Document:

EX-10.1

Exhibit 10.1

	 
	 

	SIPEX CORPORATION

	 

	as the Company

	 

	 

	and

	 

	RODFRE HOLDINGS LLC,

	 

	as the Purchaser

	 

	SECURITIES PURCHASE AGREEMENT

	 

	 

	Dated as of January 19, 2006

1

TABLE OF CONTENTS

Page

	 	 	 	 	 
	SECTION 1. Purchase and Sale of Note
	 	 	1	 
	SECTION 2. Purchaser’s Representations and Warranties
	 	 	2	 
	SECTION 3. Representations, Warranties and Covenants of the Company
	 	 	5	 
	SECTION 4. Covenants
	 	 	11	 
	SECTION 5. Conditions to the Company’s Obligation to Close
	 	 	13	 
	SECTION 6. Conditions to Purchaser’s Obligation to Purchase
	 	 	14	 
	SECTION 7. Miscellaneous
	 	 	16	 

SCHEDULE

Schedule A Wire Instructions

EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Note
	 

	 	

	Exhibit B

	 	Form of Deed of Trust
	 

	 	

	Exhibit C

	 	Secretary’s Certificate
	 

	 	

 

2

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of January 19, 2006, by
and between Sipex Corporation, a Delaware corporation (the “Company”), and Rodfre Holdings
LLC (the “Purchaser”), a Delaware Limited Liability Company.

THE PARTIES TO THIS AGREEMENT enter into this Agreement on the basis of the following facts,
intentions and understandings:

A. In accordance with the terms and conditions of this Agreement, the Company has agreed to
issue and sell, and the Purchaser has agreed to purchase the Company’s 9% Secured Note with
convertible interest due January, 2008 in an aggregate amount of U.S. $7,000,000 (the
“Principal Amount”) (such note, in the form attached hereto as Exhibit A, as the
same may be amended, modified or supplemented from time to time in accordance with the terms
thereof, the “Note”) The annual Interest of the Note shall be, at the option of the
Purchaser, convertible into shares of the common stock, $0.01 par value per share (the “Common
Stock”), of the Company on the terms set forth in the Note. The shares of Common Stock
issuable upon conversion of the accrued Interest on the Note are referred to herein collectively as
the “Conversion Shares.” The Note and the Conversion Shares are referred to herein as the
“Securities.”

B. This Agreement and the Note, and each of the other agreements entered into by the parties
hereto in connection with the transactions contemplated by this Agreement (the
“Transaction”) are referred to herein collectively as the “Transaction Documents.”

NOW THEREFORE, in consideration of the promises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Purchaser hereby agree as follows:

SECTION 1. Purchase and Sale of Note. (a) Closing of Note. (1) Upon the satisfaction (or
written waiver) of the conditions set forth in Sections 5 and 6 of this Agreement, the Company
shall issue and sell to Purchaser, and Purchaser agrees to purchase from the Company, the Note (the
“Closing”). The price to be paid by the Purchaser for the Note shall be $7,000,000 USD.

(2) The date and time of the Closing (the “Closing Date”) shall be 8:00 a.m.,
California time, on January 19, 2006 (or such other date as the parties may specify), subject to
the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 of this Agreement.
The Closing shall occur on the Closing Date at the offices of Wilson Sonsini Goodrich & Rosati, 650
Page Mill Road, Palo Alto, California 94304 or at such other places as the parties may agree.

(b) Form of Payment. On the Closing Date, (i) Purchaser shall pay the Company for the Note to
be issued and sold to such Purchaser on such Closing Date, by wire transfer of immediately
available funds in accordance with the Company’s written wire instructions attached hereto on
Schedule A, and (ii) the Company shall deliver to Purchaser a properly authenticated Note
representing the principal amount of the Note , duly executed on behalf of the Company and
registered in the name of the Purchaser, that the Purchaser is purchasing from the Company pursuant
to this Agreement.SECTION 2. Purchaser’s Representations and WarrantiesPurchaser represents and
warrants to the Company that as of the date hereof and the Closing Date:

(a) Investment Purpose. Purchaser is acquiring the Note and upon conversion of the Note owned
by it, will acquire the Conversion Shares then issuable upon conversion thereof, for its own
account for investment only and not with a view toward, or for resale in connection with, the
public sale or distribution thereof, except pursuant to sales or distributions registered or
exempted under the Securities Act.

(b) Accredited Investor Status. Purchaser is an “accredited investor” as that term is
defined in Rule 501(a) of Regulation D under the Securities Act as of the date of this Agreement.

(c) Reliance on Exemptions. Purchaser understands that the Securities are being offered and
sold to it in reliance on specific exemptions from the registration requirements of the United
States federal and state securities laws and that the Company is relying in part upon the truth and
accuracy of, and Purchaser’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of Purchaser set forth herein and in the Note in order to
determine the availability of such exemptions and the eligibility of Purchaser to acquire the
Securities.

(d) Information. Purchaser believes it (i) has been furnished with or believes it has had
full access to all of the information that it considers necessary or appropriate for deciding
whether to purchase the Securities, (ii) has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of the Securities,
(iii) can bear the economic risk of a total loss of its investment in the Securities and (iv) has
such knowledge and experience in business and financial matters so as to enable it to understand
the risks of and form an investment decision with respect to its investment in the Securities.
Neither such inquiries nor any other due diligence investigations conducted by Purchaser or its
advisors, if any, or its representatives shall limit, modify, amend or affect the Company’s
representations and warranties contained in this Agreement and the Purchaser’s right to rely
thereon.

(e) No Governmental Review. Purchaser understands that no United States federal or state
agency or any other government or governmental agency has passed on or made any recommendation or
endorsement of the Securities or the fairness or suitability of an investment in the Securities nor
have such authorities passed upon or endorsed the merits of the offering of the Securities.

(f) Transfer or Resale. Purchaser understands that, except as provided in Section 5 herein,
none of the Securities have been or will be registered under the Securities Act or any state
securities laws, and the Securities may not be offered for sale, sold, assigned or transferred
without registration under the Securities Act or an exemption therefrom and that, in the absence of
an effective registration statement under the Securities Act, such Securities may only be sold
under certain circumstances as set forth in the Securities Act, it being understood that
nothing in this Agreement shall restrict any transfer of Securities to (a) the Company or (b) an
affiliate of the holder of such Securities (provided that in the case of (b) above the transferor
furnishes the Company with such certifications, legal opinions or other information as the Company
may reasonably request to confirm that such transfer is being made pursuant to an exemption from,
or in a transaction not subject to, the registration requirements of the Securities Act).

(g) Legends.

(1) Purchaser understands that, until the later of (i) the end of the holding period under
Rule 144(k) of the Securities Act (or any successor provision) and (ii) such time as Purchaser
ceases to be an “affiliate” of the Company as such term is defined in Rule 144 of the Securities
Act, the Note (and all securities issued in exchange therefor or in substitution thereof, other
than Conversion Shares, which shall bear the legend set forth in Section 2(g)(2) of this Agreement,
if applicable) shall bear a legend in substantially the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION THEREFROM.

The legend set forth above shall be removed and the Company shall issue a new Note of like
tenor and aggregate principal amount and which shall not bear the restrictive legends required by
this Section 2(g)(1), (i) if, in connection with a sale transaction, such holder provides the
Company with an opinion of counsel reasonably acceptable to the Company to the effect that a public
sale, assignment, pledge or transfer of the Note may be made without registration under the
Securities Act, or (ii) upon expiration of the two-year holding period under Rule 144(k) of the
Securities Act (or any successor rule). The Company shall not require such opinion of counsel for
the sale of Securities in accordance with Rule 144 of the Securities Act in the event that the
Seller provides such representations that the Company shall reasonably request confirming
compliance with the requirements of Rule 144.

(2) Such Purchaser understands that, until the later of (i) the end of the holding period
under Rule 144(k) of the Securities Act (or any successor provision) with respect to the Conversion
Shares issued upon any conversion of the Note, and (ii) such time as Purchaser ceases to be an
“affiliate” of the Company as such term is defined in Rule 144 of the Securities Act, any stock
certificate representing Conversion Shares issued upon such conversion of the Note shall bear a
legend in substantially the following form unless the Note submitted for conversion, does not bear
the legend specified in Section 2(g)(1):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR AN EXEMPTION THEREFROM.

The legend set forth above shall be removed and the Company shall issue the Conversion Shares
without such legend to the holder of the Conversion Shares upon which it is stamped, (i) if such
Conversion Shares have been resold or transferred pursuant to the registration statement
contemplated by Section 5 herein and the registration statement was effective at the time of such
transfer, (ii) if, in connection with a sale transaction, such holder provides the Company with an
opinion of counsel reasonably acceptable to the Company to the effect that a public sale,
assignment, pledge or transfer of the Conversion Shares may be made without registration under the
Securities Act, or (iii) upon the later of (a) expiration of the two-year period under Rule 144(k)
of the Securities Act (or any successor rule) and (b) such time as Purchaser ceases to be an
“affiliate” of the Company as such term is defined in Rule 144 of the Securities Act. The Company
shall not require such opinion of counsel for the sale of Conversion Shares in accordance with Rule
144 of the Securities Act, provided that the Seller provides such representations that the Company
shall reasonably request confirming compliance with the requirements of Rule 144.

(3) Purchaser understands that, in the event Rule 144(k) as promulgated under the Securities
Act (or any successor rule) is amended to change the two-year period under Rule 144(k) (or the
corresponding period under any successor rule), (i) each reference in Sections 2(g)(1) and 2(g)(2)
of this Agreement to “two (2) years”, the “two-year period” or “two-year
holding period” shall be deemed for all purposes of this Agreement to be references to such
changed period, and (ii) all corresponding references in the Note shall be deemed for all purposes
to be references to the changed period, provided that such changes shall not become effective if
they are otherwise prohibited by, or would otherwise cause a violation of, the then-applicable
federal securities laws.

(h) Authorization; Enforcement; Validity. The Transaction Documents have been duly and
validly authorized, executed and delivered on behalf of Purchaser and are valid and binding
agreements of Purchaser enforceable against Purchaser in accordance with their terms, subject as to
enforceability to general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally,
the enforcement of applicable creditors’ rights and remedies and except as the indemnification
agreements of Purchaser may be legally unenforceable.

(i) Residency. Purchaser is a resident of that country or state specified in its address on
the signature page hereto and executed by it.

(j) Additional Acknowledgement. Purchaser acknowledges that it has independently evaluated
the merits of the transactions contemplated by this Agreement and the Note and that it has
independently determined to enter into the transactions contemplated hereby and thereby.

With the exception of Section 2(h), the Purchaser’s representations and warranties made in
this Section 2 are made solely for the purpose of permitting the Company to make a determination
that the offer and sale of the Note pursuant to this Agreement complies with applicable United
States federal and state securities laws and not for any other purpose. Accordingly, other than
Section 2(h), the Company should not rely on such representations and warranties for any other
purpose.

SECTION 3. Representations, Warranties and Covenants of the CompanyThe Company hereby
represents and warrants to, and covenants with, the Purchaser that as of the date hereof subject to
such exceptions as set forth in the letter from the Company to Purchaser dated as of the date
hereof (the “Disclosure Letter”):

(a) Organization. The Company is duly organized and validly existing in good standing under
the laws of the jurisdiction of its organization. Each of the Company and its subsidiaries listed
on Exhibit 21.1 to its Annual Report on Form 10-K for the year ended December 31, 2003 (the
“Subsidiaries”) has full power and authority to own, operate and occupy its properties and
to conduct its business as presently conducted and as described in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2003, including all exhibits, supplements and amendments
thereto, and the Company’s Quarterly Report on Form 10-Q for the quarter ended October 2, 2004,
including all exhibits, supplements and amendments thereto and current report on Form 8-K (the
“SEC Filings”), and is registered or qualified to do business and in good standing in each
jurisdiction in which the failure to be so qualified would have a Material Adverse Effect, and to
the Company’s knowledge, no proceeding has been instituted in any such jurisdiction, revoking,
limiting or curtailing, or seeking to revoke, limit or curtail, such power and authority or
qualification. As used in this Agreement, “Material Adverse Effect” means any material adverse
effect upon (i) the business, financial condition, results of operations, assets, properties or
operations of the Company and its Subsidiaries, considered as one enterprise, or (ii) the Company’s
ability to perform its obligations under this Agreement. No subsidiary of the Company is a
“significant subsidiary” of the Company as such term is defined in Rule 1-02(w) of Regulation S-X.

