Document:

Stock Purchase Agreement

 Exhibit 10.1 
  
 SYNTROLEUM CORPORATION 
  
 STOCK PURCHASE AGREEMENT 
  
 March 17, 2005 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	SECTION 1. AUTHORIZATION AND SALE OF COMMON STOCK	  	1
	 1.1
	  	Authorization	  	1
	 1.2
	  	Sale of the Shares	  	1
		
	SECTION 2. CLOSING DATE; DELIVERY	  	1
	 2.1
	  	Closing	  	1
	 2.2
	  	Delivery	  	1
		
	SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	1
	 3.1
	  	Organization and Standing; Subsidiaries; Charter and Bylaws	  	2
	 3.2
	  	Capitalization	  	2
	 3.3
	  	Authorization	  	3
	 3.4
	  	SEC Reports	  	3
	 3.5
	  	No Conflicts	  	4
	 3.6
	  	Approvals	  	4
	 3.7
	  	Offering	  	4
	 3.8
	  	Litigation	  	4
	 3.9
	  	Brokers or Finders	  	5
	 3.10
	  	Limitation on Representations	  	5
		
	SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	  	5
	 4.1
	  	Investment	  	5
	 4.2
	  	Authorization	  	5
	 4.3
	  	Litigation, etc.	  	5
	 4.4
	  	Governmental Consent, etc.	  	6
	 4.5
	  	Brokers or Finders	  	6
	 4.6
	  	Investment Company	  	6
		
	SECTION 5. CONDITIONS TO CLOSING BY THE PURCHASER	  	6
	 5.1
	  	Representations and Warranties Correct	  	6
	 5.2
	  	Covenants	  	6
	 5.3
	  	Effectiveness of Registration Statement	  	6
	 5.4
	  	Approval of Inclusion on the Nasdaq National Market	  	6
	 5.5
	  	No Legal Order Pending	  	6
	 5.6
	  	No Law Prohibiting or Restricting Such Sale	  	7
	 5.7
	  	Compliance Certificate	  	7
	 5.8
	  	Opinion of Company’s Counsel	  	7
	 5.9
	  	Good Standing Certificate	  	7
	 5.10
	  	Secretary’s Certificate	  	7
		
	SECTION 6. CONDITIONS TO CLOSING BY THE COMPANY	  	7
	 6.1
	  	Representations	  	7

  

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	 6.2
	  	Covenants	  	7
	 6.3
	  	Compliance Certificate	  	7
	 6.4
	  	Effectiveness of Registration Statement	  	8
	 6.5
	  	No Legal Order Pending	  	8
	 6.6
	  	No Law Prohibiting or Restricting Such Sale	  	8
		
	SECTION 7. COVENANTS	  	8
	 7.1
	  	Fulfillment of Closing Conditions	  	8
	 7.2
	  	Confidentiality	  	8
	 7.3
	  	Publicity	  	9
	 7.4
	  	Restriction on Sale of Securities	  	9
	 7.5
	  	Registration Statement	  	9
		
	SECTION 8. MISCELLANEOUS	  	9
	 8.1
	  	Governing Law	  	9
	 8.2
	  	Survival	  	9
	 8.3
	  	Successors and Assigns	  	10
	 8.4
	  	Entire Agreement; Amendment	  	10
	 8.5
	  	Costs and Expenses	  	10
	 8.6
	  	Notices, etc	  	10
	 8.7
	  	Delays or Omissions	  	10
	 8.8
	  	Severability	  	11
	 8.9
	  	Titles and Subtitles	  	11
	 8.10
	  	Counterparts	  	11
	 8.11
	  	Construction	  	11
	 8.12
	  	Interpretation	  	11
	 8.13
	  	Definitions	  	11
	 8.14
	  	Facsimile Signatures	  	12
			
	EXHIBITS	  	 	  	 
		
	A — Form of Opinion of Baker Botts L.L.P.	  	 

  

 ii 

 STOCK PURCHASE AGREEMENT 
  
 This Agreement is entered into effective as of March 17, 2005 by and among Syntroleum Corporation, a Delaware corporation
(the “Company”), and Legg Mason Opportunity Trust, a series of Legg Mason Investment Trust, Inc., a Maryland corporation (the “Purchaser”). 
  

SECTION 1. 
 AUTHORIZATION AND SALE
OF COMMON STOCK 
  
 1.1 Authorization.
The Company has authorized the sale and issuance at the Closing (as hereinafter defined) of a number of shares (the “Shares”) of its common stock, par value $.01 per share (“Common Stock”), determined in accordance with Section
1.2. 
  
 1.2 Sale of the Shares. Subject to
the terms and conditions hereof, the Purchaser will buy from the Company, and the Company will issue and sell to the Purchaser, 7,000,000 shares of Common Stock for a purchase price per share of $10; provided, however, that if the Closing Market
Price (as defined below) is less than $10 per share, then (a) the purchase price per Share shall be the Closing Market Price and (b) the number of Shares to be bought and sold shall, as determined by the Company (in its sole discretion), either
remain 7,000,000 shares of Common Stock or be reduced to a number of shares of Common Stock determined by the Company (in its sole discretion), provided that the product of such number of shares multiplied by the Closing Market Price is not less
than $25,000,000; and provided, further, that if the Closing Market Price is less than $10 per share, the Company shall have the right to terminate this Agreement and if so terminated, all further obligations of the parties hereunder shall
terminate, except that the obligations in Section 7.2 and Sections 8.1 through 8.14 shall survive. 
  
 SECTION 2. 
 CLOSING DATE; DELIVERY 
  
 2.1 Closing. The closing of the purchase and sale of the
Shares hereunder shall be held at Syntroleum Corporation, 4322 South 49th West Avenue, Tulsa, Oklahoma 74107, on the first Business Day following the Trade Date (as defined below) (the “Closing”), or at such other time and place upon which
the Company and the Purchaser mutually agree upon orally or in writing (the date of the Closing is hereinafter referred to as the “Closing Date”). 
  
 2.2 Delivery. At the Closing, the Company will deliver to the Purchaser a certificate or certificates, registered in the Purchaser’s
name, representing the Shares, against payment of the purchase price therefor, by wire transfer to the Company in accordance with its instructions. 
  
 SECTION 3. 
 REPRESENTATIONS AND
WARRANTIES OF THE COMPANY 
  
 Except as set forth on the
disclosure schedule prepared by the Company and delivered to the Purchaser, dated as of the date hereof (the “Disclosure Schedule”), the Company 

  

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represents and warrants to the Purchaser both as of the date hereof and again as of the Closing as follows: 
  
 3.1 Organization and Standing; Subsidiaries; Charter and
Bylaws. The Company and each of its Subsidiaries (as hereinafter defined) is a corporation, partnership or limited liability company duly organized, existing and in good standing under the laws of the jurisdiction of its incorporation or
organization. The Company and each of its Subsidiaries has all requisite corporate, partnership or limited liability company power and authority to own and operate their respective properties and assets, and to carry on their business as presently
conducted. The Company and each of its Subsidiaries currently is qualified to do business in each jurisdiction where the failure to be so qualified has not had and would not reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the assets, liabilities, financial condition, operating results or business of the Company and its Subsidiaries, taken as a whole (a “Material Adverse Effect”). The Company has made available to the Purchaser a
true, correct and complete copy of the Company’s Certificate of Incorporation, as in full force and effect on the date hereof (the “Charter”), and a true, correct and complete copy of the Company’s Bylaws as in full force and
effect on the date hereof (the “Bylaws”). 
  
 3.2
Capitalization. The authorized capital stock of the Company consists of 155,000,000 shares, 150,000,000 shares of which are designated as Common Stock, 250,000 shares of which are designated as Series A Junior Participating Preferred
Stock, par value $.01 per share (“Series A Junior Preferred Stock”), and 4,750,000 shares of which is undesignated preferred stock, par value $.01 per share (“Undesignated Stock”). As of March 16, 2005, there were 47,240,629
shares of Common Stock outstanding and there were no shares of Series A Junior Preferred Stock or Undesignated Stock outstanding. The outstanding shares of the Company’s capital stock have been duly authorized and validly issued and are fully
paid and nonassessable. As of the date hereof, (i) an aggregate of 5,000,000 shares are reserved for issuance under the Company’s 1993 Stock Option and Incentive Plan, and 4,150,849 shares of Common Stock are issuable pursuant to outstanding
stock options granted pursuant to the Company’s 1993 Stock Option and Incentive Plan, (ii) an aggregate of 395,370 shares (one percent of the number of shares of Common Stock outstanding on January 1, 2005) are reserved for issuance under the
Company’s Stock Option Plan for Outside Directors, and 184,826 shares of Common Stock are issuable pursuant to outstanding stock options granted pursuant to the Company’s Stock Option Plan for Outside Directors, (iii) an aggregate of
1,058,798 shares are reserved for issuance pursuant to stock options granted to Company consultants and officers outside of the Company’s 1993 Stock Option and Incentive Plan, (iv) an aggregate of 1,560,000 shares are reserved for issuance
under the SLH Corporation 1997 Stock Incentive Plan, (v) an aggregate of 1,552,000 shares of Common Stock are reserved for issuance pursuant to the Company’s outstanding publicly traded warrants issued on November 4, 2003, (vi) an aggregate of
887,400 shares of Common Stock are reserved for issuance pursuant to the Company’s outstanding publicly traded warrants issued on May 26, 2004, (vii) an aggregate of 1,036,250 shares of Common Stock are reserved for issuance pursuant to
outstanding warrants issued to Company consultants and (viii) an aggregate of 11,000 shares of Common Stock are issuable pursuant to outstanding stock options granted to Company employees pursuant to the Company’s 2005 Stock Incentive Plan,
which will be submitted for stockholder approval at the Company’s 2005 annual meeting of stockholders. Each outstanding share of Common Stock carries a stock purchase right, which rights entitle the holder to buy one one-hundredth of a share of
junior 

  

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preferred stock at a price of $20.8333 per one one-hundredth of a share pursuant to the provisions of the Company’s Second Amended and Restated Rights
Agreement dated as of October 24, 2004. Except as described in this Agreement or in the Disclosure Schedule, there are no other options, warrants, conversion privileges or other contractual rights presently outstanding to purchase or otherwise
acquire any authorized but unissued shares of the Company’s capital stock or other securities. 
  
 3.3 Authorization. The Company has all requisite corporate power and authority to execute and deliver this Agreement, to sell and issue the
Shares hereunder and to carry out and perform its obligations under the terms of this Agreement. All corporate action on the part of the Company, its directors and its stockholders necessary for the authorization, execution, delivery and performance
of this Agreement by the Company, the authorization, sale, issuance and delivery of the Shares and the performance of all of the Company’s obligations hereunder has been taken or will have been taken prior to the Closing. This Agreement
constitutes the valid and binding obligation of the Company, enforceable in accordance with its terms, except as such enforcement is subject to the effect of (i) any applicable bankruptcy, insolvency, reorganization or other laws relating to or
affecting creditors’ rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). Upon issuance in accordance with the provisions of this Agreement, the
Shares will be validly issued, fully paid and nonassessable. The issuance and sale of the Shares contemplated hereby will not give rise to any preemptive rights or rights of first refusal on behalf of any person. 
  
