Document:

EX-10.1

 

Exhibit 10.1

RPM INTERNATIONAL INC.

2007 RESTRICTED STOCK PLAN

(As Adopted Effective June 1, 2007)

1. Name and Purpose. The name of this Plan is the
RPM International Inc. 2007 Restricted Stock Plan. The Plan is
intended to replace the expiring 1997 Restricted Stock Plan in
order to continue: (a) to provide competitive incentives
that will enable the Company to attract, retain, motivate and
reward employees who render services that benefit the Company,
Subsidiaries or Allied Enterprises, and (b) to align the
interests of such employees with the interests of the
Company’s stockholders generally.

2. Eligibility. Individuals who are Employees of the
Company, a Subsidiary or an Allied Enterprise may become
eligible for Awards under this Plan.

3. Definitions. As used in this Plan, the following
terms shall be defined as follows:

     
(a) Allied Enterprise. “Allied Enterprise”
means a business enterprise, other than the Company or a
Subsidiary, in which the Company or a Subsidiary has an equity
interest.

     
(b) Award. “Award” means any award of
Restricted Stock which is granted pursuant to the terms of
Section 4.

     
(c) Award Agreement. “Award Agreement” has
the meaning set forth in Section 4(c).

     
(d) Beneficiary. “Beneficiary” means a
person or entity designated in writing by a Participant on such
forms and in accordance with such terms and conditions as the
Committee may prescribe, to whom such Participant’s rights
under the Plan shall pass in the event of the death of the
Participant. If the person or entity so designated is not living
or in existence at the time of the death of the Participant, or
if no such person or entity has been so designated, the
“Beneficiary” shall mean the person or persons in the
first of the following classes in which there are any survivors
of the Participant: (i) his or her spouse at the time of
death, (ii) his or her issue per stirpes, (iii) his or
her parents, and (iv) the executor or administrator of his
or her estate.

     
(e) Board. “Board” means the Board of
Directors of the Company.

     
(f) Change in Control. “Change in Control”
means the occurrence at any time of any of the following events:

          
(i) The Company is merged or consolidated or reorganized
into or with another corporation or other legal person or
entity, and as a result of such merger, consolidation or
reorganization less than a majority of the combined voting power
of the then-outstanding securities of such corporation, person
or entity immediately after such transaction are held in the
aggregate by the holders of the Voting Stock immediately prior
to such transaction;

          
(ii) The Company sells or otherwise transfers all or
substantially all of its assets to any other corporation or
other legal person or entity, and less than a majority of the
combined voting power of the then-outstanding securities of such
corporation, person or entity immediately after such sale or
transfer is held in the aggregate by the holders of the Voting
Stock immediately prior to such sale or transfer;

          
(iii) There is a report filed on Schedule 13D or
Schedule TO (or any successor schedule, form or report),
each as promulgated pursuant to the Exchange Act, disclosing
that any person (as the term “person” is used in
Section 13(d)(3) or Section 14(d)(2) of the Exchange
Act) has become the beneficial owner (as the term
“beneficial owner” is defined under Rule
l3d-3 or any successor
rule or regulation promulgated under the Exchange Act) of
securities representing 15% or more of the Voting Power;

1

 

          
(iv) The Company files a report or proxy statement with the
Securities and Exchange Commission pursuant to the Exchange Act
disclosing in response to
Form 8-K or
Schedule 14A (or any successor schedule, form or report or
item therein) that a change in control of the Company has or may
have occurred or will or may occur in the future pursuant to any
then-existing contract or transaction;

          
(v) If during any period of two consecutive years,
individuals, who at the beginning of any such period, constitute
members of the Board cease for any reason to constitute at least
a majority thereof, unless the nomination for election by the
Company’s stockholders of each new member of the Board was
approved by a vote of at least two-thirds of the members of the
Board then in office who were members of the Board at the
beginning of any such period; or

          
(vi) The stockholders of the Company approve a plan of
complete liquidation or dissolution of the Company.

Notwithstanding the foregoing provisions of
paragraphs (iii) and (iv) of this definition, a
“Change in Control” shall not be deemed to have
occurred for purposes of this Agreement:

		
	 	     
    (1) solely because the Company, a Subsidiary, or any
    Company-sponsored employee stock ownership plan or other
    employee benefit plan of the Company or any Subsidiary, or any
    entity holding shares of Voting Stock for or pursuant to the
    terms of any such plan, either files or becomes obligated to
    file a report or proxy statement under or in response to
    Schedule 13D, Schedule TO,
    Form 8-K or
    Schedule 14A (or any successor schedule, form or report or
    item therein) under the Exchange Act, disclosing beneficial
    ownership by it of shares of Voting Stock or because the Company
    reports that a change in control of the Company has or may have
    occurred or will or may occur in the future by reason of such
    beneficial ownership,
	 
	 	     
    (2) solely because any other person or entity either files
    or becomes obligated to file a report on Schedule 13D or
    Schedule TO (or any successor schedule, form or report)
    under the Exchange Act, disclosing beneficial ownership by it of
    shares of Voting Stock, but only if both (A) the
    transaction giving rise to such filing or obligation is approved
    in advance of consummation thereof by the Board, and (B) at
    least a majority of the Voting Power immediately after such
    transaction is held in the aggregate by the holders of Voting
    Stock immediately prior to such transaction, or
	 
	 	     
    (3) solely because of a change in control of any Subsidiary.

     
As used in this definition of “Change in Control” the
term:

			
	 	(A) 	
    “Voting Power” means, at any time, the total votes
    relating to the then-outstanding securities entitled to vote
    generally in the election of the Board.
	 
	 	(B) 	
    “Voting Stock” means, at any time, the
    then-outstanding securities entitled to vote generally in the
    election of the Board.

