1 Agreement — The amounts paid by the AR Facility Provider pursuant to the Contract and those
which are owed to it for any reason whatsoever by the Originator shall be entered in the Current
Account. The receivables and liabilities, which are reciprocal, connected and indivisible, shall be
reflected as debit and credit items and shall therefore be subject to automatic set-off when due
for payment. The same rule shall apply where sub-accounts to the Current Account are opened to
facilitate monitoring of transactions.

6-2 Balance — The Current Account and the sub-accounts thereof shall form an indivisible whole and
it is the overall balance of the single account after set-off of credits and debits that shall be
considered at all times — and in particular after the termination of the AR Financing Facility
transactions — as the balance of the Current Account.

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6-3 Overdraft — The Current Account is not authorised to be overdrawn. Any debit balance shall be
immediately due without any need for a formal notice and shall bear interest, even after the
account shall have been closed, at the rate of the Special Financing Commission (SFC), until full
reimbursement.

6-4 Transactions — The Current Account shall in particular be credited with the amount of the
assigned invoices, payments made to the order of the Originator which the AR Facility Provider
cashes in its capacity as agent, as well as all transfers from the sub-accounts of the Current
Account. The Current Account shall be debited by the amounts withdrawn by the Originator, the
amounts transferred to the credit of the sub-accounts as well as any and all amounts due by the
Originator to the AR Facility Provider, in particular under this Contract, as well as any and all
other contracts or transactions.

6-5 Statements — The monthly account statements provided by the AR Facility Provider shall be
deemed accurate unless they contain an error or omission. The Originator agrees that it will not
dispute the accuracy of such statements unless it is reasonably concerned that they may contain an
error or omission. At the Originator’s reasonable request, the AR Facility Provider shall provide
the Originator will all the information in its possession that is reasonably necessary to verify
the accuracy and the completeness of the monthly account statements.

6-6 — Payments — A debit of a receivable shall not be deemed to constitute a payment, unless the
Current Account shows, prior to such entry, a credit balance which is at least equal to the amount
debited.

6-7 Closing — After the termination of the Contract and complete unwinding of current transactions,
the Current Account shall be closed and the remaining balance (if positive) shall be refunded to
the Originator.

Article 7 — Guarantee Fund

7-1 Purpose — The Guarantee Fund shall be a sub-account of the Current Account whose purpose shall
be to guarantee that the AR Facility Provider may exercise all contractual remedies in respect of
all actual or potential bad debts, such as credit notes which have been issued or requested, direct
payments to the Originator, disputes, deferred remittances, delays in respect of financed but
non-guaranteed receivables. The balance of the said Guarantee Fund may not be less than a certain
percentage of the outstanding amount of assigned receivables or less than a certain threshold. The
said percentage has been calculated on the basis of the facts and circumstances disclosed to the AR
Facility Provider at the time of the pre-contract enquiries, relating to the Originator’s
collection data (including a history of the Originator’s ratio of bad debt). It may be modified
only in the event of a severe, material adverse change to such facts and circumstances (not
including, for the avoidance of doubt, a change that is seasonal in nature, or may reasonably be
expected to be cured within a reasonable period of time), in which case the AR Facility Provider
may inform the Originator of its intention to adjust such percentage, by written notice setting out
the percentage of, and the detailed justification for, the proposed adjustment; provided that such
proposed adjustment shall be reasonable and in proportion to the increase in the AR Facility
Provider’s risk under this Contract. The proposed adjustment shall become effective thirty (30)
days after notice thereof to the Originator. If the Originator reasonably considers that the
proposed adjustment or the percentage thereof is not (or no longer) justified, the AR Facility
Provider and the Originator shall discuss in good faith and use commercially reasonable efforts to
agree upon a proposed adjustment that is in proportion to the increase in the AR Facility
Providers’ risk compared to the situation prevailing as of the date hereof.

7-2 Constitution of the fund — The Guarantee Fund shall be funded by way of direct-debit from
available amounts at the time of subrogatory payments. Downward adjustments shall be made by
crediting the Current Account.

7-3 Utilisation — The AR Facility Provider may draw from the Guarantee Fund the sums necessary to
cover a debit position of the Current Account. In such case, the contractual percentage and/or
threshold shall be immediately reconstituted. Upon termination of relations between the parties,
the balance shall be transferred to the credit of the Current Account.

Article 8 : Deferred availability accounts (or “reserves”)

Deferred availability accounts are sub-accounts of the Current Account to which are transferred
subrogatory payments corresponding to unfinanced receivables, pending their collection. These
sub-accounts may be opened
to facilitate the monitoring of each type of transaction such as, in particular, receivables which
are covered by the guaranteed outstanding amounts ceiling or for which no evidence shows that they
are payable at a future date, or amounts which are available after release or discharge in the
event of an attachment or countermand. These amounts are transferred to the credit of the Current
Account upon the regularization of the relevant transaction.

Article 9 — Management of Debtors’ accounts

9-1 Day-to-day collection — If the Mandates are revoked and such revocation becomes effective in
accordance with the Specific Conditions: As long

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as it remains the owner of the assigned receivables, the AR Facility Provider, or its agent,
shall have the exclusive right to manage the collection and recovery thereof. They shall manage the
relevant accounts, grant or refuse any postponements, extensions or arrangements, with or without
discounts, as may be requested by the Debtors. Subject to actual collection, the AR Facility
Provider and its agent shall credit payments to the Current Account. The Originator agrees to
provide its assistance to the AR Facility Provider and to provide in particular any and all
documents, correspondence and special powers of attorney as may be required. For the unguaranteed
share of the assigned receivables, the AR Facility Provider shall not bear the collection fees and
expenses which may be incurred after their maturity date for a contested collection. In the event
that the AR Facility Provider prepays such fees and expenses, the AR Facility Provider shall be
entitled to debit the relevant amounts from the Current Account.

9-2 Power of attorney — If the Mandates are revoked and such revocation becomes effective in
accordance with the Specific Conditions: In order to enable the AR Facility Provider to cash
instruments of payment received from the Debtors without any delay, the Originator grants the AR
Facility Provider a power of attorney in order to affix any special wording or signature necessary
to the said instruments of payment. In the event that it appears that payments made in favour of
the AR Facility Provider are not related to assigned receivables, the AR Facility Provider shall be
deemed to have cashed the same in its capacity as agent, even after the termination of the
Contract. Subject to the proper completion of the transaction, amounts so cashed shall be credited
to the Current Account.

9-3 Retention of title — If the Mandates are revoked and such revocation becomes effective in
accordance with the Specific Conditions: For sales made subject to retention of title, the AR
Facility Provider is not required to assert its claim, unless requested in writing by the
Originator and accepted by the AR Facility Provider. Such exercise of the Originator’s rights of
claim shall be carried out at the Originator’s expense. In the event that the Originator’s rights
of claim are exercised, the Originator agrees to provide any assistance necessary, in particular
for the identification and recovery of the assets and to repurchase the recovered assets for a
price which may not be less than two thirds of the amount initially invoiced. In any event, the
Originator shall not be entitled to require the AR Facility Provider to bear the risks of loss or
destruction of the goods sold.

The powers of attorney referred to in this Article are stipulated in the joint interest of both
parties.

9-4 Penalties and late payment interest — With a view to maintaining control over its commercial
relations with its customers, the Originator expressly reserves the right to avail itself or to
abandon its rights to any penalties and late payment interest payable by its Debtors for assigned
receivables and make the corresponding adjustments to its books. Receivables corresponding to
penalties and/or late payment interest are excluded from the scope of application of the Contract
to the extent that they are identified in the IT system of the Originator.

Article 10 : Remuneration of the Factor

10-1 Service Commission — For its non-financial services, as stated above in article 1.1, the AR
Facility Provider shall receive a commission calculated on the basis of the amount, including tax,
of the assigned invoices.

The amount of such commission, as an annual minimum, is set out in the Specific Conditions.
The total amount of Service Commission received during a calendar year shall not, in any event, be
less than the minimum annual amount. At the beginning of the second calendar half-year, the AR
Facility Provider may if appropriate withdraw, by way of provision, the difference between the
total amount of Service Commissions charged since the beginning of the year and half of the minimum
annual amount. In case of of termination of the Contract by reason of the AR Facility Provider’s
decision, the minimum amount as referred to above, shall only be paid with respect to the then
current six-month period at the termination of the notice period. In all other cases of termination
of the Contract without prior notice or termination of the Contract on the Originator’s decision, ,
the annual minimum amount shall be immediately due and payable upon notification of termination of
the Contract.

10-2 Special Service Commission — In respect of the amounts it finances, the AR Facility Provider
shall be entitled to a special Service Commission (SFC) calculated on the basis of the net amount
of subrogatory payments less amounts deducted to constitute the holdback reserve and, if
applicable, amounts that have to be
transferred to the deferred availability account, and whose annual rate shall vary on the basis of
the evolution of a reference rate agreed between the parties. Unless otherwise provided, this rate
shall be equal to the AR Facility Provider’s reference rate. This rate shall vary in order never to
exceed the arithmetic average of the base rates of B.N.P. Paribas, Crédit Agricole and Société
Générale plus one half percent (fifty basis points). Upon the issuance of the AR Facility
Provider’s cheques or transfers, this commission shall be provisionally estimated on the basis of
the average maturity date of the receivables. Its final

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amount shall be paid upon the date of actual cashing of the receivables. At the end of each month,
after taking into account the value date applied to the cash receipts and outlays, a SFC statement
shall be prepared and the net debit balance after deducting the possible estimated amounts shall be
debited from the Current Account. The value dates, of which the Originator represents it is fully
aware, are only one of the methods for calculating the SFC, and this provision forms an indivisible
whole with the other clauses of the Contract.

10-3 Promissory notes — The issuance by the AR Facility Provider of promissory notes to the order,
and at the request, of the Originator, shall give rise to the payment of a commission which shall
be calculated on the basis of the time lapsed until the maturity date of the relevant promissory
note.

10-4 Taxes

The Originator shall pay all taxes and levies which are due in connection with the transactions
which are the subject matter hereof, as of the date of their performance.

10-5 Specific pricing — Collection or transfer charges

All services of the AR Facility Provider other than those described on Art. 1-1 of the General
Conditions and/or whose price is fixed in the Specific Conditions and the amendments thereto,
shall be priced separately as detailed in the Client Guide or, otherwise, in an estimate submitted
for the approval of the Originator.