(b) Due Authorization and Valid Issuance. Except as set forth in Section 3(b) of the
Disclosure Letter, the Company has all requisite power and authority to execute, deliver and
perform its obligations under the Transaction Documents, and the Transaction Documents and the
transactions contemplated thereby have been duly authorized by the Company and its Board of
Directors and no further consent or authorization by the Company, or its shareholders is required.
Each of the Transaction Documents has been validly executed and delivered by the Company and
constitutes the legal, valid and binding agreement of the Company enforceable against the Company
in accordance with its terms, except as rights to indemnity and contribution may be limited by
state or federal securities laws or the public policy underlying such laws, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law). The Note being purchased by the
Purchaser hereunder will, upon issuance pursuant to the terms hereof, be duly authorized, validly
issued, fully paid and nonassessable, and shall be free from all liens, claims and encumbrances,
except encumbrances or restrictions arising under U.S. federal or state securities laws, with
respect to the issuance thereof, and the Purchaser shall be entitled to all the rights set forth
therein.

(c) Non-Contravention. The execution, delivery and performance of the Transaction Documents,
including without limitation the issuance and sale of the Note to be sold by the Company under the
Transaction Documents, the fulfillment of the terms of the Transaction Documents and the
consummation of the transactions contemplated thereby, will not constitute a violation of, or
default (with the passage of time or otherwise) under (i) any bond, debenture, note or other
evidence of indebtedness, lease, contract, indenture, mortgage, deed of trust, loan agreement,
joint venture or other agreement or instrument to which the Company or any Subsidiary is a party or
by which it or any of its Subsidiaries or their respective properties are bound when such
violation, conflict or default, individually, or in the aggregate, would have a Material Adverse
Effect, (ii) the articles of organization, by-laws or other organizational documents of the Company
or any Subsidiary, or (iii) any law, administrative regulation, ordinance or order of any court or
governmental agency, arbitration panel or authority applicable to the Company or any Subsidiary or
their respective properties when such violation, conflict or default would have a Material Adverse
Effect. In addition, the execution, delivery and performance of the Transaction Documents,
including without limitation the issuance and sale of the Note to be sold by the Company under the
Transaction Documents, the fulfillment of the terms of the Transaction Documents and the
consummation of the transactions contemplated thereby, will not result in the creation or
imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of
the properties or assets of the Company or any Subsidiary (other than (i) the lien of the Deed of
Trust on the property to be subject to the Deed of Trust or (ii) an acceleration of indebtedness
pursuant to any obligation, agreement or condition contained in any bond, debenture, note or any
other evidence of indebtedness or any indenture, mortgage, deed of trust or any other agreement or
instrument to which the Company or any Subsidiary is a party or by which any of them is bound or to
which any of the property or assets of the Company or any Subsidiary is subject where such lien or
other restriction would have a Material Adverse Effect. Except for such filings and clearances, if
any, as may be required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended
(the “HSR Act”), no consent, approval, authorization or other order of, or registration,
qualification or filing with, any regulatory body, administrative agency, or other governmental
body in the United States or any other person is required for the execution, delivery and
performance of the Transaction Documents, including without limitation the valid issuance and sale
of the Securities to be sold pursuant to the Transaction Documents, other than such as have been
made or obtained, and except for any post-closing securities filings or notifications required to
be made under federal or state securities laws. Assuming the accuracy of the representations made
by Purchaser in Section 2, the issuance by the Company of the Note is exempt from registration
under the Securities Act and the issuance of the Conversion Shares upon conversion the Note, will
be exempt from registration under the Securities Act under applicable rules and regulations as
currently in effect.

(d) Capitalization. The Company’s authorized capital stock as of January 11, 2006 consisted
of (i) 60,000,000 shares of Common Stock, $0.01 par value per share, of which 35,550,378 shares are
issued and outstanding, 4,507,521 are reserved for issuance under the Company’s 1994 Stock Option
and Incentive Plan, 1996 Stock Option and Incentive Plan, 1996 Non-Employee Director Stock Option
Plan, 1997 Incentive Stock Option Plan, Sipex Corporation 1999 Stock Plan, 2000 Non-Qualified Stock
Option Plan, 2002 Nonstatutory Stock Option Plan, and 1996 Employee Stock Purchase Plan (such plans
collectively, “Employee Benefit Plans”), 3,144,274 shares are reserved for issuance
pursuant to options outside the Employee Benefit Plans, and (ii) 1,000,000 shares of Preferred
Stock, $0.01 par value per share, of which no shares are issued and outstanding. The Company has
not issued any capital stock since that date other than pursuant to (i) the Employee Benefit Plans,
or (ii) upon exercise of outstanding warrants or options disclosed in the SEC Filings. The Company
has no stock option or stock purchase plans or other equity incentive plans of any kind other than
the Employee Benefit Plans. The Conversion Shares to be issued by the Company pursuant to the
Transaction Documents have been duly authorized, and when issued in accordance with the terms of
the Transaction Documents, will be duly and validly issued, fully paid and nonassessable and will
be free from all taxes, liens and charges with respect to the issuance thereof, with the holder
thereof entitled to all rights accorded to holders of Common Stock of the Company, generally. The
outstanding shares of capital stock of the Company have been duly and validly issued and are fully
paid and nonassessable, have been issued in compliance with all federal and state securities laws,
and were not issued in violation of any preemptive rights or similar rights to subscribe for or
purchase securities. Except as set forth herein or in the SEC Filings, there are no (i)
outstanding rights (including, without limitation, preemptive rights with respect to issuances by
the Company of any securities, including without limitation the Securities, of the Company),
warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued
shares of capital stock or other equity interest in the Company or any Subsidiary, (ii) contracts,
commitments, agreements, understandings or arrangements of any kind to which the Company is a party
or of which the Company has knowledge and relating to the issuance or sale of any capital stock of
the Company or any Subsidiary, or of any such convertible or exchangeable securities or any such
rights, warrants or options, (iii) outstanding securities or instruments of the Company or any
Subsidiary that contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to redeem a security of the Company or any Subsidiary, (iv) securities or other instruments
containing anti-dilution or similar provisions that will be triggered by the issuance of any of the
Securities under this Agreement, or (v) stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or arrangement. No further approval or authorization of any
stockholder, the Board of Directors of the Company or others is required for the issuance and sale
of the Securities. The Company owns the entire equity interest in each of its Subsidiaries, free
and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest, other
than as described in the SEC Filings. The Company has no outstanding indebtedness for borrowed
money and no agreement regarding borrowings, other than pursuant to that certain Loan and Security
Agreement, dated as of July 21, 2005, as amended (the “SVB Indebtedness”). Except as
disclosed in the SEC Filings, there are no shareholder rights plans, stockholders agreements,
voting agreements or other similar agreements with respect to the Common Stock to which the Company
is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

(e) Legal Proceedings. There is no material action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization
or body pending or, to the knowledge of the Company, threatened to which the Company or any
Subsidiary is or may be a party or of which the business, property, Common Stock, officers or
directors (in their capacities as such) of the Company or any Subsidiary is subject that is not
disclosed in the SEC Filings, except where the same would not result, either individually or in the
aggregate, in a Material Adverse Effect.

(f) No Violations. Except as disclosed in the SEC filings neither the Company nor any
Subsidiary (i) is in violation of its charter, bylaws, or other organizational document, (ii) is in
violation of any law, administrative regulation, ordinance or order of any court or governmental
agency, arbitration panel or authority applicable to the Company or any Subsidiary, which
violation, individually or in the aggregate, would be reasonably likely to have a Material Adverse
Effect, or (iii) is in default (and there exists no condition which, with the passage of time or
otherwise, would constitute a default) in any respect in the performance of any bond, debenture,
note or any other evidence of indebtedness in any indenture, mortgage, deed of trust or any other
agreement or instrument to which the Company or any Subsidiary is a party or by which the Company
or any Subsidiary is bound or by which the properties of the Company or any Subsidiary are bound,
which would be reasonably likely to have a Material Adverse Effect.

(g) Governmental Permits, Etc. Each of the Company and its Subsidiaries has all necessary
franchises, licenses, certificates and other authorizations from any foreign, federal, state or
local government or governmental agency, department, or body that are currently necessary for the
operation of the business of the Company and its Subsidiaries as currently conducted and as
described in the SEC Filings except where the failure to currently possess any such franchise,
license, certificate or other authorization would not have a Material Adverse Effect.

(h) Intellectual Property. Except as specifically disclosed in the SEC Filings, (i) each of
the Company and its Subsidiaries owns or possesses sufficient rights to use all patents, patent
rights, trademarks, copyrights, licenses, inventions, mask works, trade secrets, trade names,
know-how, moral rights, confidential and proprietary information, compositions of matter, formulas,
designs and proprietary rights (collectively, “Intellectual Property”) described or
referred to in the SEC Filings as owned or possessed by it or that are necessary for the conduct of
its business as now conducted or as described in the SEC Filings, except where the failure to
currently own or possess would not have a Material Adverse Effect, and (ii) to the Company’s
knowledge, neither the Company nor any of its Subsidiaries is infringing, or has received any
notice of or has any knowledge of any asserted infringement by the Company or any of its
Subsidiaries of, any rights of a third party with respect to any Intellectual Property that,
individually or in the aggregate, would have a Material Adverse Effect. To the Company’s
knowledge, there is no claim, action or proceeding being overtly threatened against, but which has
not been made or brought against, the Company or any of its Subsidiaries regarding its Intellectual
Property or infringement of other intellectual property rights which could reasonably be expected
to have, either individually or in the aggregate, a Material Adverse Effect. To the Company’s
knowledge, no third party has any ownership right, title, interest, claim in or lien on any of the
Intellectual Property and the Company has taken, and in the future the Company will use its
reasonable effort to take, all steps reasonably necessary to preserve its legal rights in, and the
secrecy of, all the Intellectual Property. To the Company’s knowledge, there is no material
unauthorized use, infringement or misappropriation of any Intellectual Property of the Company or
any of the Subsidiaries by any third party.

(i) Environmental Matters.

(1) Except as would not reasonably be likely to result in a material liability to the Company,
no underground storage tanks and no amount of any substance that has been designated by any
governmental agency or by applicable federal, state or local law to be radioactive, toxic,
hazardous or otherwise a danger to health or the environment, including without limitation, PCBs,
asbestos, petroleum, urea-formaldehyde and all substances listed as hazardous substances pursuant
to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended to
date, or defined as a hazardous waste pursuant to the United States Resource Conservation and
Recovery Act of 1976, as amended to date, and the regulations promulgated pursuant to said laws,
but excluding routine quantities of office and janitorial supplies (a “Hazardous
Material”), are present as a result of the actions of the Company, or, to the Company’s
knowledge, as a result of the actions of a third party, in, on or under any property, including the
land and the improvements, ground water and surface water thereof, that the Company or any of its
subsidiaries currently owns, operates, occupies or leases, or to the Company’s knowledge, were
present on any other real property at the time it ceased to be owned, operated, occupied or leased
by the Company as a result of the actions of the Company, or to the Company’s knowledge as a result
of the actions of a third party.

(2) Except as would not reasonably be likely to result in a material liability to the Company
(in any individual case or in the aggregate), neither the Company nor any Subsidiary has
transported, stored, used, manufactured, disposed of or arranged for the disposal of, released or
exposed its employees or others to Hazardous Materials in violation of any federal, state or local
law, rule, regulation, treaty or statute in effect before the Closing Date related to protection of
human health, safety, and the environment, including natural resources (collectively,
“Environmental Laws”).

(3) Except as would not reasonably be likely to result in a material liability to the Company,
the Company and the Subsidiaries currently hold and are in compliance with all approvals, permits,
licenses, clearances and consents required under Environmental Laws for the conduct of the
Company’s and the Subsidiaries’ businesses as currently being conducted.

(4) No action, proceeding, revocation proceeding, amendment procedure, writ, injunction or
claim is pending, or to the Company’s knowledge, threatened, alleging that the Company or any of
the Subsidiaries are in violation of or liable under any Environmental Law.