     
(g) Code. “Code” means the Internal
Revenue Code of 1986, as amended from time to time, and related
Treasury Department regulations and pronouncements. References
to a particular section of the Code shall include references to
any related Treasury Department regulations and pronouncements
and to each of their successors.

     
(h) Committee. “Committee” means the
Compensation Committee of the Board, or the successor of such
Committee, which satisfies the requirements of Section 8(a)
hereof.

     
(i) Company. “Company” means RPM
International Inc., a Delaware corporation, and any corporation
or entity that is a successor to RPM International Inc. or
substantially all of the assets of RPM International Inc., that
assumes the obligations of RPM International Inc. under this
Plan by operation of law or otherwise.

2

 

     
(j) Deferred Compensation Plan. “Deferred
Compensation Plan” means the RPM International Inc.
Deferred Compensation Plan and any related trust, each as
amended from time to time, and any similar deferred compensation
plan of the Company and any related trust.

     
(k) Effective Date. “Effective Date” means
the effective date of this Plan, as provided in Section 7.

     
(l) Employee. “Employee” means any person
who is a common-law employee of the Company, a Subsidiary or an
Allied Enterprise on a full-time or part-time basis.

     
(m) Exchange Act. “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

     
(n) Fair Market Value. “Fair Market Value”
means, as of any given date, with respect to any Awards granted
hereunder, (i) the closing sale price of a Share on such
date on the principal securities exchange on which the
Company’s equity securities are listed or traded,
(ii) the fair market value of a Share as determined in
accordance with a method prescribed in the Award Agreement, or
(iii) the fair market value of a Share as otherwise
determined by the Committee in the good faith exercise of its
discretion.

     
(o) Participant. “Participant” means an
Employee who has been granted an Award under this Plan and
executed a plan agreement as required under Section 4(c).

     
(p) Plan. “Plan” means this RPM
International Inc. 2007 Restricted Stock Plan, as amended from
time to time.

     
(q) Plan Year. “Plan Year” means the
period upon which the Plan shall be administered and operated.
The “Plan Year” is the Company’s annual
accounting period, which is presently the
12-month period ending
on May 31. In the event that the Company changes its annual
accounting period, the Plan Year shall automatically change and
the Committee may make such adjustments to the operation of the
Plan as appropriate to reflect any short Plan Years.

     
(r) Minimum Withholding Tax Liability. “Minimum
Withholding Tax Liability” has the meaning set forth in
Section 10(d).

     
(s) Restricted Stock. “Restricted Stock”
means the Shares awarded under Section 4.

     
(i) SEC
Rule 16b-3.
“SEC
Rule 16b-3”
means Rule 16b-3
of the Securities and Exchange Commission promulgated under the
Exchange Act and related pronouncements, as such rule or any
successor rule may be in effect from time to time.

     
(t) Shares. “Shares” means common shares,
par value of $0.01, of the Company.

     
(u) Subsidiary. “Subsidiary” means a
corporation or other form of business association of which
shares (or other ownership interests) having more than 50% of
the voting power are owned or controlled, directly or
indirectly, by the Company, but only during the period any such
corporation or business association would be so defined.

     
(v) Termination of Employment. “Termination of
Employment” means the cessation of a Participant’s
service as an Employee for any reason whatsoever, whether
voluntary or involuntary, including by reason of retirement,
death, or disability.

     
(w) Total Disability. “Total Disability”
means a determination of disability under any long-term
disability plan sponsored by the Company, Subsidiary or Allied
Enterprise in which the Participant participates.

4. Awards of Restricted Stock.

     
(a) Nature of Award. Restricted Stock Awards consist
of Shares which are issued by the Company to a Participant at no
cost or at a purchase price determined by the Committee but
which are subject to forfeiture and/ or restrictions on their
sale or other transfer by the Participant.

3

 

     
(b) Eligible Employees. Subject to the terms and
conditions of the Plan, the Committee may grant Awards of
Restricted Stock to Employees at any time and from time to time,
in such amounts and with such terms and conditions as the
Committee shall determine. No member of the Board, unless he or
she is also an Employee, shall be eligible to receive Awards of
Restricted Stock under the Plan.

     
(c) Award Agreements. Awards are contingent on the
Employee’s execution of an agreement in the form prescribed
by the Committee and attached as Exhibit A (the “Award
Agreement”). All Award Agreements shall incorporate the
Plan by reference. The Committee may condition an Award upon an
Employee’s execution and delivery of one or more stock
powers in blank to the Company. Execution of an Award Agreement
by the Employee shall constitute the Employee’s agreement
to and acceptance of the terms and conditions of the Award as
set forth in such Award Agreement and of the terms and
conditions of the Plan applicable to such Award. Award
Agreements may differ from time to time and from Employee to
Employee. Upon the execution of an Award Agreement, the Employee
shall become a Participant in the Plan.

     
(d) Terms and Conditions of Restricted Stock Awards.
Awards of Restricted Stock are subject to the following terms
and conditions, which, except as otherwise provided herein, need
not be the same for each Participant, and may contain such
additional terms, conditions, restrictions and contingencies not
inconsistent with the terms of this Plan and any operative
employment or other agreement, as the Committee deems desirable:

          
(i) Purchase Price. The Committee shall determine
the price, if any, at which Restricted Stock is to be awarded to
a Participant, which may vary from time to time and from
Participant to Participant and which may be below the Fair
Market Value of such Restricted Stock at the date of grant,
including, without limitation, a price of zero.

          
(ii) Restrictions. Restricted Stock awarded under
this Plan will be subject to such terms, conditions and
restrictions as the Committee may determine, which may include,
without limitation, the following:

		
	 	     
    (1) Transfer Restrictions: a prohibition against the
    sale, transfer, pledge or other encumbrance of the Restricted
    Stock, and the terms upon which such prohibition shall lapse.
	 