The Current Account shall be debited by the amount of collection or transfer charges all of which
shall be entirely borne by the Originator.

Article 11 — Confidentiality — Substitution

11-1 Confidentiality — Any and all information communicated by the AR Facility Provider shall be
confidential. The Originator agrees not to disclose the same directly or though any intermediary
except for legal or regulatory purposes. Any breach may give rise to termination of the Contract
and the Originator may be held liable therefore.

11-2 Utilisation of information collected by the AR Facility Provider

11-2-1 Any information collected in the context of the performance of the Contract shall not be
sent to the AR Facility Providers of the GE Factofrance group or to any other GE group companies or
to any agent, even subject to a confidentiality undertaking, except to the extent required under
applicable laws and regulations or risk purposes.

11-2-2 For the purpose of internal control, the AR Facility Provider is expressly authorised by
the Originator to provide the information referred to in Art. L. 511-34 al. 1 of French Monetary
and Financial Code, to its shareholder.

11-3 Substitution — Unless agreed in writing by the AR Facility Provider, the Originator may not in
any form whatsoever be substituted by a third party for the performance of its obligations under
the Contract.

The AR Facility Provider shall not pledge, assign or otherwise transfer any of the Relevant
Receivables that are subrogated to it pursuant to this Contract, except in the event of a
bankruptcy of the Originator or other circumstances in which the AR Facility Provider is allowed to
claim payment directly from the Debtors pursuant to this Contract.

Article 12 — Term — Termination

12-1 Term — See specific conditions

12-2 Termination by the AR Facility Provider — See specific conditions.

12-3 Indivisibility — The Originator’s obligations in respect of the AR Facility Provider are
indivisible. In the event of termination of the Contract, any other contract relating to the AR
Financing contemplated in the Contract entered into between the Originator and the AR Facility
Provider shall be terminated in accordance with their respective terms (in particular, those
relative to the tripartite agreements), and any and all amounts due by the Originator under another
contract shall be set off as of right against the amounts which may be due by the AR Facility
Provider under the Contract and vice versa.

Article 13 — Access to telematic services

13-1 General — In order to enable the Originator to access all management information in
connection with the Contract, the AR Facility Provider has established Telematic Services (Minitel
access, internet and specific software) the content and mode of operation of which are described in
the Client Guide. Access to the said services requires the use of a Minitel device or PC. The
Originator shall bear all related costs, including the costs of telecommunications. Access to the
services is only possible through confidential codes, an identification code and a password, which
shall be communicated to the Originator upon the signature of the Contract.

13-2 Intellectual property rights — Grant of a license — All Intellectual property rights and
copyright concerning the telematic services, their presentation, content (software, visual, sound
functionalities, articles and generally all information contained in such service) are works
protected by the Intellectual Property Code and international agreements concerning copyright, that
exclusively belong to the AR Facility Provider, in their former, current and future versions. Any
complete or partial reproduction or broadcast by whatever means, is strictly forbidden without the
prior, written agreement of the AR Facility Provider.

The AR Facility Provider grants to the Originator a non exclusive license to use the specific
software

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referred to in Article 13-1 above, exclusively for its own use and for the sole purpose of carrying
out, in connection with the performance of the Contract, the transactions which are described in
the Client Guide.

The Originator shall comply with the conditions of the license contract given to it with the
software. It agrees to return the said software to the AR Facility Provider upon expiry of the
Contract and to destroy all copies thereof which it may have made.

13-3 AR Facility Provider’s liability — The AR Facility Provider shall not be liable for the
malfunction of the telephone lines and equipment necessary for using the Telematic Services, for
the use which is made thereof or for the results obtained. Moreover, it may interrupt or modify at
any time the operation of the Services, in particular in order to maintain the quality,
reliability, safety and/or performance thereof. In no event shall it be liable for the
consequences, in particular, loss of data, operational losses or any other financial loss which may
result from any of the events above.

13-4 Confidentiality — Liability — The AR Facility Provider has taken all necessary protective
measures to prevent unauthorised access to information. The Originator undertakes to ensure that
the access codes shall remain secret. It shall be solely responsible for the said codes, including
their conservation, confidentiality and use. The AR Facility Provider shall in no event be liable
in the event of abusive or fraudulent use thereof, due to a voluntary or involuntary disclosure of
the confidential codes by the Originator to any person whatsoever. The Originator guarantees that
it shall at all times comply with all laws and regulations applicable to the use of Telematic
Services. The Originator shall procure that its employees shall comply with the provisions of this
Article.

Article 14 — Miscellaneous provisions

14-1 Notices between the parties — Notices shall be deemed to have been given on the date of the
first presentation of a registered letter, or on the date of the document attesting the receipt of
a fax or an e-mail by the duly authorised representative of the other party. In the event that
contractual provisions provide for notification without specifying the form thereof, the said
notification may be made by fax, by normal letter mailed or hand delivered, by registered letter or
by registered letter return receipt requested.

14-2 Rights of the parties — The non-exercise or delayed exercise by the Originator or the AR
Facility Provider of any right hereunder shall not be deemed a waiver of the said right.

14-3 Non-assignment — The Originator is not authorized to assign all or part of its rights and
obligations under the terms of the Contract.

14-4 Interpretation — In the event of any interpretation difficulties between the headings of the
articles hereof and the text any of the articles, the headings shall be deemed not to exist. The
Contract, the Specific Conditions and amendments thereto, together with other agreements referred
to therein, contain all the obligations of the parties with respect to the subject matter thereof.
They annul and replace any and all prior letters, proposals, offers and agreements.

Article 15 — Governing law — Language of the Contract — Jurisdiction

For the performance of the Contract whose provisions are governed by French law, the parties elect
domicile at their respective Head Offices.

The language of the Contract is English.

The parties agree that any and all disputes arising in connection with the Contract and in
particular as regards the validity, interpretation, performance or non-performance thereof, shall
be submitted to the exclusive jurisdiction of the Commercial Court of Paris.

THE ORIGINATOR

Represented by:

Official stamp and authorised signature

GE FACTOFRANCE

Represented by:

Official stamp and authorised signature

GENERAL CONDITIONS

GEFQS0808

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

ENTERED INTO BETWEEN

NA PALI

Simplified joint stock company (SAS) with a share capital of
€ 3 444 300,00,

Registered office : 162 rue Belharra 64500 — Saint Jean de Luz,

RCS Bayonne B 331 377 036

Represented by             
               
                                                      duly authorised for the purposes hereof

hereafter referred to as the Originator;

AND

GE FACTOFRANCE,

A partnership (SNC) with a share capital of €300,000,000, a bank governed by law no. 24 January 1984,

Registered office : Tour Facto, 92988 Paris La Défense Cedex,

RCS Nanterre B 063.802.466

hereafter referred to as the AR Facility Provider.

This agreement consists of the Specific Conditions and General Conditions of the AR Financing
Facility Contract (reference GEFQS0808), numbered from 1 to 15 and appended hereto (hereafter the
“Contract”).

This is a AR Financing Facility Contract without notification of the AR Facility Provider’s
subrogation rights to the Originator’s Debtors and with no guarantee by the AR Facility Provider
against the risk of insolvency of the Originator’s Debtors.

Since the Originator is covered by three credit insurance policies (covering Board Rider’s,
Distribution and Domestic activities of the Originator), the AR Facility Provider undertakes, under
and in accordance with the terms of this Contract, to purchase and finance the Relevant Receivables
of the Originator, provided that the right to indemnification under such insurance policies is
fully assigned to the AR Facility Provider under insurance assignment agreements (délégations du
droit aux indemnités).

Due to the specificities regarding the three credit insurance policies of the Originator covering
its three activities, the parties have decided to create one Current Account with three
sub-accounts, the mechanics of which are described in appendix hereto in order to separate each
activity, as follows:

Current Account n° 12692

Domestic’s Sub-Account n° 00057

Export’s Sub-Account n° 00062

Majors & Board Rider’s Sub-Account n° 00075.

In addition, the AR Facility Provider has, under the terms and conditions set forth below, granted
the Originator mandates to collect and cash assigned receivables. Accordingly, unless provided
otherwise, articles 1.1 (c), 2.1, 2.2, 3.4, 4.1 to 4.3 and 9.1 to 9.3 of the General Conditions
shall not apply for the duration of the Mandates referred to in article 18.

For the avoidance of doubt, in the event of conflict, the Specific Conditions shall prevail.

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

Article 16 : Scope of application

16.1 In order to be assigned and in addition to the terms of the General Conditions and in
particular article 1, the Relevant Receivables and associated invoices must also satisfy the
following criteria:

	 	(i)	 	sales and services invoiced to Debtors exclusively located in France and in the
countries authorised by the applicable credit insurance policies with the exception of
North Korea, Iran, Cuba, Kuwait, Sudan, Syria, Yemen;
	 
	 	(ii)	 	each receivable shall have been originated and monitored in accordance with the credit
standards established by the Originator;
	 
	 	(iii)	 	each receivable must be governed by French law;
	 
	 	(iv)	 	each receivable must be invoiced in euros;
	 
	 	(v)	 	each receivable must be payable in France;
	 
	 	(vi)	 	each receivable shall be fully capable of transfer without the requirements of any
consents from the the Debtors or any third parties;
	 
	 	(vii)	 	each receivable must be free from any adverse claim, encumbrance, privilege, or any
other right and must not be transferred or pledged to the benefit of a third party;
	 
	 	(viii)	 	the Debtor under each receivable shall not belong to the Quiksilver Group;
	 
	 	(ix)	 	each receivable must not be transferred after having been debited from the current
account in accordance with the terms of article 19-4.

16.2 In order to be financed, the Relevant Receivables assigned in accordance with the terms of the
Contract (and in particular article 16.1 above) will also have to satisfy the following criteria on
their date of transfer to the AR Facility Provider:

	 	(i)	 	each Relevant Receivable must have a maturity date (maturity date being the period
between the date of the issuance of the invoice and the due date as indicated on the
invoice) of less than or equal to150 days;
	 
	 	(ii)	 	each Relevant Receivable must not be under dispute (as defined in Article 4.1).

16.3 Any assignment of Relevant Receivables due from a specific Debtor gives rise to an obligation
on the Originator to assign to the AR Facility Provider all of the Relevant Receivables held or to
be held against the Debtor, provided that such receivables satisfy the eligibility criteria set
forth in Article 16 of this Contract.