 3.4 SEC Reports. The Company has previously made available to
the Purchaser true and complete copies of its (i) Annual Report on Form 10-K for its fiscal year ended December 31, 2004, (ii) Current Reports on Form 8-K filed on January 5, 2005, January 19, 2005, January 28, 2005, February 1, 2005, February 17,
2005 and March 8, 2005 and (iii) any other reports or registration statements filed by the Company with the Commission since January 1, 2005, except for preliminary material, which are all the documents that the Company was required to file since
that date (collectively, the “SEC Reports”). As of their respective dates, the SEC Reports complied as to form in all material respects with the requirements of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and the rules and regulations of the Commission thereunder applicable to such SEC Reports. As of their respective dates, the SEC Reports, when read together with previously filed SEC Reports, did not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading, except as updated, corrected or superseded by subsequently filed SEC
Reports. Except as may be indicated therein or in the notes thereto, the audited consolidated financial statements and unaudited interim financial statements of the Company included in the SEC Reports comply as to form in all material respects with
applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto, have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the
periods covered thereby and fairly present in all material respects the financial condition of the Company as of the dates indicated and the results of operations, changes in stockholders’ equity and cash flows of the Company for the period
indicated. Since December 31, 2004, there has been no change in the assets, liabilities, financial condition, operating results or business of the Company and its Subsidiaries, taken as a whole, from that 

  

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reflected in the audited consolidated financial statements and unaudited interim financial statements of the Company included in the SEC reports, except as
set forth in the Disclosure Schedule or changes in the ordinary course of business that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 3.5 No Conflicts. The execution, delivery and performance of
this Agreement, including the issuance of the Shares, have not resulted and will not (i) result in any violation of or conflict with, or constitute a default under, the Company’s Charter or Bylaws, (ii) result in any violation of or conflict
with, or constitute a material default under, any mortgage, indebtedness, lease, indenture, contract, agreement, license, instrument, judgment, order, decree, statute, law, ordinance, rule or regulation to which the Company or any of its
Subsidiaries is party or otherwise subject to (subject to any required notices or filings with the NNM (as hereinafter defined) and such consents, approvals, authorizations, orders, registrations or qualifications as may be required under state
securities or Blue Sky laws in connection with the issuance by the Company of the Shares and the purchase of the Shares by the Purchaser in the manner contemplated herein and in the Final Prospectus and as have not had and would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect), or (iii) result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets of the Company or any of its Subsidiaries,
except in the case of clauses (ii) or (iii) as has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 3.6 Approvals. The Securities and Exchange Commission (the “Commission”) has issued an order under
the Securities Act of 1933, as amended (the “Securities Act”), declaring the Registration Statement effective, and no other consent, approval, authorization, order, registration or qualification of or with any Governmental Authority (as
hereinafter defined) is required for the offer and sale of the Shares to the Purchaser, or the consummation by the Company of the transactions contemplated by this Agreement and the Final Prospectus (as hereinafter defined), except such consents,
approvals, authorizations, orders, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with the issuance by the Company of the Shares and the purchase of the Shares by the Purchaser in the manner
contemplated herein and in the Final Prospectus and as have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 3.7 Offering. To the best of the Company’s knowledge, the Commission has not issued any order preventing
or suspending the use of the Base Prospectus (as hereinafter defined). 
  
 3.8 Litigation. There is no action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently threatened against the Company or any Subsidiary of the Company that questions the validity of this
Agreement or the right of the Company to enter into such agreement, or to consummate the transactions contemplated hereby, or that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or that would
reasonably be expected to materially adversely affect the Company’s ability to consummate the transaction contemplated hereby. 
  

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 3.9 Brokers or Finders. The Company has not incurred, and will not incur, directly or
indirectly, as a result of any action taken by the Company, any liability for brokerage or finders’ fees or agents’ commissions or any similar charge in connection with this Agreement. 
  
 3.10 Limitation on Representations. The Company shall not be
deemed to have made any representation or warranty to any Purchaser other than as expressly made by the Company in this Section 3. Without limiting the generality of the foregoing, except as expressly made by the Company in this Section 3, the
Company makes no representation or warranty to the Purchaser with respect to (a) any projections, estimates or budgets heretofore delivered or made available to the Purchaser of future revenues, expenses or expenditures or future results of
operations or (b) any other information or documents (financial or otherwise) made available to the Purchaser or its counsel, accountants or advisors. 
  
 SECTION 4. 
 REPRESENTATIONS AND
WARRANTIES OF THE PURCHASER 
  
 The Purchaser represents and
warrants to the Company both as of the date hereof and again as of the Closing as follows: 
  
 4.1 Investment. The Purchaser is acquiring the Shares in the ordinary course of its business and not with the view to, or for resale in connection with, any distribution thereof. The Purchaser has not
offered or sold any portion of the Shares to be acquired by it and has no present intention of reselling or otherwise disposing of any portion of such Shares either currently or after the passage of a fixed or determinable period of time or upon the
occurrence or nonoccurrence of any predetermined event or circumstance. The Purchaser shall not resell the Shares in a manner that results in a requirement to deliver a prospectus under Section 5 of the Securities Act. The Purchaser understands that
no federal or state agency has passed upon the Shares or made any finding or determination as to the fairness of the investment or any recommendation or endorsement of the Shares. In acquiring the Shares, the Purchaser is acting on its own behalf
and is not acting together with any other person or entity for the purpose of acquiring, holding, voting or disposing of the Shares within the meaning of Section 13(d) of the Exchange Act. 
  
 4.2 Authorization. The Purchaser has all requisite power and
authority to execute and deliver this Agreement and to carry out and perform its obligations under the terms of this Agreement. All corporate action on the part of the Purchaser, the Purchaser’s directors and stockholders necessary for the
authorization, execution, delivery and performance of this Agreement by the Purchaser, the purchase of the Shares and the performance of all of the Purchaser’s obligations hereunder has been taken or will be taken prior to the Closing. This
Agreement constitutes the valid and legally binding obligation of the Purchaser, enforceable in accordance with its terms, except as such enforcement is subject to the effect of (i) any applicable bankruptcy, insolvency, reorganization or other laws
relating to or affecting creditors’ rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  
 4.3 Litigation, etc. There is no action, suit, proceeding or
investigation pending or, to the Purchaser’s knowledge, currently threatened against the Purchaser that 

  

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questions the validity of this Agreement or the right of the Purchaser to enter into such agreement, or to consummate the transactions contemplated hereby,
or that would reasonably be expected to materially adversely affect the Purchaser’s ability to consummate the transaction contemplated hereby. 
  
 4.4 Governmental Consent, etc. No consent, approval or authorization of or designation, declaration or filing with any Governmental
Authority on the part of the Purchaser is required in connection with the execution, delivery and performance of this Agreement. 
  
 4.5 Brokers or Finders. The Purchaser has not incurred, and will not incur, directly or indirectly, as a result of any action taken by the
Purchaser, any liability for brokerage or finders’ fees or agents’ commissions or any similar charge in connection with this Agreement. 
  
 4.6 Investment Company. The Purchaser is registered as an investment company under the Investment Company Act of 1940, as amended, and is
acquiring the Shares solely for the purpose of investment. As a result of the purchase of the Shares by the Purchaser, the Purchaser will hold no more than 15 percent of the voting securities of the Company. 
  
 SECTION 5. 
 CONDITIONS TO CLOSING BY THE PURCHASER 
  
 The Purchaser’s obligation to purchase the Shares at the Closing is, at the option of the Purchaser, subject to the fulfillment of the following
conditions: 
  
 5.1 Representations and Warranties
Correct. The representations and warranties made by the Company in Section 3 hereof shall be true and correct in all material respects as of the Closing Date with the same effect as though such representations and warranties had been made on
the Closing Date except to the extent any such representation specifically references an earlier date. 
  
 5.2 Covenants. All covenants, agreements and conditions contained in this Agreement to be performed by the Company on or prior to the
Closing Date shall have been performed or complied with. 
  
 5.3 Effectiveness of Registration Statement. The Registration Statement and all post-effective amendments thereto shall be effective and no stop order suspending the effectiveness of the Registration Statement shall have been
issued and no proceeding for that purpose shall have been instituted or, to the knowledge of the Company, threatened by the Commission. 
  
 5.4 Approval of Inclusion on the Nasdaq National Market. At the Closing Date, the Shares shall have been approved for inclusion on the NNM,
subject only to official notice of issuance. 
  
 5.5 No
Legal Order Pending. There shall not then be in effect any legal or other order enjoining or restraining the transactions contemplated by this Agreement. 
  

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 5.6 No Law Prohibiting or Restricting Such Sale. There shall not be in effect any law, rule
or regulation prohibiting or restricting such purchase or requiring any consent or approval of any person prior to such purchase which shall not have been obtained. 
  
 5.7 Compliance Certificate. The Company shall have delivered to the Purchaser a certificate executed by (x)
the President and Chief Executive Officer and (y) the Senior Vice President, General Counsel and Corporate Secretary of the Company, dated as of the Closing Date, and certifying as to the fulfillment of the conditions specified in Sections 5.1, 5.2
and 5.3 of this Agreement. 
  
 5.8 Opinion of Company’s
Counsel. The Purchaser shall have received from Baker Botts L.L.P., counsel to the Company, an opinion addressed to the Purchaser, dated the Closing Date, substantially in the form of Exhibit A hereto. 
  
 5.9 Good Standing Certificate. The Company shall have delivered
to the Purchaser a Certificate dated as of a recent date issued by the Secretary of State of Delaware to the effect that the Company is legally existing and in good standing. 
  
 5.10 Secretary’s Certificate. The Company shall have delivered to the Purchaser a certificate executed by
the Secretary of the Company, dated as of the Closing Date, and certifying as to (a) the directors resolutions authorizing the transactions contemplated by this Agreement; (b) the Charter of the Company; (c) the Bylaws of the Company; (d) the
incumbency of the President and Chief Executive Officer, and the Senior Vice President, General Counsel and Corporate Secretary of the Company; and (e) such other matters as the Purchaser may reasonably request. 
  
 SECTION 6. 
 CONDITIONS TO CLOSING BY THE COMPANY 
  
 The Company’s obligation to sell and issue the Shares at the Closing is, at the option of the Company, subject to the fulfillment as of the Closing
Date of the following conditions: 
  
 6.1
Representations. The representations made by the Purchaser in Section 4 hereof shall be true and correct in all material respects on the Closing Date with the same effect as though such representations and warranties had been made on the
Closing Date except to the extent any such representation specifically references an earlier date. 
  
 6.2 Covenants. All covenants, agreements and conditions contained in this Agreement to be performed by the Purchaser on or prior to the
Closing Date shall have been performed or complied with. 
  
 6.3 Compliance Certificate. The Purchaser, or a duly authorized agent, shall have delivered to the Company a duly executed certificate, dated as of the Closing Date, and certifying as to the fulfillment of the conditions
specified in Sections 6.1 and 6.2 of this Agreement. 
  

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 6.4 Effectiveness of Registration Statement. The Registration Statement and all
post-effective amendments thereto shall be effective and no stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceeding for that purpose shall have been instituted or, to the knowledge of the
Purchaser, threatened by the Commission. 
  