	 	     
    (2) Vesting Restrictions: a requirement that the
    Participant earn a vested right to the Shares, and the terms
    upon which the Participant shall earn such vested right.
	 
	 	     
    (3) Forfeiture Restrictions: a requirement that the
    Participant will forfeit the Restricted Stock upon the
    occurrence of a stated event (e.g., Termination of Employment
    prior to vesting, Termination of Employment for cause,
    employment of the Participant by a competitor of the Company, or
    other forfeiture provisions).
	 
	 	     
    (4) Legal Restrictions: restrictions arising under
    applicable laws, including the Securities Act of 1933, the rules
    and regulations of The New York Stock Exchange, state laws
    including “blue sky” laws, and restrictions as may be
    required to avoid the application of Section 409A of the
    Code thereto or to avoid adverse tax consequences under the Code
    or other taxing statutes and rules.

The Committee may at any time waive such restrictions or
accelerate the date or dates on which the restrictions will
lapse.

          
(iii) Forfeiture of Shares. A Participant who fails
to satisfy the terms, conditions or restrictions relating to the
Restricted Stock prior to the lapse, satisfaction or waiver of
such restrictions and conditions, as set forth in the Award
Agreement, shall forfeit the Shares and transfer them back to
the Company in exchange for a refund of any consideration paid
by the Participant or of such other amount as may be
specifically set forth in the Award Agreement.

4

 

          
(iv) Implied Provisions. Except as otherwise
provided in the Award Agreement, Restricted Stock Awards shall
be subject to the following terms and conditions:

			
	 	(1) 	
    Vesting and Forfeiture. Restricted Stock Awards shall
    become nonforfeitable upon the earliest of the following to
    occur while the Participant remains an Employee:

			
	 	(A) 	
    the later of the attainment of age 55 or the fifth
    anniversary of the May 31 immediately preceding the date on
    which the Restricted Stock Award was granted,
	 
	 	(B) 	
    Termination of Employment under terms constituting a retirement
    on or after the attainment of age 65,
	 
	 	(C) 	
    a Change in Control,
	 
	 	(D) 	
    termination of the Plan,
	 
	 	(E) 	Termination of Employment on account of death, or

			
	 	(F) 	
    Termination of Employment on account of Total Disability.

		
	 	
    A Participant’s Restricted Stock Awards shall be forfeited
    and returned to the Company in the event the Participant incurs
    a Termination of Employment prior to the date the Restricted
    Stock becomes vested and nonforfeitable under the preceding
    provisions.

			
	 	(2) 	
    Free of Restrictions and Transferable. Restricted Stock
    Awards shall become free of restrictions upon the earliest of
    the following to occur:

			
	 	(A) 	
    the later of Termination of Employment or the date the
    Restricted Stock becomes nonforfeitable,
	 
	 	(B) 	a Change in Control prior to Termination of Employment,
	 
	 	(C) 	termination of the Plan,
	 
	 	(D) 	Termination of Employment on account of death, or
	 
	 	(E) 	Termination of Employment on account of Total
Disability.

          
(v) Voting and Dividends. Except as otherwise
provided in the Award Agreement, during any period in which
Restricted Stock is subject to the terms, conditions or
restrictions, the Participant holding such Restricted Stock
shall have all the rights of a stockholder with respect to such
Shares, including, without limitation, the right to vote such
Shares and the right to receive any dividends paid with respect
to such Shares. Any such dividend payment shall be made at the
same time as the dividends are paid to holders of unrestricted
Shares, and any right to receive such dividends shall cease and
be forfeited at such time, if any, as the Restricted Stock to
which the dividends relate is forfeited hereunder.

          
(vi) Section 83(b) Election. If a Participant
makes an election pursuant to Section 83(b) of the Code
with respect to a Restricted Stock Award, the Participant shall
file, within 30 days following the date of grant, a copy of
such election with the Company and with the Internal Revenue
Service, in accordance with the regulations under
Section 83(b) of the Code. The Committee may provide in an
Award Agreement that the Restricted Stock Award is conditioned
upon the Participant’s making or refraining from making an
election with respect to the Award under Section 83(b) of
the Code.

          
(vii) Section 409A of the Code. The Restricted
Stock Awards under this Plan, and all rights related thereto
(including dividend rights) are intended to meet the
requirements for exclusion from coverage under Section 409A
of the Code dealing with nonqualified deferred

5

 

compensation (including without limitation the exemptions
thereunder for short-term deferrals and restricted property) and
all Restricted Stock Awards will be construed and administered
accordingly. Notwithstanding anything contained in this Plan or
any Restricted Stock Awards to the contrary, after the adoption
of final regulations under Code Section 409A, this Plan and
any Restricted Stock Award may be unilaterally amended by the
Company as it may determine, prospectively or retroactively, to
better secure exemption of Restricted Stock Awards and rights
related thereto from (or, if exemption is not reasonably
available, to better comply with) the requirements of Code
Section 409A (with, to the extent required by
Section 12, the consent of the holder of any Restricted
Stock Award, which consent shall not be unreasonably withheld).

5. Shares Available under the Plan.

     
(a) Maximum Number of Shares. The maximum aggregate
number of Shares reserved for grant or settlement of Awards
under the Plan shall be 1,000,000 Shares, subject to
adjustment as provided in Section 5(c).

     
(b) Source of Shares. Shares which may be issued
pursuant to Awards made under the Plan may be authorized but
unissued Shares, or Shares held in the treasury, whether
acquired by the Company specifically for use under this Plan or
otherwise.

     
(c) Adjustment Provisions.

