Document:

exv4w1

Exhibit 4.1

RPM INTERNATIONAL INC.

OFFICERS’ CERTIFICATE AND AUTHENTICATION ORDER

FOR 6.125% NOTES DUE 2019

     Pursuant to the Indenture dated as of February 14, 2008 (the “Indenture”) between RPM
International Inc. (the “Company”) and The Bank of New York Mellon Trust Company, N.A., as trustee
(the “Trustee”), and the resolutions adopted by the Board of Directors of the Company on April 18,
2011 (the “April Board Resolutions”), this Officers’ Certificate is being delivered to the Trustee
to request the authentication and delivery of an additional $150,000,000 in aggregate principal
amount of the Company’s 6.125% Notes due 2019 pursuant to Section 2.04 of the Indenture, and to
comply with the provisions of Section 14.05 of the Indenture.

     Capitalized terms used but not defined herein and defined in the Indenture shall have the
respective meanings ascribed to them in the Indenture.

     (a) The Company’s Officers’ Certificate and Authentication Order, dated October 9, 2009,
established pursuant to Section 2.02 of the Indenture a series of Securities which have the terms
set forth below and set forth in the form of note attached hereto as Annex A.

     (1) The series of Securities previously authorized bears the title “6.125% Notes
due 2019” (referred to herein as the “Notes”).

     (2) The additional aggregate principal amount of Notes which may be authenticated
and delivered under the Indenture pursuant hereto shall be limited to $150,000,000 (except
for Notes authenticated and delivered upon registration of transfer of, or in the exchange
for, or in lieu of, other Notes of the series pursuant to Section 2.05, 2.06, 2.07, 3.05, or
10.06 and except for any Notes which, pursuant to Section 2.04, are deemed never to have
been authenticated and delivered).

     (3) The Notes shall be issuable in minimum denominations of $2,000 and in integral
multiples of $1,000 in excess thereof.

     (4) The form of note attached hereto as Annex A sets forth certain of the terms of
the Notes required to be set forth or determined in the manner provided in this Officers’
Certificate pursuant to Section 2.02 of the Indenture, and said terms are incorporated
herein by reference.

     (b) It is hereby established pursuant to Section 2.02 of the Indenture that the Notes
shall be substantially in the form attached as Annex A hereto.

     (c) It is hereby ordered pursuant to Section 2.04 of the Indenture that the Trustee
authenticate, in the manner provided by the Indenture, an additional single Note in the aggregate
principal amount of $150,000,000 registered in the name of Cede & Co., which Note will be duly
executed by the proper officers of the Company and delivered to the Trustee as provided in the
Indenture, and to deliver said authenticated Note to or upon the order of Wells Fargo Securities,
LLC on May 27, 2011.

 

 

     (d) The undersigned have read the pertinent sections of the Indenture, including Sections
2.01, 2.02 and 2.04 thereof and the definitions in the Indenture relating thereto, and certain
other corporate documents and records. In the opinion of the undersigned, the undersigned have
made such examination or investigation as is necessary to enable the undersigned to express an
informed opinion as to whether or not the conditions precedent to the authentication and delivery
of an additional $150,000,000 in aggregate principal amount of the Company’s 6.125% Notes due 2019
contained in the Indenture have been complied with. In the opinion of the undersigned, such
conditions have been complied with.

[signature page follows]

 

 

     IN WITNESS WHEREOF, we have hereunto signed our names on behalf of the Company.

Dated: May 27, 2011

	 	 	 	 	 
	 	RPM INTERNATIONAL INC.

 	 
	 	By:  	/s/  Robert L. Matejka 	 
	 	 	Name:  	Robert L. Matejka 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 
	 	 	 
	 	By:  	/s/ Edward W. Moore 	 
	 	 	Name:  	Edward W. Moore 	 
	 	 	Title:  	Vice President, General Counsel & Secretary 	 

 

 

	 	 	 	 	 

[Face of Note]

     Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer,
exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such
other name as requested by an authorized representative of DTC (and any payment is made to Cede &
Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON
OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF, AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND DELIVERED
UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY WILL BE A GLOBAL
SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

	 	 	 
	CUSIP NO. 749685AR4
	 	PRINCIPAL AMOUNT: $150,000,000
	ISIN US749685AR45	 	 
	Common Code No.	 	 

REGISTERED NO. 2

RPM INTERNATIONAL INC.

6.125% Notes due 2019

     RPM INTERNATIONAL INC., a corporation duly organized and existing under the laws of the State
of Delaware (hereinafter called the “Company,” which term includes any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of One Hundred, Fifty Million Dollars
($150,000,000) on October 15, 2019 and to pay interest thereon from April 15, 2011 or from the
most recent Interest Payment Date to which interest has been paid or duly provided for
semi-annually on April 15 and October 15 of each year, commencing October 15, 2011, at the rate of
6.125% per annum, until the principal hereof is paid or made available for payment. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided
in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest
next preceding such Interest Payment Date. The Regular Record Date for an Interest Payment Date
shall be the date 15 calendar days prior to that Interest Payment Date (whether or not a Business
Day). As used herein, “Business Day” has the meaning ascribed thereto in the Indenture.

 

 

     Any interest not punctually paid or duly provided for shall forthwith cease to be payable to
the Holder on such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

     Payment of interest on this Security shall be made in immediately available funds at the
office or agency of the Company maintained for that purpose in New York, New York in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that, at the option of the Company, payment of
interest may be paid by check mailed to the Person entitled thereto at such Person’s last address
as it appears in the Security Register or by wire transfer to such account as may have been
designated by such Person. Payment of principal of and interest on this Security at Maturity shall
be made against presentation of this Security at the office or agency of the Company maintained for
that purpose in New York, New York.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

DATED: May 27, 2011

	 	 	 	 	 
	 	RPM INTERNATIONAL INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert L. Matejka 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

[SEAL]

	 	 	 	 	 
	 	 	 
	 	Attest:  	
 	 
	 	 	Name:  	Edward W. Moore 	 
	 	 	Title:  	Vice President, General

Counsel and Secretary 	 
	 

	 	 	 	 	 
	 	TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

This is one of the Securities of the

series designated therein referred to

in the within-mentioned Indenture.

THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

	 	 	 	 	 

[Reverse of Note]

RPM INTERNATIONAL INC.

6.125% Notes due 2019

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture dated
as of February 14, 2008 between the Company and The Bank of New York Mellon Trust Company, N.A., as
trustee, as amended or supplemented from time to time (herein called the “Indenture”) (in
its capacity as trustee, The Bank of New York Mellon Trust Company, N.A., being herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face
hereof, such series being limited in aggregate principal amount to $450,000,000; provided, however,
that the Company may, without the consent of the Holders of the Securities of this series, issue
additional Securities with the same terms as the Securities of this series, and such additional
Securities shall be considered part of the same series under the Indenture as the Securities of
this series.