 6.5 No Legal
Order Pending. There shall not then be in effect any legal or other order enjoining or restraining the transactions contemplated by this Agreement. 
  
 6.6 No Law Prohibiting or Restricting Such Sale. There shall not be in effect any law, rule or regulation prohibiting or restricting such
sale and issuance or requiring any consent or approval of any person prior to such sale and issuance which shall not have been obtained. 
  
 SECTION 7. 
 COVENANTS 

 
 7.1 Fulfillment of Closing Conditions. Each of the Company
and the Purchaser agrees to use its commercially reasonable efforts to cause the fulfillment of the closing conditions (to the extent, in whole or in part, within its direct or indirect control) set forth in Sections 5 and 6 hereof. 
  
 7.2 Confidentiality. For the purposes of this Section 7.2, the
term “Confidential Information” means information delivered to the Purchaser by or on behalf of the Company or any Subsidiary of the Company in connection with the transactions contemplated by or otherwise pursuant to this Agreement
(including, without limitation, any information regarding the transactions contemplated hereby provided prior to the Closing Date), provided that such term does not include information that (a) was publicly known or otherwise known to the Purchaser
prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by the Purchaser or any person or entity acting on the Purchaser’s behalf, or (c) otherwise becomes known to the Purchaser other than
through disclosure by the Company or any Subsidiary of the Company. The Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by the Purchaser in good faith to protect confidential
information of third parties delivered to the Purchaser, provided that the Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys and affiliates (to the extent such disclosure
reasonably relates to the administration of the investment represented by the purchased Shares), (ii) its financial advisors and other professional advisors who are made aware of the confidential nature of such information, or (iii) any other person
or entity to which such delivery or disclosure may be necessary or appropriate (x) to effect compliance with any law, rule, regulation or order applicable to the Purchaser, (y) in response to any subpoena or other legal process or (z) in connection
with any litigation to which the Purchaser is a party. The Purchaser agrees to provide the Company with reasonable prior notice of any proposed delivery or disclosure of Confidential Information pursuant to clause (iii) of the foregoing sentence and
to use commercially reasonable best efforts to cause the person or entity to which such delivery or disclosure is made to agree in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 7.2. The
Purchaser hereby acknowledges that it is aware, and that it will advise its 

  

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representatives who have knowledge of Confidential Information, that the United States securities laws prohibit any person who has material, non-public
information concerning the Company from purchasing or selling securities of the Company or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or
sell such securities, and the Purchaser agrees to comply and cause its representatives to comply with such laws. Notwithstanding any provision of this Agreement to the contrary, this Section 7.2 shall not limit the effect of any confidentiality
agreement between the Company and the Purchaser, which confidentiality agreement shall remain in full force and effect in accordance with its terms. 
  
 7.3 Publicity. The Company and the Purchaser agree not to issue any press release or make any public announcement with respect to this
Agreement or the transactions contemplated hereby unless the prior written consent of the other party has been obtained, which consent shall not be unreasonably withheld; provided however, that the Company may make any public disclosure it believes
in good faith is required by applicable law or any listing or trading agreement concerning its publicly traded securities (in which case it will use its best efforts to advise the Purchaser prior to making such disclosure). 
  
 7.4 Restriction on Sale of Securities. During a period of 90
days from the Closing Date, the Purchaser agrees that it will not, without the prior written consent of the Company, (i) directly or indirectly, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any share of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock or (ii) enter into any swap or any
other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Common Stock, or any securities convertible into or exercisable or exchangeable for Common Stock, whether
any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. 
  

7.5 Registration Statement. Between the date hereof and the Closing Date, the Company will not file any amendment to the Registration
Statement or any supplement to the Final Prospectus without first notifying the Purchaser. 
  
 SECTION 8. 
 MISCELLANEOUS 
  
 8.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware, without regard to any principles of conflicts of law thereof. 
  
 8.2 Survival. The representations, warranties, covenants and agreements made herein shall survive any investigation made by the Purchaser and the closing of the transactions contemplated hereby for a
period of one year. 
  

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 8.3 Successors and Assigns. Except as otherwise provided herein, the provisions hereof
shall inure to the benefit of and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. 
  
 8.4 Entire Agreement; Amendment. This Agreement and the other documents delivered pursuant hereto at the Closing constitute the full and
entire understanding and agreement between the parties with regard to the subjects hereof and thereof, and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants except as specifically set
forth herein or therein. Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the party against whom enforcement of any such
amendment, waiver, discharge or termination is sought. 
  
 8.5
Costs and Expenses. Each party hereto shall pay its own costs and expenses incurred in connection herewith, including the fees of its counsel, auditors and other representatives, whether or not the transactions contemplated hereby are
consummated. 
  
 8.6 Notices, etc. All notices and
other communications required or permitted hereunder shall be in writing (or in the form of a telex or telecopy (confirmed in writing) to be given only during the recipient’s normal business hours unless arrangements have otherwise been made to
receive such notice by telex or telecopy outside of normal business hours) and shall be mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand or by messenger, or telex or telecopy (as provided above) addressed (a)
if to the Purchaser, at such address as the Purchaser shall have furnished to the Company in writing or (b) if to the Company, sent to its principal executive offices and addressed to the attention of the President, or at such other address as the
Company shall have furnished to the Purchaser. 
  
 Each such
notice or other communication shall for all purposes of this Agreement be treated as effective or having been given when delivered if delivered personally, or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been
deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid or, if by telex or telecopy, when received and confirmed in the manner provided above. 
  
 8.7 Delays or Omissions. Except as expressly provided herein,
no delay or omission to exercise any right, power or remedy accruing to either party, upon any breach or default of the other party under this Agreement shall impair any such right, power or remedy of such party nor shall it be construed to be a
waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of either party of any breach or default under this Agreement, or any waiver on the part of either party of any provisions or conditions of this
Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to either party, shall be cumulative and not alternative.

  

 10 

 8.8 Severability. In the event that any provision of this Agreement becomes or is declared
by a court of competent jurisdiction to be illegal, invalid, unenforceable or void, this Agreement shall continue in full force and effect without said provision. In such event, the parties shall negotiate, in good faith, a legal, valid and
enforceable substitute provision which most nearly effects the intent of the parties in entering into this Agreement. 
  
 8.9 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not considered in construing
or interpreting this Agreement. 
  
 8.10
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument.

  
 8.11 Construction. Whenever the context so
requires, the singular number includes the plural and vice versa, and a reference to one gender includes the other gender or the neuter. 
  
 8.12 Interpretation. The parties hereto acknowledge and agree that (i) the rule of construction to the effect that any ambiguities are
resolved against the drafting party shall not be employed in the interpretation of this Agreement, and (ii) the terms and provisions of this Agreement shall be construed fairly as to all parties hereto and not in favor of or against any party,
regardless of which party was generally responsible for the preparation of this Agreement. 
  
 8.13 Definitions. The following terms shall have the following meanings: 
  
 “Base Prospectus” means the prospectus contained in the Registration Statement at the time that the Registration Statement was declared
effective or in the form in which it has been most recently filed with the Commission on or prior to the date of this Agreement. 
  
 “Business Day” means a day which in New York, New York is neither a legal holiday nor a day on which banking institutions are authorized
by law or regulation to close. 
  
 “Closing Market
Price” means the Nasdaq official closing price for the Common Stock on the Trade Date. 
  
 “Final Prospectus” means the prospectus supplement relating to the Shares and the offering thereof that is first filed pursuant to Rule
424(b) under the Securities Act after the date and time this Agreement is executed and delivered by the parties hereto, together with the Base Prospectus. 
  
 “Governmental Authority” means any (a) nation, state, county, city, town, village, district, or other jurisdiction of any nature, (b)
federal, state, local, municipal, foreign, or other government, (c) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), (d)
multi-national organization or body, or (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature. 
  

 11 

 “NNM” means Nasdaq National Market. 
  
 “Registration Statement” means the Company’s
registration statement (File No. 333-62290) on Form S-3 filed with the Commission on June 5, 2001, as supplemented or amended prior to the execution of this Agreement. 
  
 “Subsidiary” means any corporation or other organization, whether incorporated or unincorporated, of which
the Company directly or indirectly owns or controls at least a majority of the securities or other interests having by their terms ordinary voting power to elect a majority of the board of directors or others performing similar functions with
respect to such corporation or other organization, or any organization of which the Company is a general partner. 
  
 “Trade Date” means the Business Day on which the Shares have been approved for inclusion on the NNM, subject only to official notice of
issuance, provided that the Company receives such approval prior to 5:30 p.m., Eastern Standard Time, on such day. If the Company receives such approval after 5:30 p.m., Eastern Standard Time, then “Trade Date” means the Business
Day immediately following the day on which such approval is received. 
  
 8.14 Facsimile Signatures. Any signature page delivered by a fax machine or telecopy machine shall be binding to the same extent as an original signature page, with regard to any agreement subject to the terms hereof or any
amendment thereto. Any party who delivers such a signature page agrees to later deliver an original counterpart to any party which requests it. 
  
 [The remainder of this page intentionally left blank.] 
  

 12 

 The foregoing agreement is hereby executed as of the date first above written. 
  
 SYNTROLEUM CORPORATION 
  

			
	By:	 	 /s/ John B. Holmes, Jr.

	Name:	 	John B. Holmes, Jr.
	Title:	 	President and Chief Executive Officer

  
 LEGG MASON OPPORTUNITY TRUST,

 a series of Legg Mason Investment Trust, Inc. 
  

					
	By:	 	LMM LLC, as discretionary investment manager
	 	 	  
 By:
	 	  
 /s/ Jennifer W. Murphy

	 	 	Name:	 	Jennifer W. Murphy
	 	 	Title:	 	Chief Operating Officer

 EXHIBIT A 
  

Form of Opinion of Baker Botts L.L.P. 
  
 March     , 2005 
  
 062754.0173 
  
 Legg Mason Opportunity Trust 
 100 Light Street, 22nd Floor 
 Baltimore, Maryland 20202 
  
 Ladies and
Gentlemen: 
  
 This opinion is being furnished to you at the
request of Syntroleum Corporation, a Delaware corporation (the “Company”), pursuant to Section 5.8 of the Stock Purchase Agreement, dated as of March 17, 2005 (the “Purchase Agreement”), by and among the Company and Legg Mason
Opportunity Trust, a series of Legg Mason Investment Trust, Inc., a Maryland corporation (the “Purchaser”), relating to the sale by the Company to the Purchaser of shares of the Company’s common stock, par value $.01 per share
(“Common Stock”). Capitalized terms used but not defined herein shall have the meaning assigned to such terms in the Purchase Agreement. 
  
 The Company has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 (Registration No.
333-62290) covering the registration of the Company’s debt securities, shares of Common Stock, shares of preferred stock, par value $0.01 per share, depositary shares and warrants with an aggregate offering price of up to $250,000,000. Such
registration statement, including all documents incorporated by reference therein, is hereinafter referred to as the “Registration Statement,” and the prospectus supplement dated March 17, 2005, together with the prospectus dated June 6,
2001 relating to the Registration Statement, in the form first filed with the Commission pursuant to and in accordance with Rule 424(b) under the Securities Act of 1933, as amended (the “1933 Act”), including all material incorporated by
reference therein as of the date hereof, is hereinafter referred to as the “Prospectus.” Unless otherwise defined herein, the terms used in this opinion shall have the respective meanings specified in the Purchase Agreement. 
  