16.4 The revocation of the subrogation referred to in article 4.2 of the General Conditions and the
restitution of a Relevant Receivable to the Originator as provided in article 18.2 of the Specific
Conditions, shall have the effect of retransferring title to the relevant receivable to the
Originator provided that the corresponding debit to the Current Account is effectively repaid.

Article 17 : Frequency of remittance of invoices — Supporting documents — Legal and regulatory
obligations

17-1 Takeover of existing receivables

Notwhithstanding anything to the contrary set forth in Article 3.1, at the date on which the
Contract enters into force, the Originator will transfer to the AR Facility Provider all the
receivables that meet the Relevant Receivables criteria and that are not overdue, provided that
with respect to invoices for which Debtors have been instructed, prior to the date hereof, to pay
by wire transfer to a bank account other than the Dedicated Accounts, the Originator shall cause
any payments received on such bank accounts to be credited to the Dedicated Account; and provided
further, that Relevant Receivables for which partial or full payment has already been received
shall be excluded.

Subject to such conditions and in accordance with the terms of the Contract, the AR Facility
Provider will provide financing of such receivables provided that the AR Facility Provider will
have received

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

all information related to those receivables not more than five (5) Business Days prior the
financing of them.

In this Contrat, Business Day means a day (other than a Saturday or a Sunday) on which banks are
open for general business in Paris.

17-2 Frequency of remittance of invoices

Invoices shall be remitted once per week and up to 5 times per month. The Originator shall be
responsible for sending originals of the invoices to the Debtors; provided that if the Mandates are
revoked pursuant to article 18-7 and this Contract is continued notwithstanding the parties’ right
to terminate the Contract, the AR Facility Provider shall have the right to send the invoices to
the Debtors if the Originator fails to do so.

17-3 Supporting documents

As an exception to the terms of article 3-2 of the General Conditions, the Originator is dispensed
from the obligation to remit copy of the invoices sent to the Debtors to the AR Facility Provider
but undertakes to send it a copy thereof on first demand of the AR Facility Provider together with
any other document to prove the existence of the Relevant Receivable.

The following supporting documents must be available to the AR Facility Provider at the
Originator’s premises (or sent to the AR Facility Provider at its request):

	 	-	 	purchase orders (“bons de commande”),
	 
	 	-	 	transporter dockets (“bons des transporteurs”),
	 
	 	-	 	internal delivery dockets (“bons de livraisons internes”).

17-4 For all invoices equal to or greater than €150,000, the Originator undertakes
to promptly provide the AR Facility Provider with:

	 	-	 	a copy of the invoice,
	 
	 	-	 	the purchase orders,
	 
	 	-	 	transporter dockets.

Each of the above shall be duly signed and stamped (cachet commercial).

17-5 Subrogation payment

The Originator will provide to the AR Facility Provider a subrogation receipt (quittance
subrogative), the amount of which will be equal to the total amount of Relevant Receivables
generated and not already transferred to the AR Facility Provider in a previous subrogation receipt
as evidenced by the Originator as new invoices of the period in the reconciliation table (the
“Reconciliation Table”) as appended in Schedule 5 hereto.

The AR Facility Provider shall:

	(i)	 	if the relevant subrogation receipt is received not later than 10 a.m on any Business Day, on
the Business Day immediatly following such receipt; or

	(ii)	 	if the relevant subrogation receipt is received after 10 a.m on any Business Day, on the
second Business Day following such receipt;
	 
	 	 	pay the Relevant Receivables transferred to it in such subrogation receipt by crediting
the Current Account with an amount equal to the face value of the Relevant Receivables
transferred, and make other entries in the sub-accounts of the Current Account in
relation to such receivables as applicable.

Upon credit of the Current Account by the AR Facility Provider of the relevant face value, the AR
Facility Provider shall be subrogated (subrogé) into the rights, actions, security or mortgages of
the

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

Originator against the Debtors up to the amount so paid by the AR Facility Provider and therefore
have absolute title of the receivables so transferred.

17-6 Data transfer

The Originator shall provide to the AR Facility Provider each week, an electronic file of its sales
ledgers as well as the Reconciliation Table as scheduled hereto.

Article 18 — Collection and cashing mandates

The Originator has a well-proven administrative structure and methods for the management of its
accounts receivable and wishes to retain control of collection from its Debtors.

Consequently, the AR Facility Provider agrees to grant the Originator collection and cashing
mandates (hereafter the “Collection Mandate” and the “Cashing Mandate” respectively and together
the “Mandates”) under the terms specified below and subject to compliance by the Originator with
its own collection procedures as verified by the AR Facility Provider prior to the date of this
Contract.

18-1 Joint interest and consideration

The Mandates referred to in this article are stipulated in the joint interest of both parties.

Consequently, the Originator will not receive any remuneration; these Mandates are not however
devoid of consideration, since the Originator has a fundamental commercial interest in maintaining
control over collection from its Debtors.

18-2 Collection Mandate

The Originator is appointed by the AR Facility Provider as its agent for the purpose of collecting
assigned receivables. For each receivable, and unless article 18-7 below applies, the Collection
Mandate shall expire 60 calendar days after the maturity date of such receivable, due to the
restitution of the receivable to the Originator in accordance with article 19.4.

18-3 Cashing Mandate

18-3-1 The Originator undertakes to credit all payments made by the Debtors (received under the
Collection Mandate), to the account(s) whose details are set forth in the schedules hereto
(hereafter the “Dedicated Account(s)”) and the operating terms of which have been established by
agreement between the Originator, the credit establishment (the “Bank”) in whose books such
account(s) have been opened and the AR Facility Provider (the “Tripartite Agreement”). The credit
balance of the Dedicated Account shall be secured in favour of the AR Facility Provider.

Each Tripartite Agreement shall provide in particular that:

	 	-	 	the sole purpose of the Dedicated Account shall be to receive monies relating to
receivables assigned to the AR Facility Provider,
	 
	 	-	 	the Originator shall not make any withdrawal by debiting the Dedicated Account, the AR
Facility Provider alone being authorised to withdraw funds by debiting the Dedicated
Account,
	 
	 	-	 	the Bank shall not (i) operate any set-off between the balance of the Dedicated Account
and that of any other accounts opened with the Bank in the name of the Originator and (ii)
execute instructions originating only from the Originator.

18-3-2 For this purpose, with respect to Debtors who pay the Relevant Receivables by wire transfer,
the Originator shall refer in the body of its invoices issued after the date of this Contract to
the domiciliation of the Dedicated Accounts used for cashing.

18-3-3 Offset and adjustment account

To monitor execution of the Mandates for accounting purposes, it has been agreed that the following
transactions will be recorded in a sub-account of the Current Account entitled “offset and
adjustment account” (OAA):

	 	-	 	on the credit side, amounts cashed on assigned receivables,

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

	 	-	 	on the debit side, money transfers, cheques for cashing and bills due as determined
after comparison of ledgers forwarded by the Originator in accordance with the technical
procedures approved by the parties and as evidenced in the Reconciliation Table.

In principle, this account should have a zero balance. In practice this will not be the case due to
the timing mismatch of operations. Any balance will therefore be charged to the Current Account
after the Originator has provided supporting documentary evidence in the case of a credit balance.

18-4 Originator’s duty of diligence and general obligations as agent under the Mandates

18-4-1 The Originator undertakes to identify individually, both in its IT systems and accounting
records, the assigned receivables commencing on the effective date of the Contract. Every six
months, the Originator shall send to the AR Facility Provider a client aging balance showing
details of the breakdown for each Debtor of the receivables assigned to the AR Facility Provider.
It is also agreed that the Originator shall forward these documents, at the reasonable request of
the AR Facility Provider, if these documents and any related information are required by the
auditors (internal or external) of the AR Facility Provider.

18-4-2 The Originator shall, in collecting and cashing assigned receivables and protecting all
rights attached thereto, exercise the standard of diligence normally expected for the management of
its own receivables and, more generally, shall during the exercise of its Mandates, act as a
prudent, diligent and informed agent. Furthermore, the Originator undertakes to comply with its
collection procedures.

18-5 Mandate execution reports

The Originator undertakes to:

	 	-	 	deliver weekly reports to the AR Facility Provider on the execution of its Mandates
using any form of electronic or electronic and digital media, in accordance with a format
to be agreed upon between the parties,
	 
	 	-	 	comply with the obligations set out in the credit insurance policies with respect to
the Originator’s invoicing and collection procedures.

18-6 Controls by the AR Facility Provider

The Originator acknowledges that the AR Facility Provider and any person appointed by the AR
Facility Provider shall be entitled to receive any and all documents in order to verify the
Originator’s compliance with its contractual obligations. The Originator agrees to facilitate the
exercise of the said right by the AR Facility Provider .

The AR Facility Provider shall have the right at any time to carry out — or have carried out —
during normal business hours and with reasonable prior notice, controls with a view to ensuring
that the Originator is at all times performing its obligations under the Contract.

The controls shall be performed in a manner that minimizes the disruption of the Originator’s
business.
The Originator undertakes to provide all possible assistance to the AR Facility Provider in the
conduct of these controls and in the process of issuing circulars to its Debtors. In order to
preserve the confidentiality of the transactions during the term of the Mandates, these circulars
will be addressed on the Originator’s letterhead.

Given the specific characteristics of the Contract, the AR Facility Provider may, at any time
(subject to reasonable notice and during normal business hours) and at least three times per year,
mandate its auditors to control the Originator. The AR Facility Provider Credit Department may at
least carry out one on site visit per year. The annual cost of such controls is fixed at 2,500
(Excl. VAT), irrespective of the number of visits. This amount will be divided into all the
companies listed in Schedule 3 belonging to the Quiksilver Europe Group (the Quiksilver
Originators) which are entered into AR financing facilities (together with this Contract, the
Quiksilver AR Financing Facilities) with the AR Facility Provider.