          
(i) Corporate Change. In the event of any merger,
reorganization, consolidation, recapitalization, or similar
transaction, or in the event of a stock dividend, stock split,
or distribution to stockholders (other than normal cash
dividends) or other change in corporate structure affecting the
Shares, an equitable substitution or proportionate adjustment
shall be made in (1) the aggregate maximum number of Shares
reserved for issuance under the Plan, and (2) the kind,
number and purchase price of Shares subject to outstanding
Awards granted under the Plan, in each case, as may be
determined by the Committee, in its sole discretion. Such other
substitutions or adjustments shall be made as may be determined
by the Committee, in its sole discretion. In connection with any
event described in this paragraph, the Committee may provide, in
its sole discretion, for the cancellation of any outstanding
Awards and payment in cash or other property therefor.

          
(ii) Awards Terminated or Not Exercised. If any
outstanding Award, or portion thereof, expires, or is
terminated, cancelled or forfeited, the Shares that would
otherwise be issuable with respect to the unexercised portion of
such expired, terminated, cancelled or forfeited Award shall be
available for subsequent Awards under this Plan.

6. Change in Control. Except as otherwise provided
in the Award Agreement, immediately upon the occurrence of a
Change in Control all Restricted Share Awards automatically
become fully vested and free of restrictions. The Committee has
the sole authority to determine whether a Change in Control has
occurred. If the Committee shall determine that a Change in
Control has occurred, it shall cause a certificate or
certificates representing all Shares owned by the Participants
which shall have become vested and free of restrictions to be
delivered to the Participants in accordance with Section 9
as soon as practicable after the Change in Control.

7. Effective Date of Plan. The Plan shall become
effective on June 1, 2007, subject to approval by the
stockholders of the Company.

8. Administration of the Plan

     
(a) Administration. Unless otherwise specified by
the Board, the Plan shall be administered by the Compensation
Committee of the Board. No person shall be appointed to or shall
serve as a member of such Committee unless he or she is an
“independent director” as defined in applicable rules
or listing standards of the New York Stock Exchange and a
“non-employee director” as defined in SEC
Rule 16b-3. Unless
the Board determines otherwise, such Committee shall also be

6

 

comprised solely of “outside directors” within the
meaning of Section 162(m)(4)(C)(i) of the Code and Treasury
Regulation Section 1.162-27(e)(3) or a successor
thereto.

     
(b) Duties and Rights of Committee. The Committee
may establish such rules, not inconsistent with the provisions
of the Plan, as it may deem necessary for the proper
administration of the Plan, and may amend or revoke any rule so
established. The Committee shall, subject to the provisions of
the Plan, have sole and exclusive power and discretion to
interpret, administer, implement and construe the Plan and full
authority to make all determinations and decisions thereunder
including, without limitation, the authority and discretion to:
(i) determine the persons who are eligible to receive
Awards under the Plan, (ii) determine when Awards shall be
granted, (iii) determine the number of Shares to be made
subject to each Award, (iv) determine the terms and
conditions of each Award, (v) make any adjustments pursuant
to Section 5(c), (vi) designate one or more persons or
agents to carry out any or all of its administrative duties
hereunder including, but not limited to, appointment of a
designated representative (provided that none of the duties
required to be performed by the Committee under SEC
Rule 16b-3 may be
delegated to any other person or agent), (vii) prescribe
any legends to be affixed to certificates representing Shares
granted or issued under the Plan, and (viii) correct any
defect, supply any omission and reconcile any inconsistency in
or between the Plan, an Award Agreement and any related
documents. The Company shall furnish the Committee with such
clerical and other assistance as is necessary for the
performance of the Committee’s duties under this Plan. The
Committee’s interpretation of the Plan, any Award
Agreement, and any related documents, its administration of the
Plan, and all action taken by the Committee, shall be final,
binding and conclusive on the Company, its stockholders,
subsidiaries, and all Participants, and upon their respective
Beneficiaries, successors and assigns, and upon all other
persons claiming under or through any of them.

     
(c) Limitation of Liability. Members of the Board,
members of the Committee, and Company employees who are their
designees acting under this Plan, shall be fully protected in
relying in good faith upon the advice of counsel and shall incur
no liability except for gross or willful misconduct in the
performance of their duties hereunder.

9. Delivery of Certificates.

     
(a) Timing of Delivery. The Company is not required
to issue or deliver any certificates for Shares issuable with
respect to Awards under this Plan prior to the fulfillment of
all of the following conditions, to the extent applicable:

          
(i) payment in full for the Shares and for any minimum tax
withholding;

          
(ii) completion of any registration or other qualification
of such Shares under any federal or state laws or under the
rulings or regulations of the Securities and Exchange Commission
or any other regulating body which the Committee in its
discretion deems necessary or advisable;

          
(iii) admission of such Shares to listing on The New York
Stock Exchange or any stock exchange on which the Shares are
listed;

          
(iv) obtaining of any approval or other clearance from any
Federal or state governmental agency which the Committee in its
discretion determines to be necessary or advisable;

          
(v) the Committee is fully satisfied that the issuance and
delivery of Shares under this Plan is in compliance with
applicable federal, state or local law, rule, regulation or
ordinance or any rule or regulation of any other regulating
body, for which the Committee may seek approval of counsel for
the Company; and

          
(vi) the person acquiring the Shares gives the Company any
assurances the Committee may deem necessary or desirable to
assure compliance with all applicable legal requirements.

     
(b) Applicable Restrictions on Shares. Shares issued
with respect to Awards may be subject to such stock transfer
orders and other restrictions as the Committee may determine
necessary or

7

 

advisable under any applicable federal or state securities law,
or the requirements of the New York Stock Exchange, or any other
applicable Federal or state law, and shall bear any restrictive
legends the Committee may deem appropriate.