 As counsel to the Company, we have examined the originals, or copies
certified or otherwise identified, of the Purchase Agreement, the Certificate of Incorporation and Bylaws of the Company, each as amended to date, corporate records of the Company, including certain resolutions of the Board of Directors of the
Company, certificates of public officials and of representatives of the Company, statutes and other instruments and documents, as a basis for the opinions hereinafter expressed. In giving such opinions, we have relied upon certificates, statements
or other representations of officers of the Company with respect to the accuracy of the factual matters contained in or covered by such certificates, statements or representations. 
  

 A-1 

 In such examinations, we have assumed (i) the genuineness of all signatures, the authenticity and
completeness of all documents, certificates, instruments and records submitted to us as originals and the conformity to the original instruments of all documents submitted to us as copies, and the authenticity and completeness of the originals of
such copies, (ii) the due authorization, execution and delivery by the parties thereto, other than the Company, of all such documents and instruments examined by us, (iii) that, to the extent that any such documents and instruments purport to
constitute agreements of such other parties, they constitute valid and binding obligations of such other parties and (iv) the truth and accuracy of all representations and warranties in the Purchase Agreement and that each party will comply with all
of their respective covenants therein. We have conducted no independent investigation with respect to the foregoing. 
  
 On the basis of the foregoing, and subject to the limitations and qualifications set forth herein, we are of the opinion that: 
  
 1. The Company is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of Delaware. 
  
 2. The
Company has all requisite corporate power and authority to execute and deliver, and perform its obligations under, the Purchase Agreement. 
  
 3. The Shares have been duly authorized by all necessary corporate action on the part of the Company and, when issued and delivered to the Purchaser upon
payment therefor in accordance with the provisions of the Purchase Agreement, will be validly issued, fully paid and nonassessable. 
  
 4. The Purchase Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and legally binding agreement of the
Company, enforceable against the Company in accordance with its terms, except insofar as the enforceability thereof may be limited by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or other law relating to or
affecting the enforcement of creditors’ rights generally and to general principles of equity and public policy (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  
 5. The statements in the Registration Statement and the Prospectus under the
captions “Description of Capital Stock,” and in the Registration Statement under Item 15, insofar as they are descriptions of contracts, agreements or other legal documents, or refer to statements of law or legal conclusions, are accurate
summaries in all material respects. 
  
 6. The Registration
Statement has been declared effective under the 1933 Act and, to our knowledge, no stop order suspending the effectiveness of the Registration Statement has been issued under the 1933 Act and no proceedings for that purpose have been instituted or
are pending or threatened by the Commission. 
  
 We express no
opinion with respect to the legality, validity, binding nature or enforceability of any provisions (i) purporting to release or exculpate any party from liability for the acts or omissions of such party proximately causing damages or injuries as
result of such party’s negligence, willful misconduct or strict liability, or purporting to impose a duty upon any 

  

 A-2 

 
party to indemnify, or make contribution to, any other party when any claimed damages or liability result from the negligence, strict liability, willful
misconduct of, or the violation of federal or state securities or anti-fraud laws by, the party seeking such indemnity or contribution, (ii) relating to severability of invalid terms, the reformation of contracts and similar terms or (iii) to the
effect that failure to exercise or delay in exercising rights or remedies will not operate as a waiver of such rights or remedies. 
  
 In connection with our opinion expressed above in paragraph 6, we have relied upon the oral notification by a member of the staff of the Commission as to
the effectiveness of the Registration Statement under the 1933 Act. 
  
 In the opinions set forth herein, phrases such as “to our knowledge,” “known to us” and those with equivalent wording refer to the conscious awareness of information by the lawyers of this firm who have prepared this
opinion, signed this opinion or been actively involved in assisting and advising the Company in connection with the preparation, execution and delivery of the Purchase Agreement. 
  
 The opinions set forth herein are based upon and limited to applicable federal law, the laws of the State of Texas and the
general corporation law of the State of Delaware, in each case as in effect on the date hereof. For purposes of the opinions expressed above, we have assumed, with your permission and without independent inquiry, that the laws of the State of
Delaware are identical to the laws of the State of Texas. The opinions given are strictly limited to the matters stated herein, and no implied opinions are to be inferred from anything stated herein, and without limiting the generality of the
foregoing we express no opinion with respect to any bankruptcy or creditors rights laws or any federal or state securities or antifraud law, rule or regulation except as otherwise specifically stated herein. 
  
 This opinion is intended to be for the benefit of the Purchaser in connection
with the transactions consummated on the date hereof pursuant to the Purchase Agreement and may be relied upon only by the Purchaser and may not be relied upon by any other person or for any other purpose. No other use or distribution of this
opinion may be made without our prior written consent. 
  
 Very
truly
yours,                                       
                          
  

 A-3Employment Agreement

 Exhibit 10.50 
  
 EMPLOYMENT AGREEMENT 
  

THIS AGREEMENT, made and entered into this 7th day of December, 2004, by and between JohnsonDiversey, Inc., a Delaware corporation (“JDI”)
and Stephen Di Biase (“Employee”). 
  
 In consideration
of the mutual promises and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 ARTICLE I 
 Employment 

 
 1.1 Position and Responsibilities. During the period of this
Agreement and subject to the terms and conditions hereof, the Employee agrees to serve as Senior Vice President, Chief Scientific Officer, or such other officer position as Employee may be assigned to by the President/CEO, and to be responsible for
the typical management responsibilities expected of an officer holding such position and such other responsibilities consistent with such position as may be assigned to the Employee from time to time by the President/CEO. 
  
 1.2 Place of Employment. Employee’s initial principal place of
employment shall be 8310 16th Street, Sturtevant, Wisconsin. 
  
 1.3 Duties. During the Period of Employment, the Employee shall devote
all of Employee’s business time, attention and skill to the business and affairs of the Company and its subsidiaries, except, so long as such activities do not unreasonably interfere with the business of the Company or diminish the
Employee’s obligations under the Agreement, that Employee may (i) participate in the affairs of any governmental, educational or other charitable institution, or engage in professional speaking and writing activities, or (ii) serve as a member
of the board of directors of other corporations, and in either case, the Employee shall be entitled to retain all fees, royalties and other compensation derived from such activities in addition to the compensation and other benefits payable to him
under this Agreement; and provided further, that the Employee may invest Employee’s personal or family funds in any form or manner he may choose that will not require any services on Employee’s part in the operation of or the affairs of
the entities in which such investments are made. The Employee will perform faithfully the duties consistent with Employee’s position and which may be assigned to Employee from time to time by the President/CEO. 
  
 ARTICLE II 
 Term and Termination 
  
 2.1 Term. Employee’s employment under this Agreement shall commence on September 7, 2004, shall be at will, and may be terminated by formal or informal action of the President/CEO at any time for any
reason not prohibited by law. 
  
 2.2 Resignation or
Termination for Cause. If Employee should resign Employee’s employment, or if the President/CEO should terminate Employee’s employment for cause, Employee shall not be entitled to any compensation or remuneration other than such
amounts and benefits as Employee is eligible to receive under JDI’s then prevailing policies and benefit plans and as prescribed by law. “Cause” means termination for any of the following reasons: 
  
 (a) Material breach of this Agreement. 
  
 (b) Failure to perform within the provisions of “This
We Believe.” 
  
 (c) Willful misconduct, or
willful violation of the law in the performance of duties under this Agreement. 

 ADDENDUM A 
  
 (d) Willful failure or refusal to follow reasonable, explicit, and lawful instructions or directions from the President/CEO concerning the
operation of JDI’s business. 
  
 (e)
Conviction of a felony. 
  
 (f) Theft or
misappropriation of funds or property of JDI, or commission of any material act of dishonesty involving JDI, its employees, or business. 
  
 (g) Appropriating any corporate opportunity of JDI, unless the transaction was approved in writing by the President/CEO following full
disclosure of all pertinent details of the transaction. 
  
 (h) Breach of the fiduciary duty owed to JDI as an officer of JDI. 
  
 (i) Breach of any duty or obligation under the agreements attached as Addenda A, B and C to this Agreement. 
  
 2.3 Retirement, Death, Disability or Termination without Cause.

  
 (a) Employee’s employment shall
terminate automatically and immediately upon Employee’s Retirement or Death. 
  
 (b) Upon the President/CEO’s written determination that Employee is unable, due to a disability, to continue carrying out the duties
and responsibilities of Employee’s position, Employee’s officer status will be terminated, and Employee’s employment will continue pursuant to the JDI’s applicable policies and benefits related to disabled employees. For purposes
of this Agreement, “disability” means the inability of the Employee, due to a physical or mental impairment, for 120 consecutive days to perform the essential duties and functions contemplated by this Agreement with or without reasonable
accommodation. A determination of disability shall be made by an independent physician selected by the President/CEO who is deemed satisfactory to the Employee, and Employee shall cooperate with the efforts to make such determination. Notice of
determination of disability shall be provided by the President/CEO in writing to Employee stating the facts and reasons for such determination. Any such determination shall be conclusive and binding on the parties. Nothing in this section, however,
shall be deemed to alter JDI’s duty to reasonably accommodate, if possible, any disability of Employee. Any determination of disability under this Section is not intended to affect any benefits to which employee may be entitled under any long
term disability insurance policy provided by JDI or Employee with respect to Employee, which benefits shall be governed solely by the terms of any such insurance policy. 
  
 (c) If Employee’s employment is terminated as a result of Death, Employee’s estate shall, in
addition to any other compensation and benefits provided by JDI policies and benefit plans then in effect, receive (1) a prorated performance bonus for the fiscal year in which the termination occurs, as described in Section 3.2, which shall be
payable at the time and in the manner in which JDI normally pays such bonuses; and (2) reimbursement of expenses to which Employee is entitled under Section 3.6. 
  
 (d) If Employee’s employment is terminated as a result of Termination without Cause, Employee shall, in
addition to any other compensation and benefits provided by JDI policies and benefit plans then in effect, and so long as Employee complies with all provisions of the Agreement to Respect Proprietary Rights and Noncompete and Code of Ethics,
attached as Addenda B and C, respectively, receive (1) continuation of Employee’s base salary for one year; (2) a performance bonus prorated for the period worked during the year in which the termination occurs, as described in Section 3.2; and
(3) a performance bonus at the target level for the one-year salary continuation period. 

 ADDENDUM A 
  
 ARTICLE III 
 Compensation

  
 3.1 Base Salary. The Company agrees to pay the
Employee an initial base salary (“Base Salary”) of $285,000. Such Base Salary shall be payable according to the customary payroll practices of the Company. The Employee shall be considered for an increase in Base Salary effective on the
payroll date nearest April 1 of each contract year. 
  
 3.2
Performance Bonus. The Employee shall be eligible to receive, at the discretion of the Board of Directors Compensation Committee, a Performance Bonus in accordance with the terms of the Performance Bonus Opportunity Plan. The Employee’s
target bonus is 50% of the base salary as of the last day of the fiscal year. Depending on achievement of objectives, this amount can range between 0% and 100% of the target. The Performance Bonuses are paid after approval by the Board of Directors
Compensation Committee of the Company. 
  
