EX-10.1






Exhibit 10.1




RPM INTERNATIONAL INC.




RPM INTERNATIONAL INC. 2004 OMNIBUS EQUITY AND INCENTIVE PLAN




PERFORMANCE-EARNED RESTRICTED STOCK (PERS)

AND ESCROW AGREEMENT




     THIS PERFORMANCE-EARNED RESTRICTED STOCK AND ESCROW AGREEMENT (the “Agreement”), is entered
into as of this 10th day of October, 2008 (the “Effective Date”), by and between RPM
International Inc., a Delaware corporation (the “Company”), and «NAME» (the “Grantee”).



WITNESSETH:




     WHEREAS, the Compensation Committee of the Board of Directors (the “Compensation Committee”)
administers the RPM International Inc. 2004 Omnibus Equity and Incentive Plan (the “Plan”); and



     WHEREAS, the Committee has determined that the Grantee has satisfied previously established
applicable performance measures for the fiscal year of the Company ending May 31, 2008; and



     WHEREAS, as a result of the Grantee’s satisfaction of such performance measures, the
Compensation Committee has determined that the Grantee has earned a grant of Restricted Stock under
the Plan upon the terms and conditions set forth in this Agreement;



     NOW, THEREFORE, the Company and the Grantee agree as follows:



     1. Definitions. Unless otherwise specified in this Agreement, capitalized terms shall
have the meanings attributed to them under the Plan.



     2. Grant of Restricted Stock. As of the Effective Date, the Company grants to the
Grantee, upon the terms and conditions set forth in this Agreement and subject to the restrictions
in Section 3, «SHARES» («NO») shares of Common Stock, par value $.01 per share, of RPM
International Inc. (“Restricted Stock”). The Restricted Stock is granted in accordance with, and
subject to, all the terms, conditions and restrictions of the Plan, which is hereby incorporated by
reference in its entirety. The Grantee irrevocably agrees to, and accepts, the terms, conditions
and restrictions of the Plan and this Agreement on his own behalf and on behalf of any heirs,
successors and assigns.



     3. Restrictions on Stock. Except as otherwise provided in Sections 4 and 14, the
Grantee cannot sell, transfer, assign, hypothecate or otherwise dispose of the Restricted Stock or
pledge it as collateral for a loan. In addition, the Restricted Stock will be subject to such
other restrictions as the Compensation Committee deems necessary or appropriate.



 









 





     4. Lapse of Restrictions on Stock. The restrictions described in Section 3 shall
lapse and be of no further force or effect if and when the Compensation Committee determines in its
sole and exclusive discretion, pursuant to Section 8, that the Grantee’s Vested Interest equals
100%.



     5. Forfeiture. Except as otherwise provided in Sections 6 and 7, the Grantee will
forfeit any interests in the Restricted Stock if his or her employment with the Company and all
Subsidiaries and Allied Enterprises terminates before his or her Vested Interest equals 100%.



     6. Termination of Employment.




     (a) Normal Retirement. If the Compensation Committee determines in its sole
and exclusive discretion that the Grantee’s employment with the Company, its Subsidiaries
and Allied Enterprises has terminated due to Normal Retirement prior to the third
anniversary of the Effective Date, the Grantee’s Vested Interest in the Restricted Stock
will immediately become 100% (if it is not already), the restrictions described in Section 3
will immediately lapse and the shares of stock will become payable as soon as practicable
thereafter, subject to the requirements of Section 10. “Normal Retirement” is the Grantee’s
voluntary retirement (and not termination of employment by the Company, a Subsidiary or
Allied Enterprise, whether with or without cause) after attaining age fifty-five (55) and
completing at least five (5) consecutive years of service with the Company, its Subsidiaries
and/or Allied Enterprises.