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

18-7 Revocation of the mandates

18-7-1 Global revocation of mandates

a) Revocation of Mandates as a result of termination of the Contract:

If termination of the Contract becomes effective and the Originator has failed to make termination
payments required under article 35-3, the AR Facility Provider may revoke all Mandates
simultaneously (but not one of them only) with immediate effect.

b) Revocation for specific reasons:

	 	§	 	Subject to article 35, all Mandates may be revoked in any of the following cases with
five (5) Business Days prior notice served by a registered letter to the Originator with
receipt confirmation if the Originator fails to pay the amounts required to be paid
pursuant to Article 35.3 within the required time period; and:

	 	-	 	absence of credit entries relating to transactions under the Contract recorded
in each of the Dedicated Accounts taken as a whole for 5 consecutive Business Days; or
	 
	 	-	 	any material or repeated breach by the any of the Quiksilver Originators of its
obligations under the Contract or the other Quiksilver AR Financing Facilities; or
	 
	 	-	 	any of the following events:

	 	(i)	 	a material failure by the Originator to comply with its collection procedures,
	 
	 	(ii)	 	a failure by the Originator to domicile assigned invoice payments on
the Dedicated Account referred to in article 18-3-2 and/or absence of any
transactions on the Dedicated Account,
	 
	 	(iii)	 	a closure of any of the Dedicated Accounts (provided that if such
closure occurs through no fault of the Originator the Parties shall work promptly
and in good faith to establish alternate Dedicated Accounts subject to having
established such alternate Dedicated Accounts before the effective date of the
given revocation).

	 	§	 	In the following cases, and if the Originator’s records and documents show that one or
several of the following events has occurred, each of them calculated on a monthly basis:

	 	-	 	a percentage of Relevant Receivables purchased (and not reassigned pursuant to
article 19.4) overdue by more than 30 days in excess of 10% of the outstanding amount
of receivables purchased (and not reassigned) each month by the AR Facility Provider,
	 
	 	-	 	existence of actual or potential bad debts and dilutions (credit notes, direct
payments, disputes, invoices debited to the current account, deductions made by
Debtors), in excess of 10% of the transferred turnover without prejudice to article 20,
	 
	 	-	 	variation of 10% recorded in the OAA between the amount of cashed payments and
the expected amount of payments,
	 
	 	 	 	the AR Facility Provider undertakes to promptly inform the Originator and a monitoring
period (the Monitoring Period) of sixty (60) days will be opened during which the
parties will make their best efforts to solve the difficulties. If one or several of the
events listed above is still occurring for three consecutive months, then this will be a
case of revocation of the mandates and the Originator will have a cure period (the Cure
Period) of thirty (30) days to solve the difficulties to the satisfactory of the the AR
Facility Provider.
	 
	 	 	 	It is agreed between the parties that during the Monitoring Period and the Cure Period,
the AR Facility Provider has the right to revoke the mandates and/or terminate the
Contract if another case of revocation of the mandates and/or termination has occurred.

18-7-2 Specific revocation 

The Mandates shall cease to be effective with respect to any Relevant Receivable once the ownership
of such receivable is transferred back to the Originator. This restitution shall take effect in
accordance

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

with the terms and conditions of the Contract or when the receivable is debited in the
AR Facility Provider’s accounts and no remaining debit balance is due.

18-7-3 Upon notification of the revocation and in respect of any receivable title which has not
been reassigned to the Originator in accordance with the provisions of article 16.4, if the
Contract is continued notwithstanding the right of each Party to terminate the Contract pursuant to
Article 33:

The AR Facility Provider:

	-	 	shall be responsible for the collection of all assigned
receivables, including receivables assigned prior to the
date of revocation of the Mandates,
	 
	-	 	shall promptly notify the Debtors of the assignment of the
receivables by way of subrogation and prohibit them from
paying the Originator,
	 
	-	 	shall send the original invoices to the Debtors,
	 
	-	 	shall increase the Guarantee Fund levy rate by ten points,
	 
	-	 	shall charge € 5 (excl. VAT) fixed cost per invoice.

The Originator undertakes to include the following wording on its invoices:

For the Domestic’s Sub-Account n° 00057, the form of the notice to Debtors is:

The Originator undertakes to include the following wording on its invoices: “In order to be fully
discharged of your obligation, your payment must be made directly to the order of GE Factofrance,
Tour Facto, 18, rue Hoche, Cedex 88, 92988 La Défense cedex, Tel.: +(33) (0)1.46.35.70.00 – GE
Factofrance (RIB [bank identification number]: 13580 00001 00005708080 28), which will receive it
by subrogation and must be informed of any claim against the present receivable”.

For the Export’s Sub-Account n° 00062, the form of the notice to Debtors is:

The Originator undertakes to include the following wording on its invoices: “In order to be fully
discharged of your obligation, your payment must be made directly to the order of GE Factofrance,
Tour Facto, 18, rue Hoche, Cedex 88, 92988 La Défense cedex, Tel.: +(33) (0)1.46.35.70.00 – GE
Factofrance (RIB [bank identification number]: 13580 00001 00006208080 36), which will receive it
by subrogation and must be informed of any claim against the present receivable”.

For the Majors & Board Rider’s Sub-Account n° 00075, the form of the notice to Debtors is:

	•	 	For French Debtors

The Originator undertakes to include the following wording on its invoices: “In order to be fully
discharged of your obligation, your payment must be made directly to the order of GE Factofrance,
Tour Facto, 18, rue Hoche, Cedex 88, 92988 La Défense cedex, Tel.: +(33) (0)1.46.35.70.00 – GE
Factofrance (RIB [bank identification number]: 13580 00001 00007508080 18), which will receive it
by subrogation and must be informed of any claim against the present receivable”. ]

	•	 	For non-French Debtors, the Originator undertakes to insert in the body of all the invoices.

Article 19 : Respective roles of the Originator and the AR Facility Provider in the management of
the Policies

19-1 : Purpose

Besides coordinating the relationship between the Contract and the credit insurance policies
(individually the “Policy”and collectively the “Policies”):

n°     
             
                      and
n°                                          taken out by the Originator with ATRADIUS and n°
                                         taken out by the Originator with COFACE BELGIUM (ATRADIUS and COFACE BELGIUM
hereinafter collectively referred as the “Insurance
Companies”). The purpose of this article is to set forth the duties of the Originator with respect
to management of the Policies.

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

19-2 : Management of the Policies

Management of the Policies (requests for cover, turnover statements, payment of premiums and
miscellaneous costs, notification of delay, request for intervention in litigation or notification
of litigation...) and their related obligations, remain the responsibility of the Originator.
The Originator undertakes to deliver to the AR Facility Provider copies of its turnover statements
as well as evidence of payment of premiums.

It is agreed between the parties that if the Mandates have been revoked and the Contract is
continued notwithstanding the right of each Party to terminate pursuant to Article 35, the AR
Facility Provider may, in order to protect its rights, act in the place of the Originator if
necessary with respect to:

	 	-	 	statements of factored turnover ;
	 
	 	-	 	payment of due premiums out of the available amount in the Originator’s Current
Account opened with the AR Facility Provider ;
	 
	 	-	 	management acts which form part of the contractual obligations of the
Originator in particular notifications relating to litigation and extensions of payment
due dates.

The Originator expressly authorises the AR Facility Provider, under the terms of the Contract, to
provide the Insurance Companies with all information at its disposal relating to the Originator,
its business, clientele and all payment defaults likely to arise in connection with the AR
Financing Facility Contract.

19-3 : Insurance Coverage Maintained

The Originator shall, throughout the term of this Contract, maintain insurance policies providing
coverage not inconsistent with the coverage provided by the Insurance Policies in force at the time
of the Contract (subject to normal changes affecting the insurance market).

19-4 : Debiting of overdue or doubtful receivables

Whether or not covered by insurance, receivables that are overdue by 60 days (including those which
have been paid in foreign currencies with realised exchange losses) from solvent Debtors, will be
debited from the current account. Conversely, overdue receivables from Debtors that are in
insolvency proceedings as well as outstanding payments (cheques or bills) may be debited
immediately.

19-5 : Termination of the Policies

The Originator must within a maximum period of 10 days as from their signing date, forward any
amendments to the Policies signed after the date of the Contract, failing which the AR Facility
Provider shall be entitled to terminate the Contract without notice (subject to reasonable cure
period if the amendment does not affect the AR Facility Provider in any material respect).

Receivables presented to the AR Facility Provider must satisfy all the conditions required by the
Insurance Companies. The non-renewal, avoidance or termination of one of the Policies must be
promptly notified to the AR Facility Provider, and if the AR Facility Provider is not informed in
due time by the Originator, the AR Facility Provider shall be entitled to terminate the Contract
without notice.

Termination of one of the Policies shall automatically give rise to termination of the Contract,
which shall take effect on the same date.

Article 20 : Guarantee fund and all other special reserves

20-1 Guarantee Fund. This fund shall at all times be equal to 5% of the outstanding amount of the
Relevant Receivables transferred (incl. VAT). The Guarantee Fund shall be constituted by levying 5%
on each subrogatory payment. The minimum amount of the Guarantee Fund is € 1 400 000.

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

The percentage of 5% has been calculated on the basis of the facts and circumstances disclosed to
the AR Facility Provider at the time of the pre-contract enquiries, relating to the Originator’s
collection data (including a history of the Originator’s ratio of bad debt). It shall be modified
in case of material adverse change to such facts and circumstances (not including, for the
avoidance of doubt, a change that is seasonal in nature — except in case of appearance of a
material adverse change in comparison with the same season of the previous years), in the (i)
financial situation and /or (ii) percentage of actual or potential bad debts as established after
audit of the AR facility Provider and / or actual performance of the Relevant Receivables),
provided that such adjustment shall be in proportion to the increase in the AR Facility Provider’s
risk under this Contract.

In such circumstances the AR Facility Provider will promptly inform the Originator of such increase
with all relevant informations and data that have caused such increase. If the Originator have
cured these adverse changes to the satisfaction of the AR Facility Provider (acting in good
faith), the latter will reduce the percentage in the proportion to the same level of the increase
in order to revert to the previous situation as regards the percentage of the Guarantee Fund.

If (i) the Mandates are revoked in accordance with article 18-7-1 b of the Specific Conditions and
either (x) the Contract is continued or (y) the Originator has failed to pay the amounts payable
under Article 33.3, or (ii) the Originator is placed into insolvency proceedings, the new Guarantee
Fund rate shall be equal to the Guarantee Fund rate expressed as a percentage on the date of
occurrence of the event plus 10%.

20-2 Other reserves

The special reserves listed in this article are reserves of the sub-accounts of the current account
and accordingly the general sub-account mechanics referred to in article 6 of the Contract shall
apply to such reserves.