(j) No General Solicitation; No Integration. Neither the Company nor any other person or
entity authorized by the Company to act on its behalf has engaged in a general solicitation or
general advertising (within the meaning of Regulation D of the Securities Act) of investors with
respect to offers or sales of any of the Securities. The Company has not, directly or indirectly,
sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security
(as defined in the Securities Act) which, to its knowledge, is or will be integrated with the
Conversion Shares and/or the Note sold pursuant to this Agreement.

(k) Interested Party Transactions. Except as set forth in Section 3(k) of the Disclosure
Letter, to the knowledge of the Company, except as set forth in the SEC Filings, no officer or
director of the Company or the Subsidiaries or any “affiliate” or “associate” (as those terms are
defined in Rule 405 promulgated under the 1933 Act) of any such person has had, either directly or
indirectly, a material interest in: (i) any person or entity which purchases from or sells,
licenses or furnishes to the Company any goods, property, technology, intellectual or other
property rights or services; or (ii) any contract or agreement to which the Company is a party or
by which it may be bound or affected.

(l) No Material Adverse Change. Since December 31, 2005, the Company has not experienced or
suffered events or conditions which have, in the aggregate, caused a Material Adverse Effect.

(m) Compliance. The Company’s Common Stock is registered pursuant to Section 12(g) of the
Exchange Act, and the Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act, nor has the Company
received any notification that the Securities and Exchange Commission (the “SEC”) or the
NASD is contemplating terminating such registration.

(n) No Manipulation of Stock. The Company has not taken and will not, in violation of
applicable law, take any action designed to or that might reasonably be expected to cause or result
in stabilization or manipulation of the price of the Common Stock to facilitate the transactions
contemplated hereby or the sale or resale of the Conversion Shares.

(o) Company not an “Investment Company”. The Company has been advised of the rules and
requirements under the Investment Company Act of 1940, as amended (the “Investment Company
Act”). The Company is not, and immediately after receipt of payment for the Shares will not
be, an “investment company” or an entity “controlled” by an “investment company” within the meaning
of the Investment Company Act and shall conduct its business in a manner so that it will not become
subject to the Investment Company Act.

(p) Brokers or Finders. The Company has not incurred, and shall not incur, directly or
indirectly, any liability for any brokerage or finders’ fees or agents’ commissions or any similar
charges in connection with this Agreement or any transaction contemplated hereby.

(q) Deed of Trust. Except for the recording of a Notice of Intent to Preserve Security
Interest pursuant to California Civil Code Sections 880.310-880.370, after the Deed of Trust (as
defined in Section 6(a) hereof) has been recorded in the Official Records of Santa Clara County,
California, it will not be necessary to re-record, re-register or re-file the Deed of Trust in
order to maintain the priority of the liens and security interests created thereby. There will be
no mortgage taxes or filing fees payable upon the recording and filing of such documents except (i)
normal recording and filing fees payable to the County Recorder of Santa Clara County, California
in connection therewith, (ii) transfer taxes assessed in connection with any transfer of the
Property (as defined in the Deed of Trust) or interest therein, and (iii) any fee or charge payable
to any entity whose services may have been used to assist in such recordation and filing.

(r) Canadian Representations. The Company further represents and warrants to the Purchaser
that, as at the date of issuance of the Note, the Company is not a “reporting issuer” (or the
equivalent) in any Canadian provincial or territorial jurisdiction.

(s) Employee Benefits Plans. The Company does not currently have a guaranteed pension plan
under §§302, 4041, 4042, 4043, 4063, 4065, 4066 and 4068 of ERISA, or a multiemployer plan, under
§§4041A, 4202, 4219, 4242, or 4245 of ERISA.

SECTION 4. Covenants (a) Reasonable Efforts. The parties shall use all reasonable efforts to
timely satisfy each of the conditions described in Sections 5 and 6 of this Agreement.

(b) Consents. The Company will use all reasonable efforts to obtain all consents, approvals,
authorizations or other orders of, or registration, qualification or filing with, any regulatory
body, administrative agency or other governmental body in the United States or any other person
that is required for the execution, delivery and performance of the Transaction Documents,
including without limitation the valid issuance and sale of the Securities to be sold pursuant to
the Transaction Documents. The Purchase will cooperate in good faith in assisting the Purchaser to
fulfill this covenant.

(c) Form D; Blue Sky Laws. The Company shall file a Form D with respect to the Securities as
required under Regulation D and provide a copy thereof to the Purchaser promptly after such filing.
The Company shall take such action at its own cost and expense, as the Company shall reasonably
determine is necessary to qualify the Securities for sale to the Purchaser pursuant to this
Agreement under applicable securities or “blue sky” laws of the states of the United States or
obtain exemption therefrom, and shall provide evidence of any such action so taken to each
Purchaser.

(d) Reservation of Shares. The Company and the Purchaser shall take all commercially
reasonable action necessary to at all times have authorized and reserved for the purpose of
issuance, no less than 100% of the number of shares of Common Stock needed to provide for the
issuance of the Conversion Shares on each Conversion Date.

(1) Redemptions and Dividends. For so long as the Note is outstanding, without the prior
written approval of the Purchaser, the Company shall not repurchase, redeem, or declare or pay any
cash dividend or distribution on, any shares of capital stock of the Company.

(e) No Encumbrance of Property. For so long as the Note is outstanding, without the
prior written approval of the Purchaser, the Company shall not create, incur, assume or suffer to
exist any mortgage, pledge, lien, security interest or other encumbrance of any kind on the
Property (as defined in the Deed of Trust) except for (i) liens for taxes, assessments, fees and
other governmental charges, and for claims the payment of which is not yet overdue or is being
contested in good faith (and for which adequate reserves have been established by the Company on
its books in conformity with GAAP), (ii) statutory liens of landlords, carriers, warehousemen,
processors, mechanics, materialmen or suppliers incurred in the ordinary course of business and
securing amounts not yet due or declared to be due by the claimant thereunder; (iii) liens or
security interests in favor of Purchaser or its affiliates; (iv) zoning restrictions and easements,
licenses, covenants and other restrictions affecting the use of real property that do not
individually or in the aggregate have a material adverse effect on the ability of the Company and
its Subsidiaries to use such real property for its intended purpose in connection with its
business; or (v) matters disclosed in the title insurance report relating to the Property prepared
by First American Title Company in October 2002 in connection with the issuance of the S&F Note.

(f) Regulatory Filings; Reasonable Efforts.

(i) Regulatory Filings. Each of the Company and Purchaser shall coordinate and
cooperate with one another and shall each use all reasonable efforts such that as promptly as
practicable after the date hereof, each of the Company and Purchaser shall make all filings
reasonably determined by the parties to be required by any governmental entity in connection with
the issuance of the Note and the Conversion Shares and the transactions contemplated hereby,
including, without limitation, (i) Notification and Report Forms with the United States Federal
Trade Commission (the “FTC”) and the Antitrust Division of the United States Department of
Justice (“DOJ”) if and as required by the HSR Act, (ii) other comparable filings pursuant
to the merger notification or control laws of any applicable jurisdiction, as agreed by the parties
hereto and (iii) any filings required under the Securities Act, the Exchange Act, any applicable
state or securities or “blue sky” laws and the securities laws of any foreign country, or any other
legal requirement relating to the issuance of the Note and the Conversion Shares. Each of the
Company and Purchaser will cause all documents that it is responsible for filing with any
governmental entity under this Section 4(k) to comply in all material respects with all applicable
legal requirements.

(ii) Exchange of Information. The Company and Purchaser each shall promptly supply
the other with any information that may be required in order to effectuate any filings or
application pursuant to Section 4(k)(i). Except where prohibited by applicable legal requirements,
each of the Company and Purchaser shall consult with the other prior to taking a position with
respect to any such filing, shall consider in good faith the views of one another in connection
with any analyses, appearances, presentations, memoranda, briefs, papers, arguments, opinions and
proposals before making or submitting any of the foregoing to any governmental entity by or on
behalf of any party hereto in connection with any investigations or proceedings in connection with
this Agreement or the transactions contemplated hereby (including under any antitrust or fair trade
legal requirement), coordinate with the other in preparing and exchanging such information and
promptly provide the other with copies of all filings, presentations or submissions (and a summary
of any oral presentations) made by such party with any governmental entity in connection with this
Agreement or the transactions contemplated hereby, provided that with respect to any such filing,
presentation or submission, each of the Company and Purchaser need not supply the other with copies
(or in case of oral presentations, a summary) to the extent that any law, treaty, rule or
regulation of any governmental entity applicable to such party requires such party or its
subsidiaries to restrict or prohibit access to any such properties or information.

(iii) Notification. Each of the Company and Purchaser will notify the other promptly
upon the receipt of (i) any comments from any officials of any governmental entity in connection
with any filings made pursuant hereto and (ii) any request by any officials of any governmental
entity for amendments or supplements to any filings made pursuant to, or information provided to
comply in all material respects with, any legal requirements. Whenever any event occurs that is
required to be set forth in an amendment or supplement to any filing made pursuant to Section
4(k)(i), the Company or Purchaser, as the case may be, will promptly inform the other of such
occurrence and cooperate in filing with the applicable governmental entity such amendment or
supplement.

(iv) Limitation on Divestiture. Notwithstanding anything in this Agreement to the
contrary, nothing contained in this Agreement shall be deemed to require the Company or Purchaser
or any subsidiary or affiliate thereof to agree to any divestiture by itself or any of its
affiliates of shares of capital stock or of any business, assets or property, or the imposition of
any material limitation on the ability of any of them to conduct their businesses or to own or
exercise control of such assets, properties and stock.

SECTION 5. Conditions to the Company’s Obligation to Close The obligation of the Company to issue
and sell the Note to the Purchaser at the Closing is subject to the satisfaction, at or before the
Closing Date, of each of the following conditions, provided that these conditions are for the
Company’s sole benefit and may be waived by the Company at any time in its sole discretion by
providing Purchaser with prior written notice thereof:

(a) Transaction Documents. Purchaser shall have executed each of the Transaction Documents to
which it is a party and delivered the same to First American Title Insurance Company (“Title
Company”), 1737 North First Street, Suite 100, San Jose CA 95112 (other than this Agreement, which
shall have been delivered to the Company), and the Title Company shall have issued or committed to
issue to Purchaser Title Company’s lender’s policy of title insurance (ALTA 1970 form) for
$7,000,000, insuring the first lien priority of the Deed of Trust, such policy of title insurance
to be in conformity with the Proforma Policy attached hereto as Exhibit F, provided that Purchaser
shall be the beneficiary.

(b) Payment of Purchase Price. Purchaser shall have delivered to the Company the purchase
price for the Note being purchased by such Purchaser at the Closing by the Closing Date by wire
transfer of immediately available funds pursuant to the wire instructions attached hereto as
Schedule A.

(c) Representations and Warranties; Covenants. The representations and warranties of the
Purchaser shall be true, correct and complete in all respects as of the date when made and as of
the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date (which shall be true, correct and complete as of such date)), and the
Purchaser shall have performed, satisfied and complied with in all material respects the covenants,
agreements and conditions required by the Transaction Documents to be performed, satisfied or
complied with by such Purchaser at or prior to the Closing Date.

SECTION 6. Conditions to Purchaser’s Obligation to PurchaseThe obligation of Purchaser
hereunder to purchase the Note from the Company at the Closing is subject to the satisfaction, at
or before the Closing Date, of each of the following conditions, provided that these conditions are
for Purchaser’s sole benefit and may be waived by Purchaser at any time in its sole discretion by
providing the Company with prior written notice thereof:

(a) Transaction Documents. The Company shall have (i) executed each of the Transaction
Documents and delivered the same to the Title Company (other than this Agreement, which shall have
been delivered to the Purchaser), (ii) executed and delivered the Deed of Trust in the form
attached hereto as Exhibit B to the Title Company, for recordation in the Office of the
Recorder of Santa Clara County, and the Title Company shall have issued or committed to issue to
Purchaser Title Company’s lender’s policy of title insurance (ALTA 1970 form) for $7,000,000,
insuring the second lien priority of the Deed of Trust, such policy of title insurance to be in
conformity with the Proforma Policy attached hereto as Exhibit F, provided that Purchaser
shall be the beneficiary, and (iii) executed and delivered the Security Agreement in the form
attached hereto as Exhibit E.