     The Securities of this series shall not be entitled to any sinking fund.

Optional Redemption

     The Securities of this series are redeemable at the option of the Company at any time or from
time to time, either in whole or in part, at a Redemption Price equal to the greater of the
following amounts, plus, in each case, accrued and unpaid interest thereon to the Redemption Date:
(i) 100% of the principal amount of the Securities to be redeemed; and (ii) the sum of the present
values of the Remaining Scheduled Payments.

     In determining the present values of the Remaining Scheduled Payments, such payments shall be
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) using a discount rate equal to the Treasury Rate plus 45 basis points.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having an actual or interpolated maturity comparable to the
remaining term of the Securities of this series to be redeemed that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such Securities.

     “Comparable Treasury Price” means (A) the arithmetic average of the Reference Treasury
Dealer Quotations for such Redemption Date after excluding the highest and lowest Reference
Treasury Dealer Quotations, or (B) if the Quotation Agent obtains fewer than four Reference
Treasury Dealer Quotations, the arithmetic average of all Reference Treasury Dealer Quotations for
such Redemption Date.

     “Independent Investment Banker” means a Reference Treasury Dealer or its respective
successors as may be appointed from time to time by the Quotation Agent after consultation with the
Company; provided, however, that if any of the foregoing shall cease to be a primary U.S.
Government securities dealer in New York City (a “primary treasury dealer”), another
primary treasury dealer shall be substituted therefor by the Company.

     “Quotation Agent” means, for purposes of determining the Redemption Price, such
primary treasury dealer as may be selected by the Company.

 

 

     “Reference Treasury Dealer” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, as successor in interest to Banc of America Securities LLC, and  a primary treasury dealer selected by Wells Fargo
Securities, LLC or their respective successors and any other
primary treasury dealer selected by the Quotation Agent after consultation with the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the arithmetic average, as determined by the Quotation Agent, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage
of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer
by 3:30 p.m. on the third Business Day preceding such Redemption Date.

     “Remaining Scheduled Payments” means, with respect to any Security of this series, the
remaining scheduled payments of the principal and interest thereon that would be due after the
related Redemption Date but for such redemption; provided, however, that, if such Redemption Date
is not an Interest Payment Date with respect to such Security, the amount of the next scheduled
interest payment thereon shall be reduced by the amount of interest accrued thereon to such
Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity or interpolated yield to maturity of the Comparable
Treasury Issue. In determining this rate, the price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) shall be assumed to be equal to the Comparable Treasury Price
for such Redemption Date.

     A partial redemption of the Securities of this series may be affected by such method as the
Trustee shall deem appropriate and may provide for the selection for redemption of a portion of the
principal amount of the Securities of this series equal to an authorized denomination.

     Notice of any redemption shall be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of the Securities of this series to be redeemed.

     Unless the Company defaults in payment of the Redemption Price, on and after the Redemption
Date interest shall cease to accrue on the Securities of this series or portions thereof called for
redemption.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

Change of Control Offer

     If a Change of Control Triggering Event occurs, unless the Company has exercised its option to
redeem the Securities of this series, the Company shall be required to make an offer (a “Change
of Control Offer”) to each Holder of the Securities of this series to repurchase all or any
part (equal to $2,000 and in integral multiples of $1,000 in excess thereof) of that Holder’s
Securities on the terms set forth herein. In a Change of Control Offer, the Company shall be
required to offer payment in cash equal to 101% of the aggregate principal amount of Securities of
this series repurchased, plus accrued and unpaid interest, if any, on the Securities of this series
repurchased to the date of repurchase (a “Change of Control Payment”). Within 30 days
following any Change of Control Triggering Event or, at the Company’s option, prior to any Change
of Control, but after public announcement of the transaction that constitutes or may constitute the
Change of Control, a notice shall be mailed to Holders of the Securities of this series describing
the transaction that constitutes or may constitute the Change of Control Triggering Event and
offering to repurchase such Securities on the date specified in the notice, which date shall be no
earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change
of Control Payment Date”). The notice shall, if mailed prior to the date of consummation of the
Change of Control, state that the offer to purchase is conditioned on the Change of Control
Triggering Event occurring on or prior to the Change of Control Payment Date.

     In order to accept the Change of Control Offer, the Holder must deliver to the Paying Agent,
at least five Business Days prior to the Change of Control Payment Date, this Security together
with the form entitled “Election

 

 

Form” (which form is annexed hereto) duly completed, or a
telegram, telex, facsimile transmission or a letter from a member of a national securities
exchange, or the National Association of Securities Dealers, Inc. or a commercial bank or trust
company in the United States setting forth:

	 	(i)	 	the name of the Holder of this Security;

	 	(ii)	 	the principal amount of this Security;

	 	(iii)	 	the principal amount of this Security to be repurchased;

	 	(iv)	 	the certificate number or a description of the tenor and terms
of this Security;

	 	(v)	 	a statement that the Holder is accepting the Change of
Control Offer; and

	 	(vi)	 	a guarantee that this Security, together with the form entitled
“Election Form” duly completed, will be received by the Paying Agent at least five
Business Days prior to the Change of Control Payment Date.

Any exercise by a Holder of its election to accept the Change of Control Offer shall be
irrevocable. The Change of Control Offer may be accepted for less than the entire principal amount
of this Security, but in that event the principal amount of this Security remaining outstanding
after repurchase must be equal to $2,000 and in integral multiples of $1,000 in excess thereof.

     On the Change of Control Payment Date, the Company shall, to the extent lawful:

	 	(i)	 	accept for payment all Securities of this series or portions of such
Securities properly tendered pursuant to the Change of Control Offer;

	 	(ii)	 	deposit with the Paying Agent an amount equal to the Change of Control
Payment in respect of all Securities of this series or portions of such Securities
properly tendered; and

	 	(iii)	 	deliver or cause to be delivered to the Trustee the Securities of this
series properly accepted together with an Officers’ Certificate stating the aggregate
principal amount of Securities of this series or portions of such Securities being
repurchased.

     The Company shall not be required to make a Change of Control Offer upon the occurrence of a
Change of Control Triggering Event if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the Company and the third
party purchases all Securities of this series properly tendered and not withdrawn under its offer.
In addition, the Company shall not repurchase any Securities of this series if there has occurred
and is continuing on the Change of Control Payment Date an Event of Default under the Indenture,
other than a default in the payment of the Change of Control Payment upon a Change of Control
Triggering Event.