 3.3 Long Term
Incentive Plan. As provided in the Commercial Markets Holdco, Inc. Long Term Equity Incentive Plan, as amended from time to time (the “LTIP”), the awards of stock options granted pursuant to the LTIP shall be in the sole discretion of
the Board of Directors Compensation Committee which administers the LTIP. In the event of termination for any reason other than Retirement, Death, Termination for Cause or Resignation, the Compensation Committee of the Board of Directors will
determine the vesting treatment of the Stock Options Employee was granted. 
  
 3.4 Ownership Requirements. The Employee will be expected to build real ownership in the Company’s stock equal to one and one-half times Employee’s base salary by at least September, 2011. 

 
 3.5 Deferred Compensation Plan. The Employee shall be eligible to
participate in the Company’s Deferred Compensation Plan. 
  
 3.6 Flexible Spending Account. Employee shall be entitled to an annual Flexible Spending Account of $7,500 to be used for annual country club dues, financial planning, tax advice/preparation, estate planning, legal fees associated
with estate and/or property matters, automobile lease, automobile payments (monthly payments only), and health club membership. 
  
 3.7 Benefits. Employee shall be entitled to participate in all benefit programs which JDI from time to time may make available to other executive
level employees in the Employee’s assigned country for benefit purposes. Employee shall have no vested rights in any such programs except as expressly provided under the terms thereof. JDI expressly reserves the right in its sole discretion to
terminate or modify any such programs at any time and from time to time. 
  
 ARTICLE IV 
 Miscellaneous 
  
 4.1 Entire Agreement. This Agreement sets forth the entire agreement between the parties relating to the subject matter hereof and supersede all
prior agreements between the parties relating to the subject matter hereof. 
  
 4.2 Waiver of Breach. The waiver by a party of the breach of any provision of this Agreement shall not be deemed a waiver by said party of any other or subsequent breach. 
  
 4.3 Assignment. This Agreement shall not be assignable by JDI without
the written consent of Employee; provided, however, that if JDI shall merge or consolidate with or into, transfer substantially all of its assets, including goodwill, to another corporation or other form of business organization, this Agreement
shall be binding upon and shall inure to the benefit of the successor corporation in such merger, consolidation or transfer. Employee may not assign, pledge or encumber any interest in this Agreement or any part thereof without the written consent
of JDI. 

 ADDENDUM A 
  
 4.4 Disputes. Any dispute or controversy arising from or relating to this Agreement shall be submitted to and decided by binding arbitration in the
State of Wisconsin, USA. At the request of either JDI or Employee, arbitration proceedings will be conducted in the utmost secrecy; in such case, all documents, testimony and records shall be received, heard and maintained by the arbitrator(s) in
secrecy, available for inspection only by JDI or by the Employee and by their respective attorneys and experts who shall agree, in advance and in writing, to receive all such information in confidence and to maintain such information in secrecy
until such information shall be generally known. The parties shall share all expenses of arbitration equally. 
  
 4.5 Limitation on Claims. Any claim or controversy otherwise arbitrable hereunder shall be deemed waived, and no such claim or controversy shall be
made or raised, unless a request for arbitration thereof has been given as provided below to the other party in writing not later than six months after the date on which the facts giving rise to the claim or controversy first arose. 
  
 4.6 Notices. All notices, requests, demands or other communications
required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given to any party when delivered personally (by courier service or otherwise), when delivered by telecopy or facsimile, by overnight courier, or
seven days after being mailed by first-class mail, postage prepaid and return receipt requested in each case to the applicable addresses set forth below: 
  

			
	If to Employee:	 	Steve Di Biase
	 	 	Sr. Vice President, Chief Scientific Officer
	 	 	JohnsonDiversey, Inc.
	 	 	8310 16th Street – MS 510
	 	 	P.O. Box 902
	 	 	Sturtevant, WI 53177-0902
		
	If to JDI:	 	JoAnne Brandes
	 	 	Executive Vice President, Chief Administrative Officer,
	 	 	General Counsel & Secretary
	 	 	JohnsonDiversey, Inc.
	 	 	8310 16th Street – MS 510
	 	 	P.O. Box 902
	 	 	Sturtevant, WI 53177-0902

  
 or to such other address as such party
shall have designated by written notice so given to each other party. 
  
 4.7 Amendment. This Agreement may be modified only in writing, signed by both of the parties. Headings included in this Agreement are for convenience only and are not intended to limit or expand the rights of the parties hereto.

  
 4.8 Severability. If any provision of this Agreement is
determined to be invalid or unenforceable, then such invalidity or unenforceability shall have no effect on the other provisions hereof, which shall remain valid, binding and enforceable and in full force and effect, and such invalid or
unenforceable provision, shall be construed in a manner so as to give the maximum valid and enforceable effect to the intent of the parties expressed therein. 
  

4.9 Incorporation of Terms. The introductory language and recitals set forth above, and Addenda A, B and C attached hereto, are incorporated by
reference as a part of this Agreement. 
  
 4.10
Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Wisconsin, USA (regardless of such State’s conflicts of law principles). 

 ADDENDUM A 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day, month and year first above written. 
  

			
	JOHNSONDIVERSEY, INC.
		
	By	 	 /s/ JoAnne Brandes

	 	 	JoAnne Brandes, Executive Vice
	 	 	President, Chief Administrative Officer,
	 	 	General Counsel & Secretary
	
	 /s/ Stephen Di Biase

	Stephen Di Biase

 ADDENDUM A 
  
 JOHNSONDIVERSEY, INC. 
 Award
of Stock Options 
  
 I am pleased to inform you that 1,350 Stock Options have
been awarded to you under the Commercial Markets Holdco, Inc. Long Term Equity Incentive Plan (“LTIP”) as amended and restated. This award is subject to the following terms and conditions: 
  

	1.	The acceptance and signature confirming the terms outlined in your Employment Agreement. 

  

	2.	The Exercise Price of the Stock Options is $136.79. 

  

	3.	The issuance date of the stock options will be within two weeks of receiving your signed Employment Agreement. The vesting period for the Stock Options will lapse September 6,
2008 if you continue to be employed the Company or a Subsidiary until that date. However, the vesting period may be accelerated in accordance with Section 4 or 6 below. Vested Stock Options shall be exercisable for a 7-year period from the date
of grant. 

  

	4.	If your employment relationship with the Company or a Subsidiary terminates due to Death or Retirement, your Stock Options will vest in full. You will receive instructions regarding
the exercise of vested options. 

  

	5.	If your employment is Terminated for Cause or you resign prior to the Vesting Date of the Stock Options, all of the Stock Options will be forfeited. Termination for Cause means
termination for any of the following reasons: 

  

	 	a.	Failure to perform within the provisions of “This We Believe.” 

  

	 	b.	Willful misconduct, or willful violation of the law in the performance of duties under these provisions. 

  

	 	c.	Willful failure or refusal to follow reasonable, explicit, and lawful instructions or directions from the Chairman or President concerning the operation of JohnsonDiversey’s
business. 

  

	 	d.	Conviction of a felony. 

  

	 	e.	Theft or misappropriation of funds or property of JDI, or commission of any material act of dishonesty involving JDI, its employees, or business. 

  

	 	f.	Appropriating any corporate opportunity of JDI, unless the transaction was approved in writing by the Chairman or President following full disclosure of all pertinent details of the
transaction. 

  

	 	g.	Breach of fiduciary duty owed to JDI as an executive of JDI. 

  

	6.	In the event of termination for any reason other than Retirement, Death, Termination for Cause, or Resignation, the Compensation Committee of the Board of Directors will determine
the vesting treatment of the Stock Options you were granted. 

  

	7.	Vested stock options may be exercised by giving notice to the company of the number of shares being exercised accompanied by full payment of the exercise price in cash made in US
dollars or such other form of payment as the committee shall permit. 

  

	8.	Employee will have no rights as a stockholder with respect to shares subject to Stock Options unless and until they are exercised and Company Shares are actually issued to the
Employee. 

  

	9.	The Stock Options are not transferable except by the laws of descent and distribution upon the death of the Employee. 

 ADDENDUM A 
  

	10.	The Employee shall hold all Company Shares acquired through the exercise of Stock Options for at least 6 months from the date such Stock Options were exercised.

  

	11.	The Company shall have the option, pursuant to Article 7 of the LTIP, to repurchase all Company Shares upon Employee’s termination of employment. The purchase price shall be
the price determined pursuant to Article 7 of the LTIP at the most recently computed Cash Flow Return on Investment value (“CFROI”). Company shares may not be transferred except pursuant to Section 7.02 of the LTIP. An appropriate legend
shall be placed on the Company shares identifying them as subject to its provisions of the LTIP. 

  

	12.	Employee acknowledges the Committee’s authority with respect to the LTIP, including the Committee’s authority to interpret the LTIP. Employee also acknowledges the
Committee’s determination of the Company’s value based on CFROI. 

  

	13.	The Company shall have the authority to deduct or withhold, or require Employee to remit to the Company an amount sufficient to satisfy taxes required by law to be withheld with
respect to any exercise of Employee’s rights under these provisions. 

  

	14.	This award is voluntary and discretionary, being made on a one-time basis and it does not constitute a commitment to make any future awards. 

  

	15.	This award and any payments made hereunder will not be considered salary or other compensation for purposes of any severance pay or similar allowance, except as otherwise required
by law. 

  

	16.	Nothing in this agreement will give you any right to continued employment with the Company or any Subsidiary, or interfere in any way with the right of the Company or any Subsidiary
to terminate your employment. 

  

	17.	Information about you and your award of Stock Options may be collected, recorded and held, used and disclosed for any purpose related to the administration of the award. You
understand that such processing of this information may need to be carried out by the Company and its Subsidiaries and by third party administrators whether such persons are located within your country or elsewhere, including the United States of
America. You consent to the processing of information relating to you and your receipt of the Units in any one or more of the ways referred to above. 

  

	18.	If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of
this Agreement and the application of such provision in any other person or circumstances shall not be affected, and the provisions so held to be invalid, unenforceable or otherwise illegal shall be reformed to the extent (and only to the extent)
necessary to make it enforceable, valid and legal. 

  

	19.	This Agreement shall be governed by and construed in accordance with the internal substantive laws of the State of Wisconsin, without giving effect to any principle of law that
would result in the application of the law of any other jurisdiction. 

  

	20.	This award is subject to the terms and conditions of the Plan. Capitalized terms used in this letter agreement and not otherwise defined have the meanings assigned to them in the
Plan. By signing below you acknowledge receipt of a copy of the Plan and acceptance of all of the terms of this award. 

  
 Accepted this 7th day of December,
2004. 
  
 /s/ Stephen Di Biase 

 Stephen Di Biase 

 ADDENDUM B 
  
 JOHNSONDIVERSEY, INC. 
 AGREEMENT TO RESPECT
PROPRIETARY RIGHTS AND NONCOMPETE 
  
 Officer Level Employee

  
 JohnsonDiversey, Inc. (“JohnsonDiversey”) and its
predecessors, subsidiaries and affiliates have prospered for many years by continuously developing new products, services, markets, and industry knowledge. The ability to satisfy our customers needs with products and services superior to our
competitors is critical to our success. JohnsonDiversey is committed to continuing this heritage of strong research and development efforts. However, JohnsonDiversey is also aware that competitors seek out JohnsonDiversey’s proprietary
information and seek to minimize the competitive advantages gained for the efforts of our own employees. 
  