(b) Representations and Warranties; Covenants. The representations and warranties of the
Company shall be true, correct and complete in all respects as of the date when made and as of the
Closing Date as though made at that time (except for representations and warranties that speak as
of a specific date (which shall be true, correct and complete as of such date)) and the Company
shall have performed, satisfied and complied with in all respects the covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or complied with by the
Company at or prior to the Closing Date. The Purchaser shall have received a certificate, executed
by the principal financial officer of the Company, dated as of the Closing Date, to the foregoing
effect.

(c) Reservation of Common Stock. As of the Closing Date, the Company shall have reserved out
of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of
the Note, 1,500,000 shares of its Common Stock and shall have sufficient authorized and unissued
shares of Common Stock to reserve such amount.

(d) Good Standing Certificates. The Company shall have delivered to Purchaser a certificate
evidencing the incorporation and good standing of the Company in Delaware issued by the Secretary
of State of Delaware as of a date within ten days of the Closing Date and a certified copy of the
Company’s articles of organization, certified by the Secretary of State of Delaware, as of a date
within ten days of the Closing Date.

(e) Secretary’s Certificate. The Company shall have delivered to such Purchaser a certificate
of the Secretary of the Company, in the form attached hereto as Exhibit C and dated as of
the Closing Date, certifying as to adoption without subsequent modification or amendment of the
form of resolutions of the Board of Directors of the Company consistent with Section 3(b) of this
Agreement and certifying as to the Company’s certification of incorporation and by-laws, each as in
effect at the Closing.

(f) Filings; Authorizations. The Company shall have made all filings under all applicable
federal and state securities laws necessary to consummate the issuance of the Securities pursuant
to this Agreement in compliance with such laws, except for any filings that may be made after the
Closing.

(g) No Injunctions. No temporary restraining order, preliminary or permanent injunction or
other order or decree, and no other legal restraint or prohibition shall exist which prevents or
arguably prevents the consummation of the transactions contemplated by the Transaction Documents,
nor shall any proceeding have been commenced or threatened with respect to the foregoing.

(h) No Material Adverse Effect. Between the time of execution of this Agreement and the
Closing Date, no Material Adverse Effect shall occur or become known (whether or not arising in the
ordinary course of business).

(i) Approval by the Company’s Board of Directors. The Transaction Documents shall have been
approved by the Board of Directors of the Company, in the form hereof and, if attached as an
Exhibit hereto, in the form so attached, at a general or special meeting in accordance with Company
by-laws, and other requirements.

SECTION 7. Miscellaneous(a) Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement
shall be deemed to be a contract made under the laws of the State of California, and for all
purposes shall be, governed by, and considered in accordance with, the law of the State of
California. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state
and federal courts sitting in Santa Clara County, California, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability
of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any
provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

(b) Counterparts. This Agreement may be executed in identical counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same agreement.
This Agreement, once executed by a party, may be delivered to the other parties hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

(c) Headings. The headings of this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

(d) Entire Agreement. This Agreement, the Note and the documents referenced herein and
therein constitute the entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein. This Agreement, the Note, the Registration and
Standstill Agreement and the Voting Agreement supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

(e) Amendments. This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and Purchaser.

(f) Waivers. No provision of this Agreement may be amended or waived other than by an
instrument in writing signed by the Company and the Purchaser. No consideration shall be offered
or paid to any person to amend or consent to a waiver or modification of any provision of this
Agreement unless the same consideration also is offered to all of the parties to this Agreement.

(g) Expenses. Except as otherwise provided herein, the Company and Purchaser shall bear their
own legal and other expenses with respect to this Agreement and the transactions contemplated
hereby.

(h) Notices. Any notices, consents, waivers or other communications required or permitted to
be given under the terms of this Agreement must be in writing and will be deemed to have been
delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile,
provided that such notice is also delivered via regular mail; or (iii) 1 Business Day after deposit
with a nationally recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such communications shall be:

	 	 	 	If to the Company:

Sipex Corporation

233 South Hillview Drive

Milpitas, CA 95035

Telephone: (408) 934-7547

Facsimile: (408) 935-7678

Attention: Ray Wallin, CFO

	 	 	 	with a copy to:

Wilson Sonsini Goodrich & Rosati

650 Page Mill Road

Palo Alto, CA 94304

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

Attention: Robert G. Day

If to Purchaser, to its address and facsimile number set forth on the signature page hereto
executed by it, with copies to such Purchaser’s representatives as set forth thereon, or at such
other address and/or facsimile number and/or to the attention of such other person as the recipient
party has specified by written notice given to each other party 5 days prior to the effectiveness
of such change. Written confirmation of receipt (A) given by the recipient of such notice,
consent, waiver or other communication, (B) mechanically or electronically generated by the
sender’s facsimile machine containing the time, date, recipient facsimile number and an image of
the first page of such transmission, or (C) provided by a courier or overnight courier service
shall be rebuttal evidence of personal service, receipt by facsimile, receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

(i) Further Assurances. Each party shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as the other party may reasonably request in order to
carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

(j) Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the benefit of, nor
may any provision hereof be enforced by, any other person.

(k) Severability. If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability
of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any
provision of this Agreement in any other jurisdiction.

(l) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors and permitted assigns. The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of the
Purchaser. Purchaser may assign its rights under this Agreement to any person or persons to whom
the Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing
to be bound, with respect to the transferred Securities, by the provisions hereof that apply to the
Purchaser.

(m) Survival. Unless this Agreement is terminated under Section 8(o) of this Agreement, the
representations and warranties of the Company and the Purchaser contained in Sections 2 and 3 of
this Agreement and the agreements and covenants set forth in Sections 3, 4 and 5 of this Agreement
shall survive until such time as no Securities remain outstanding. Purchaser shall be responsible
only for its own representations, warranties, agreements and covenants hereunder.

(n) Publicity. On or promptly following the Closing Date, the Company shall file a Form 8-K
describing the terms of the transactions contemplated by the Transaction Documents in the form
required by the 1934 Act, and attaching the material Transaction Documents (including all
attachments, the “8-K Filing”). Subject to the foregoing, neither the Company nor
Purchaser shall issue any press releases or any other public statements with respect to the
transactions contemplated hereby; provided, however, that the Company shall be entitled, without
the prior approval of Purchaser (although the Purchaser shall be consulted by the Company in
connection with any such press release prior to its release and shall be given the opportunity to
review its contents), to make any press release or other public disclosure with respect to such
transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and
(ii) as is required by applicable law and regulations. Each of the Company and the Purchaser shall
have the right to approve before issuance any press releases or any other public statements by the
other party with respect to the transactions contemplated by the Transaction Documents.

(o) Termination. In the event that the Closing shall not have occurred with respect to the
Purchaser on or before 30 Business Days from the date hereof due to the Company’s or such
Purchaser’s failure to satisfy the conditions set forth in Sections 6 and 7 of this Agreement (and
the nonbreaching party’s failure to waive such unsatisfied conditions), the nonbreaching party
shall have the option to terminate this Agreement with respect to such breaching party at the close
of business on such date without liability of any non-breaching party to any other party, and the
Company shall return any and all funds paid hereunder to the Purchaser no later than the close of
business on the Business Day following such termination; provided, however, that if this Agreement
is terminated pursuant to this Section 8(o).

(p) Remedies. Purchaser and each holder of the Securities shall have all rights and remedies
set forth in the Transaction Documents and all rights and remedies which such holders have been
granted at any time under any other agreement or contract and all of the rights which such holders
have under any law. Any person having any rights under any provision of this Agreement shall be
entitled to enforce such rights to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes
that in the event that it fails to perform, observe, or discharge any or all of its obligations
under this Agreement, any remedy at law may prove to be inadequate relief to the Purchaser. The
Company therefore agrees that the Purchaser shall be entitled to seek temporary and permanent
injunctive relief in any such case without the necessity of proving actual damages and without
posting a bond or other security.

3

IN WITNESS WHEREOF, the parties have caused this Securities Purchase Agreement to be
duly executed as of the date first written above.

	 
	 

	“COMPANY”

	 

	SIPEX CORPORATION

	 

	 

	By: /s/ Ralph Schmitt

	 

	 

	Name: Ralph Schmitt

	 

	 

	Title: Chief Executive Officer and President

	 

[Signature of the Purchaser on Following Page]

4

	 
	 

	“PURCHASER”

	 

	RODFRE HOLDINGS LLC

	 

	By: /s/ Joseph Prudente

	 

	 

	(signature of authorized representative)

	 

	Name: Joseph Prudente

	 

	 

	Its: Director

	 

	 

	Address: 41 Main Street, Bolton, MA, 01740

	 

	 

	Telephone: (978) 779-3000

	 

	 

	Fax: (978) 779-3050

	 

	 

	Tax I.D. or SSN: 47-0935666

5

EXHIBIT A

FORM OF NOTE

6

 EXHIBIT B

7

FORM OF DEED OF TRUST

EXHIBIT C

8

SECRTARY’S CERTIFICATE

SCHEDULE A

WIRE INSTRUCTIONS

	 	 	 	 	 
	BANK:
	 	FC-Silicon Valley Bank

	 
	 	 	 	 
	 
	 	3003 Tasman Drive
	 
	 	 	 	 
	 
	 	Santa Clara, CA  95054  USA

	ACCOUNT NAME:
	 	Sipex Corporation

	 
	 	 	 	 
	ACCOUNT NUMBER:
	 	 	3300439362	 
	 
	 	 	 	 
	ROUTING AND TRANSIT #:
	 	 	121140399	 
	 
	 	 	 	 
	SWIFT CODE:
	 	SVBKUS6S

	 
	 	 	 	 

9EX-10.2

Exhibit 10.2

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS OR AN EXEMPTION THEREFROM. THE PRINCIPAL AMOUNT REPRESENTED HEREBY AND THE
SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE
HEREOF PURSUANT TO SECTION 3(A)(4) HEREOF. A PROSPECTIVE ACQUIROR HEREOF IS ADVISED TO CONTACT THE
ISSUER HEREOF AS TO THE ACTUAL OUTSTANDING PRINCIPAL AMOUNT HEREOF.

SIPEX CORPORATION

9% SECURED NOTE WITH CONVERTIBLE INTEREST DUE JANUARY 19, 2008

No. 2006-1 U.S. $7,000,000

1. Security.

This Security is a duly authorized 9% Secured Note with convertible interest due January 19,
2008 of Sipex Corporation, a Delaware corporation (the “Company”). Capitalized terms used
and not otherwise defined herein, shall have the respective meanings given to those terms in
Section 10 hereof.

2. Principal Amount and Interest.

(a) The Company for value received, hereby promises to pay to the order of Rodfre Holdings LLC
(“Lender”), or its registered assigns, the principal sum of U.S. $7,000,000 (the “Principal
Amount”) on January 19, 2008 (the “Final Maturity Date”). Except as specifically set forth in this
Security, the Company does not have any right, option, or obligation to pay any portion of the
principal at any time prior to the Final Maturity Date. The Company also undertakes to pay to the
Holder, interest, at the rate of 9% per annum (“Interest”) and payable on the Final Maturity Date.
Interest shall accrue as and from the date that the purchase price of this Security is paid by the
Holder to the Company (or to an agreed upon escrow agent, as the case may be).

On each of April 19, 2006, July 19, 2006, October 19, 2006, January 19, 2007, April 19, 2007,
July 19, 2007, October 19, 2007, and January 19, 2008, the accrued Interest for the quarterly
period ending on that date shall be compounded and thereafter Interest shall accrue on the sum of
the Principal Amount and the amount of Interest accrued during such quarterly period and each
previous quarterly period (if any) described in this paragraph. The sum total of the Principal
Amount and the Conversion Account Balance (as defined below) shall constitute the “Adjusted
Principal Amount”.

The amount due and payable on the Final Maturity Date or on the date of any redemption
pursuant to Section 4 shall be the Adjusted Principal Amount, as applicable, adjusted to reflect
any portion of the Conversion Account Balance, which the Holder has converted or elected to convert
into Common Stock.