     The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations thereunder
to the extent those laws and regulations are applicable in connection with the repurchase of the
Securities of this series as a result of a Change of Control Triggering Event. To the extent that
the provisions of any such securities laws or regulations conflict with the Change of Control Offer
provisions of the Securities of this series, the Company shall comply with those securities laws
and regulations and shall not be deemed to have breached its obligations under the Change of
Control Offer provisions of the Securities of this series by virtue of any such conflict.

     For purposes of the Change of Control Offer provisions of the Securities of this series, the
following terms are applicable:

     “Change of Control” means the occurrence of any of the following: (1) the direct or
indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or more series of

 

 

related transactions, of all or substantially all of the
assets of the Company and its Subsidiaries, taken as a whole, to any person, other than the Company
or a Subsidiary; (2) the consummation of any transaction (including, without limitation, any merger
or consolidation) the result of which is that any person becomes the beneficial owner (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the
Company’s outstanding Voting Stock or other Voting Stock into which the Company’s Voting Stock is
reclassified, consolidated, exchanged or changed, measured by voting power rather than number of
shares; (3) the Company consolidates with, or merges with or into, any person, or any person
consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction
in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other person is
converted into or exchanged for cash, securities or other property, other than any such transaction
where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction
constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving
person or any direct or indirect parent company of the surviving person immediately after giving
effect to such transaction; (4) the first day on which a majority of the members of the Company’s
Board of Directors are not Continuing Directors; or (5) the adoption of a plan relating to the
Company’s liquidation or dissolution. The term “person,” as used in this definition, has the
meaning given thereto in Section 13(d)(3) of the Exchange Act.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control
and a Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the
Company’s Board of Directors who (1) was a member of such Board of Directors on the date the
Securities of this series were issued or (2) was nominated for election, elected or appointed to
such Board of Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination, election or appointment (either
by a specific vote or by approval of the Company’s proxy statement in which such member was named
as a nominee for election as a director, without objection to such nomination).

     “Fitch” means Fitch Inc., and its successors.

     “Investment Grade Rating” means a rating equal to or higher than BBB- (or the
equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and
the equivalent investment grade credit rating from any replacement rating agency or rating agencies
selected by the Company.

     “Moody’s” means Moody’s Investors Service, Inc., and its successors.

     “Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch,
Moody’s or S&P ceases to rate the Securities of this series or fails to make a rating of such
Securities publicly available for reasons outside of the Company’s control, a “nationally
recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under
the Exchange Act selected by the Company (as certified by a resolution of the Company’s Board of
Directors) to act as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case
may be.

     “Rating Event” means the rating on the Securities of this series is lowered by at
least two of the three Rating Agencies and the Securities of this series are rated below an
Investment Grade Rating by at least two of the three Rating Agencies on any day during the period
(which period shall be extended so long as the rating of the Securities of this series is under
publicly announced consideration for a possible downgrade by any of the Rating Agencies) commencing
60 days prior to the first public notice of the occurrence of a Change of Control or the Company’s
intention to effect a Change of Control and ending 60 days following consummation of such Change of
Control.

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc., and its successors.

     “Voting Stock” means, with respect to any specified “person” (as that term is used in
Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at
the time entitled to vote generally in the election of the board of directors of such person.

 

 

Events of Default

     In addition to the Events of Default set forth in the Indenture, the following shall be
considered Events of Default with respect to the Securities of this Series:

     (a) any final judgment or order for the payment of money in excess of the greater of
$50,000,000 or 7% of Consolidated Stockholders’ Equity, either individually or in the aggregate
(net of any amounts to the extent that they are covered by insurance), shall have been rendered
against the Company or any of its Subsidiaries and which shall not have been paid or discharged,
and there shall be any period of 60 consecutive days following the entry of the final judgment or
order that causes the aggregate amount for all such final judgments or orders outstanding and not
paid or discharged against the Company or any of its Subsidiaries to exceed the greater of
$50,000,000 or 7% of Consolidated Stockholders’ Equity during which a stay of enforcement of such
final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect.

Limitation on Liens

     The Company covenants and agrees for the benefit of the Holders that for so long as any
Securities of this series are outstanding, the Company will not, and will not permit any of its
Subsidiaries to, create, assume, incur or suffer to exist any Lien upon any Principal Property or
upon any shares of Capital Stock or Indebtedness of any Subsidiary owning or leasing any Principal
Property, whether owned or leased on the date of the Indenture or thereafter acquired, other than
Permitted Liens or as permitted under “Exempted Liens and Sale-Leaseback Transactions” below, to
secure any Indebtedness incurred or guaranteed by the Company or any Subsidiary, without in any
such case making effective provision whereby all of the Securities of this series then outstanding
(together with, if the Company so determines, any other Indebtedness or guarantee thereof by the
Company ranking equally with such Securities) shall be secured equally and ratably with, or prior
to, such Indebtedness so long as such Indebtedness shall be so secured.

     “Permitted Liens” means:

(i) Liens existing on the date of the Indenture or the date the Securities of this series
are issued and securing Indebtedness in an aggregate principal amount not exceeding the
greater of $25.0 million or 5% of Consolidated Stockholders’ Equity of the Company; provided
that no increase in the amount secured thereby is permitted;

(ii) Liens on the property or assets of the Company or any other property or assets of the
Subsidiaries of the Company given to secure the payment of the purchase price incurred in
connection with the acquisition, lease (including any Capital Lease Obligation) or
construction of property (other than accounts receivable or inventory) intended to be used
in carrying on of the business of the Company or the businesses of the Subsidiaries of the
Company, including Liens existing on such property at the time of acquisition, lease or
construction thereof or improvements thereon, or Liens incurred within 180 days of such
acquisition or the completion of such construction; provided that (i) the Lien shall attach
solely to the property acquired, purchased, leased, constructed or improved, (ii) at the
time of acquisition or construction of such property, the aggregate amount remaining unpaid
on all Indebtedness secured by Liens on such property, whether or not assumed by the Company
or any Subsidiary of the Company, shall not exceed an amount equal to the lesser of the
total purchase price or Fair Market Value at the time of acquisition or construction of such
property, and (iii) the aggregate principal amount of all Indebtedness secured by such Liens
shall not exceed the lesser of (y) the cost of the acquisition, lease or construction, as
the case may be or (z) the Fair Market Value of such property;

(iii) Liens on property or assets of any Person existing at the time such Person becomes a
Subsidiary of the Company or is merged with or into or consolidated with the Company or any
Subsidiary of the Company or, at the time of a sale, lease or other disposition of the
properties of a Person as an entirety or substantially as an entirety to the Company or any
Subsidiary of the Company, or arising thereafter pursuant to contractual commitments entered
into prior to and not in contemplation of such Person becoming a subsidiary and not in
contemplation of any such merger or consolidation or any such sale, lease or other