 JohnsonDiversey is committed to protecting its exclusive legal rights to use proprietary information developed by its employees and agents as well as
proprietary information of its subsidiaries and affiliates. Failure to vigorously assert these rights where appropriate would amount to a failure to preserve our corporate assets for the benefit of our employees, related companies, shareholders and
their families. In addition, JohnsonDiversey (including its subsidiaries and affiliates) has entered into agreements with many third parties, such as customers, suppliers, licensors/licensees and contractors (“Business Partners”), that
require employees to protect the proprietary and confidential information supplied by these entities. JohnsonDiversey expects and requires that all employees will strictly adhere to “Standards of Conduct”, as described below, in order to
protect JohnsonDiversey’s and its Business Partners’ proprietary rights. The Standards of Conduct apply during employment with JohnsonDiversey and during specified time periods following termination of employment. 
  
 Standard 1: Upon request by JohnsonDiversey, during employment and
thereafter, Officer will return all records or documents, including computer generated or stored records, products, and other tangible items, as well as any and all copies of any records or documents, containing, comprising, or relating to
JohnsonDiversey’s (including its subsidiaries, and affiliates) or business Partners’ “Confidential Information” or “Trade Secrets” which Officer creates or obtains at any time during Officer’s employment with
JohnsonDiversey. 
  
 Standard 2: During the term of
employment and for a two (2) year period immediately following termination of employment for whatever reason, Officer will neither appropriate, disclose, or transfer to, nor publish or use for any reason any “Confidential Information”
which Officer created or acquired during the period of Officer’s employment except for disclosures or transfers to (a) current JohnsonDiversey employees and JohnsonDiversey-authorized agents, including those of the subsidiaries and affiliates
of JohnsonDiversey, or (b) JohnsonDiversey-authorized Business Partners, with a clear need to know for the benefit of JohnsonDiversey. For the purposes of this Standard of Conduct, “Confidential Information” means information pertaining to
JohnsonDiversey business activities (including its subsidiaries, and affiliates) which is not generally known by JohnsonDiversey competitors or the public and does not qualify as a “Trade Secret”. “Trade Secret” means
information, including a formula, pattern, compilation, program, device, method, technique or process to which all of the following apply: 1. The information derives independent economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use or, 2. The information is the subject of efforts to maintain its secrecy that are reasonable under the circumstances.

  
 Standard 3: Officer understands that Officer may
create or obtain information qualifying as a “Trade Secret” as defined by Standard 2, such as a formula, pattern, compilation, program, device, method, technique or process which has economic value to JohnsonDiversey and is not readily
ascertainable by competing organizations. JohnsonDiversey has exclusive ownership rights to any such Trade Secrets. So long as any such information retains its character as a legal Trade Secret, Officer will neither appropriate, disclose, or
transfer to, nor publish or use any such information except for disclosures or transfers to (a) current JohnsonDiversey employees and JohnsonDiversey-authorized agents, including those of the subsidiaries and affiliates of JohnsonDiversey, or (b)
JohnsonDiversey-authorized Business Partners, with a clear need-to-know for the benefit of JohnsonDiversey. 

 ADDENDUM B 
  
 Standard 4: Officer will not in any unauthorized manner appropriate, disclose, transfer, publish, or use any “Confidential Information”
or “Trade Secret” information provided to JohnsonDiversey (including its subsidiaries, and affiliates) by a Business Partner during the term specified in the agreement(s) between the Business Partner and JohnsonDiversey (including its
subsidiaries, and affiliates). Officer may contact JohnsonDiversey’s Law Department to verify the type of information characterized as confidential or trade secret by the Business Partner and the time period covered by such an agreement as well
as to determine the specific restrictions placed on such information by such an agreement. 
  
 Standard 5: During employment with JohnsonDiversey and for a two (2) year period immediately following termination of employment, for whatever reason, Officer will not indirectly, or by assisting others,
recruit, solicit, hire, employ, or endeavor to employ any JohnsonDiversey employee, including employees of JohnsonDiversey’s subsidiaries and affiliates, with whom Officer had material contact during Officer’s employment with
JohnsonDiversey. 
  
 Standard 6: Among other things, an
Officer receives access to a significant amount of JohnsonDiversey business and technical Confidential Information and Trade Secrets during employment with JohnsonDiversey. Those employees having contact with customers of JohnsonDiversey
additionally obtain valuable information about their personnel, product needs, business plans, locations and the like which is established and maintained at great expense. During employment with JohnsonDiversey and for an eighteen (18) month period
immediately following termination of employment for whatever reason, Officer will not perform work or services similar to those performed for JohnsonDiversey during Officer’s most recent three (3) years of the term of employment as an employee
of JohnsonDiversey, directly or indirectly, as an owner, partner, shareholder (except of 1% or less of any class of outstanding securities listed in any national securities exchange or actively traded in an over-the-counter market), employee, agent,
advisor or consultant for either any active competitor of JohnsonDiversey or for any supplier to an active competitor of JohnsonDiversey in the market of, as applicable to Officer’s duties with JohnsonDiversey, (a) involving polymer products of
the type provided by JohnsonDiversey, or (b) involving commercial/industrial maintenance products and services of the type provided by JohnsonDiversey, its divisions, or by its subsidiary companies. Those employees having substantial contact with
JohnsonDiversey’s customers will not for an eighteen (18) month period immediately following termination of employment directly or indirectly, either individually or as an employee, agent, partner, shareholder, consultant or in any other
capacity, canvas, contact, solicit or accept any customers of JohnsonDiversey with whom the Officer had contact with or responsibility for on behalf of JohnsonDiversey during the most recent three (3) years of the term of employment for the purpose
of selling products or services similar to or competitive with those offered or sold to such customers on behalf of JohnsonDiversey during the term of Officer’s employment by JohnsonDiversey. 
  
 Standard 7: All discoveries, improvements, ideas and developments
(“Developments”), trademarks and copyrights which Officer, alone or jointly with others, conceives, makes or acquires during Officer’s employment with JohnsonDiversey, whether during or after regular working hours, that are directly
or indirectly related to any business or activity in which JohnsonDiversey is engaged at the time Officer conceives, makes, or acquires such Developments, trademarks and copyrights are the exclusive property of JohnsonDiversey. Any Officer rights to
any legal interest in these Developments, trademarks and copyrights are expressly assigned to JohnsonDiversey, and, as applicable, shall be deemed to be “works for hire”. Furthermore, Officer agrees to promptly disclose any and all such
Developments, trademarks, and copyrights and will execute and deliver to JohnsonDiversey any instruments JohnsonDiversey requests to permit JohnsonDiversey to acquire, maintain or enforce any patents covering such Developments, trademark
registrations or copyrights in the united States or foreign countries, all at JohnsonDiversey’s expense. 
  
 Officer appreciates that JohnsonDiversey should not be compelled to use Company financial resources to enforce the obligations contained in these
Standards of Conduct. Officer, therefore, agrees that should a court conclude that Officer violated any obligation contained in these Standards of Conduct, JohnsonDiversey (including subsidiaries, and affiliates) should recover from Officer all
costs incurred by JohnsonDiversey in enforcing the obligation or obtaining relief from any such breach. 

 ADDENDUM B 
  
 In the event JohnsonDiversey is compelled to take legal action to enforce the terms of this Agreement, the initiation of such action shall toll the time
periods running under this Agreement and the tolling shall continue until a final decision no longer subject to appeal is rendered. 
  
 JohnsonDiversey may at its sole discretion elect to have any dispute arising under this Agreement decided by binding arbitration in order to protect the
confidentiality of its trade secrets. In that event, Officer will agree to binding arbitration in accordance with the practices and procedures of the American Arbitration Association or such similar rules, suitably modified, as JohnsonDiversey may
select. 
  
 These Standards of Conduct are not intended to
unnecessarily or unreasonably prevent Officer from obtaining other employment in a lawful profession, trade, or business. The Standards of Conduct are also not intended to conflict with any applicable legal standards. Officer is not prohibited from
becoming employed by a competing business so long as Officer observes the obligations set forth in these Standards of Conduct. 
  
 Each Standard of Conduct constitutes an independent obligation and therefore the existence of any claim or cause of action against JohnsonDiversey will
not constitute any defense to enforcement of these Standards of Conduct. If the applicable law does not permit reformation since each Standard of Conduct is fully separable and divisible, any provision deemed unenforceable shall be separated and in
no way diminish the validity and enforceability of the remaining Standards of Conduct. JohnsonDiversey’s indulgence or failure to enforce a particular breach of Officer’s responsibilities under this document shall not be deemed to be a
waiver of JohnsonDiversey’s rights to enforce a subsequent breach of the same or a different type. 
  
 Should Officer have any questions regarding any standard, Officer should feel free to communicate those questions to the Human Resources Department. By
signing this document, Officer acknowledges that Officer has received a copy of it, that Officer understands and fully intends to comply with these Standards of Conduct, and that Officer will provide a copy of this document to any potential new
employer prior to accepting a position with a new employer. 
  
 This Agreement and the rights and obligations therein may be assigned by JohnsonDiversey to a successor in interest of the business of JohnsonDiversey for which the Officer chooses to be employed and the terms of this Agreement shall
continue to apply for the benefit of all such successors in interest for which the Officer chooses to be employed. Such assignment will not relieve the Officer of his/her obligations to JohnsonDiversey and any other assigning employer under this
Agreement and those obligations shall continue to apply for their full term as set forth in this Agreement. 
  
 The obligations contained in this Agreement should be governed by, construed and enforced in accordance with the laws of the United States. 
  
 Officer acknowledges that this Agreement has been provided to Officer in a
language Officer fully understands. If this language is not English, then the translation is a translation of the English version of this Agreement. Officer agrees that the English version of this Agreement will be controlling in any and all
disputes or questions arising between JohnsonDiversey and Officer related to this Agreement. 
  
 As a condition of continued employment, the compensation therefore, the grant of Stock and Stock Options in Commercial Markets Holdco, Inc., the ability to purchase shares in the future and such other compensation
benefits uniquely available to Officers of JohnsonDiversey, Officer agrees to faithfully comply with the Standards of Conduct and other terms contained in this document. 
  

			
	 /s/ Stephen Di Biase

	 	 /s/ Stephen Di Biase

	WITNESS	 	OFFICER SIGNATURE
		
	 Stephen Di Biase

	 	 Stephen Di Biase

	PRINTED NAME OF WITNESS	 	PRINTED NAME OF OFFICER
		
	 December 7, 2004

	 	 December 7, 2004

	DATE	 	DATE

 ADDENDUM C 
  
 JOHNSONDIVERSEY, INC. 
 CODE OF ETHICS AND
BUSINESS CONDUCT 
  
 I. GENERAL 
  
 This Code of Ethics and Business Conduct describes the basic principles of Ethics and
Conduct that we share as officers and employees of JohnsonDiversey, Inc. and its subsidiaries and affiliates. This Code also applies to our directors and should be provided to our agents and representatives, including consultants. This Code
supplements the philosophy set forth in “This We Believe” and is intended to provide guidance and general direction concerning laws, policies and ethical standards that affect our everyday business practices and behavior. Violation of this
Code, including any failure to disclose a reportable matter, may result in disciplinary action, including dismissal. 
  