To mitigate the risk of actual and potential bad debts and dilutions, a specific reserve is opened.
This reserve shall at all times be equal to 7% of the outstanding amount of the Relevant
Receivables transferred (incl. VAT).

The percentage of 7% has been calculated on the basis of the facts and circumstances disclosed to
the AR Facility Provider at the time of the pre-contract enquiries, relating to the Originator’s
collection data (including a history of the Originator’s ratio of bad debt). It shall be modified
in case of material adverse change to such facts and circumstances (not including, for the
avoidance of doubt, a change that is seasonal in nature — except in case of appearance of a
material adverse change in comparison with the same season of the previous years), in the (i)
financial situation and /or (ii) percentage of actual or potential bad debts as established after
audit of the AR facility Provider and / or actual performance of the Relevant Receivables),
provided that such adjustment shall be in proportion to the increase in the AR Facility Provider’s
risk under this Contract.

In such circumstances the AR Facility Provider will promptly inform the Originator of such increase
with all relevant informations and data that have caused such increase. If the Originator have
cured these adverse changes to the satisfaction of the AR Facility Provider (acting in good
faith), the latter will reduce the percentage in the proportion to the same level of the increase
in order to revert to the previous situation as regards the percentage of the reserve.

Article 21: Service Commission

Such commission shall be 0.10% (excl. VAT) of the amount (incl. VAT) of the assigned receivables.

The Service Commission Minimum Annual Amount shall be €250,000 (excl. VAT). This amount will be
appreciated taking in consideration the cumulative amount of the Service Commissions paid pursuant
to Quiksilver AR Financing Facilities.

By exception to Article 10-3, the Service Commission Minimum Annual Amount will be calculated
prorata temporis.

9

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

Article 22: Financing Fee

The Financing Fee shall be equal to the average daily Euribor 3 month rates for the preceding
month, plus 0.55 basis points. This commission is payable monthly.

Article 23: Maximum Amount of AR Financing Facility

The amount of assigned Relevant Receivables financed by the AR Facility Provider may not exceed
€100,000,000 at any given time. This amount will be appreciated taking in consideration the
cumulative amount of financing amounts granted pursuant to the Quiksilver AR Financing Facilities.

Article 24 : Non-concentration clause

The maximum outstanding financed amount (incl. VAT) for any single Debtor group of companies is 20%
of the total outstanding amount (incl. VAT) of assigned Relevant Receivables.

Article 25: Financing by the AR Facility Provider

By debiting the amount available in the Current Account, the AR Facility Provider shall make to the
order of the Originator transfers (virements) or issue promissory notes (billets à ordre) the term
of which may vary depending on the average terms of payments of the Debtors but will always be less
than ninety days. However, the financing made available through promissory notes under the
Contract cannot exceed 50% of the financing, this proportion being calculated on a consolidated
basis for the Quiksilver AR Financing Facilities. A 0.20% fee (excl. VAT) will be applied on the
amount of such promissory notes.

Payments under the Contract must (unless otherwise expressly provided) be made for value on the due
date.

Notwithstanding the provisions of the previous paragraph, any payment made to or from a Current
Account opened under the Contract in the name the Originator in the books of the AR Facility
Provider shall be made for value in accordance with Schedule 4 (Value dates relating to payments
made to or from a current account).

Article 26: Arrangement fee

An arrangement fee of €15,000 (excl. VAT) shall be payable by the Originator upon the signing of
this Contract.

Article 27: [Omitted]

Article 28: Bank notifications

The Originator shall inform the present and future bankers by which it has, or will have, opened a
bank account of the existence of the Contract and its scope of application by a letter in the terms
approved by the AR Facility Provider, such approval not to be unreasonably withheld or delayed; a
copy of each notification will be sent to the AR Facility Provider

Article 29: Collection of personal data

In compliance with the provisions of French Data Protection Act No. 78-17 dated 6 January 1978, as
amended on 6 August 2004, the AR Facility Provider automatically processes personal information
relating to the corporate officers of the Originator and some of its employees, in particular, the
AR Facility Provider’s contact persons or the representatives that sign the subrogation receipts
and related documents.

Personal data is processed and kept strictly to provide the services contemplated in the Contract.
However, in accordance with applicable law or regulations, the AR Facility Provider may need to
provide such data to other companies of the group to which it belongs, in particular, in the USA.
In this regard, the Originator vouches that its corporate officers and employees agree that the
information

10

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

referred to in this clause may be so transferred in accordance with, and for needs of,
applicable laws and regulations.

The individuals in question may have access to their personal data and request that any errors
relating to them be rectified or deleted by contacting the AR Facility Provider’s sales department
at the address mentioned on the first page of this agreement.

The Originator undertakes to inform the corporate officers and employees in question of the
existence, methods and purpose of the AR Facility Provider’s automated data processing hereunder.

Article 30 : e.f@actoring Service

The e.f@actoring Service, hereinafter the Service, allows the Originator to process on-line, via
Factonet, its main exchanges with the AR Facility Provider. It allows:

	-	 	the assignment of receivables in the form of electronic subrogation receipts,
	 
	-	 	the issue of electronic payment orders, in all security through use of electronic signatures.

The Originator may offer other services as part of said Service at a later date. The operating
methods thereof shall be set by supplemental agreement.

As the Service is protected by the use of electronic signatures, its availability is conditional
upon:

- the signing of an electronic certificate service agreement with one of the service providers
authorised by the AR Facility Provider.

- the signing of a power of attorney for each electronic certificate holder other than the
Originator’s legal representative.

The AR Facility Provider draws the Originator’s attention to the possible interruptions in the
Service on account, in particular, of an interruption of the Internet service or a temporary
failure of computer equipment. the AR Facility Provider cannot guarantee the availability of the
Service. Consistency between electronic certificates and non electronic powers of attorney is
necessary in all circumstances (interruption or suspension of the network or Service, etc.) to
allow the factoring agreement to continue with, where applicable, at the AR Facility Provider’s
initiative, upon simple notice sent to the Originator, the continued performance of the factoring
agreement in non-electronic form. The Originator undertakes to inform the AR Facility Provider
within twelve working hours of any new power of attorney and/or any revocation of earlier powers of
attorney granted to the electronic certification service provider. For this purpose, the AR
Facility Provider cannot be held liable on account of the Originator’s breach of the aforementioned
terms.

Electronic transactions between the Originator and the AR Facility Provider as part of the
e.f@ctoring service shall be deemed to be validly entered into as soon as the AR Facility Provider
has verified the validity of the order signed electronically by the Originator. The Originator and
the AR Facility Provider agree, as professionals, to expressly part from the terms of Article
1369-2 of the French Civil Code and Article 1369-1(1) and (5) of the French Civil Code. As a
practical matter, the Originator undertakes to store a copy of each subrogation and/or transaction
entered into electronically together with the documents and certificates forwarded.

In any event, the AR Facility Provider may at any time require the disclosure of some invoices and
documentary proof.

The AR Facility Provider may pay, free of charge, by order and on behalf of the Originator, any
amounts that the Originator owes to the authorised service provider by draw down from the
Originator’s current account up to the effective date of the termination of the factoring agreement
or that of the electronic certification agreement, as applicable.

11

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

Article 31 : Corporate Retrieval Pack

The AR Facility Provider shall provide the Originator

- with the means of access – Logiciel Facto + and Factonet; these are are described in the client
guide. They shall operate under and in accordance with article 13 of the General Conditions. These
services provide detailed online information about the Originator’s and its Debtors’ accounts which
the Originator may download onto its computer.

- the e.f@ctoring service described in the previous clause allows the Originator to process its
main exchanges with the AR Facility Provider on-line, via Factonet.

All said services are invoiced to the Originator at € 80, excluding tax, per month, payable by draw
down on its current account. For the first two months of operating of the agreement, the draw down
shall be exceptionally reduced to € 50, excluding tax.

This monthly package includes access to the means of access Logiciel Facto + and Factonet, the
e.f@ctoring service and 15 transactions (“transaction” means any transfer whose signature has been
approved by the authorised service provider and of which the AR Facility Provider confirms the
recording).

If the Originator’s requirements exceed the transactions included in the package, each additional
transaction shall be invoiced € 3, excluding tax.

Moreover, any additional services other than those provided on-line, in particular, paper printing,
shall be covered by a special rate mentioned in the services guide or otherwise in an estimate
submitted to the approval of the Originator; said remuneration shall be drawn from the current
account.

Article 32 : Documents and information to be provided to the AR Facility Provider

The Originator undertakes to provide the AR Facility Provider with the following documents:

	 	-	 	Consolidated quarterly profit and loss statements (actual and forecast) of Quiksilver
Europe,
	 
	 	-	 	Consolidated quarterly balance sheets of Quiksilver Europe,
	 
	 	-	 	The annual audited consolidated statutory accounts of Na Pali and the related auditor’s
report,

Article 33 : Representations and warranties

33-1 Representations and warranties

The Originator makes the representations and warranties set forth in this article (Representations
and warranties) for the benefit of the AR Facility Provider. These representations and warranties
are a fundamental and determinant condition of the AR Facility Provider’s decision to enter into
the Contract.

33-2 Legal status

The Originator is duly incorporated and registered in France.

The Originator has all powers and capacity to own its assets and conducts its business as conducted
on the date on which this representation is made.

33-3 Powers and authority

The Originator has the power to sign and perform and has taken all necessary measures to authorise
the signing and performance of the Contract.

The Originator has the power to sign and perform and has taken all necessary measures to authorise
the signing and performance of the subrogation receipts (hereafter together with the Contract, the
“Finance Documents”) to which it is or will be a party.

12

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

33-4 Legal validity and enforceability

Each Finance Document to which the Originator is or will be a party, constitutes, or will when
signed constitute, a legal and valid obligation enforceable against the Originator or any third
party in accordance with its terms.

33-5 Absence of insolvency proceedings

There are no current actions with a view to placing the Originator into any liquidation,
winding-up, judicial reorganisation, safeguard procedure, voluntary arrangement, composition or any
similar or equivalent procedure in any country with jurisdiction over the Originator, nor to its
knowledge is any such action imminent or foreseeable.

The Originator has not ceased making payments (cessation des paiements).

33-6 No conflict

The entry into effect and performance of the Finance Documents (as described in Schedule 1) to
which the Originator is or will be a party, do not and will not conflict with, or cause the
Originator or any other company in the Originator’s group to be in breach, of any document (in
particular contracts (whether written or oral) with its Debtors or banks) by which it or any of its
assets is bound.