 

 

disposition; provided that such Liens shall not extend to the property or assets of the
Company or any other property or assets of the Subsidiaries of the Company;

(iv) Any extension, renewal or replacement (or successive extensions, renewals or
replacements) in whole or in part of any Lien referred to in the foregoing clauses;
provided, however, that the principal amount of Indebtedness secured thereby shall not
exceed the principal amount of Indebtedness so secured prior to such extension, renewal or
replacement and that such extension, renewal or replacement Lien shall be limited to all or
a part of the assets that secured the Lien so extended, renewed or replaced (plus
improvements and construction on such real property);

(v) Other Liens arising in the ordinary conduct of the business of the Company or the
businesses of the Subsidiaries of the Company (including Liens to secure the performance by
the Company or the Subsidiaries of the Company of bids, tenders or trade contracts for sums
not yet due and payable) which are not incurred in connection with the borrowing of money or
the obtaining of advances or credit, or that is incidental to the ownership of properties
and assets by the Company or the Subsidiaries of the Company in the ordinary conduct of the
Company’s business or the businesses of the Subsidiaries of the Company (including
landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens for
sums not yet due and payable), or to secure the performance by the Company or the
Subsidiaries of the Company of its or their statutory obligations (including obligations
under workers compensation, unemployment insurance and other social security legislation),
surety or appeal bonds and other similar liens (including Liens of attorneys on client
files); provided in each case that such Liens do not, in the aggregate, materially detract
from the value of the property or assets of the Company or the property or assets of the
Subsidiaries of the Company or materially impair the use thereof in the operation of the
business of the Company or the businesses of the Subsidiaries of the Company;

(vi) Leases or subleases entered into by the Company or the Subsidiaries of the Company as
either lessors or sublessors, easements, rights-of-way, restrictions and other similar
charges or encumbrances (including zoning restrictions), in each case, that is incidental to
the ownership of property or assets or the ordinary conduct of the business of the Company
or the businesses of the Subsidiaries of the Company; provided that such Liens do not, in
the aggregate, materially detract from the value of such property;

(vii) Liens for taxes, assessments or other governmental charges which are not yet due and
payable as of the date of the Indenture or the date the Securities of this series are
issued; and

(viii) Liens on receivables, leases, other financial assets, and any assets related thereto,
incurred in connection with a Permitted Receivables Transaction.

     “Permitted Receivables Transaction” means any transaction or series of transactions entered
into by the Company or any of its Subsidiaries in order to monetize or otherwise finance a pool
(which may be fixed or revolving) of receivables, leases or other financial assets (including,
without limitation, financing contracts) or other transactions evidenced by receivables purchase
agreements, including, without limitation, factoring agreements and other similar agreements
pursuant to which receivables, leases, other financial assets, and any assets related thereto, are
sold at a discount (in each case whether now existing or arising in the future), and which may
include a grant of a security interest in any such receivables, leases, other financial assets
(whether now existing or arising in the future) of the Company or any of its Subsidiaries, and any
assets related thereto, including all collateral securing such receivables, leases, or other
financial assets, all contracts and all guarantees or other obligations in respect thereof,
proceeds thereof and other assets that are customarily transferred, or in respect of which security
interests are customarily granted, in connection with asset securitization transactions involving
receivables, leases, or other financial assets or other transactions evidenced by receivables
purchase agreements, including, without limitation, factoring agreements and other similar
agreements pursuant to which receivables are sold at a discount.

     “Principal Property” means, whether owned or leased on the date of the Indenture or
acquired after the date thereof, each manufacturing or processing plant or facility and office
facilities of the Company or its Subsidiaries located in the United States.

 

 

Restrictions on Sale-Leaseback Transactions

          Except as permitted under “Exempted Liens and Sale-Leaseback Transactions” below, the Company
will not, and it will not permit any of its Subsidiaries to, engage in the sale or transfer by the
Company or any of its Subsidiaries of any Principal Property to a person (other than a Subsidiary
of the Company or the Company) and the taking back by the Company or any of its Subsidiaries, as
the case may be, of a lease of such Principal Property, unless:

(i) such sale-leaseback transaction involves a lease for a period, including renewals, of not
more than three years; or

(ii) the Company or its Subsidiary, within a one-year period after such sale-leaseback
transaction, applies or causes to be applied an amount not less than the net proceeds from such
sale-leaseback transaction to the prepayment, repayment, redemption, reduction or retirement
(other than pursuant to any mandatory sinking fund, redemption or prepayment provision) of
Funded Indebtedness.

          “Funded Indebtedness” means Indebtedness having a maturity of more than 12 months from the
date as of which the amount thereof is to be determined or having a maturity of less than 12 months
but by its terms being renewable or extendible beyond 12 months from such date at the option of the
obligor.

Exempted Liens and Sale-Leaseback Transactions

          Notwithstanding the foregoing restrictions on Liens and sale-leaseback transactions, and in
addition to Permitted Liens otherwise permitted hereunder, the Company may, and may permit any
Subsidiary to, create, assume, incur, or suffer to exist any Lien upon any Principal Property, or
upon any shares of Capital Stock or Indebtedness of any of its Subsidiaries owning or leasing any
Principal Property, to secure Indebtedness incurred or guaranteed by the Company or any of its
Subsidiaries or effect any sale-leaseback transaction of a Principal Property that is not excepted
by “Restrictions on Sale-Leaseback Transactions” above without equally and ratably securing the
Securities; provided that, after giving effect thereto, the aggregate principal amount of
outstanding Indebtedness secured by Liens other than Permitted Liens upon Principal Property and/or
upon such shares of Capital Stock or Indebtedness of any Subsidiary owning or leasing any Principal
Property, plus the Attributable Indebtedness from sale-leaseback transactions of Principal Property
not so excepted, does not exceed 15% of the Consolidated Stockholders’ Equity as of the date of
determination.

          “Consolidated Stockholders’ Equity” means, at any time, the consolidated stockholders’
equity of the Company and its Subsidiaries calculated on a consolidated basis as of such time.

Other Provisions

          If an Event of Default with respect to Securities of this series as set forth in the Indenture
shall occur and be continuing, the principal of the Securities of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

 

          As provided in and subject to the provisions of the Indenture, the Holder of this Security
will not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
indemnity satisfactory to it, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request and shall have failed to institute such proceeding for 60 calendar
days after receipt of such notice, request, and offer of indemnity. The foregoing will apply to any
suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates expressed herein.