     
(c) Book Entry. In lieu of the issuance of stock
certificates evidencing Shares, the Company may use a “book
entry” system in which a computerized or manual entry is
made in the records of the Company to evidence the issuance of
such Shares. Such Company records shall, absent manifest error,
be binding on all parties.

10. Satisfaction of Minimum Withholding Tax
Liabilities.

     
(a) In General. The Committee shall cause the
Company to withhold the minimum amount of taxes which it
determines it is required by law or required by the terms of
this Plan to withhold in connection with any recognition of
income incident to this Plan. The Participant or other person in
recognition of such income shall provide the Committee with such
stock powers and additional information or documentation as may
be necessary for the Committee to discharge its obligations
under this Section.

     
(b) Withholding from Share Distributions. In the
event of a taxable event occurring with regard to Shares on or
after the date that the Shares become nonforfeitable, the
Committee shall cause the Company to sell the fewest number of
such Shares for the proceeds of such sale to equal (or exceed by
not more than that actual sale price of a single Share) the
Participant’s or other person’s Minimum Withholding
Tax Liability resulting from such recognition of income. The
Committee shall withhold the proceeds of such sale for purposes
of satisfying such tax liability. If a distribution or other
event does not result in any withholding tax liability as a
result of the Participant’s election to be taxed at an
earlier date or for any other reason, the Company shall not be
required to sell any Shares.

     
(c) Delivery of Stock Certificates. Subject to the
provisions of Section 9, as promptly as practicable
following the sale of a portion of the Participant’s Shares
in accordance with Section 10(b), the Committee shall cause
stock certificates for all Shares which have been held in escrow
or by the Company to be issued to the Participant, with any
legend making reference to the various restrictions imposed
hereunder removed.

     
(d) Delivery of Withholding Proceeds. The Committee
shall cause the Company to deliver withholding proceeds to the
Internal Revenue Service and/or other taxing authority in
satisfaction of a Participant’s or other recipient’s
tax liability arising from a recognition of income incident to
this Plan.

     
(e) Minimum Withholding Tax Liability. A
person’s “Minimum Withholding Tax Liability” is
the product of: (i) the aggregate minimum applicable
federal and applicable state and local income withholding tax
rates on the date of a recognition of income incident to the
Plan; and (ii) the Fair Market Value of the Shares
recognized as income to the Participant or other person
determined as of the date of recognition of income, or other
taxable amount under applicable statutes.

11. General Provisions.

     
(a) Relationship to Deferred Compensation Plan. This
Plan does not provide deferred compensation, and as such does
not provide for any deferral of income incident to a Restricted
Stock Award. However, to the extent the Committee determines it
to be consistent with Section 409A of the Code, and to the
extent permitted under the Award Agreement, a Participant shall
have the right, if any, as may be provided under the Deferred
Compensation Plan to defer the recognition of income incident to
a Restricted Stock Award. Any such election shall be made in
accordance with the terms of the Deferred Compensation Plan
(including provisions regarding the time and form of such
deferral election) and such procedures as may be established
thereunder.

     
(b) Non-Transferability of Awards. No Award shall be
transferable by a Participant other than by will, by the laws of
descent and distribution, to the Deferred Compensation Plan
consistent with

8

 

Section 11(a), or to a Beneficiary in accordance with the
Plan’s terms. Notwithstanding any provision of the Plan to
the contrary, the Committee may permit a Participant to transfer
any Award during the Participant’s lifetime to such other
persons and such entities and on such terms and subject to such
conditions as the Committee may provide in the relevant Award
Agreement.

     
(c) No Right to Continued Employment. Nothing in
this Plan or any Award Agreement shall confer upon any person
any right to continue in the employment of the Company, a
Subsidiary or an Allied Enterprise, or affect the right of the
Company, a Subsidiary or any Allied Enterprise to terminate the
employment of any person at any time with or without cause.

     
(d) Limitation on Rights Relating to Shares Subject to
Awards. No person (individually or as a member of a group)
and no Beneficiary or other person claiming under or through him
or her, shall have any right, title or interest in or to any
Shares other than such Shares as have been issued to him or her.
The Committee may provide for the transfer of Shares to a trust
(which may but need not be a grantor trust), escrow arrangement
or other legal entity for the purpose of satisfying the
Company’s obligations under this Plan. Except as may
otherwise be required by applicable law, such shares shall be
considered authorized and issued shares with full dividend and
voting rights.

     
(e) Compliance with Foreign Laws Governing Stock
Incentives. If the laws of a foreign country in which the
Company, a Subsidiary or any Allied Enterprise has Employees
prescribe certain requirements for stock incentives to qualify
for advantageous tax treatment under the laws of that country,
the Board may restate this Plan for the purpose of qualifying
the restated plan and Awards granted thereunder under such laws
or otherwise administer this Plan in compliance with such laws;
provided, however, that: (i) the terms and conditions of an
Award granted under such restated plan may not be more favorable
to the recipient than would be permitted if such Award had been
granted under the Plan as herein set forth, (ii) all Shares
allocated to or utilized for the purposes of such restated plan
shall be subject to the limitations of Section 5, and
(iii) the provisions of the restated plan cannot increase
the Board’s discretion to amend or terminate such restated
plan beyond that provided under this Plan.

     
(f) No Effect on Other Plans. Nothing in this Plan
is intended to be a substitute for, or shall preclude or limit
the establishment or continuation of, any other plan, practice
or arrangement for the payment of compensation or fringe
benefits to Employees. A Participant may be granted an Award
whether or not he is eligible to receive similar or dissimilar
incentive compensation under any other plan, practice or
arrangement.

     
(g) Acceptance of Plan Terms and Plan
Administration. By accepting benefits under the Plan, each
Participant, Beneficiary or other person claiming under or
through him or her, shall be conclusively deemed to have
indicated his acceptance and ratification of, and consent to,
all provisions of the Plan and any action or decision under the
Plan by the Company, its agents and employees, and the Board and
the Committee.