(b) Interest shall be computed on the basis of a 365 day year, and actual days elapsed.
Interest shall be payable in U.S. Dollars to the Holder in whose name this Security was registered
at the close of business on the Final Maturity Date.

(c) Payment of the Principal Amount of and Interest accrued on this Security shall be made
upon the surrender of this Security to the Company, at the office designated by the Company for
delivery of notices pursuant to Section 11(a) hereof (the “Designated Office”), in such
coin or currency of the United States of America as at the time of payment shall be legal tender
for the payment of public and private debts.

(d) Payment of the Principal Amount, and Interest, shall be made by wire transfer of
immediately available funds to the Holder entitled thereto in accordance with the wire transfer
instructions provided by the Holder to the Company at least three Business Days prior to the Final
Maturity Date.

3. Conversion.

For purposes of calculating the amount of Interest available to be converted in accordance
with this Section 3, Interest accruing under Section 2(a) (including compounded interest) shall be
credited on a daily basis to a notional account (the “Conversion Account”). On January 19, 2007,
and again on January 19, 2008 (each a “Conversion Date”), the Holder shall have the right to
convert, on each such occasion, any and all Interest then credited to the Conversion Account (the
“Conversion Account Balance”) into Common Stock of the Company. The following terms and conditions
set forth in this Section 3 shall also be applicable to the conversion of the Conversion Account
Balance.

(a) (1) Subject to compliance with applicable laws, including but not limited to the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, if and to the extent that the
same may be applicable, and with the provisions of Section 4(a)(1) and Section 5, the Holder of
this Security may, as indicated in Section 2(e) above, convert the Conversion Account Balance (or
any portion thereof) into Common Stock at the Conversion Price then in effect. The number of
shares of Common Stock into which all or any portion of the Conversion Account Balance may be
converted upon any such conversion shall be a number of shares equal to the quotient (rounded down
to the nearest whole share) obtained by dividing (A) the then Conversion Account Balance or portion
thereof being converted by (B) the Conversion Price then in effect; provided, however, that in no
event may the Holder convert a portion of the Conversion Account Balance that would result in the
issuance of shares of Common Stock in excess of 19.9% of the total number of shares of Common Stock
outstanding immediately prior to conversion.

Subject to the other provisions of this Agreement pertaining to adjustment of the Conversion
Price (as defined below), the rate at which the Conversion Account Balance may be converted into
Common Stock (the “Conversion Price”) shall be equal to the VWAP of the Common Stock, for the
period of twenty Trading Days immediately preceding the Conversion Date. To convert Conversion
Account Balance or any portion thereof, the Holder hereof shall, not less than ten (10) nor more
than thirty (30) days prior to the applicable Conversion Date: (x) send by facsimile (or otherwise
deliver) a copy of the fully executed conversion notice in the form attached as Exhibit A
hereto (the “Conversion Notice”) to the Company, and (y) pay any transfer taxes or other
applicable taxes or duties, if any, required in connection with the issuance of shares of Common
Stock in the name of someone other than the Holder. Upon receipt by the Company of a facsimile
copy of a Conversion Notice from the Holder, the Company shall as soon as practicable, but in any
event on or before the second Business Day following the date of receipt of the Conversion Notice,
send, via facsimile (or otherwise deliver), a confirmation to the Holder and the transfer agent for
the Common Stock stating that the Conversion Notice has been received, the date upon which the
Company expects to deliver the Common Stock issuable upon such conversion and the name and
telephone number of a contact person at the Company regarding the conversion. The Company shall
not be obligated to issue shares of Common Stock upon a conversion unless the Holder complies with
the foregoing requirements set forth in this paragraph.

On or prior to the third Business Day after any Conversion Date (the “Share Delivery
Date”), the Company shall issue and deliver to the Holder or its nominee (x) that number of
shares of Common Stock issuable upon conversion of the portion of the Conversion Account Balance
being converted and (y) if applicable, cash in lieu of any fractional shares pursuant to Section
3(a)(5). If the Company’s transfer agent is participating in DTC’s Fast Automated Securities
Transfer program, and so long as the certificate for the Common Stock to be issued upon conversion
of the Conversion Account Balance is not required to bear a legend and the Holder is not then
required to return such certificate for the placement of a legend thereon and the Holder has
provided the Company with the information required by DTC relating to the DTC account of the Holder
or such Holder’s nominee, the Company shall cause its transfer agent to electronically transmit the
Common Stock issuable upon conversion of the Conversion Account Balance to the Holder by crediting
the account of the Holder or its nominee with DTC through its Deposit Withdrawal Agent Commission
system. If the aforementioned conditions for a DTC Transfer are not satisfied, the Company shall
deliver to the Holder physical certificates representing the Common Stock issuable upon conversion
of the Conversion Account Balance. Further, even if the aforementioned conditions to a DTC
Transfer are satisfied, the Holder may instruct the Company in writing to deliver to the Holder
physical certificates representing the Common Stock issuable upon conversion in lieu of delivering
such shares by way of DTC Transfer.

(2) The Holder, as such, is not entitled to any rights of a holder of Common Stock until the
Holder has converted all or a portion of the Conversion Account Balance into Common Stock, and only
to the extent all or a portion of the Conversion Account Balance is deemed to have been converted
into Common Stock pursuant to this Section 3.

(3) The Conversion Account Balance shall be deemed to have been converted immediately prior to
the close of business on the Conversion Date, and at such time the rights of the Holder of this
Security as the Holder hereof shall cease with respect to the portion of the Conversion Account
Balance converted on such Conversion Date, and the Person or Persons entitled to receive the shares
of Common Stock issuable upon conversion shall be deemed to be a stockholder of record as of the
Conversion Date.

(4) N/A.

(5) The Company will not issue fractional shares of Common Stock upon conversion of all or a
portion of the Conversion Account Balance. In lieu thereof, the Company will pay an amount in cash
for the current market value of the fractional shares. The current market value of a fractional
share shall be determined (calculated to the nearest 1/1000th of a share) by multiplying
the Conversion Price by such fractional share and rounding the product to the nearest whole cent.

(6) The Company shall, if the Holder so elects, deliver the Common Stock issuable upon
conversion of all or a portion of the Conversion Account Balance to any third party designated by
the Holder, subject to compliance with Sections 3(e) and 11(b) hereof.

(b) N/A.

(c) In case at any time after the date hereof:

(1) N/A.

(2) the Company shall authorize the granting to the holders of its Common Stock generally of
rights or warrants to subscribe for or purchase any shares of capital stock of any class (or of
securities convertible into shares of capital stock of any class) or of any other rights;

(3) there shall occur any reclassification of the Common Stock of the Company (other than a
subdivision or combination of its outstanding Common Stock, a change in par value, a change from
par value to no par value or a change from no par value to par value), or any merger,
consolidation, statutory share exchange or combination to which the Company is a party and for
which approval of any stockholders of the Company is required, or the sale, transfer or conveyance
of all or substantially all of the assets of the Company; or

(4) there shall occur the voluntary or involuntary dissolution, liquidation or winding up of
the Company;

(5) the Company shall cause to be provided to the Holder of this Security in accordance with
Section 11(a), at least 20 days (or 10 days in any case specified in clause (1) or (2) above) prior
to the applicable record or effective date hereinafter specified, a written notice (which notice
shall not include any material non-public information) stating:

(A) the date on which a record is to be taken for the purpose of such dividend, distribution,
grant of rights or warrants, or, if a record is not to be taken, the date as of which the holders
of shares of Common Stock of record to be entitled to such dividend, distribution, rights or
warrants are to be determined; or

(B) the date on which such reclassification, merger, consolidation, statutory share exchange,
combination, sale, transfer, conveyance, dissolution, liquidation or winding up is expected to
become effective, and the date as of which it is expected that holders of shares of Common Stock of
record shall be entitled to exchange their shares of Common Stock for securities, cash or other
property deliverable upon such reclassification, merger, consolidation, statutory share exchange,
sale, transfer, dissolution, liquidation or winding up.

At any time from the date of such notice to the applicable record or effective date on which
any of the foregoing events is to occur, the Holder shall have the right to convert the Conversion
Account Balance into Common Stock, and all other provisions of this Security pertaining to
conversion of the Conversion Account Balance on a Conversion Date shall apply mutatis mutandis to
such conversion.

(d) The Company shall ensure the reservation of sufficient shares of Common Stock to allow the
conversion of the Conversion Account Balance. The Company covenants that all shares of Common
Stock that may be issued upon conversion of the Conversion Account Balance will upon issue be free
from preemptive rights and validly issued, fully paid and nonassessable.

(e) Except as provided in the next sentence, the Company will pay any and all taxes (other
than taxes on income) and duties that may be payable in respect of the issue or delivery of Common
Stock upon conversion of the Conversion Account Balance. The Company shall not, however, be
required to pay any tax or duty that may be payable in respect of any transfer involved in the
issue and delivery of Common Stock in a name other than that of the Holder of this Security, and no
such issue or delivery shall be made unless and until the Person requesting such issue has paid to
the Company the amount of any such tax or duty, or has established to the reasonable satisfaction
of the Company that such tax or duty has been paid.

(f) If any of following events occur:

(1) any reclassification or change of the outstanding shares of Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination), as a result of which holders of Common Stock shall be
entitled to receive Capital Stock, securities or other property or assets (including cash) with
respect to or in exchange for such Common Stock;

(2) any merger, consolidation, statutory share exchange or combination of the Company with
another Person as a result of which holders of Common Stock shall be entitled to receive stock,
securities or other property or assets (including cash) with respect to or in exchange for such
Common Stock; or

(3) any sale or conveyance of the properties and assets of the Company as, or substantially
as, an entirety to any other Person as a result of which holders of Common Stock shall be entitled
to receive stock, securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock.

Then the Company or the successor or purchasing entity, as applicable, shall execute with the
Holder of this Security a supplemental agreement providing that the Conversion Account Balance
shall be convertible into the kind and amount of shares of capital stock and other securities or
property or assets (including cash) that such Holder would have been entitled to receive upon such
reclassification, change, merger, consolidation, statutory share exchange, combination, sale or
conveyance had the Conversion Account Balance been converted into Common Stock immediately prior to
such reclassification, change, merger, consolidation, statutory share exchange, combination, sale
or conveyance assuming the Holder, as a holder of Common Stock, did not exercise its rights of
election, if any, as to the kind or amount of securities, cash or other property receivable upon
such reclassification, change, merger, consolidation, statutory share exchange, combination, sale
or conveyance (provided that, if the kind or amount of securities, cash or other property
receivable upon such reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance is not the same for each of the shares of Common Stock in respect
of which such rights of election shall not have been exercised (“Non-Electing Share”), then
for the purposes of this Section 3(f) the kind and amount of securities, cash or other property
receivable upon such reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance for each Non-Electing Share shall be deemed to be the kind and
amount so receivable per share by a plurality of the Non-Electing Shares). Such supplemental
agreement shall provide for adjustments that shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Section 3. If, in the case of any such reclassification,
change, merger, consolidation, statutory share exchange, combination, sale or conveyance, the stock
or other securities and assets receivable thereupon by a holder of Common Stock includes shares of
stock or other securities and assets of a person other than the successor, purchasing or transferee
entity, as applicable, in such reclassification, change, merger, consolidation, statutory share
exchange, combination, sale or conveyance, then such supplemental agreement shall also be executed
by such other person and shall contain such additional provisions to protect the interests of the
Holder as the Board of Directors shall reasonably consider necessary by reason of the foregoing.

The above provisions of this Section 3(f) shall apply to successive or a series of related
reclassifications, changes, mergers, consolidations, statutory share exchanges, combinations, sales
and conveyances. If this Section 3(f) applies to any event or occurrence, then the other
provisions of Section 3(b) shall not apply to the issuance of securities pursuant to such event or
occurrence, provided that such other provisions shall continue to apply to all other
issuances.