          Upon due presentment for registration of transfer of this Security at the office or agency of
the Company in New York, New York, a new Security or Securities of this series in authorized
denominations for an equal aggregate principal amount shall be issued to the transferee in exchange
herefor, as provided in the Indenture and subject to the limitations provided therein and to the
limitations described below, without charge except for any tax or other governmental charge imposed
in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This Security is exchangeable for definitive Securities in registered form only if (i) the
Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this
Security and a successor depositary is not appointed by the Company within 90 days after receiving
such notice, or if at any time the Depositary ceases to be a clearing agency registered under the
Exchange Act and a successor depositary is not appointed by the Company within 90 days after the
Company becoming aware that the Depositary has ceased to be registered as a clearing agency, (ii)
the Company, in its sole discretion, determines that this Security shall be exchangeable for
definitive Securities in registered form and notifies the Trustee thereof or (iii) an Event of
Default with respect to the Securities represented hereby has occurred and is continuing. If this
Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for
definitive Securities in registered form, bearing interest at the same rate, having the same date
of issuance, redemption provisions, Stated Maturity and other terms and of authorized denominations
aggregating a like amount.

          This Security may not be transferred except as a whole by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary
or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such
successor. Except as provided above, owners of beneficial interests in this global Security shall
not be entitled to receive physical delivery of Securities in definitive form and shall not be
considered the Holders hereof for any purpose under the Indenture.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal and interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

          No recourse shall be had for the payment of the principal of or the interest on this Security,
or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or any successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as part of the
consideration for the issuance hereof, expressly waived and released.

          All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture unless otherwise defined in this Security.

          This Security shall be governed by, and construed in accordance with, the laws of the State of
New York, without regard to conflicts of laws principles thereof.

 

 

ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 

	TEN COM

	 	—
	 	as tenants in common
	 
	 	 	 	 
	TEN ENT

	 	—
	 	as tenants by the entireties
	 
	 	 	 	 
	JT TEN

	 	—
	 	as joint tenants with right
	 

	 	 	 	of survivorship and not
	 

	 	 	 	as tenants in common

	 	 	 	 	 	 	 

	UNIF GIFT MIN ACT —

	 	 	 	Custodian	 	 
	 

	 	 
	 	 	 	 
	 

	 	(Cust)
	 	 	 	(Minor)

Under Uniform Gifts to Minors Act

	 	 	 
	 

	 	 
	(State)
	 	 

     Additional abbreviations may also be used though not in the above list.

     FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

Please Insert Social Security or

Other Identifying Number of Assignee

                                        

 

 

 

(PLEASE PRINT OR TYPE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

 

 

the within Security of RPM INTERNATIONAL INC. and does hereby irrevocably constitute and appoint
__________________ attorney to transfer the said Security on the books of the Company, with full
power of substitution in the premises.

Dated:                     

                                                            

                                                            

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within instrument in every particular, without alteration or enlargement or any change
whatever.

 

 

 

ELECTION FORM

TO BE COMPLETED ONLY IF THE HOLDER

ELECTS TO ACCEPT THE CHANGE OF CONTROL OFFER

 

     The undersigned hereby irrevocably requests and instructs the Company to repurchase the within
Security (or the portion thereof specified below), pursuant to its terms, on the Change of Control
Payment Date specified in the Change of Control Offer, for the Change of Control Payment specified
in the within Security, to the undersigned,          
                
                ,at  
                  
                 
     (please print or typewrite name and address of the undersigned).

     For this election to accept the Change of Control Offer to be effective, the Company must
receive, at the address of the Paying Agent set forth below or at such other place or places of
which the Company shall from time to time notify the Holder of the within Security, either (i) this
Security with this “Election Form” form duly completed, or (ii) a telegram, telex, facsimile
transmission or a letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or a commercial bank or a trust company in the United
States setting forth (a) the name of the Holder of the Security, (b) the principal amount of the
Security, (c) the principal amount of the Security to be repurchased, (d) the certificate number or
description of the tenor and terms of the Security, (e) a statement that the option to elect
repurchase is being exercised, and (f) a guarantee stating that the Security to be repurchased,
together with this “Election Form” duly completed will be received by the Paying Agent five
Business Days prior to the Change of Control Payment Date. The address of the Paying Agent is The
Bank of New York Trust Company, N.A., c/o The Bank of New York, 101 Barclay Street, New York, New
York 10286.

     If less than the entire principal amount of the within Security is to be repurchased, specify
the portion thereof (which principal amount must be $2,000 and in integral multiples of $1,000 in
excess thereof) which the Holder elects to have repurchased: $_________.exv4w5

Exhibit 4.5

CERNER CORPORATION

2011 OMNIBUS EQUITY INCENTIVE PLAN

     The purpose of the Cerner Corporation 2011 Omnibus Equity Incentive Plan (the “Plan”) is to
encourage designated key associates, consultants and non-employee directors of Cerner Corporation
(the “Company”) and its subsidiaries to contribute materially to the growth of the Company by
providing such individuals with the opportunity to acquire Shares of the Company’s stock, thereby
benefiting the Company’s shareholders by aligning the economic interests of the participants with
those of the shareholders.

     1. Reallocation of Shares from Plan G

     From and after the Effective Date (as defined in Section 20), the following shares of common
stock of the Company (“Shares”) from the Cerner Corporation 2004 Long-Term Incentive Plan G (the
“Prior Plan”) shall be available for issuance pursuant to the Plan: (i) all Shares available for
the grant of awards under the Prior Plan as of the Effective Date and (ii) with respect to
outstanding awards under the Prior Plan as of the Effective Date that for any reason expire or are
cancelled or terminated thereafter without having been exercised, delivered or vested in full, as
the case may be, all Shares allocable to the unexercised, undelivered or unvested portion of each
such award (collectively, the “Prior Plan Shares”). Following the Effective Date, no additional
awards shall be granted under the Prior Plan. From and after the Effective Date, all outstanding
awards granted under the Prior Plan shall remain subject to the terms of the Prior Plan. All
Grants (as defined in Section 3) granted on or after the Effective Date of this Plan will be
subject to the terms of this Plan.

     2. Administration

     (a) Committee. The Plan shall be administered and interpreted by the Compensation Committee
of the Board of Directors or such other committee as the Board of Directors of the Company (the
“Board”) may designate to administer this Plan (the “Committee”). The Committee shall consist of
three or more members of the Board, all of whom shall be: (i) “outside directors” as
defined under section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) and
related Treasury regulations, (ii) “non-employee directors” as defined under Rule 16b-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and (iii) in
the judgment of the Board, qualified to administer the Plan and act as a Member of the Committee
pursuant to all applicable rules, regulations and listing standards of the Nasdaq Stock Market (or
such other stock exchange on which Shares are traded), including any applicable standards for
independence. Any member of the Committee who does not satisfy the qualifications set out in the
preceding sentence may recuse himself or herself from any vote or other action taken by the
Committee. The Board may, at any time and in its complete discretion, remove any member of the
Committee and may fill any vacancy in the Committee.