     
(h) Governing Law; Waiver of Jury Trial. The
validity, construction, interpretation and administration of the
Plan and of any determinations or decisions made thereunder, and
the rights of all persons having or claiming to have any
interest therein or thereunder, shall be governed by, and
determined exclusively in accordance with, the laws of the State
of Delaware, but without giving effect to the principles of
conflicts of laws thereof. Without limiting the generality of
the foregoing, the period within which any action arising under
or in connection with the Plan must be commenced, shall be
governed by the laws of the State of Delaware, without giving
effect to the principles of conflicts of laws thereof,
irrespective of the place where the act or omission complained
of took place, the residence of any party to such action and any
place where the action may be brought. An Employee’s
acceptance of any Award shall constitute his irrevocable and
unconditional waiver of the right to a jury trial in any action
or proceeding concerning the Award, the Plan or any rights or
obligations of the Participant, the Company or any other party
under or with respect to the Award or the Plan.

9

 

     
(i) SEC
Rule 16b-3
Compliance. This Plan is intended to comply with all
applicable conditions of SEC
Rule 16b-3. All
transactions involving any Participant subject to
Section 16(a) of the Exchange Act shall be subject to the
conditions set forth in SEC
Rule 16b-3,
regardless of whether such conditions are expressly set forth in
this Plan. Any provision of this Plan that is contrary to SEC
Rule 16b-3 does
not apply to such Participants.

     
(j) Successors. All obligations of the Company with
respect to Awards granted under this Plan are binding on any
successor to the Company, whether as a result of a direct or
indirect purchase, merger, consolidation or otherwise of all or
substantially all of the business and/or assets of the Company.

     
(k) Severability. In the event any provision of this
Plan, or the application thereof to any person or circumstances,
is held illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining parts of this Plan, or
other applications, and this Plan is to be construed and
enforced as if the illegal or invalid provision had not been
included.

     
(l) Gender and Number. The use of the masculine
gender shall also include within its meaning the feminine. The
use of the singular shall include within its meaning the plural
and vice versa.

12. Amendment and Termination. Subject to applicable
stockholder approval requirements, the Plan may be amended by
the Board at any time and in any respect. Unless stockholder
approval is obtained, no amendment shall increase the aggregate
number of shares which may be issued under the Plan. The Plan
may also be terminated for any reason and at any time by the
Board. Subject to applicable stockholder approval requirements,
no amendment or termination of this Plan shall materially and
adversely affect any Award granted prior to the date of such
amendment or termination without the written consent of the
holder of such Award.

10EX-10.2

 

Exhibit 10.2

RPM INTERNATIONAL INC.

2007 INCENTIVE COMPENSATION PLAN

(As Adopted Effective June 1, 2007)

1. Name and Purpose. The name of this Plan is the
RPM International Inc. 2007 Incentive Compensation Plan. The
Plan is intended to replace the 1995 Incentive Compensation Plan
in order to continue to attract, retain, motivate and reward
Executive Officers of the Company by providing incentives for
superior performance, and to provide such incentives in the form
of payments intended to constitute qualified “performance
based compensation” for purposes of Section 162(m) of
the Code.

2. Eligibility. Individuals who are Executive
Officers of the Company may become eligible for Awards under
this Plan.

3. Definitions. Unless the context otherwise
indicates, the following words used herein shall have the
following meanings whenever used:

     
“Award” means the payment earned by a
Participant as determined in accordance with Section 5.

     
“Board” means the Board of Directors of the
Company.

     
“Code” means the Internal Revenue Code of 1986,
as amended from time to time, and related Treasury Department
regulations and pronouncements, and their successors.

     
“Committee” means the Compensation Committee of
the Board unless another committee is designated by the Board to
administer the Plan; provided however, that in any event the
Committee shall be comprised of two or more directors each of
whom shall be an “independent director” as defined in
applicable rules or listing standards of the New York Stock
Exchange, a “non-employee director” as defined in SEC
Rule 16b-3, and an
“outside director” within the meaning of
Section 162(m)(4)(C)(i) of the Code and Treasury Regulation
Section 1.162-27(e)(3).

     
“Company” means RPM International Inc., a
Delaware corporation, and any corporation or entity that is a
successor to RPM International Inc. or substantially all of the
assets of RPM International Inc., that assumes the obligations
of RPM International Inc. under this Plan by operation of law or
otherwise.

     
“Executive Officer” means the Company’s
Chief Executive Officer, any employee (other than the Chief
Executive Officer) of the Company who is required to be reported
to shareholders under the Securities Exchange Act of 1934 by
reason of such employee being among the four highest compensated
officers for the taxable year, and any other designated
executive employee of the Company that in the Committee’s
judgment could, in the absence of the Plan, be paid compensation
the deductibility of which, to the Company, could be limited by
Section 162(m) of the Code.

     
“Fiscal Year” means the fiscal year of the
Company.

     
“Participant” means an Executive Officer
selected by the Committee for participation in the Plan under
Section 4.

     
“Performance-Based Compensation” means
“remuneration payable solely on account of the attainment
of one or more performance goals” as described in
Section 162(m)(4)(C) of the Code.

     
“Performance Goal(s)” has the meaning ascribed
to such term in Section 5.

     
“Plan” means this RPM International Inc. 2007
Incentive Compensation Plan, as amended from time to time.

1

 

4. Participation. The Committee in its complete and
absolute discretion shall designate the Executive Officers as
defined in Section 3, if any, who shall participate in the
Plan. An Executive Officer shall be a Participant in the Plan
for any period in which he or she is designated to participate.