(g) The Company (i) will effect all registrations with, and obtain all approvals by, all
governmental authorities that may be necessary under any United States federal or state law
(including the Securities Act, the Exchange Act and state securities and Blue Sky laws) for the
Common Stock issuable upon conversion of the Conversion Account Balance to be lawfully issued and
delivered as provided herein, and thereafter publicly traded (if permissible under the Securities
Act) and qualified or listed as contemplated by clause (ii) (it being understood that the Company
shall not be required to register the Common Stock issuable on conversion of the Conversion Account
Balance under the Securities Act; and (ii) will list the Common Stock required to be issued and
delivered upon conversion of the Conversion Account Balance within 30 calendar days after the first
anniversary of the Issuance Date, on each national securities exchange on which outstanding Common
Stock is listed or quoted at such time of such delivery, or if the Common Stock is not then listed
on any national securities exchange, to qualify the Common Stock for quotation on the Nasdaq Stock
Market or such other inter-dealer quotation system, if any, on which the Common Stock is then
quoted.

4. Rights of the Holder upon a Change of Control and Sale of the Property; Optional Repayment
of the Note.

(a) Conversion Rights and Repayment.

(1) In the event that a Change of Control or sale of the Property (as defined in the Deed of
Trust) shall occur at any time prior to the Final Maturity Date, the Holder of this Security shall
have the right, at the Holder’s option, but subject to the provisions of Sections 4(b) and 4(c), to
convert any portion of the Conversion Account Balance into Common Stock at the Conversion Price
then in effect, on the terms and conditions of Section 3.

(2) In the event that a Change of Control or sale of the Property shall occur at any time that
this Security is outstanding the Holder of this Security shall have the right (such right, together
with the conversion rights described above under Section 4(a)(1), the “Change of Control
Right”), at the Holder’s option, but subject to the provisions of Sections 4(b) and 4(c), to
elect to require that the Company repay the entire outstanding Principal Amount, or Adjusted
Principal Amount, as applicable, of this Security, together with the Conversion Account Balance
(for which conversion rights are not being exercised) up to, but excluding the day on which the
Change of Control or sale of the Property is consummated.

(3) Subject to any restrictions under the terms of the Subordination Agreement, the Company
shall have the right at any time to redeem all or any portion of the Note in accordance with the
provisions of this Section 4 (an “Optional Repayment”).

(b) No sooner than 15 days nor later than 10 days prior to the expected date of consummation
of a Change of Control, sale of the Property or Optional Repayment, but in no event prior to the
public announcement of such Change of Control if applicable, the Company shall deliver written
notice thereof via facsimile and overnight courier to the Holder (a “Change of Control
Notice” or “Sale of Property Notice” or “Optional Repayment Notice”, as the
case may be). The Change of Control Notice or Sale of Property Notice or Optional Repayment Notice
shall include a form of Conversion Notice and a form of Notice of Election to Require Repayment, if
applicable, to be completed by the Holder and delivered to the Company pursuant to this Section
4(b), and shall state the following:

(1) that it is a Change of Control Notice or Sale of Property Notice or an Optional Repayment
Notice pursuant to this Section 4;

(2) the events causing the Change of Control or sale of the Property and the expected date of
such Change of Control or sale of the Property, or the expected date and amount of the proposed
Optional Repayment; and

(3) the procedures with which such Holder must comply to exercise its right to have the
Conversion Account Balance converted and/or this Security repurchased pursuant to Section 4(a),
including the date by which the completed Conversion Notice or Notice of Election to Require
Repayment and this Security must be delivered to the Company in order to have the Conversion
Account Balance converted or this Security redeemed by the Company pursuant to Section 4(a), the
address for delivery, the Conversion Price then in effect and any adjustments thereto, the amount
of accrued and unpaid interest thereon as of the expected date of consummation of such Change of
Control or sale of the Property, and that this Security as to which a Conversion Notice has been
given may be converted.

No failure by the Company to give the foregoing Change of Control Notice or Sale of the
Property Notice or Optional Repayment Notice shall limit the Holder’s right to exercise its rights
pursuant to Section 4(a).

(c) To exercise a Change of Control Right pursuant to Section 4(a), a Holder must deliver to
the Company, at its Designated Office on or prior to the close of business on the Business Day
prior to the date on which the Change of Control or sale of the Property is consummated, the
following:

(1) a completed Conversion Notice, the form of which is contained in Exhibit A hereto,
and/or a completed Notice of Election to Require Repayment, the form of which is contained in
Exhibit B hereto; and

(2) this Security, with, if the Company so requires, due endorsement by, or a written
instrument of transfer, in form satisfactory to the Company duly executed by, the Holder or such
Holder’s attorney duly authorized in writing.

In the event an a Sale of the Property Notice or an Optional Repayment Notice is given, the Holder
shall deliver this Security into any escrow established by the Company in connection with the sale
of the Property. If the Optional Repayment occurs other than in connection with the sale of the
Property, the Holder shall deliver this Security to the Company for cancellation if paid in full or
reduction and reissuance if redeemed in part.

(d) In the event that the Holder becomes entitled to convert the Conversion Account Balance
pursuant to this Section 4, the Conversion Price shall be the VWAP for the Company’s Common Stock
for the twenty (20) Trading Days immediately preceding the announcement by the Company of the
change of control, or in the case of the sale of the Property, the VWAP for the Company’s Common
Stock for the twenty (20) Trading Days immediately preceding the closing date of the sale
transaction, or in the case of an Optional Repayment, the VWAP for the Company’s Common Stock for
the twenty (20) Trading Days immediately preceding the date of the Optional Repayment.

5. Veto Right. Until full repayment of this Security, the Company shall not without the
Holder’s prior written consent, which shall be subject to the Holder’s sole discretion, sell the
Property for a purchase price that is less than the Principal Amount of this Security, plus the
Conversion Account Balance.

5.1 Option to Purchase: As and from the Final Maturity Date, and until repayment in full of
this Security, unless the Property has been previously sold, the Holder shall have an option to
purchase the Property, at the then fair market value, as determined by a board of three appraisers,
one of which will be nominated by each party, and the third to be nominated by the two parties’
nominees. Each appraiser shall have experience in the real estate market where the Property is
located and in the type of property represented by the Property. In such event, the fair market
value shall be the average of the three values arrived at by the three appraisers. However, if the
lowest and/or highest value differs from the middle value by more than 15%, and the other value is
within 15% of the middle value, the fair market value shall be the average of the two values that
are within 15% of one another. If the Holder exercises such option, the Company shall lease the
Property from the Holder, on a “triple net” basis, at a rate equal to the fair market rental value
of the Property, for a term of at least three years.

6. Covenants of the Company.

(a) The Company covenants and agrees that it will duly and punctually pay or cause to be paid
the Principal Amount, and the interest accrued thereon at the times and in the manner provided for
herein.

(b) Unless otherwise permitted herein, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its existence and the rights (charter and
statutory) of the Company and each of its Subsidiaries; provided, however, that the
Company shall not be required to preserve any such right with respect to a Subsidiary if the
Company shall determine in good faith that the preservation thereof is no longer desirable in the
conduct of the business of the Company and its Subsidiaries as a whole and that the loss thereof is
not disadvantageous in any material respect to the Holder.

(c) The Company covenants and agrees that it shall, at all times during the term hereof and
until the Final Maturity Date:

(i) provide the Holder, within one (1) business day of the release of same to Silicon Valley
Bank, with a copy of any certificate issued by the Company in respect of its compliance with
financial covenants including, but not limited to, any underlying financial ratios and compliance
calculations; and

(ii) within one (1) business day of acquiring knowledge of a default under any material
contract or of circumstances that may result in material adverse changes to the Company’s financial
position, the Company shall notify the Holder, in writing, of the specific nature of such default
and/or circumstances and of the expected impact of same upon the Company.

(d) The Company and its Affiliates, shall not, without the prior approval of the Holder, which
may be withheld at the Holder’s discretion acting reasonably and in good faith, enter into any
contracts or agreements, or subscribe any obligations, the result of which would be to increase
existing Indebtedness, or create new Indebtedness and/or charge, mortgage or otherwise encumber the
Property (as defined in the Deed of Trust being entered into concurrently herewith).

7. Events of Default.

(a) “Event of Default”, wherever used herein, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or
be effected by operation of law or pursuant to any judgment, decree or order of any court or any
order;

(1) the Company defaults in the payment of the Principal Amount, and/or interest accrued
thereon, (a “Defaulted Payment”), when the same becomes due and payable;

(2) the Company fails, to perform or observe in any material respect any material term,
covenant or agreement contained in this Security, the Purchase Agreement or the Deed of Trust and,
in any case, the default continues for a period of 15 days after written notice of such failure,
requiring the Company to remedy the same, shall have been given to the Company by the Holder or in
the event of a material breach of any representations or warranties of the Company in this
Security, the Purchase Agreement or the Deed of Trust;

(3) the Company or any Subsidiary of the Company (A) fails to make any payment at maturity,
including any grace period, in respect of any obligation for borrowed money evidenced by an
Instrument (other than this Note) in an outstanding principal amount in excess of $1,000,000 and
such failure continues without such Indebtedness having been discharged within 15 days or (B)
defaults with respect to any Instrument, which default permits or results in the acceleration of
Indebtedness represented by such Instrument (other than this Note) in an amount in excess of
$1,000,000 without such default or acceleration having been cured, waived, rescinded or annulled
within 15 days;

(4) the entry by a court having jurisdiction in the premises of (A) a decree or order for
relief in respect of the Company or any Subsidiary of the Company in an involuntary case or
proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or
other similar law or (B) a decree or order adjudging the Company or any Subsidiary of the Company
bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any Subsidiary of the
Company, under any applicable U.S. federal or state law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any
Subsidiary of the Company or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or order unstayed and
in effect for a period of 30 consecutive days; or

(5) the commencement by the Company or any Subsidiary of the Company of a voluntary case or
proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or
the consent by the Company or any Subsidiary of the Company, to the entry of a decree or order for
relief in respect of the Company or any Subsidiary of the Company in an involuntary case or
proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or
other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against
the Company or any Subsidiary of the Company, or the filing by the Company or any Subsidiary of the
Company of a petition or answer or consent seeking reorganization or relief under any applicable
U.S. federal or state law, or the consent by the Company or any Subsidiary of the Company to the
filing of such petition or to the appointment of or the taking of possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or
any Subsidiary of the Company, or the making by the Company or any Subsidiary of the Company of an
assignment for the benefit of creditors, or the admission by the Company or any Subsidiary of the
Company in writing of its inability to pay the Company’s or any Subsidiary of the Company’s debts
generally as they become due, or the taking of corporate action by the Company or any Subsidiary of
the Company expressly in furtherance of any such action.

(6) the proposed settlement of the outstanding class action(s) against the Company does not
receive approval, either preliminary or final, from the United States District Court for the
Northern District of California, or more than twenty percent (20%) of the class members, other than
Lender and/or its Affiliates, opt out of the proposed settlement, and/or the Company disavows or
repudiates such settlement for any reason whatsoever;

A default under clause (2) above is not an Event of Default until the Holder notifies the
Company of the default and, if applicable, the Company does not cure such default (and such default
is not waived) within the time specified in clause (2) above after actual receipt of such notice.
Any such notice must specify the default, if applicable demand that it be remedied, and state that
such notice is a “Notice of Default”.

(b) If an Event of Default (other than an Event of Default specified in Sections 7(a)(4),
7(a)(5) or 7(a)(6) hereof with respect to the Company) occurs and is continuing, the Holder, by
written notice to the Company, may declare due and payable, in whole or in part, in its unfettered
and absolute discretion, the Principal Amount, as well as any interest accrued on this Security to
the date of payment. Upon a declaration of acceleration, such Principal Amount (or part thereof,
as the case may be) and accrued and unpaid interest to the date of payment, shall be immediately
due and payable.

On the occurrence and during the continuance of any Event of Default, in addition to and
without limitation of the other rights of the Holder hereunder, all conversion rights in respect of
the Conversion Account Balance shall immediately and automatically become exercisable and the
provisions of this Security pertaining to conversion of the Conversion Account Balance on a
Conversion Date shall apply mutatis mutandis to such conversion; provided that the Holder shall
specify the date of conversion to the Company in a notice complying with time periods specified in
Section 3(a).

If an Event of Default specified in Section 7(a)(4), 7(a)(5) or 7(a)(6) occurs with respect to
the Company, the Principal Amount and accrued and unpaid interest on this Security shall become and
be immediately due and payable, without any declaration or other act on the part of the Holder.