33-7 Eligibility criteria

The receivables proposed by the Originator for financing by the AR Facility Provider satisfy the
criteria set forth in article 16 of the Contract.

33-8 The Originator conducts normal due diligence in relation to prospects before commencing
commercial relations with them in order to verify their identity and creditworthiness. For
this purpose, the Originator represents that it has carried out normal due diligence and has
determined that the Debtors under Relevant Receivables have creditworthiness sufficient to
enter into business dealings with the Originator.

33-9 Dates on which representations and warranties are made

The representations and warranties set forth in this article (Representations and Warranties) are
made on the date of signing of the Contract and are deemed to be repeated by the Originator on the
date of each subrogation receipt as well as on the last day of each calendar month by reference to
the facts and circumstances existing on such date.

Article 34 : Duration — Effective date of the Contract

By exception to the article 12-1 of the General Conditions, the Contract shall take effect upon all
of the conditions precedent set forth in Schedule 1 have been satisfied in full for an initial
duration of three (3) years. It shall be renewed tacitly for an undertermined period.

Article 35 :Termination

35-1 Termination by the Originator

Subject to no event occurring that would entitle the AR Facility Provider to early terminate the
Contract and payment in full of the Service Commission Minimum Annual Amount, the Originator may
terminate the Contract at any time subject to three months’ notice by registered letter with
receipt confirmation. The Originator may then repay, or cause to be repaid, the AR Financing
Facility by
repurchasing the total oustanding amount of the assigned receivables (by way of subrogation under
article 1250 of the French civil code).

13

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

In the event that the AR Facility Provider notifies the Originator that it elects to cancel the
Mandates (as a result of any of the events set out in article 18-7-1 b or otherwise), but not
terminate the Contract, the Originator shall have the right to terminate the Contract immediately,
provided that notice of the Originator’s election to terminate the Contract shall be served to the
AR Facility Provider no later than 10 Business Days following the receipt of notice of the AR
Facility Provider’s decision to revoke the Mandates. For the avoidance of doubt, if the Originator
so elects to terminate the Contract, the AR Facility Provider shall only be entitled to claim
payment from the Debtors in the event of a failure by the Originator to make payments required
under article 35-3.

35-2 Termination by the AR Facility Provider

At any time , the AR Facility Provider shall be entitled to terminate the Contract :

	 	i.	 	in the cases referred to in article 18-7-1 b of the Specific Conditions,
subject to the notice requirements set forth therein;
	 
	 	ii.	 	in the event of the appointment of a provisional administrator, winding-up or
cessation of payments of the Originator or its voluntary liquidation, commencement of a
settlement procedure, a safeguard procedure, a judicial proceeding or a liquidation
procedure against the Originator;
	 
	 	iii.	 	in case of withdrawal of any surety or disappearance of any guarantee issued in
favour of the AR Facility Provider; or
	 
	 	iv.	 	in case of omissions or concealment of material information or false statements
regarding the information provided by the Originator upon the signature of the Contract
or during the course thereof.
	 
	 	v.	 	material adverse change in the Originator’s legal or commercial situation,
significant deterioration of its financial position, severe deficiencies in its
accounting management;
	 
	 	vi.	 	significant delay or worsening of the delays for payment in respect of
suppliers and other creditors and, in particular, secured creditors;
	 
	 	vii.	 	attachments (saisies) (or equivalent proceedings) against the Originator for
significant amounts or on a repeated basis
	 
	 	viii.	 	.

35-3 Effect of Termination and/or revocation of the Mandates

Upon a termination of the Contract or a revocation of the Mandates, the Originator may repay the
total outstanding amount of the assigned receivables (by way of subrogation under article 1250 of
the French Civil Code) within ninety (90) days from the termination, the ninety (90) days period
does not apply in the cases of termination reffered to in article 35-2 (ii) and (iv) above.and, in
the cases of termination reffered to in article 35-2 (i) above or revocation of the Mandates,
within the notice requirements set forth.

The Originator’s obligations in respect of the AR Facility Provider are indivisible. In the event
of termination of the Contract, the AR Facility Provider may terminate any other contract – in
accordance with their respective terms entered into with the Originator and any and all amounts due
by the Originator under another contract shall be set off as of right against the amounts which may
be due by the AR Facility Provider under the Contract and vice versa.

Article 36 : Effective Global Rate

In order to comply with articles L. 313-1 and L. 313-2 and R. 313-2 of the Consumer Code, each of
the parties to this Contract acknowledges that:

	 	a)	 	given the specific characteristics of the Contract (and in particular the variable
nature of the applicable interest rate), the effective global rate cannot be calculated on
the date of signing of this Contract but an indicative calculation of such rate based on
assumptions as to interest

14

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

	 	 	 	period rates and interest period durations, shall be determined
in a letter delivered by the AR Facility Provider to the Originator on the Signing Date.
	 
	 	b)	 	This letter shall form an integral part of the Contract.

Article 37 : Confidentiality

Each party undertakes to keep confidential the existence and content of this Contract, as well as
the negotiations between the parties in relation hereto, provided that this shall not apply to
Debtors, to the Originator’s bankers or to any other party involved in accordance with the
obligations flowing from this Contract including the AR Facility Provider; and provided further
that the Parties and their affiliates shall have the right to disclose this contract if such
disclosure is (i) required under applicable laws and regulation (ii) in connection with a dispute
involving the parties relating to the Contract or (iii) to the banks with which the Originator has
business dealings.

Article 38 : Signatories

The signatories of the Contract are the legal representatives of the Originator and the AR Facility
Provider or their duly authorised representatives.

Executed in two original copies in Paris La Défense, on [    ]

			
	 	 	 
	NA PALI
	 	GE FACTOFRANCE
	Represented by
[    ] :
	 	Represented by [    ]     

Official stamp and authorised signature

15

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

SCHEDULE 1

Conditions precedent

	 	 	 
	No	 	Heading
	1.

	 	Documents of incorporation and authorisations
	 
	 	 
	(a)

	 	Certified copy of the Originator’s by-laws granting it the power to
sign and perform the Finance Documents and the transactions
contemplated thereby.
	 
	 	 
	(b)

	 	An original companies registry certificate (“extrait K-bis”) for the
Originator dated no more than one month prior to the signing date of
the Contract.
	 
	 	 
	(c)

	 	If required by the By-laws, a copy of the resolution of the Board of
Directors of the Originator (or a duly appointed committee authorised
by the Board of Directors) approving the terms of and signing of the
Finance Documents.
	 
	 	 
	(d)

	 	Specimen signature of each person authorised to sign each Finance
Document on behalf of the Originator or to sign any document or notice
relating to the Finance Documents to which it is a party.
	 
	 	 
	2.

	 	Finance Documents
	 
	 	 
	(a)

	 	AR Financing Facility Contract
	 
	 	 
	3.

	 	Other documents and factual matters
	 
	 	 
	(a)

	 	Pre-financing audit of the Originator the results of which are
satisfactory for the AR Facility Provider.
	 
	 	 
	(b)

	 	Evidence, if necessary, that each Debtor paying by electronic transfer
has been notified of changes to the details of the bank account for
payment of remittances into the Dedicated Accounts.
	 
	 	 
	(c)

	 	Approval by the AR Facility Provider of the cashing procedures and
receivables cashing manual of the Originator.
	 
	 	 
	(d)

	 	Delivery of the Originator’s aged balance.
	 
	 	 
	(e)

	 	Written confirmation from the Originator that no term contained in any
of the underlying sales contracts could impair the AR Facility
Provider’s rights.
	 
	 	 
	(f)

	 	Approval by the AR Facility Provider of the Originator’s required
electronic and IT systems. The format and characteristics of the RIV
file created by the Originator must be sent to the AR Facility
Provider.
	 
	 	 
	(g)

	 	Bank account details of the Originator’s bank account into which
finance payments by the AR Facility Provider are paid.
	 
	 	 
	(h)

	 	List of the Debtors with their “Siren” no., amount of cover provided
under the

16

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

	 	 	 
	 

	 	Policy, and the outstanding amount for each Debtor on the
signing date of the Contract.
	 
	 	 
	(i)

	 	If applicable, a copy of the termination letter sent by the Originator
to the existing AR Facility Provider/ credit establishment providing
it with client item financing.
	 
	 	 
	 

	 	A copy of the Policies, and all amendments and schedules thereto.
	 
	 	 
	 

	 	If necessary, a copy of the letter terminating delegations of the
right to insurance monies under the Policies, addressed to and
accepted by each of the previous beneficiaries.
	 
	 	 
	 

	 	A copy of the letters of the Insurance Companies referring to the
amount of insurance monies paid or payable during the current
insurance period.
	 
	 	 
	 

	 	An original copy of the amendment agreements relating to delegation of
the right to insurance monies under the Policies, entered into between
the Insurance Companies, the AR Facility Provider and the Originator.
	 
	 	 
	 

	 	Signing and entry into force of the Tripartite Agreements relating to
the Dedicated Accounts.
	 
	 	 
	 

	 	Signing and entry into force of a legal, valid and binding security
interest (cession dailly à titre de garantie articles L. 313-23 to L.
313-35 of the French Monetary and Financial Code) over the credit
balance of the Dedicated Accounts.
	 
	 	 
	 

	 	Legal opinion satisfactory to the AR Facility Provider confirming that
the obligations provided therein are valid and enforceable against the
Originator and to the banks which hold the relevant Dedicated Account.
	 
	 	 
	 

	 	Signing and entry into form of legal, valid and binding cross security
interests over the Currents Accounts of Na Pali SAS and Emerald Coast
SAS opened in the books of the AR Facility Provider.