     (b) Death or Total Disability. If the Grantee dies or becomes totally disabled
(within the meaning of the Company’s group long-term disability plan) while an employee of
the Company, its Subsidiaries or Allied Enterprises or within thirty (30) days of the
Grantee’s having ceased to be such an employee by reason of discharge and prior to the third
anniversary of the Effective Date, the Grantee’s Vested Interest in the Restricted Stock
will immediately become 100%, the restrictions described in Section 3 will immediately lapse
and the shares of stock will become payable as soon as practicable thereafter, subject to
the requirements of Section 10. The Compensation Committee shall determine in its sole and
exclusive discretion whether the Grantee’s employment with the Company, its Subsidiaries and
Allied Enterprises has terminated because of his or her total disability (as defined in the
Company’s group long-term disability plan).




     (c) Reasons Other Than Normal Retirement, Death or Total Disability. If the
Compensation Committee determines in its sole and exclusive discretion that the Grantee’s
employment with the Company, its Subsidiaries and Allied Enterprises has terminated prior to
the third anniversary of the Effective Date for reasons other than those described in
subsections (a) or (b) above, the Grantee will forfeit and shall return to the Company or a
third party designated by the Company all Restricted Stock subject to this Agreement. The
Grantee will have no further interests under this Agreement after such a termination of
employment.




     7. Change in Control. If a Change in Control as defined in the Plan has occurred or
an event has occurred that the Board of Directors, in the good faith exercise of its discretion,



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determines to be a Change in Control prior to the third anniversary of the Effective Date, the
Grantee’s Vested Interest in the Restricted Stock will immediately become 100% (if it is not
already), the restrictions described in Section 3 will immediately lapse and the shares of stock
will become payable as soon as practicable thereafter, subject to the requirements of Section 10.
Notwithstanding the foregoing, in the event of a Change in Control, the Compensation Committee may
provide for payment of the Grantee’s interests in the Plan in cash rather than shares of stock.




     8. Vested Interest. If the Grantee continues to be an employee of the Company, its
Subsidiaries or Allied Enterprises from the Effective Date until the third anniversary of the
Effective Date, his or her Vested Interest will be 100%. Except as provided for in Sections 6 and
7 above, if the Grantee does not continue to be an employee of the Company, its Subsidiaries or
Allied Enterprises until the third anniversary of the Effective Date, his or her Vested Interest
will be 0% and he will immediately forfeit the Restricted Stock as provided in Section 5. So long
as the Grantee shall continue to be an employee of the Company, a Subsidiary or Allied Enterprise,
he or she shall not be considered to have experienced a break in continuous employment because of:
(i) any temporary leave of absence approved in writing by the Company, a Subsidiary or Allied
Enterprise; or (ii) any change of duties or position (including transfer to or from a Subsidiary).



     9. Issuance of Stock. As soon as practicable after lapse of the restrictions, the
Company will deliver to the Grantee (or his or her Beneficiary or Beneficiaries) the shares of
stock to which the Grantee is entitled free and clear of any restrictions (except any applicable
securities law restrictions).



     10. Sale of Shares of Stock to Satisfy Tax Obligations. Prior to issuing shares of
stock pursuant to Section 9, the Compensation Committee will cause the Company to retain a portion
of the stock sufficient to satisfy the Grantee’s Minimum Withholding Tax Liability (as described in
Section 14 of the Plan) resulting from the vesting of the Restricted Stock. The Grantee will
provide such irrevocable Stock Powers or additional information and documentation as the Company
deems necessary to satisfy the Grantee’s Minimum Withholding Tax Liability. The Compensation
Committee will cause the Company to deliver the funds to the appropriate taxing authorities in
satisfaction of such tax liabilities. The Compensation Committee may, in its sole and exclusive
discretion, require that any distributions to the Grantee’s Beneficiary or Beneficiaries be subject
to this tax requirement.



     11. Escrow Agreement. During the term of this Agreement, the Restricted Stock will
remain in the possession of the Company to be held by it in escrow. Alternatively, the Company may
enter into an agreement with a third party whereby such third party will hold the Restricted Stock
in escrow, subject to the terms of the Plan and this Agreement. To facilitate the escrow of the
Restricted Stock and any reconveyance of the Restricted Stock to the Company or a third party upon
forfeiture, the Grantee will execute in blank such irrevocable Stock Powers with respect to the
Restricted Stock as the Company may require.