(c) If an Event of Default with respect to this Security occurs and is continuing, the Holder
may pursue any available remedy by proceeding at law or in equity (including a decree of specific
performance and/or other injunctive relief) to collect the Defaulted Payment or interest or any
other amount due and payable on this Security or to enforce the performance of any provision of
this Security.

(d) Notwithstanding any other provision in this Security, the Holder of this Security shall
have the right, which is absolute and unconditional, to receive payment of the Principal Amount and
accrued interest on or after the respective due dates, to convert the the Conversion Account
Balance in accordance with Section 3 or to bring suit for the enforcement of any such payment
and/or the right to convert the the Conversion Account Balance, and such rights shall not be
impaired or affected adversely without the consent of the Holder. Amounts set forth or provided
for herein with respect to payments, conversion and the like (and the computation thereof) shall be
the amounts to be received by the Holder and shall not, except as expressly provided herein, be
subject to any other obligation of the Company (or the performance thereof).

(e) If the Holder of this Security has instituted any proceeding to enforce any right or
remedy under this Security and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to the Holder, then and in every such case, subject to any
determination in such proceeding, the Company and the Holder shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and remedies of the
Holder shall continue as though no such proceeding had been instituted.

(f) Except as otherwise provided herein, no right or remedy conferred in this Security upon
the Holder is intended to be exclusive of any other right or remedy available to the Holder under
this Security, the Purchase Agreement, and the Deed of Trust and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

(g) The Company covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim to take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect
the covenants or the performance of this Security; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that
it will not hinder, delay or impede the execution of any power herein granted to the Holder hereof,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

8. Consolidation, Merger, Etc.

(a) The Company shall not consolidate with or merge into any other Person or, directly or
indirectly, convey, transfer, sell or lease its properties and assets as, or substantially as, an
entirety to any Person unless:

(1) In the event that the Company shall consolidate with or merge into another Person or
convey, transfer, sell or lease its properties and assets substantially as an entirety to any
Person, the Person formed by such consolidation or into which the Company is merged or the Person
which acquires by conveyance, transfer or sale, or which leases, all or substantially all of the
properties and assets of the Company shall be a corporation, partnership, limited liability company
or other business entity organized and validly existing under the laws of the Untied States of
America, any State thereof or the District of Columbia, which shall, prior to or upon the
consummation of such transaction, expressly assume, if other than the Company, by an agreement
supplemental hereto, executed and delivered to the Holder of this Security in form reasonably
satisfactory to the Holder, the due and punctual payment of the Principal Amount of and any
interest on this Security and the performance or observance of every covenant of this Security on
the part of the Company to be performed or observed, including without limitation the conversion
rights provided herein; and

(2) immediately after giving effect to such transaction, no Event of Default, and no event
which, after notice or lapse of time or both, would become an Event of Default, shall have happened
and be continuing.

(b) Upon any consolidation of the Company with, or merger of the Company into, any other
Person or any conveyance, transfer, sale or lease of all or substantially all of the properties and
assets of the Company in accordance with Section 8(a), the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance, transfer, sale or
lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Security with the same effect as if such successor Person had been named as
the Company herein, and thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Security.

9. Security Interest. The Company covenants and agrees that this Security as well as any
replacement Security or other instrument issued in complete or partial replacement hereof shall be
secured by the Deed of Trust.

10. Definitions. Unless otherwise defined in this Security, the following capitalized terms
shall have the following respective meanings when used herein:

“Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control”, when used with respect to any specified
Person, means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

“Board of Directors” means the board of directors of the Company or any authorized
committee of the board of directors.

“Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not
a day on which the banking institutions in the State of New York are authorized or obligated by law
or executive order to close or be closed.

“Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interest in (however designated)
equity of such Person, but excluding any debt securities convertible into such equity.

A “Change of Control” shall be deemed to have occurred if any of the following occurs
after the date hereof:

(1) the consolidation, merger or other business combination (including, without limitation, a
reorganization or recapitalization) of the Company with or into another Person (other than (A) a
consolidation, merger or other business combination (including, without limitation, reorganization
or recapitalization) in which holders of the Company’s voting power immediately prior to the
transaction continue after the transaction to hold, directly or indirectly, the voting power of the
surviving entity or entities necessary to elect a majority of the members of the board of directors
(or their equivalent if other than a corporation) of such entity or entities, or (B) pursuant to a
migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of
the Company);

(2) the sale or transfer of all or substantially all of the Company’s assets; or

(3) the consummation of a purchase, tender or exchange offer made to and accepted by the
holders of more than 50% of the outstanding shares of Common Stock (other than a purchase or tender
or exchange offer made by the Company or any of its subsidiaries that does not result in the
transaction constituting a “Rule 13e-3 transaction” for purposes of Rule 13e-3 under the
Exchange Act).

“Closing Date” means the date of the closing of the purchase and sale of this Security
pursuant to the Purchase Agreement.

“Commission” means the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Securities and Exchange Act of 1934, as amended, or
the Securities Act, whichever is the relevant statute for the particular purpose.

“Common Stock” means any stock of any class of the Company which has no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Company and which is not subject to redemption by the
Company.

“Convertible Securities” shall mean any evidences of indebtedness, shares (other than
Common Stock) or other securities convertible into or exchangeable for Common Stock.

“Deed of Trust” means the Deed of Trust dated as of January 19, 2006 entered into
between the Company and the initial holder of this Security, creating a first ranking mortgage
interest in and to the real property owned by the Company.

“Defaulted Payment” has the meaning set forth in Section 7(a)(1) hereof.

“Exchange Act” means the Securities Exchange Act of 1934, as amended and the rules and
regulations promulgated thereunder.

“fair market value” shall, except as otherwise specifically defined elsewhere, mean,
if there is a current market for the asset, debt or transaction in question, the amount that a
willing buyer would pay a willing seller in an arm’s length transaction or, in the absence of a
current market value for such asset, debt or transaction, the amount determined in good faith by an
independent third party jointly selected by the Holder and the Company.

“Final Maturity Date” has the meaning set forth in Section 2(a) hereof.

“Holder” means the person in whose name this Security is registered on the Note
Register.

“Indebtedness” means, with respect to any Person, at any date of determination
(without duplication):

(a) all obligations and other liabilities (contingent or otherwise) of such Person for
borrowed money (including obligations of the Company in respect of overdrafts, foreign exchange
contracts, currency exchange agreements, interest rate protection agreements, and any loans or
advances from banks, whether or not evidenced by notes or similar instruments) or evidenced by
bonds, debentures, notes or similar instruments (whether or not the recourse of the lender is to
the whole of the assets of such Person or to only a portion thereof),

(b) all reimbursement obligations and other liabilities (contingent or otherwise) of such
Person with respect to letters of credit, bank guarantees or bankers’ acceptances,

(c) all obligations and liabilities (contingent or otherwise) in respect of leases of such
Person required, in conformity with generally accepted accounting principles, to be accounted for
as capitalized lease obligations on the balance sheet of such Person,

(d) all obligations of such Person (contingent or otherwise) with respect to an interest rate
swap, cap or collar agreement or other similar instrument or agreement,

(e) all direct or indirect guaranties or similar agreements by such Person in respect of any
obligations or liabilities (contingent or otherwise) of such Person to purchase or otherwise
acquire or otherwise assure a creditor against loss in respect of, indebtedness, obligations or
liabilities of another Person of the kind described in clauses (a) through (d),

(f) any indebtedness or other obligations described in clauses (a) through (e) secured by any
mortgage, pledge, lien or other encumbrance existing on property which is owned or held by such
Person, regardless of whether the indebtedness or other obligation secured thereby shall have been
assumed by such Person and

(g) any indebtedness or other obligation resulting from “off-balance” sheet financing, or any
such transaction; and

(h) any and all deferrals, renewals, extensions and refunding of, or amendments, modifications
or supplements to, any indebtedness, obligation or liability of the kind described in clauses (a)
through (g).

(i) any partnership obligations of such Person, of the kind described in clauses (a) through
(h).

“Instrument” means any bond, debenture, note or similar instrument.

“Note Register” means the register or other ledger maintained by the Company that
records the record owners of this Security.

“Person” or “person” shall mean and include an individual, a partnership, a
corporation (including a business trust), a joint stock company, a limited liability company, an
unincorporated association, a joint venture or other entity or a governmental authority.

“Purchase Agreement” means the Securities Purchase Agreement entered into between the
Company and the initial holder of this Security relating to the sale and purchase of this Security.

“Security” means this Convertible Secured Note, as amended, replaced, or supplemented
from time to time, initially issued on January 19, 2006.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

“Share Delivery Date” has the meaning set forth in Section 3(a)(1) hereof.

“Subordination Agreement” means the Subordination Agreement, dated as of January 19,
2005, among Silicon Valley Bank, the Holder and the Company.

“Subsidiary” means, in respect of any Person, any corporation, association,
partnership or other business entity of which more than 50% of the total voting power of shares of
Capital Stock or other interests (including partnership interests) entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers, general partners or
trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person;
(ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of
such Person.

“Trading Day” means, with respect to any security, a day during which trading in the
security generally occurs on the Nasdaq Stock Market or, if the security is not quoted on the
Nasdaq Stock Market, on the principal other national or regional securities exchange on which the
security then is listed or, if the security is not listed on a national or regional securities
exchange, on the principal other market on which the security is then traded; provided, however,
that “Trading Day” shall not include any day during which trading in the security is suspended for
more than three hours between 9:30 a.m. (New York time) and 4:00 p.m. (New York time).

“Voting Stock” of a Person means all classes of Capital Stock or other interests
(including partnership interests) of such Person then outstanding and normally entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof.

“VWAP” means, for any period, the aggregate dollar amount of all trades of the Common
Stock during such period divided by the number of shares of the Common Stock traded during such
period as reported by the Nasdaq Stock Market (the “NSM”) or, if the Common Stock is not
quoted on the NSM, by the principal national securities exchange on which the Common Stock is
listed or admitted to trading or, if the Common Stock is not quoted on the NSM or listed or
admitted to trading on any national securities exchange, by the OTC Bulletin Board or the Pink
Sheets, LLC, or a similar generally accepted reporting service.

11. Miscellaneous.

(a) The Company will give prompt written notice to the Holder of this Security of any change
in the location of the Designated Office. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Security must be in writing and will be
deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile, provided that such notice is also delivered by regular mail; (iii) two (2)
Business Days after deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses and facsimile numbers for such
communications shall be:

If to the Company:

Sipex Corporation

233 South Hillview Drive

Milpitas, CA 95035

Telephone: (408) 934-7500

Facsimile: (408) 935-7678

Attention: Ray Wallin, Chief Financial Officer

with a copy to:

Wilson Sonsini Goodrich & Rosati, P.C.

650 Page Mill Road

Palo Alto, California 94304

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

Attention: Robert G. Day

If to the Holder:

Rodfre Holding LLC

c/o Joe Prudente

Future Electronics Corp.

41 Main Street

Bolton, MA, 01740

With a copy to:

Future Electronics Inc.

237 Hymus Blvd.

Pointe Claire, Quebec

H9R 5C7

Telephone: (514) 694-7710 Ext: 2986

Facsimile: (514) 694-7515

Attention: Guy Lavergne, Esq.

Associate General Counsel

or at such other address and/or facsimile number and/or to the attention of such other person as
the recipient party has specified by written notice given to each other party 5 days prior to the
effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the
sender’s facsimile machine containing the time, date, recipient facsimile number and an image of
the first page of such transmission, or (C) provided by a courier or overnight courier service
shall be rebuttal evidence of personal service, receipt by facsimile, or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

(b) (1) The transfer of this Security is registrable on the Note Register upon surrender
of this Security for registration of transfer at the Designated Office, duly endorsed by, or
accompanied by a written instrument of transfer in form reasonably satisfactory to the Company duly
executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon
one or more new Securities, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. Such Securities are issuable
only in registered form without coupons in denominations of $500,000 (or such lesser remaining
amount after all possible issuances in denominations of $500,000). No service charge shall be made
for any such registration of transfer, but the Company may require payment of a sum sufficient to
recover any tax or other governmental charge payable in connection therewith in the event that the
Holder requests that this Security or the Common Stock issuable hereunder be issued in the name of
someone other than the Holder. Prior to due presentation of this Security for registration of
transfer, the Company and any agent of the Company may treat the Person in whose name this Security
is registered as the owner thereof for all purposes, whether or not this Security be overdue, and
neither the Company nor any such agent shall be affected by notice to the contrary.