     (b) Committee Authority. The Committee shall have the sole authority to (i) determine the
individuals to whom grants shall be made under the Plan; (ii) determine the type, size and terms of
the grants to be made to each such individual; (iii) determine the time when the grants will be
made and the duration of any applicable exercise or restriction period, including the criteria for
exercisability, vesting or delivery and the acceleration of exercisability, vesting or delivery;
(iv) amend the terms (other than terms related to initial pricing of the Shares) of any previously
issued Grant; (v) cause the forfeiture of any Grant or recover any shares, cash or other property
attributable to a Grant for violations of any Company ethics policy or pursuant to any Company
compensation clawback policy; and (vi) deal with any other matters arising under the Plan.

     (c) Delegation by the Committee. The Committee, in its sole discretion and on such terms and
conditions as it may provide, may delegate all or any part of its authority and powers under this
Plan to one or more Directors or, subject to applicable law, officers of the Company; provided,
however, that the Committee may not delegate its authority and powers (i) with respect to Section
16 Persons, or (ii) in any way which would jeopardize the Company’s ability to qualify
for Rule 16b-3 or the “performance-based compensation” exception under Section 162(m) of the Code.

10

 

     (d) Committee Determinations. The Committee shall have full power and authority to administer
and interpret the Plan, to make factual determinations and to adopt, amend or rescind such rules,
regulations, agreements and instruments for implementing the Plan and for the conduct of its
business as it deems necessary or advisable, in its sole discretion. The Committee’s
interpretations of the Plan and all determinations made by the Committee pursuant to the powers
vested in it hereunder shall be conclusive and binding on all persons having any interest in the
Plan or in any awards granted hereunder. All powers of the Committee shall be executed in its sole
discretion, in the best interest of the Company and in keeping with the objectives of the Plan and
need not be uniform as to similarly situated individuals.

     3. Grants

     (a) Awards under the Plan may consist of grants of incentive stock options as described in
Section 6 (“Incentive Stock Options”), nonqualified stock options as described in Section 6
(“Nonqualified Stock Options”) (Incentive Stock Options and Nonqualified Stock Options are
collectively referred to as “Options”), restricted stock as described in Section 7 (“Restricted
Stock”), restricted stock units as described in Section 7 (“Restricted Stock Units”), stock
appreciation rights as described in Section 8 (“SARs”), bonus shares as described in Section 9
(“Bonus Shares”), performance units as described in Section 9 (“Performance Units”), performance
grants as described in Section 9 (“Performance Grants”) and performance shares as described in
Section 9 (“Performance Shares”), (hereinafter collectively referred to as “Grants”). All Grants
shall be subject to the terms and conditions set forth herein and to such other terms and
conditions consistent with this Plan as the Committee deems appropriate and as are specified in
writing by the Committee to the individual in a grant instrument (the “Grant Instrument”) or an
amendment to the Grant Instrument. The Committee shall approve the form and provisions of each
Grant Instrument. Grants under a particular Section of the Plan need not be uniform as among the
Grantees (as defined in Section 5(b)).

     (b) The Committee may, in its sole and absolute discretion, place certain restrictive
covenants in a Grant Instrument requiring the Grantee to agree to refrain from certain actions.
Such restrictive covenants, if contained in the Grant Instrument, will be binding on the Grantee.

     4. Shares Subject to the Plan

     (a) Shares Authorized. Subject to the adjustment provisions specified in Section 4(e) below,
the aggregate number of Shares that may be issued or transferred under the Plan is Four Million
(4,000,000) Shares plus the Prior Plan Shares (the “Maximum Share Limit”). The Shares may be
authorized but unissued Shares or reacquired Shares, including treasury Shares and Shares purchased
by the Company on the open market for purposes of the Plan.

     (b) Fungible Share Counting. Subject to adjustment under Section 4(e), an Option or SAR shall
be counted against the Maximum Share Limit as one share for each Share subject to the Option or
SAR, and any Grant of Restricted Stock, Restricted Stock Unit, Bonus Share, Performance Unit,
Performance Grant or Performance Share (a “Full Value Award”) shall be counted against the Maximum
Share Limit as 2.4 Shares for each one Share subject to such Full Value Award. To the extent that
a Share that was subject to a Grant that counted as one share is returned to the Plan pursuant to
Section 4(c), the applicable Share reserve relating to the Maximum Share Limit will be credited
with one Share. To the extent that a Share that was subject to a Grant that counted as 2.4 Shares
is returned to the Plan pursuant to Section 4(c), the applicable Share reserve relating to the
Maximum Share Limit will be credited with 2.4 Shares. For the avoidance of doubt, the fungible
Share counting set forth in this Section 4(b) shall apply solely with respect to determining the
counting of Shares against the Maximum Share limit and shall not apply with respect to the counting
of Shares under the individual Share limits set forth in Section 4(d).

     (c) Other Share Counting Rules. For purposes of counting the number of Shares available for
Grants, if and to the extent Shares subject to an outstanding Grant are not issued by reason of the
forfeiture, termination, surrender, cancellation or expiration, then such Shares shall immediately
again be available for issuance under this Plan and credited back to the Maximum Share Limit.
Shares tendered with respect to the payment of any Option Exercise Price, Shares withheld for or to
satisfy recovery of all or a portion of the applicable federal, state and local income withholding,
payroll

11

 

or similar taxes (the “Applicable Withholding Tax”), Shares repurchased by the Company using Option
Exercise Price proceeds, and all Shares underlying any portion of an Option or SAR that is settled
in Shares (regardless of the actual number of net Shares delivered upon exercise) shall count
against this Maximum Share Limit on the same basis as set forth above in Section 4(b). To the
extent that RSUs or Performance Units are settled in cash, any Shares underlying such Grants which
are not issued in light of such award being settled in cash, shall be added back to the Maximum
Share Limit.

     (d) Individual Limit. During any calendar year, no individual may be granted Options or other
Grants under the Plan that, in the aggregate, may be settled by delivery of more than one million
(1,000,000) Shares, subject to adjustment as provided in Section 4(e). In addition, with respect
to Grants the value of which is based on the Fair Market Value of Shares and that may be settled in
cash (in whole or in part), no individual may be paid during any calendar year cash amounts
relating to such Grants that exceed the greater of the Fair Market Value (as defined in Section
6(b)(iii)) of the number of Shares set forth in the preceding sentence either at the date of grant
or at the date of settlement. This provision sets forth two separate limitations so that Grants
that may be settled solely by delivery of Shares will not operate to reduce the amount or value of
cash-only Grants, and vice versa; nevertheless, Grants that may be settled in Shares or cash must
not exceed either limitation.