5. Performance Goals.

     
(a) Annual Establishment of Performance Goal(s). On
or before the 90th day of each Fiscal Year (and in any event
within the first 25% of any designated performance period), and
while the outcome is substantially uncertain, the Committee
shall establish in writing the Performance Goal(s) applicable to
each Participant and shall establish the levels of performance
at which an Award is to be earned in whole or in part with
respect to the Performance Goal(s). Once established, the
Committee may not modify the terms of a potential Award, except
to the extent that after such modification the Award would
continue to constitute Performance-Based Compensation.

     
(b) Mid-Year Entry and Establishment of Performance
Goals. In the event an Executive Officer commences
employment (or an employee is promoted to a position so as to
make the employee an Executive Officer) after the expiration of
the applicable 90-day period described in Section 5(a), the
Committee may, in its discretion, identify such individual as a
Participant for a remaining portion of such Fiscal Year and
modify the Performance Goal(s) in a manner that is reflective of
the individual’s period of participation within such Fiscal
Year, subject to the application of Code Section 162(m).

     
(c) Nature of Performance Goal(s). The Performance
Goal(s) shall be based on targeted levels of, targeted levels of
return on, or targeted levels of growth for, any one or more of
the following (or substantially similar) performance measures on
a consolidated Company, consolidated group, business unit or
divisional level, as the Committee may specify: earnings,
earnings per share, capital adjusted pre-tax earnings (economic
profit), net income, operating income, performance profit
(operating income minus an allocated charge approximating the
Company’s cost of capital, before or after tax), gross
margin, revenue, working capital, total assets, net assets,
stockholders’ equity, and cash flow.

     
(d) Adjustment of Performance Goal(s). To the extent
consistent with Section 162(m) of the Code, the Committee
may appropriately adjust any Performance Goal(s) or performance
evaluation under any Performance Goal(s) to exclude any of the
following events that may occur during the Fiscal Year:
(i) asset gains or losses; (ii) litigation, claims,
judgments or settlements; (iii) the effect of changes in
tax law, accounting principles or other such laws or provisions
affecting reported results; (iv) accruals for
reorganization and restructuring programs; and (v) any
extraordinary, unusual, non-recurring or non-cash items.

     
(e) Limitations on Awards. No Award to a Participant
for a Fiscal Year may exceed $1.5 million.

     
(f) Discretion to Reduce Award. Notwithstanding any
contrary provision of the Plan, the Committee reserves the
right, in its complete and absolute discretion, to reduce the
amount of any Award that would be payable to a Participant,
including the elimination of the Award.

6. Payment of Awards.

     
(a) Certification. As soon as practicable after the
Company’s financial results for the Fiscal Year have been
approved by the Board or the Audit Committee of the Board, the
Committee shall certify in writing whether the Performance
Goal(s) established for the Fiscal Year and other material terms
of the Awards have been satisfied.

     
(b) Payment of Award. Awards shall be paid following
the Committee’s certification under Section 6(a) of
the attainment of the Performance Goal(s). Subject to a valid
election made by the Executive Officer to defer all or a portion
of any Award in accordance with Section 10(a), the Awards
shall be paid in cash as soon as administratively practicable
following the Committee’s

2

 

certification, and in any event no later than 90 days
following the close of the Fiscal Year for which the Performance
Goal(s) were satisfied.

     
(c) Payment Conditioned on Deductibility. Awards
under this Plan may be paid by the Company in any manner
appropriate to secure the deductibility thereof for federal
income tax purposes.

     
(d) Withholding Taxes. The Committee shall cause the
Company to withhold any taxes which it determines it is required
by law or required by the terms of this Plan to withhold in
connection with any payments or income recognized incident to
this Plan.

7. Interpretation and Application of Plan.

     
(a) Compliance with Section 162(m) of the Code.
The Plan shall for all purposes be interpreted and construed in
order to assure compliance with the provisions of Code
Section 162(m). If any provision of this Plan would cause
an Award not to constitute Performance-Based Compensation, that
provision, insofar as it pertains to the affected Participant,
shall be severed from, and shall be deemed not to be a part of
this Plan, but the other provisions of the Plan shall remain in
full force and effect.

     
(b) Related Entities. Notwithstanding any provision
of this Plan to the contrary, the Committee may designate an
employee of a company related to the Company to be an Executive
Officer under the Plan provided the relationship of the other
company to the Company would result in both being part of an
affiliated group of corporations for purposes of
Section 162(m) of the Code.

     
(c) Section 409A of the Code. Awards under this
Plan are intended to meet the requirements for exclusion from
coverage under Section 409A of the Code dealing with
nonqualified deferred compensation (including without limitation
the exemption thereunder for short-term deferrals) and this Plan
and all Awards will be construed and administered accordingly.
In addition, Awards under this Plan are intended to meet the
requirements for performance-based compensation under
Section 409A of the Code and this Plan and all Awards will
be construed and administered accordingly. Notwithstanding
anything contained in this Plan to the contrary, after the
adoption of final regulations under Code Section 409A, this
Plan may be unilaterally amended by the Company as it may
determine, prospectively or retroactively, to better secure
exemption of Awards hereunder from (or, if an exemption is not
reasonably available for such Awards, to better comply with) the
requirements of Code Section 409A and to more fully cause
Awards under this Plan to satisfy the requirements for
performance-based compensation under Section 409A of the
Code.

8. Effective Date. Subject to the approval the
Company’s stockholders, this Plan shall become effective
for the Plan Year commencing June 1, 2007 and ending
May 31, 2008, subject to the right of the Board to
terminate the Plan at any time.