(2) This Security and the Common Stock issuable upon conversion of the Conversion Account
Balance have not been registered under the Securities Act, or the securities laws of any state or
other jurisdiction. Neither this Security nor the Common Stock issuable upon conversion of the
Conversion Account Balance nor any interest or participation herein may be reoffered, sold,
assigned, transferred, pledged, encumbered or otherwise disposed of (a “Transfer”) in the
absence of such registration or unless such transaction is exempt from, or not subject to,
registration. The Holder by its acceptance of this Security or the Common Stock issuable upon
conversion of the Conversion Account Balance agrees that it shall not offer, sell, assign,
transfer, pledge, encumber or otherwise dispose of this Security, other than for conversions
pursuant to the terms hereof, or any portion thereof or interest therein. and then (other than
with respect to a Transfer pursuant to a registration statement that is effective at the time of
such Transfer) only to (a) the Company or (b) an Affiliate of the Holder and in the case of (b)
above in which the transferor furnishes the Company with such certifications, legal opinions or
other information as the Company may reasonably request to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of
the Securities Act.

(3) Upon presentation of this Security for registration of transfer at the Designated Office
accompanied by (i) certification by the transferor that such transfer is in compliance with the
terms hereof and (ii) by a written instrument of transfer in a form approved by the Company
executed by the Holder, in person or by the Holder’s attorney thereunto duly authorized in writing,
and including the name, address and telephone and fax numbers of the transferee and name of the
contact person of the transferee, such Security shall be transferred on the Note Register, and a
new Security of like tenor and bearing the same legends shall be issued in the name of the
transferee and sent to the transferee at the address and c/o the contact person so indicated.
Transfers and exchanges of this Security shall be subject to such additional restrictions as are
set forth in the legends on this Security and to such additional reasonable regulations as may be
prescribed by the Company as specified in Section 11(b)(2) hereof. Successive registrations of
transfers as aforesaid may be made from time to time as desired, and each such registration shall
be noted on the Note register.

(4) Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Security, and in the case of loss, theft or destruction, receipt
of indemnity reasonably satisfactory to the Company and upon surrender and cancellation of this
Security, if mutilated, the Company will deliver a new Security of like tenor and dated as of such
cancellation, in lieu of such Security.

(5) The Holder represents that it is an “accredited investor” within the meaning of
Rule 501(a) of the Securities Act. The Holder has been advised that this Security and the Common
Stock issuable upon conversion of the Conversion Account Balance have not been registered under the
Securities Act, or any state securities laws and, therefore, cannot be resold unless it is
registered under the Securities Act and applicable state securities laws or unless an exemption
from such registration requirements is available. The Holder is aware that the Company is under no
obligation to effect any such registration or to file for or comply with any exemption from
registration. The Holder has not been formed solely for the purpose of making this investment and
is acquiring the Security for its own account for investment, and not with a view to, or for resale
in connection with, the distribution thereof.

(6) Such Holder understands that:

(A) until the end of the holding period under Rule 144(k) of the Securities Act (or any
successor provision), this Security (and all securities issued in exchange therefor or in
substitution thereof, other than the shares of Common Stock issuable upon conversion of the
Conversion Account Balance, which shall bear the legend set forth in Section 11(b)(6)(B) of this
Security, if applicable) shall bear a legend in substantially the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION THEREFROM.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND
CONDITIONS OF A VOTING AGREEMENT WHICH PLACES CERTAIN RESTRICTIONS ON THE VOTING
OF THE SECURITIES REPRESENTED HEREBY. ANY PERSON ACCEPTING ANY INTEREST IN SUCH
SECURITIES SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE
PROVISIONS OF SUCH AGREEMENT. A COPY OF SUCH VOTING AGREEMENT WILL BE FURNISHED
TO THE RECORD HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON WRITTEN REQUEST TO
THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS.

The legend set forth above shall be removed and the Company shall issue a new Security of like
tenor and aggregate principal amount, and which shall not bear the restrictive legend required by
this Section 11(b)(6)(A), (i) if, in connection with a sale transaction, the Holder provides the
Company with an opinion of counsel reasonably acceptable to the Company to the effect that a public
sale, assignment, pledge or transfer of this Security may be made without registration under the
Securities Act, or (ii) upon expiration of the applicable two-year holding period under Rule 144(k)
of the Securities Act (or any successor rule). The Company shall not require such opinion of
counsel for the sale of this Security in accordance with Rule 144 of the Securities Act in the
event that the Holder provides such representations that the Company shall reasonably request
confirming compliance with the requirements of Rule 144;

(B) until the end of the holding period under Rule 144(k) of the Securities Act (or any
successor provision), any stock certificate representing such shares of Common Stock shall bear a
legend in substantially the following form unless, in the case of shares of Common Stock issued
upon conversion of the Conversion Account Balance, the Security submitted for conversion is not
required to bear the legend specified in Section 11(b)(6)(A):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN EXEMPTION
THEREFROM.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND
CONDITIONS OF A VOTING AGREEMENT WHICH PLACES CERTAIN RESTRICTIONS ON THE VOTING
OF THE SECURITIES REPRESENTED HEREBY. ANY PERSON ACCEPTING ANY INTEREST IN SUCH
SECURITIES SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE
PROVISIONS OF SUCH AGREEMENT. A COPY OF SUCH VOTING AGREEMENT WILL BE FURNISHED
TO THE RECORD HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON WRITTEN REQUEST TO
THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS.

The legend set forth above shall be removed and the Company shall issue a stock certificate
evidencing such shares of Common Stock, as the case may be, without such legend to the holder of
the stock certificate evidencing such shares of Common Stock and upon which such legend is stamped,
(i) if such shares of Common Stock have been resold or transferred pursuant to the registration
statement contemplated by the Purchase Agreement and the registration statement was effective at
the time of such transfer, (ii) if, in connection with a sale transaction, such holder provides the
Company with an opinion of counsel reasonably acceptable to the Company to the effect that a public
sale, assignment, pledge or transfer of the shares of Common Stock may be made without registration
under the Securities Act, or (iii) upon expiration of the applicable two-year holding period under
Rule 144(k) of the Securities Act (or any successor rule). The Company shall not require such
opinion of counsel for the sale of such shares of Common Stock in accordance with Rule 144 of the
Securities Act, provided that the Seller provides such representations that the Company shall
reasonably request confirming compliance with the requirements of Rule 144; and

(C) in the event Rule 144(k) as promulgated under the Securities Act (or any successor rule)
is amended to change the two-year holding period under Rule 144(k) (or the corresponding holding
period under any successor rule), (i) each reference in Sections 11(b)(6) of this Agreement to
“two-year holding period” shall be deemed for all purposes of this Agreement to be
references to such changed period, and (ii) all corresponding references in this Security shall be
deemed for all purposes to be references to the changed period, provided that such changes shall
not become effective if they are otherwise prohibited by, or would otherwise cause a violation of,
the then-applicable federal securities laws.

(7) Neither this Security nor any term hereof may be amended or waived orally or in writing,
except that any term of this Security may be amended and the observance of any term of this
Security may be waived (either generally or in a particular instance and either retroactively or
prospectively), upon the approval of the Company and the Holder; provided, however,
that the Company may, without the consent of the Holder, amend the Security for the purpose of (i)
surrendering any right or power conferred upon the Company, (ii) providing for conversion rights of
Holder if any reclassification or change of the Common Stock or any consolidation, merger or sale
of all or substantially all of the Company’s assets occurs, (iii) providing for the assumption of
the Company’s obligations to the Holder in the case of a merger, consolidation, conveyance,
transfer or lease, or (iv) reducing the Conversion Price, provided that the reduction will not
adversely affect the interests of the Holder.

(c) In any case in which the date of maturity of, the date of payment of any interest on this
Security will not be a Business Day, then payment of such interest on or Principal Amount of this
Security need not be made on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on such date of maturity or date of payment, as the case may
be, and no interest shall accrue for the period from and after such date.

(d) In the case of a dispute as to the determination of the Closing Price, the Conversion
Price, the fair market value of assets (other than cash or securities), or the arithmetic
calculation of any shares of Common Stock to be issued hereunder, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within one Business Day from the
manifestation of such dispute to the Holder. If the Company and the Holder are unable to agree
upon such determination or calculation of the Closing Price, the Conversion Price or the fair
market value of assets (other than cash or securities), or the arithmetic calculation of any shares
of Common Stock to be issued hereunder, as the case may be, within one Business Day of such
disputed determination or arithmetic calculation being submitted to the Holder, then the Company
shall, within 10 Business Days, submit via facsimile (a) the disputed determination of Closing
Price, the Conversion Price or the fair market value of assets (other than cash or securities) to
an independent, reputable investment bank selected by the Company and approved by the Holder or (b)
the disputed arithmetic calculation of any shares of Common Stock to be issued hereunder to the
Company’s independent, outside accountant. The Company shall make reasonable efforts to cause the
investment bank or the accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the Holder of the results no later than 15 Business Days
from the date it receives the disputed determinations or calculations. Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be binding upon all parties
absent demonstrable error. The fees and expenses of the accountant or investment bank, as the case
may be, shall be paid by the party whose calculation or determination is, on a percentage basis,
the least closest to that determined by the accountant or investment bank; provided, however, that
if each of the amounts originally determined or calculated by the Company and the Holder are at
least equal to 80% of the amount calculated or determined by the accountant or investment bank but
not more than 120% of the amount calculated or determined by the accountant or investment bank,
then the Company and the Holder will each pay one half of the fees and expenses of such accountant
or investment bank.

(e) If (a) this Security is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to
collect amounts due under this Security or to enforce the provisions of this Security or (b) there
occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting
Company creditors’ rights and involving a claim under this Security, then the Company shall pay the
reasonable costs incurred by the Holder for such collection, enforcement or action or in connection
with such bankruptcy, reorganization, receivership or other proceeding, including but not limited
to reasonable attorneys fees and disbursements.

(f) THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF CALIFORNIA.

[Remainder of page intentionally left blank.]

1

IN WITNESS WHEREOF, the Company has caused this
Security to be duly executed.

Dated: January 19, 2006

	 
	 

	SIPEX CORPORATION

	 

	 

	By: /s/ Clyde R. Wallin

	 

	 

	Name: Clyde R. Wallin

	 

	 

	Title: Sr. VP Finance & CFO

	 

	 

	RODFRE HOLDINGS LLC

	 

	 

	By: /s/ Joseph Prudente

	 

	 

	Name: Joseph Prudente

	 

	 

	Title: Director

	 

2

EXHIBIT A

CONVERSION NOTICE

The undersigned holder of this Security hereby irrevocably exercises the conversion rights
granted pursuant to this Security and does hereby convert the amount of the Conversion Account
Balance below designated, into Common Stock in accordance with the terms of this Security, and
directs that such shares, be delivered to and be registered in the name of the undersigned unless a
different name has been indicated below. If shares of Common Stock are to be registered in the
name of a Person other than the undersigned, the undersigned will pay all transfer taxes payable
with respect thereto.

Dated:

RODFRE HOLDINGS LLC

By:

Name:      

Title:      

If shares are to be registered in the name of a Person other than the holder, please print such
Person’s name and address:

Name

Address

Social Security or other Taxpayer Identification Number, if any

Amount of accrued interest: $     

3

EXHIBIT B

NOTICE OF ELECTION TO REQUIRE REPAYMENT

Pursuant to Section 4(a)(2) of the this 9% Convertible Secured Note Due 2008 dated January19,
2006 of Sipex Corporation (the “Security”), the undersigned holder of this Security hereby
irrevocably exercises the option to require redemption and repayment of the principal amount of
this Security, together with all accrued interest thereon for which conversion rights have not been
exercised, on the day on which the Change of Control (as defined in this Security) is consummated
and directs that such check for such payment be delivered to the undersigned unless a different
name has been indicated below.

Dated:

RODFRE HOLDINGS LLC

By:

Name:      

Title:      

If a check is to be delivered in the name of a Person other than the holder, please print such
Person’s name and address:

Name

Address

Social Security or other Taxpayer Identification Number, if any

4

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