     12. Stockholder Rights While Restricted Stock is Held in Escrow. During the period
the Restricted Stock is held in escrow and this Agreement has not terminated, and subject to the



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Grantee’s execution of irrevocable Stock Powers in accordance with Section 11, the Grantee will be
entitled to vote the Restricted Stock and to receive dividends declared and paid by the Company on
such Restricted Stock.



     13. Section 83(b) Elections. The Grantee will not make an election under Section
83(b) of the Internal Revenue Code to recognize taxable ordinary income in the year the Restricted
Stock is granted. The Grantee understands that by not making such an election, he or she will
recognize taxable ordinary income at the time the restrictions lapse in an amount equal to the fair
market value of the stock at that time.



     14. Designation of Beneficiary. By properly executing and delivering a Designation of
Beneficiary Form to the Designated Representative at the address listed in Section 17(j), the
Grantee may designate an individual or individuals as his or her Beneficiary or Beneficiaries under
the Plan. In the event that the Grantee fails to properly designate a Beneficiary, his or her
interests under the Plan will pass to the person or persons in the first of the following classes
in which there are any survivors: (i) spouse at the time of death; (ii) issue, per stirpes; (iii)
parents; and (iv) the executor or administrator of estate. Except as the Compensation Committee
may determine in its sole and exclusive discretion, a properly completed Designation of Beneficiary
Form shall be deemed to revoke all prior designations upon its receipt and approval by the
Designated Representative.



     15. Non-Transferability and Legends. The Restricted Stock has not been registered for
resale under the Securities Act of 1933, as amended (the “Act”), and may not be sold, transferred
or otherwise disposed of unless a registration statement under the Act with respect to the
Restricted Stock has become effective or unless the Grantee establishes to the satisfaction of the
Company that an exemption from such registration is available. The Restricted Stock will bear a
legend stating the substance of such restrictions, as well as any other restrictions the
Compensation Committee deems necessary or appropriate.



     16. Termination of Agreement. This Agreement will terminate on the earliest of: (i)
the date of the Grantee’s termination of employment with the Company, its Subsidiaries and Allied
Enterprises prior to the third anniversary of the Effective Date; (ii) the date the restrictions
described in Section 3 lapse in accordance with Section 4, 6, 7 or 8; or (iii) such date as may be
designated by the Company’s Board of Directors or Compensation Committee. Any terms or conditions
of this Agreement that the Company determines are reasonably necessary to effectuate its purposes
will survive the termination of this Agreement.



     17. Miscellaneous Provisions.




	 	a.	 	Effect of Corporate Reorganization or Other Changes
Affecting Number or Kind of Restricted Stock. The provisions of this
Agreement will be applicable to the Restricted Stock and to any Restricted
Stock or other securities which may be acquired by the Grantee as a result of a
liquidation, recapitalization, reorganization, redesignation or
reclassification, split-up, reverse split, merger, consolidation, stock
dividend, combination or exchange of Restricted Stock, exchange for other
securities, a sale of all or substantially all assets or the like. The




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	 	 	 	Committee shall appropriately adjust the number and kind of shares of
Restricted Stock under this Agreement to reflect such a change. As used in
this Agreement, the term “Restricted Stock” will be deemed to include any
such Restricted Stock or other securities.






	 	b.	 	Successors and Legal Representatives. This Agreement
will bind and inure to the benefit of the Company and the Grantee, and their
respective successors, assigns and legal representatives.
	 