9. Administration. Unless otherwise specified by the
Board, the Plan shall be administered by the Committee.

     
(a) Authority. The Committee may establish such
rules, not inconsistent with the provisions of the Plan, as it
may deem necessary for the proper administration of the Plan,
and may amend or revoke any rule so established. The Committee
shall, subject to the provisions of the Plan, have sole and
exclusive power and discretion to interpret, administer,
implement and construe the Plan and full authority to make all
determinations and decisions thereunder including, without
limitation, the authority and discretion to: (i) determine
the persons who are Executive Officers and select the Executive
Officers who are to participate in the Plan, (ii) determine
when Awards shall be granted, (iii) determine the amount of
money to be made subject to each Award, (iv) determine the
terms and conditions of each Award, including the Performance
Goal(s), (v) make any adjustments pursuant to
Section 5(c), (vi) designate one or more persons or
agents to carry out any or all of its administrative duties
hereunder (provided that none of the duties required to be
performed by the Committee under SEC Rule 16b-3 may be
delegated to any other person or agent), and (vii) correct

3

 

any defect, supply any omission and reconcile any inconsistency
in or between the Plan, an Award and related documents. The
Company shall furnish the Committee with such clerical and other
assistance as may be necessary for the performance of the
Committee’s duties under this Plan. Without limiting the
generality of the foregoing, the Committee shall have the
authority to establish and administer Performance Goal(s)
applicable to Awards, and the authority to certify that such
Performance Goal(s) are attained, within the meaning of Treasury
Regulation Section 1.162-27(c)(4).

     
(b) Decisions Are Final And Binding. The
Committee’s interpretation of the Plan, any plan agreement,
related documents, its administration of the Plan, and all
action taken by the Committee, shall be final, binding and
conclusive on the Company, its stockholders, subsidiaries,
affiliates, all Participants and Executive Officers, and upon
their respective beneficiaries, successors and assigns, and upon
all other persons claiming under or through any of them.

     
(c) Limitation of Liability. Members of the Board,
members of the Committee, and Company employees who are their
designees acting under this Plan, shall be fully protected in
relying in good faith upon the advice of counsel and shall incur
no liability except for gross or willful misconduct in the
performance of their duties hereunder.

10. Miscellaneous.

     
(a) Relationship to Deferred Compensation Plan. This
Plan does not provide deferred compensation, and as such does
not provide for any deferral of Award income. However, to the
extent the Committee determines it to be consistent with
Section 409A of the Code, Participant shall have the right,
if any, as may be provided under the Deferred Compensation Plan
to defer income under an Award. Any such election shall be made
in accordance with the terms of the Deferred Compensation Plan
(including provisions regarding the time and form of such
deferral election) and such procedures as may be established
thereunder.

     
(b) Non-Transferability. Awards are not transferable
by a Participant other than by will, the laws of descent and
distribution, or deferral pursuant to a valid election under
Section 6(b).

     
(c) No Right to Continued Employment. Nothing in
this Plan shall confer upon any person any right to continue in
the employment of the Company or affect the right of the Company
to terminate the employment of any person at any time with or
without cause.

     
(d) No Effect on Other Plans. Nothing in this Plan
is intended to be a substitute for, or shall preclude or limit
the establishment or continuation of, any other plan, practice
or arrangement for the payment of compensation or fringe
benefits to Executive Officers. An Executive Officer may be
granted an Award whether or not eligible to receive similar or
dissimilar incentive compensation under any other plan, practice
or arrangement.

     
(e) Acceptance of Plan Terms and Administration. By
accepting an Award or the right to an Award under the Plan, each
Participant, beneficiary or other person claiming under or
through him or her, shall be conclusively deemed to have
indicated acceptance and ratification of, and consent to, all
provisions of the Plan and all Awards thereunder, and any action
or decision under the Plan by the Company, its agents and
employees, and the Board and the Committee.

     
(f) Governing Law and Waiver of Jury Trial. The
validity, construction, interpretation and administration of the
Plan and of any determinations or decisions made thereunder, and
the rights of all persons having or claiming to have any
interest therein or thereunder, shall be governed by, and
determined exclusively in accordance with, the laws of the State
of Delaware, but without giving effect to the principles of
conflicts of laws thereof. Without limiting the generality of
the foregoing, the period within which any action arising under
or in connection with the Plan must be commenced, shall be
governed by the laws of the State of Delaware, without giving
effect to the principles of conflicts of laws thereof,
irrespective of the place where the act or omission complained
of took place, the residence of any party to such action and any
place where the action may be brought. An

4

 

employee’s acceptance of any Award shall constitute an
irrevocable and unconditional waiver by the employee of the
right to a jury trial in any action or proceeding concerning the
Award, the Plan or any rights or obligations of the employee,
the Company or any other party under or with respect to the
Award or the Plan.

     
(g) Successors. All obligations of the Company with
respect to Awards granted under this Plan are binding on any
successor to the Company, whether as a result of a direct or
indirect purchase, merger, consolidation or otherwise of all or
substantially all of the business and/or assets of the Company.

     
(h) Severability. In the event any provision of this
Plan, or the application thereof to any person or circumstances,
is held illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining parts of this Plan, or
other applications, and this Plan is to be construed and
enforced as if the illegal or invalid provision had not been
included.

     
(i) Unfunded Status. The Plan is intended to
constitute an “unfunded” plan for incentive
compensation. With respect to any payments not yet made to a
Participant by the Company, nothing contained herein shall give
any such Participant any rights that are greater than those of a
general creditor of the Company.

     
(j) Gender and Number. The use of the masculine
gender shall also include within its meaning the feminine. The
use of the singular shall include within its meaning the plural
and vice versa.

11. Amendment and Termination. Subject to applicable
stockholder approval requirements, the Plan may be amended by
the Board at any time and in any respect. The Plan may also be
terminated for any reason and at any time by the Board. Subject
to applicable stockholder approval requirements, no amendment or
termination of this Plan shall materially and adversely affect
any Award granted prior to the date of such amendment or
termination without the written consent of the holder of such
Award.

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]