17

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

SCHEDULE 2

DEDICATED ACCOUNTS

	 	 	 
	Banks

	 	Number

	 
	 	 
	L.C.L. – Le Crédit Lyonnais

	 	30002 02625 0000064035B 74
	(Direction Entreprises Dauphiné Savoie)
	 	 
	18, rue de la République
	 	 
	69002 - Lyon
	 	 
	 
	 	 
	SBCIC

	 	10057 19014 00052381205 84
	SBCIC Bayonne 2
	 	 
	1 rue Bernede
	 	 
	64100 - Bayonne
	 	 

18

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

SCHEDULE 3

LIST OF

QUIKSILVER ORIGINATORS

	 	 	 
	EMERALD COAST SAS

	 	ZI de Jalday 64500 St Jean de Luz France
	 

	 	(SIREN: 412 730 848)
	 
	 	 
	SUNBAWA, SL

	 	Plaza Emili Mira, 4 Barcelona Spain
	 

	 	(CIF: B 61298212)
	 
	 	 
	LANAI, Plc

	 	26-28 Great Portland Street London UK 

(N° 02849221)

19

 

AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

SCHEDULE 4

VALUE DATES RELATING TO PAYMENTS MADE TO OR FROM A CURRENT

ACCOUNT

	 	 	 	 	 
	 

	 	Days

	PAYMENTS
	 	 	 	 
	Transfers

	 	 	- 1	 
	Promissory notes

	 	 	- 1	 
	 
	 	 	 	 
	COLLECTIONS
	 	 	 	 
	Transfers

	 	 	0	 
	Cheques (Paris)

	 	 	+ 2	 
	Cheques (other French)

	 	 	+ 4	 
	Bills of exchange

	 	 	+ 2	 

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AR FINANCING FACILITY CONTRACT N° 12692 — SPECIFIC CONDITIONS

SCHEDULE 5

RECONCILIATION TABLE

Reconciliation Table

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Date	 	 	Invoices	 	 	Credit notes	 	 	 	 	 	 	Bills of exchange	 	 	Balance	 	 	 	 	 
	Opening balance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Bills of exchange	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	France	 	 	(France)	 	 	Export	 	 	Boardriders France	 	 	Boardriders Export	 	 	Total	 	 	Comments	 
	Movements of the period
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Invoices of the period (101)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	: new invoices of the period
	Credit notes of the period (102)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bills of exchanges of the period (1)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	New bills of exchange remitted to the bank during the period
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Collection of the period (2)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bills of exchange remitted to the bank
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cancelled bills of exchange
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	see details below
	Receivables to debit (3)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Credit notes overdue by more than [ ] (3)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deduction made by debtors
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Miscellaneous items
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	see details below
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Date	 	 	Invoice	 	 	Credit notes	 	 	 	 	 	 	Bills of exchange	 	 	Balance	 	 	 	 	 
	Closing balance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	Notes :	 	 the format of this table may be amended by the Originator and the AR Facility Provider
depending for technical reasons.
	 
	(1)	 	to send if the invoice is closed or if it has been deducted from the AR balance
	 
	(2)	 	determined by comparing 2 balances : must be equal to collections received minus credit items
received on the dedicated collection account
	 
	(3)	 	invoices overdue by more than 60 days will be not be
financed any more

Details
of cancelled bills of exchanges

Details of miscellaneous items

21Exhibit 10.3

Exhibit 10.3

August 24, 2008

PERSONAL
AND CONFIDENTIAL

Mr. David H. Morgan

c/o Quiksilver, Inc.

15202 Graham Street

Huntington Beach, California 92649

Re:
     Separation and Transition
Agreement

Dear David:

This letter (“Agreement”) will confirm the agreement and understanding we have reached regarding
your continued employment with, and transition and departure from, Quiksilver, Inc., and any of its
affiliates, subsidiaries or divisions, including, without limitation, Pilot SAS, a Société par
Actions Simplifiée and a wholly-owned indirect subsidiary of Quiksilver, Inc. (collectively,
“Quiksilver” or the “Company”). This Agreement completely supersedes and replaces all other
agreements you may have with the Company, including, but not limited to, that certain Employment
Agreement dated December 22, 2006. In that regard, we have agreed as follows:

	1.	 	End of Employment Relationship; Severance Pay.

	 	A.	 	Your employment with the Company will end for all purposes on the first to
occur of (i) October 31, 2008, or (ii) the date that is two (2) weeks following full
execution of a definitive agreement of the Company to sell Skis Rossignol S.A.S.
(“Rossignol”) (the “Separation Date”); provided, however, that in the event
(ii) occurs prior to (i), Quiksilver may, at its option and upon notice to you, require
the Separation Date to be deferred to a date certain prior to October 31, 2008.
Effective as of the Separation Date, you are resigning as Executive Vice President and
Chief Operating Officer of the Company. You are also resigning as a director and
officer from any of the Company’s subsidiaries where you serve in any such capacity.
Following the Separation Date, the Company has no obligation to continue to support a
Petition for O-1 visa status.
	 
	 	B.	 	In connection with the end of your employment, and conditioned upon your
continued employment through the Separation Date, the Company or its affiliates will
pay you severance pay in the combined total amount of up to USD $712,000

D.H.M.           C.S.E.

-1-

 

	 	 	 	(with USD $500,000 in guaranteed payments), less required tax deductions and
withholdings (“Severance Pay”), payable as follows:

	 	(1)	 	One lump sum payment of USD $251,000, less required tax
deductions and withholdings, payable on May 15, 2009;
	 
	 	(2)	 	Six equal payments of USD $41,500 each (for a total of USD
$249,000), less required tax deductions and withholdings, payable monthly
from June 15, 2009, to November 15, 2009; and
	 
	 	(3)	 	A lump sum payment equal to USD $212,000, less (i)
wages or consulting payments earned or received by you from any source (other
than Quiksilver) during the 18-month period following the Separation Date, (ii)
amounts received by you pursuant to any unemployment insurance program
(including the Assurance Chômage in France) or collective-bargaining agreement
during the 18-month period following the Separation Date, and (iii) required
tax deductions and withholdings, payable on May 14, 2010.

	C.	 	The Company may pay the Severance Pay and the Rossignol Success Fee (referenced
in Paragraph 3 below) in USD or EUR, or a combination thereof.
	 
	D.	 	You will not be required to perform any duties following the Separation Date,
although you agree to be available telephonically if necessary to respond to limited
follow-up questions relating to the sale of Rossignol.
	 
	E.	 	Your health insurance coverage will cease after the Separation Date, unless you
timely elect and pay for continued coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”).
	 
	F.	 	Nothing in this Agreement shall constitute a waiver of any benefits which are
already vested as of the Separation Date, under any Company 401(k) or employee welfare
benefit plan, and you shall remain fully entitled to all such benefits, if any, in
accordance with the terms of the applicable plan.
	 
	G.	 	Except for any continuing and surviving obligations of yours thereunder
(e.g., protection of Quiksilver’s trade secrets and proprietary and
confidential information), any and all employment agreements you may have with
Quiksilver (including, without limitation, that certain employment agreement dated
December 22, 2006) are deemed fully terminated and of no further force or effect. You
have no right to any additional compensation, equity or benefits under any such
employment agreement.
	 
	H.	 	After the Separation Date, you are not eligible for, and will not receive, any
other compensation or benefit except as specifically provided herein (including, but
not limited to, any additional bonuses, incentives, stock option grants, stock grants,
payments with respect to any outstanding awards under the Company’s Long

D.H.M.           C.S.E.

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	 	 	Term Incentive Plan or the Annual Incentive Plan, expense reimbursement, relocation
benefits or employee benefits).

	I.	 	Internal Revenue Code.

	 	(1)	 	In the event that any payment or benefit received or to be
received by you under this Agreement, including, without limitation, cash
payments and acceleration of stock options (collectively, the “Payments”) would
constitute a parachute payment within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”), then the following
limitation shall apply:
	 
	 	 	 	The aggregate present value of those Payments shall be limited in amount to
the greater of the following dollar amounts (the “Benefit Limit”):

	 	•	 	2.99 times your Average Compensation (as defined below),

or

	 	•	 	the amount which yields you the greatest after-tax amount of
Payments under this Agreement after taking into account any excise
tax imposed under Code Section 4999 on those Payments.

	 	 	 	The present value of the Payments will be measured as of the Separation Date
and determined in accordance with the provisions of Code Section 280G(d)(4).
	 
	 	 	 	Average Compensation means the average of your W-2 wages from the Company
for the five (5) calendar years completed immediately prior to the calendar
year in which the Separation Date occurs. Any W-2 wages for a partial year
of employment will be annualized, in accordance with the frequency which
such wages are paid during such partial year, before inclusion in Average
Compensation.
	 
	 	(2)	 	To the extent the Company reasonably determines that any
payment or benefit under this Agreement is subject to Section 409A of the Code,
such payment or benefit shall be made at such times and in such forms as the
Company reasonably determines are required to comply with Code Section 409A
(including, without limitation, in the case of a “specified employee” within
the meaning of Code Section 409A, any payments that would otherwise be made
during the six-month period following separation of service will be paid in a
lump sum after the end of the six-month period) and the Treasury Regulations
and the transitional relief thereunder; provided, however, that in no
event will the Company be required to provide you with any additional payment
or benefit in the event that any of your payments or benefits trigger
additional income tax and/or interest under Code Section 409A or in the event
that the Company

 
D.H.M.           C.S.E.

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	 	 	 	changes the time or form of your payments or benefits in accordance with
this Paragraph.

	 	J.	 	The Company may terminate your employment prior to the Separation Date
immediately for “Cause,” in which event you will not be eligible for either the
Severance Pay or Rossignol Success Fee. For purposes of this Agreement, “Cause” shall
mean (i) your death, (ii) willful misconduct in the performance of your duties,
(iii) commission of a felony or violation of law involving moral turpitude or
dishonesty, (iv) self-dealing, (v) willful breach of duty, (vi) habitual neglect, or
(vii) a material breach by you of your obligations under this Agreement. If the
Company terminates your employment without Cause prior to November 1, 2008, you will
receive the Severance Pay and you will remain eligible for the Rossignol Success Fee,
subject to the provisions of Paragraphs 1 and 3 hereof.

	2.	 	Stock Options and Restricted Stock.

	 	A.	 	Attached hereto as Attachment “A” is a schedule of your vested and
unvested stock options and restricted stock as of the date of this Agreement. All of
your unvested stock options which have not previously expired will accelerate and vest
on the Separation Date. Any unexercised stock options on the Separation Date which
have not previously expired will remain exercisable for a period of twelve (12) months
following the Separation Date, after which they will expire and cease to be
exercisable; provided, however, that in no event may such stock options be
exercised after their expiration date set forth in your stock option documents, and
they may terminate and cease to be exercisable earlier in the event of a corporate
transaction as provided in your individual stock option agreements. All other terms of
your stock options shall continue to be governed by the applicable plan pursuant to
which they were issued and the applicable stock option agreements.
	 