	 	c.	 	Integration. This Agreement, together with the Plan,
constitutes the entire agreement between the Grantee and the Company with
respect to the subject matter hereof, and may not be modified, amended, renewed
or terminated, nor may any term, condition or breach of any term or condition
be waived, except pursuant to the terms of the Plan or by a writing signed by
the person or persons sought to be bound by such modification, amendment,
renewal, termination or waiver. Any waiver of any term, condition or breach
thereof will not be a waiver of any other term or condition or of the same term
or condition for the future, or of any subsequent breach.
	 
	 	d.	 	Stockholder Approval. All benefits hereunder will be
canceled and all terms of this Agreement will be null and void ab initio if the
Plan is not approved by the Company’s stockholders, as provided in the Plan.
	 
	 	e.	 	Notice. Any notice relating to this grant must be in
writing, which may include an electronic writing.
	 
	 	f.	 	No Employment Right Created. Nothing in this Agreement
will be construed to confer upon the Grantee the right to continue in the
employment or service of the Company, its Subsidiaries or Allied Enterprises,
or to be employed or serve in any particular position therewith, or affect any
right which the Company, its Subsidiaries or an Allied Enterprise may have to
terminate the Grantee’s employment or service with or without cause.
	 
	 	g.	 	Separability. In the event of the invalidity of any
part or provision of this Agreement, such invalidity will not affect the
enforceability of any other part or provision of this Agreement.
	 
	 	h.	 	Section Headings. The section headings of this
Agreement are for convenience and reference only and are not intended to
define, extend or limit the contents of the sections.
	 
	 	i.	 	Amendment, Waiver and Revocation of Terms. The
Compensation Committee may waive any term or condition in this Agreement that
could have been excluded on the date of grant. No such waiver will be deemed




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	 	 	 	to be a waiver of similar terms under other agreements. The Compensation
Committee may amend this Agreement to include or exclude any provision which
could have been included in, or excluded from, this Agreement on the date of
grant, but only with the Grantee’s written consent. Similarly, the
Compensation Committee may revoke this Agreement at any time except that,
after execution of the Agreement and its delivery to the Designated
Representative, revocation may only be accomplished with the Grantee’s
written consent.
	 
	 	j.	 	Plan Administration. The Plan is administered by the
Compensation Committee, which has sole and exclusive power and discretion to
interpret, administer, implement and construe the Plan and this Agreement. All
elections, notices and correspondence relating to the Plan should be directed
to the Designated Representative at:




RPM International Inc.

P.O. Box 777

2628 Pearl Road

Medina, OH 44258

Attn: Vice President, Corporate

Benefits and Risk Management





	 	k.	 	Governing Law. Except as may otherwise be provided in
the Plan, this Agreement will be governed by, construed and enforced in
accordance with the internal laws of the State of Delaware, without giving
effect to its principles of conflict of laws.
	 
	 	l.	 	Internal Revenue Code Section 409A. Notwithstanding
anything in the Plan or this Agreement to the contrary, the award of Restricted
Stock hereunder is intended to meet any applicable requirements for exclusion
from coverage under Section 409A of the Internal Revenue Code (the “Code”) and
this Agreement shall be construed and administered accordingly. Without
limiting the foregoing, unless and until different requirements for exclusion
from coverage under Section 409A of the Code become available or effective, in
no event shall the Grantee be permitted to defer compensation relating to the
award of Restricted Stock (except for the inherent deferral of recognition of
income until attainment of vesting under the Agreement) under the Plan or
otherwise. Furthermore, in the event that the requirements for exclusion from
coverage under Section 409A are liberalized, or different features are made
available contingent upon compliance with certain requirements, the Committee
may, in its sole and absolute discretion, amend this Agreement in a manner
consistent with those liberalized requirements or to permit the Company, the
Grantee or both to take advantage of those different features.




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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer, and the Grantee has hereunto set his hand, all as of the day and year
first above written.



	 	 	 	 	 	 	 
	GRANTEE	 	RPM INTERNATIONAL INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

«NAME»

	 	 	 	 

Frank C. Sullivan
	 	 
	 

	 	Its:
	 	Chairman and Chief Executive
Officer	 	 







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