     With respect to Grants, the value of which is not based on the Fair Market Value of Shares, no
individual may receive Grants pursuant to this Plan during any calendar year involving a cash value
at date of grant that, in the aggregate, exceeds ten million dollars ($10,000,000).

     (e) Adjustments. If there is any change in the number or kind of Shares outstanding (i) by
reason of a stock dividend, spin-off, recapitalization, stock split, or combination or exchange of
shares, (ii) by reason of a merger, reorganization or consolidation in which the Company is the
surviving corporation, (iii) by reason of a reclassification or change in par value, or (iv) by
reason of any other extraordinary or unusual event affecting the outstanding Shares as a class
without the Company’s receipt of consideration, or if the value of outstanding Shares is
substantially reduced as a result of a spin-off or the Company’s payment of an extraordinary
dividend or distribution, the Maximum Share Limit, the maximum number of Shares that any individual
participating in the Plan may be granted in any year, the number of Shares covered by outstanding
Grants, the kind of shares issued under the Plan, and the price per share or the applicable market
value of such Grants may be appropriately adjusted by the Committee to reflect any increase or
decrease in the number of, or change in the kind or value of, issued Shares to preclude, to the
extent practicable, the enlargement or dilution of rights and benefits under such Grants; provided,
however, that no fractional shares resulting from such adjustment shall be issued under Plan as a
result of an adjustment under this Section 4(e), although the Committee in its sole discretion may
make a cash payment in lieu of fractional Shares. Any adjustments determined by the Committee
shall be final, binding and conclusive. If and to the extent that any such change in the number or
kind of Shares outstanding is effected solely by application of a mathematical formula (e.g., a
2-for-1 stock split), the adjustment described in this Section 4(e) shall be made and shall occur
automatically by application of such formula, without further action by the Committee.

     (f) Substitute Awards. In connection with a merger or consolidation of an entity with the
Company or the acquisition by the Company of property or stock of an entity, the Committee may
approve Grants in substitution for any Options or other stock or stock-based awards granted by such
entity or an affiliate thereof (“Substitute Grants”). Substitute Grants may be granted on such
terms as the Committee deems appropriate in the circumstances, notwithstanding any limitations on
Grants contained in the Plan. Substitute Grants shall not count against the Maximum Share Limit set
forth in Section 4(a), except as may be required by reason of Section 422 and related provisions of
the Code.

     5. Eligibility for Participation

     (a) Eligible Persons. All key associates of the Company and its subsidiaries (“Associates”),
including Associates who are officers or members of the Board, shall be eligible to participate in
the Plan. Members of the Board who are not Associates (“Non-Employee Directors”) shall
be eligible to participate in the Plan. Designated non-associate consultants or

12

 

advisors to the Company or a subsidiary thereof who are natural persons (other than Non-Employee
Directors) providing bona fide services that are not in connection with an offer or sale of any
Shares and that are not directly or indirectly maintaining or promoting a market in the Shares
(“Consultants”) shall also be eligible to participate in the Plan.

     (b) Selection of Grantees. The Committee shall select the Associates, Non-Employee
Directors and Consultants to receive Grants and shall determine the number of Shares subject
to a particular Grant, and shall establish such other terms and conditions applicable to such
Grant, in such manner as the Committee determines. Associates, Non-Employee Directors and
Consultants who receive Grants under this Plan are referred to herein as “Grantees.”

     6. Options Grants

     (a) Number of Shares. The Committee shall determine the number of Shares that will be subject
to each Grant of Options to a Grantee.

     (b) Type of Option and Price.

     (i) The Committee may grant Incentive Stock Options that are intended to qualify as “incentive
stock options” within the meaning of section 422 of the Code or Nonqualified Stock Options that are
not intended to qualify or any combination of Incentive Stock Options and Nonqualified Stock
Options, all in accordance with the terms and conditions set forth herein. The maximum number of
Shares that may be issued pursuant to Incentive Stock Options shall be the Maximum Share Limit and
in no event may a Non-Employee Director or a Consultant be eligible to receive a grant of Incentive
Stock Options.

     (ii) The purchase price (the “Exercise Price”) of a Share subject to an Option shall be
determined by the Committee and shall be equal to or greater than the Fair Market Value (as defined
below) of a Share on the date the Option is granted; provided, however, that an Incentive Stock
Option may not be granted to an Associate who, at the time of grant, owns stock possessing more
than 10% of the total combined voting power of all classes of stock of the Company or any parent or
subsidiary of the Company, unless the Exercise Price per share is not less than 110% of the Fair
Market Value of a Share on the date of grant.

     (iii) The fair market value (“Fair Market Value”) per Share as of any date shall be the
reported closing sale price of the Share on The NASDAQ Stock Market (or such other national
securities exchange in the event the Shares are not then traded on The NASDAQ Stock Market) as of
that date, or if there is no such reported sales price on the relevant date, then on the last
previous day on which a sale was reported.

     (iv) Notwithstanding anything in this Plan to the contrary, in no event may the Committee (A)
grant Options in replacement of Options previously granted under this Plan or any other
compensation plan of the Company, or amend outstanding Options (including amendments to adjust an
Exercise Price), in each case with a lower Exercise Price than that of the replaced or outstanding
Option, (B) cancel outstanding Options in exchange for a cash payment or for a grant of replacement
Options or (C) engage in any transaction that would be deemed a repricing under the applicable
rules of The NASDAQ Stock Market or other governing body, in each case (A), (B) or (C) without
first obtaining the approval of the Company’s shareholders.

     (c) Option Term. The Committee shall determine the term of each Option (the “Option Term”).
The Option Term of any Option shall not exceed ten (10) years from the date of grant. However, an
Incentive Stock Option that is granted to an Associate who, at the time of grant, owns stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company,
or any parent or subsidiary of the Company, may not have an Option Term that exceeds five (5) years
from the date of grant.

     (d) Exercisability of Options. Options shall become exercisable in accordance with such terms and
conditions, consistent with the Plan, as may be determined by the Committee and specified in the
Grant Instrument or an amendment

13

 

to the Grant Instrument. The Committee or the Grant Instrument may provide for accelerated vesting
in the event of death, disability, retirement, Change of Control or termination of employment
following Change of Control.