	 	B.	 	On the Separation Date, all 82,000 shares of restricted stock of the Company
held by you (copies of which you have reviewed incident to the execution of this
Agreement) shall expire and be surrendered to the Company.
	 
	 	C.	 	Please note that certain “blackout” periods under the Company’s Policy
Prohibiting Insider Trading (a copy of which you have previously received) may continue
to apply to you for some time following the Separation Date, and you will continue to
be subject to federal and state securities laws which prohibit the purchase or sale of
shares while in possession of material, non-public information.

	3.	 	Strategic Advisory Services; Rossignol Success Fee.

	 	A.	 	You agree that from the date of this Agreement through and including the
Separation Date, you shall provide exclusive strategic advisory services in connection
with the Company’s sale of Rossignol or any of its affiliates or subsidiaries. Your
primary contacts with respect to such services shall be Charlie Exon, Joe Scirocco, and
Bob McKnight.

D.H.M.           C.S.E.

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	 	B.	 	You are eligible to receive a cash bonus payment equal to USD $660,000, less
required withholdings and deductions, upon the Company’s successful sale and
disposition of Rossignol, conditioned upon your continued active employment through the
Separation Date (“Rossignol Success Fee”); provided, however, that if (i) you
fully satisfy your obligations under this Agreement, (ii) a definitive agreement for
the Company’s sale of Rossignol is fully executed on or before the Separation Date, and
(iii) the sale does not close within six (6) months thereafter through no fault of your
own, you remain eligible for the Rossignol Success Fee. The Rossignol Success Fee is
payable within fifteen (15) business days following the closing of the Rossignol sale
transaction, or, in the case of the proviso in subparagraph (B) above, within fifteen
(15) business days following the six (6)-month period referenced therein.

	4.	 	Full Understanding and Voluntary Acceptance.
	 
	 	 	Quiksilver advises you to consult an attorney prior to executing this Agreement. In
entering into this Agreement, you agree that you have had the opportunity to seek the advice
of an independent attorney of your own choice and that you understand all the terms of this
Agreement. You are executing this Agreement voluntarily with full knowledge of its
significance.
	 
	5.	 	Return of Property/Non-Solicitation.

	 	A.	 	Except as otherwise provided below, all Company Property must be returned
within a reasonable period of time after the Separation Date. By signing this
Agreement, you confirm that you will return all keys, magnetic access cards and all
other means of access to the property or offices of the Company, and all other Company
property, equipment and documents in your possession or under your control, including,
but not limited to, credit cards, cell phones, PDA’s, BlackBerries, fax machines,
pagers, files, personnel forms, accounting information and spreadsheets, budgets,
compensation data, business plans, documents and any other property of the Company
(“Company Property”) and that you will not copy, download or retain any such materials.
	 
	 	 	 	Notwithstanding the foregoing, you may retain your laptop computer, provided that
you deliver the same to the Company within a reasonable period of time after the
Separation Date to have the memory erased and software removed by the Company.
(Your personal information, such as photographs, will be copied to a disk upon your
request.) You also agree (i) to preserve in confidence and not disclose any
confidential, proprietary, or trade secret information relating to Quiksilver, or
its products, personnel, or financial data, and (ii) not to download, copy or
transfer any documents or software from the Company’s computers.
	 
	 	B.	 	You agree that, for a period of one (1) year after the Separation Date, you
shall not, without the prior written consent of the Company, directly or indirectly
through the actions of any other individual or entity, whether for your own benefit or
for that of another individual or entity, (i) solicit, divert or induce, or attempt to

D.H.M.           C.S.E.

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	 	 	 	solicit, divert or induce, any individual who is then an employee of the Company or
any of the Released Parties (as defined below) to terminate his or her employment;
or (ii) induce or attempt to induce any individual or entity who is a supplier,
distributor or customer of the Company or any of the Released Parties not to
continue as a supplier, distributor or customer.

	6.	 	General Release of All Claims.

	 	A.	 	In exchange for the consideration provided herein, you agree to, and by signing
this Agreement do, forever waive and release Quiksilver and each of its affiliated or
related entities, divisions, subsidiaries, foundations, licensees, shareholders,
officers, directors, employees, agents, successors and assigns (collectively, “Released
Parties”), from all known and unknown claims, rights, actions, complaints, charges,
liabilities, obligations, promises, agreements, causes of action, suits, demands,
damages, costs, losses, debts, and expenses of any nature whatsoever which you ever
had, now have, or may claim to have against any of the Released Parties, including,
without limitation, any claim arising out of (i) any aspect of your employment or the
termination of your employment with the Company; (ii) any restrictions on the right of
Quiksilver to terminate your employment or any employment agreement with you; (iii) any
agreement, understanding or inducement, oral or written, express or implied, between
you and any of the Released Parties, including any Employment Agreement (including,
without limitation, that certain agreement dated December 22, 2006, and my letter dated
May 20, 2008); (iv) any stock options or restricted stock (other than as provided in
Paragraph 2 of this Agreement); (v) any outstanding awards pursuant to the Company’s
Long Term Incentive Plan or Annual Incentive Plan; and/or (vi) any federal, state or
governmental constitution, statute, regulation or ordinance, including, without
limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination in
Employment Act, and the California Fair Employment and Housing Act; provided,
however, that this release does not (a) affect rights or claims that may arise after
the date it is executed, (b) waive rights or claims arising out of this Agreement,
(c) waive any rights or claims that are unwaivable as a matter of law, whether under
United States, French or California law, or (d) waive any rights you may have to
indemnity under the Company’s By-Laws, any individual indemnification agreement between
you and the Company, California Labor Code § 2802 or as otherwise required by law. In
addition, except for acts or omissions that are grossly negligent or amount to willful
misconduct, the Company hereby agrees to forever waive and release you from all known
and unknown claims, rights, actions, complaints, charges, liabilities, obligations,
promises, agreements, causes of action, suits, demands, damages, costs, losses, debts,
and expenses of any nature whatsoever which it ever had, now has, or may claim to have
against you. As of the date of its execution of this Agreement, the Company represents
that it is not aware of any such gross negligence or willful misconduct.

D.H.M.           C.S.E.

-6-

 

	 	B.	 	You also agree to waive and relinquish all rights and benefits you may have
under Section 1542 of the California Civil Code. Section 1542 reads as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

	7.	 	Non-Admission.
	 
	 	 	Nothing contained in this Agreement shall be considered an admission of any liability
whatsoever. If you elect not to sign this Agreement, this Agreement is inadmissible in
evidence to prove any liability or damage.
	 
	8.	 	Severability.
	 
	 	 	Should any portion, word, clause, phrase, sentence or paragraph of this Agreement be
declared void or unenforceable, such portion shall be considered independent and severable
from the remainder, the validity of which shall remain unaffected.
	 
	9.	 	Entire Agreement and Arbitration.
	 
	 	 	This Agreement constitutes the entire agreement between you and Quiksilver pertaining to the
subject matter hereof and fully supersedes and completely replaces any and all prior
agreements, understandings, negotiations and discussions, whether oral or written,
pertaining to the subject matter hereof, including, without limitation, that certain
Employment Agreement dated December 22, 2006, and the May 20, 2008, proposal that we agreed
to recommend to the Compensation Committee. Both you and the Company agree to cooperate in
the execution of any additional documents reasonably necessary to effectuate this Agreement
(for example, documents recommended by the Company’s counsel in France). After the
execution of this Agreement, to the fullest extent allowed by law, any controversy, claim or
dispute between you and the Company (and/or any of the Released Parties) relating to or
arising out of this Agreement or your employment or the cessation of that employment will be
submitted to final and binding arbitration in Orange County, California, for determination
in accordance with the applicable rules of the American Arbitration Association.

D.H.M.           C.S.E.

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	10.	 	Signature and Revocation Periods.
	 
	 	 	So that you can review this Agreement as you deem appropriate, the Company advises you as
follows: (i) this Agreement does not waive any rights or claims that may arise after it is
executed by you; (ii) you will have twenty-one (21) days to consider this Agreement,
although you may sign it sooner than that if you so desire; (iii) you should consult with an
attorney if you desire before executing this Agreement; and (iv) you also retain the right
to revoke this Agreement at any time during the seven (7)-day period following execution of
the Agreement. This Agreement shall not become effective or enforceable until such seven
(7)-day period has expired.

By signing below, you voluntarily accept the terms contained in this Agreement.

David, we thank you for your service to Quiksilver, and we wish the best for you and your family in
the future.

Sincerely,

QUIKSILVER, INC.

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Charles S. Exon 	 
	 	 	Chief Administrative Officer,

Secretary and General Counsel 	 
	 

I HAVE READ, UNDERSTAND AND VOLUNTARILY

AGREE TO THE ABOVE AFTER CONSULTATION

WITH MY ATTORNEY.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	David H. Morgan

	 	 	 	Date
	 	 

D.H.M.           C.S.E.

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ATTACHMENT “A”

STOCK OPTIONS — DAVID MORGAN

Non-Qualified Stock Options

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Currently	 	 
	Grant Date	 	Expiration Date	 	Granted	 	Grant Price	 	Outstanding	 	Currently Exercisable
	12/27/05
	 	 	12/28/15	 	 	 	75,000	 	 	$	13.7700	 	 	 	75,000	 	 	 	50,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	25,000 on 12/27/08
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12/20/06
	 	 	12/21/16	 	 	 	75,000	 	 	$	15.5500	 	 	 	75,000	 	 	 	25,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	25,000 on 12/20/08
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	25,000 on 12/20/09
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12/26/07
	 	 	12/27/17	 	 	 	60,000	 	 	$	9.0000	 	 	 	60,000	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,000 on 12/26/08
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,000 on 12/26/09
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,000 on 12/26/10
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Option Totals
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	210,000	 	 	 	75,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Restricted Stock

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grant Date	 	Expiration Date	 	Granted	 	Grant Price	 	Outstanding	 	Exercisable
	09/29/06
	 	 	9/29/16	 	 	 	60,000	 	 	$	0.0000	 	 	 	60,000	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	60,000 on 9/29/11
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12/26/07
	 	 	12/27/17	 	 	 	22,000	 	 	$	0.0000	 	 	 	22,000	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	22,000 on 12/26/10
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Stock Totals
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	82,000	 	 	 	-0-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

D.H.M.          C.S.E.

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