 No general discussion, such as this, can provide precise direction for all circumstances. Therefore, each company must be aware of and comply with applicable laws, both
within and outside the United States. However, if this Code or Company policy establishes a higher standard than the law, then we will comply with this Code or Company policy. The words “Company,” “JohnsonDiversey,”
“us,” or “our” in these guidelines means JohnsonDiversey, Inc. and its subsidiaries, affiliates and joint ventures in which the Company has a controlling interest or is the managing agent. The word “employee” means all
employees, officers and directors of the Company unless otherwise specifically indicated. 
  
 Any employee having a question or concern about any information contained in this Code, in corporate policy documents or as to the applicability of any law should discuss the matter with his or her supervisor or with
a member of the Law Department. 
  
 II. COMPLIANCE WITH LAWS 
  
 All employees shall conduct their activities so as to comply fully with all laws (including
rules and regulations) of the countries in which they operate, unless on advice of counsel, compliance with United States law requires otherwise. 
  

	•	 	Should a conflict arise between foreign and U.S. laws, or with Company policy, immediately seek advice from your supervisor and the Law Department but always seek to act in
accordance with the ethical standards described in this Code. 

  
 The Company recognizes the obligation to be a good corporate citizen in all countries in which it does business. This means compliance with local laws (including rules and regulations) and business ethical standards. Certain laws are
specifically addressed in this Code because they have particular applicability to our business at large (such as Antitrust and Securities laws and laws involving payments to foreign officials). However, the fact that a law is not specifically
addressed in this Code is not an indication that compliance is of lesser importance. 
  
 Occasionally there may be a conflict between the laws of one country and those of the United States or the Company’s policies. As an example, the United States Anti-boycott Laws and Regulations apply to all products sold directly and
indirectly by U.S. corporations and their foreign subsidiaries which purchase goods from the U.S. for resale. Many business practices relating to boycotts that are legal in many foreign countries are, nonetheless, illegal under U.S. law and can lead
to prosecution. In this instance, where it applies, U.S. law will be followed but employees should seek advice from their supervisor and the Law Department. 
  
 III. CONFLICTS OF INTEREST 
  
 Employees must always strive to act in the best interest of the Company and to avoid allowing personal considerations or outside relationships to interfere with the Company’s interests. 
  

	•	 	Do not use your Company position for your personal advantage or that of relatives or friends. 

  

	•	 	When an actual or potential conflict arises, immediately report it to your supervisor, a Company officer, or subsidiary Managing Director. 

 ADDENDUM C 
  
 Employees have a responsibility to always act in the best interest of the Company without favor or preference to third parties based on personal considerations. Employees
should avoid any situation where the individual could use his or her position for personal advantage, or the actual or potential detriment of the Company. Real or perceived conflicts can arise if the employee, or any member of his or her immediate
family: 
  

	•	 	Is associated in any employment capacity (director, agent, employee, consultant) with any enterprise that is presently a competitor, customer or supplier of the Company;

  

	•	 	Influences or directs the Company to do business with a friend or relative (including members of one’s extended family) on other than an arm’s-length basis; or

  

	•	 	Has a controlling interest in, or substantial stock ownership in, an actual or potential customer, supplier or competitor, except for public, widely held securities where the amount
the employee holds is insignificant in relation to the total amount of publicly held securities of that company. 

  
 In addition, United States Federal law prohibits loans to directors and executive officers (i.e., vice-president or above). Loans to, or guarantees of obligation of,
other employees and their family members may create a conflict of interest and must therefore be approved by a Senior Manager or the Law Department. 
  
 Any waiver of this conflict of interest policy for a director or executive officer may only be made by our Board or a committee of our Board, and any such waiver will be
promptly disclosed to the public. All transactions that pose a conflict of interest for other employees are prohibited unless a waiver is obtained from a senior manager. 
  
 Where an actual or potential conflict exists, the person having the conflict must disclose the situation to his or her supervisor who will
report it to a Company officer or a subsidiary Managing Director. Situations which remain uncertain should be reported to the Law Department for evaluation. 
  
 IV. RECORD KEEPING AND ACCOUNTING PRACTICES 
  
 The Company’s financial records and reports must be accurate and reliable as defined by generally accepted principles of accounting and other applicable
requirements. 
  

	•	 	All of our books, records, accounts and financial statements are maintained in reasonable detail, appropriately reflect our transactions and conform to both applicable legal
requirements and our system of internal controls. 

  

	•	 	Do not make false or misleading entries in Company books or accounts. 

  

	•	 	Do not establish or maintain secret or unrecorded funds or assets. 

  

	•	 	Disclose any false or misleading entries identified immediately. 

  

	•	 	Communicate in a timely manner to the Controller or CFO any material events that could have an unfavorable impact on the Company financial statements.

  
 The Company will maintain accounting and internal control
systems and records, consistent with generally accepted accounting practices, as well as all applicable laws and regulations, in order to provide reasonable assurance that Company assets are safeguarded against loss, and that Company financial
records are reliable for preparing financial statements. 
  
 No fraudulent, false
or misleading entries shall be made for any reason in the books or accounts of the Company and all entries should contain an appropriate description of the underlying transaction. 

 ADDENDUM C 
  
 In addition, particular care must be taken in dealing with external audit firms. All persons covered by this policy having interaction with the Company’s external
auditors must: 
  

	 	•	 	Maintain an “arms-length” relationship with the Company’s external auditors; 

  

	 	•	 	Not offer employment to any member of an external audit firm providing services to the Company without the prior approval of the Audit Committee of the Company’s Board of
Directors (for a senior management position) or the Company’s Chief Financial Officer (for all other positions); 

  

	 	•	 	Not engage the Company’s existing external audit firm to perform any non-audit work without the prior approval of the Audit Committee; 

  

	 	•	 	Not accept any goods, services or cash in exchange for the award of Company business; and 

  

	 	•	 	Disclose all payments made to the outside auditors to the Audit Committee 

  
 If any employee of the Company has concerns or complaints regarding questionable accounting or auditing matters of the Company, or any substantive internal controls
issues, then he or she is encouraged to submit those concerns or complaints (anonymously, confidentially or otherwise) to senior management of the Company for resolution and, if such resolution is not acceptable, to submit such concern or complaint
directly to the Audit Committee of the Board of Directors which will (subject to its duties arising under applicable law, regulations and legal proceedings), treat such submissions confidentially. Such submissions should be directed to the attention
of the Audit Committee through a secure website (or through written communication to the Audit Committee, sent to Irene Esteves, Audit Committee Chairperson, in care of Scott Putnam, Director of Internal Audit, JohnsonDiversey, Inc., 8310
16th Street, Mail Station 555, Sturtevant, Wisconsin 53177). The website is: 
  
 http://intranet.johnsondiversey.com/JDIntranet/JDIntran.nsf/viewProductionTitle/Safeguarding%20Our%20Company_English 
  
 V. PUBLIC REPORTING 
  
 We are a public reporting company and as a result file reports and other documents with the United States Securities and Exchange Commission (“SEC”) relating to our debt securities. We also issue press
releases and make other public statements that include financial and other information about our business, financial condition and results of operations. 
  

	 	•	 	We endeavor to make full, fair, accurate, timely and understandable disclosure in reports and documents we file with, or submit to, the SEC and in our press releases and public
communications. 

  
 The laws and regulations applicable to
filings made with the SEC, including those applicable to accounting matters, are complex. While the ultimate responsibility for the information included in these reports rests with senior management, numerous other employees participate in the
preparation of these reports or provide information included in these reports. We maintain disclosure controls and procedures to ensure that the information included in the reports that we file or submit to the SEC is collected and communicated to
senior management in order to permit timely disclosure of the required information to the public. 
  
 If you are requested to provide, review or certify information in connection with our disclosure controls and procedures, you must provide the requested information or otherwise respond in a full, accurate and timely
manner. Moreover, even in the absence of a specific request, you should report through the appropriate finance or legal contacts any material information that you believe should be considered for disclosure in our reports to the SEC. If you become
aware of any new information that could materially impact the accuracy of the data you have submitted for inclusion in any public disclosure, you should immediately inform senior finance management of the Company, including the Corporate Controller
and the Chief Financial Officer. 
  
 VI. INSIDER TRADING 
  
 Although the Company’s stock is not publicly traded, its debt securities are publicly
traded. Employees must be aware of instances, such as trading on inside information, in which the United States securities laws can apply to their business activities and even private investment decisions. Company employees are required to comply
with all U.S. securities laws. 

 ADDENDUM C 
  

	•	 	If you have material, non-public information about the Company, you must refrain from trading Company debt securities until that information is made public.

  

	•	 	You must refrain from discussing or disclosing any material, non-public information regarding the Company with or to any third party (including members of your family).

  

	•	 	If you have “insider” information about customers, suppliers or public entities doing business with the Company, you must refrain from trading in that company’s
securities until the information is made public. 

  

	•	 	You may not provide insider information to a third party, e.g., as a security trading “tip.” Even the mere advice to buy or sell a security could be unlawful, if based
on insider information. 

  
 All requests for financial
information or other non-public information regarding the Company, its plans or its performance must be referred to an Investor Relations contact person or to the public information published on the Company’s website
(www.johnsondiversey.com). 
  
 Questions regarding specific situations
should be referred to the Law Department. 
  
 VII. BUSINESS PRACTICES 

 
 Employees are expected to use sound ethical judgment in all their business activities and
to avoid even the appearance of bribery or other improper conduct, in connection with accepting or giving gifts and entertainment. 
  

	•	 	Do not give or accept bribes or kickbacks. 

  

	•	 	Give only gifts of nominal value in accordance with local custom. 

  

	•	 	Do not personally take opportunities that are discovered through the use of Company property, information or position without the prior consent of our Board. 

  

	•	 	Our employees are prohibited from competing with the Company. 

  

	•	 	You or your family may not accept a gift that would embarrass or damage the Company or influence your business decisions. 

  
 Bribes and Kickbacks: Company employees, directly or indirectly, will not make or accept any
payments or, anything else of value that could reasonably be construed to be in the nature of a bribe or kickback or other payment to or for the personal benefit of an individual rather than his employer; nor will Company employees use any agent,
consultant or other third party to make such payments on behalf of the Company. 
  
 Giving Business Gifts: A business gift of nominal value (1% of employee’s base monthly salary up to a maximum of US $100) may be given to a non-employee only when: (a) such an action is in accordance with generally accepted standards
of business ethics in the location of the recipient; (b) there is no reason to believe that the receipt of such gift would violate the recipient’s employer’s policies; and (c) the payments are consistent with applicable law, including the
Foreign Corrupt Practices Act. 
  
 Acceptance of Gifts: No employee or member of
his or her immediate family may accept any gift from a third party which might place the employee or the Company in a difficult, prejudicial or embarrassing position, or which might influence the employee’s judgment in performing his or her
duties. Gifts of nominal value (1% of employee’s base monthly salary up to a maximum of US $100) may be accepted if they are customary in the particular business situation and not in violation of applicable law. 

 ADDENDUM C 
  
 Reporting Obligations: When local custom makes it difficult or embarrassing for an employee to decline a gift of more than nominal value, or any gift of cash regardless
of the amount, the employee should report the receipt to the appropriate management level and the gift may then become the property of the Company. If there is any doubt in this regard, the gift should be reported. 
  
 Meals, Transportation and Entertainment: Employees must ensure that any meals, transportation
or entertainment provided to, or accepted from, people the Company does business with are reasonable and appropriate for the occasion, and are handled in accordance with the highest ethical standards. Normal business entertainment, such as lunch or
dinner, may be accepted or received, but if done more than occasionally, it should be on a reciprocal basis. Extended outings, overnight stays, extensive travel and other extraordinary or lavish entertainment must have prior approval from two
management levels above the employee (or the Chairman, President/CEO or Regional President, in the case of an officer) involved before being accepted by an employee or their family or given by an employee. 
  
 VIII. PAYMENTS TO OFFICIALS 
  
 Under the Foreign Corrupt Practices Act, it is a violation of United States law to give money or anything else of substantial value to a
foreign official in order to obtain or retain business. 
  

	•	 	Do not give payments or items of value directly or indirectly to a government official to influence that person’s discretionary decisions or acts.

  
 No Company employee (including non-U.S. employees and employees
of its controlled subsidiaries) shall make any payments or give anything of value, including lavish entertainment or travel, to a government official in an attempt to have that official act on the Company’s behalf for the purpose of:

  

	•	 	Obtaining or retaining Company business; 

  

	•	 	Influencing any discretionary act or decision by the government; or 

  

	•	 	Providing the Company with benefits it is not otherwise entitled to receive. 

  

Company employees will not use any agent, consultant or third party to make any payment or other transfer in violation of this provision. This does not preclude the
use of a legitimate agent or business broker who receives an appropriate fee in return for assistance in obtaining business or purchasing property. 
  
 IX. ANTITRUST LAWS 
  
 The antitrust or competition laws of the United States and other countries are designed to preserve free and open competition in the marketplace by
preventing certain restrictive agreements among competitors and other anti-competitive practices. All JohnsonDiversey employees should comply fully with the applicable laws and immediately seek legal assistance from the Law Department whenever
concerns arise. 
  

	•	 	Never agree with a competitor to “fix” prices or allocate territories or customers. Do not remain in the presence of competitors’ employees if such matters are
discussed. 

  

	•	 	Except under proper circumstances (trade associations, etc.) seek guidance from the Law Department before having contact with a competitor’s employees.

  
 No employee may enter into any understanding or
agreement, express or implied, with a competitor of the Company regarding: (a) prices; (b) terms or conditions of sale; (c) allocation of markets, customers or territories; or (d) refusal to deal with, or participation in a boycott of, any customer
or supplier. Agreements with competitors concerning discounts, promotional payments, rebates and almost anything else that would affect the price of the product are also prohibited. So strict is this prohibition and so costly is a violation that an
employee should not even remain in the presence of any employees or competitors who are discussing such matters. 

 ADDENDUM C 
  
 The antitrust/competition laws also forbid agreements with customers including distributors as to the minimum prices at which they sell our products. 
  
 Other areas of potential antitrust concern include tie-in sales whereby a customer must buy
one product in order to get another; exclusive dealing arrangements whereby the customer or supplier can buy from or sell to only one party; and price discrimination whereby prices, terms and conditions of sale are not available to all competing
customers on proportionally equal terms. This does not mean such transactions are always illegal. In fact, they often are legitimate business tools, but they become unlawful if they reduce competition. They are listed here to signal the need for
special legal consideration. 
  
 It is especially important that sales and
marketing employees be familiar with the antitrust/competition laws and Company policies which describe business practices acceptable to the Company. However, many other employees of the Company can be affected by these laws and all should strive to
be sensitive to potential antitrust/competition issues. 
  
 Contact with
competitors by Company employees is discouraged, except at trade association meetings and under other proper circumstances. Employees should avoid situations which could reasonably appear to involve an inappropriate agreement or other conduct as
judged by an objective third party. 
  
 X. CONFIDENTIAL INFORMATION AND PROTECTION
OF COMPANY ASSETS 
  
 All employees are required to protect confidential business
information belonging to the Company or to third parties where such information is received pursuant to an agreement regarding confidentiality or under circumstances indicating an expectation of confidentiality and to report or avoid any loss of
Company assets. 
  

	•	 	All information about the Company should be considered confidential unless published or otherwise legally disclosed outside the Company. 

  

	•	 	Confidential information may be disclosed outside the Company only under assurance that it will be properly protected. 

  

	•	 	Immediately report any suspected incident of fraud or theft. 

  
 Protection of confidential business information and Company assets enhances our ability to compete successfully in the marketplace. 
  
 It is important that the release of Company confidential information be controlled so that
(a) the operations of the Company are not adversely affected; and (b) employee privacy is respected. All information about the Company should be considered confidential unless it is known to have been published or otherwise disclosed to persons
outside the Company with no assurance of confidentiality. This includes information disclosed to the Company by an outsider under a secrecy agreement. 
  
 Company confidential information will be disclosed outside the Company only: (a) by employees specially authorized to do so; (b) when it is in the best interest of the
Company and its employees; and (c) under appropriate assurances that the recipient will protect it. 
  
 Theft, carelessness, and waste of Company assets have a direct impact on our profitability and should be avoided. Any suspected incident of fraud or theft should be immediately reported (anonymously, confidentially or
otherwise) to senior management of the Company for resolution and, if such resolution is not acceptable, the incident should be submitted directly to the Audit Committee of the Board of Directors (which will, subject to its duties arising under
applicable law, regulations and legal proceedings), treat such submissions confidentially. Such submissions should be directed to the attention of the Audit Committee through a secure website located at 
  
 http://intranet.johnsondiversey.com/JDIntranet/JDIntran.nsf/viewProductionTitle/Safeguarding%20Our%20Company_English. 

 ADDENDUM C 
  
 XI. SAFETY AND ENVIRONMENAL PROTECTION AND PRODUCT QUALITY 
  
 JohnsonDiversey is committed to providing a safe workplace for its employees and safe products for its customers. All employees are responsible for helping to meet these
goals. 
  

	•	 	Adhere strictly to all applicable laws and standards on environmental protection and, where the Company’s policies exceed applicable legal standards, to such policies.

  

	•	 	Address any questions on compliance to a supervisor and, if necessary, the Law Department. 

  
 Each employee is expected to perform his or her work in a safe manner in compliance with all applicable occupational safety and health
regulations. 
  
 Company policy requires adherence to all applicable laws
and other governmental and industry standards for protection of the environment. 
  
 Each employee is responsible for maintaining a high standard of integrity and quality of the Company’s products. Compliance with Company manufacturing guidelines and standards is mandatory. 
  
 Legal requirements in these fields are highly complex, and it is each employee’s
responsibility to be familiar with such requirements insofar as they are applicable to his or her areas of responsibility. The Company is responsible for producing the resources and training necessary to assist the employee in this arena. All
questions or compliance should be addressed to one’s supervisor and, if necessary, to the Law Department. 
  
 XII. DISCRIMINATION AND HARASSMENT 
  
 JohnsonDiversey is committed to providing a workplace free of illegal discrimination and harassment. 
  

	•	 	Provide equal opportunity to all employees and applicants in accordance with applicable legal requirements. 

  

	•	 	Do not tolerate harassment or conduct that creates a hostile atmosphere. 

  
 It is the policy of the Company to provide equal opportunity to all employees and applicants and to comply with all applicable laws, rules and regulations prohibiting
discrimination on any basis. 
  
 The Company will not tolerate harassment
or the creation of a hostile work environment. 
  
 All employment
activities are covered by this policy, including recruiting, hiring and transfer, training, promotion, compensation, employee benefits, termination practices and participation in employee programs. Because applicable requirements will vary from
country to country, employees should consult with a member of the human resources staff to determine specifically prohibits activities. 
  
 XIII. INDIRECT ACTIVITIES 
  
 Employees may not do indirectly through third parties anything that they are prohibited from doing directly by law or Company policy. 
  
 These standards of conduct are applicable to all employees (including directors and
officers), attorneys, consultants, agents, and representatives of Company employees when rendering services for, or on behalf of, the Company. 

 ADDENDUM C 
  
 Thus, we cannot use lobbyists or agents to make unlawful payments to government officials and we cannot be involved in an antitrust conspiracy among competitors where
communications are funneled through a supplier, customer or other third party. 
  
 XIV. REPORTING VIOLATIONS 
  
 Employees must report any
violations of the law or this Code. 
  
 In order to encourage good faith
reports of illegal or unethical behavior (including violations of this Code), we keep all reports confidential and do not allow retaliation for reports of misconduct by others. It is also our duty to cooperate in internal investigations of alleged
misconduct. 
  
 We must all work to ensure prompt and consistent action
against unethical or illegal behavior. Oftentimes a violation of this Code will be easy to recognize and should be promptly reported to a supervisor or, if appropriate, a more senior manager. However, in some situations it is difficult to know right
from wrong. Since none of us can anticipate every situation that will arise, it is important that we have a way to approach a new or sensitive question or concern. Here are some questions that can be asked: 
  
 What do I need to know? In order to reach the
right solutions, we must be as fully informed as possible. 
  
 What specifically am I being asked to do? Does it seem unethical or improper? This will focus the inquiry on the specific action in question, and the available alternatives. Use judgment and common sense; if
something seems unethical or improper, it probably is. 
  
 What is my responsibility? In most situations, there is shared responsibility. Should colleagues be informed? It may help to get others involved and discuss the issue. 
  
 Have I discussed the issue with a supervisor? This
is the basic guidance for all situations. In many cases, a supervisor will be more knowledgeable about the question and will appreciate being brought into the decision-making process. Remember that it is the supervisor’s responsibility to help
solve problems. 
  
 Should I seek help
from Company management? In the case which it may not be appropriate to discuss an issue with a supervisor, or where you would not be comfortable approaching a supervisor with your question, discuss it locally with your Managing Director or the
human resources manager in your business unit. If for some reason you do not believe that your concerns have been appropriately addressed, you should seek advice from our General Counsel. If you prefer to write, send your concerns to our General
Counsel at the Company’s headquarters. 
  
 XV. WAIVERS 
  
 Only our Board or a committee of our Board may waive a provision of this Code for our
executive officers or directors, and any waiver will be promptly disclosed to the public. Waivers of this Code for any other employee may be made only by an appropriate Company officer or business unit head, and then only under special
circumstances. 
  
 XVI. CONCLUSION 
  
 The Company’s good name and reputation depend, to a very large extent, upon you taking
personal responsibility for maintaining and adhering to the policies and guidelines set forth in this Code. Your business conduct on behalf of the Company must be guided by the policies and guidelines set forth in the Code. 
  
 Any individual who fails to disclose a reportable matter, who knowingly makes a false report
or who deviates in any way from this Code should expect disciplinary action varying from reprimand to dismissal. 
  
 * * * * * 

 ADDENDUM C 
  
 This Code will be included on the Company’s website and will be made available upon request sent to the Company’s Human Resources Department or Law Department.
 
  
 Should you have any questions regarding any standard, you should
feel free to communicate those questions to the Law Department or Human Resources Department.

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