     (e) Termination of Employment, Disability or Death. Except as provided below, an Option may
only be exercised while the Grantee who is an Associate, Non-Employee Director or Consultant
(a “Service Provider”) is employed by the Company. Except to the extent otherwise expressly
provided in a Grant Instrument, if such a Grantee ceases to be employed for any reason
other than a “disability”, death, retirement, or a termination for the convenience of the Company,
any Option held by the Service Provider shall terminate at the close of business ninety (90) days
after the Grantee’s last day of performing services as a Service Provider. In such case, and in all
cases described below under (i), (ii), (iii) and (iv) below, the Option may be exercised
only as to the Shares as to which the Option had become exercisable on or before the date the
Grantee ceases performing services as a Service Provider.

     (i) In the event that the Grantee ceases to be employed in a manner determined by the
Committee or Board, in its sole discretion, to constitute retirement (which determination shall be
communicated to the Grantee within sixty (60) days of such termination), the Option may be
exercised by the Grantee, or in the case of the Grantee’s death, by the Grantee’s beneficiaries
entitled to do so, (A) if the Option is an Incentive Stock Option, within three months following
the Grantee’s retirement, or (B) if the Option is a Nonqualified Stock Option, the Committee, in
its discretion, may provide that the Grantee’s Options shall be exercisable for up to three (3)
years after the date of retirement, but in no event later than the expiration of the Option Term.

     (ii) In the event the Grantee dies while he or she is a Service Provider, within the period
referred to in clause (iv) below, or within the period described in sub-clause (A) and (B) of
clause (i), above, (A) if the Option is an Incentive Stock Option, the Option may be exercisable
within one year following the Grantee’s date of death, or (B) if the Option is a Nonqualified Stock
Option, the Committee, in its discretion, may provide that the Grantee’s Options shall be
exercisable for up to three (3) years after the date of death but in no event later than the
expiration of the Option Term.

     (iii) In the event the Grantee ceases to be employed by the Company because the Grantee
becomes “disabled”, or if the Grantee becomes disabled within the period referred to in clause (iv)
below, (A) if the Option is an Incentive Stock Option, the Option may be exercisable within twelve
(12) months following the date Grantee’s employment has ceased or the date the Grantee became
disabled, whichever is later, or (B) if the Option is a Nonqualified Stock Option, the Committee,
in its discretion, may provide that the Grantee’s Options shall be exercisable for up to three (3)
years after the date Grantee’s employment has ceased or the date the Grantee became disabled,
whichever is later, but in no event later than the expiration of the Option Term.

     (iv) In the event the Grantee ceases to be employed by the Company because the Grantee is
terminated or removed from the Board, as the case may be, for the convenience of the Company (as
determined by the Committee or the Board in its sole discretion), any Incentive Stock Option and/or
Nonqualified Stock Option exercisable on the date of termination of employment may be exercised by
the Grantee within a period determined by the Committee, in its discretion, commencing on the date
of termination of employment or removal from the Board and continuing for up to three (3) years
after the date Grantee’s employment has ceased but in no event later than the expiration of the
Option Term.

     (v) For purposes of this Section 6(e) and Sections 7, 8 and 9:

     (A) The term “Company” shall mean the Company and its subsidiary corporations.

     (B) “Disability” or “disabled” shall mean a Grantee becoming disabled within the meaning of
section 22(e)(3) of the Code.

     (f) Exercise of Options. A Grantee may exercise an Option that has become exercisable, in whole or
in part, by delivering a notice of exercise to the Company with payment of the Exercise Price and
any Applicable Withholding Tax

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due (pursuant to Section 10). The Grantee shall pay the Exercise Price for an Option (including
any Applicable Withholding Tax due pursuant to Section 10) as specified by the Committee (x) in
cash, (y) with the approval of the Committee, by delivering Shares owned by the Grantee (including
Shares acquired in connection with the exercise of an Option, subject to such restrictions as the
Committee deems appropriate) and having an aggregate Fair Market Value for such Shares on the date
of exercise equal to the aggregate Exercise Price and any Applicable Withholding Tax due at the
time of exercise, or (z) by such other method as the Committee may approve, including attestation
(on a form prescribed by the Committee) to ownership of Shares having a Fair Market Value on the
date of exercise equal to the Exercise Price and any Applicable Withholding Tax due, payment
through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve
Board, or with the approval of the Committee and solely with respect to a Nonqualified Stock
Option, by a “net exercise” arrangement pursuant to which the Company will not require a payment of
the Exercise Price and any Applicable Withholding Tax due but will reduce the number of Shares upon
the exercise by the largest number of whole Shares having a Fair Market Value on the date of
exercise that does not exceed the aggregate Exercise Price and any Applicable Withholding Tax. In
addition, the Committee may authorize loans by the Company to Grantees in connection with the
exercise of an Option, upon such terms and conditions that the Committee, in its sole discretion
deems appropriate. However, the Committee may not authorize any loans under this Plan to any of
the Company’s Section 16 Officers as defined by the Securities Exchange Commission and determined
each year by the Company’s Board of Directors. Shares used to exercise an Option (and satisfy any
Applicable Withholding Tax liability) shall have been held by the Grantee for the requisite period
of time, if any, to avoid adverse accounting consequences to the Company with respect to the
Option. The Grantee shall pay the Exercise Price and the amount of any Applicable Withholding Tax
due (pursuant to Section 10) at the time of exercise. Shares shall not be issued upon exercise of
an Option until the Exercise Price is fully paid and any Applicable Withholding Tax is paid by or
recovered from the Grantee.

     (g) Limits on Incentive Stock Options. Each Incentive Stock Option shall provide that, if the
aggregate Fair Market Value of the Shares on the date of grant with respect to which Incentive
Stock Options are exercisable for the first time by a Grantee during any calendar year, under the
Plan or any other stock option plan of the Company or a parent or subsidiary, exceeds one hundred
thousand U.S. dollars ($100,000), then the Option, as to the excess, shall be treated as a
Nonqualified Stock Option.

     (h) Recovery of Applicable Withholding Tax. The Grantee of a Nonqualified Stock Option shall
reimburse or make appropriate arrangements with the Company for any Applicable
Withholding Tax payable or required to be withheld by the Company with respect to
the exercise of such Options. The Company shall have the right to prevent the exercise of any
Option until appropriate arrangements have been made for the Applicable Withholding Tax to be paid
by or recovered from the Grantee in accordance with the provisions of Section 10.

     7. Restricted Stock and Restricted Stock Units Grants

     The Committee may issue or transfer Shares to a Grantee under a Grant of Restricted Stock or
Restricted Stock Units, upon such terms as the Committee deems appropriate. A Restricted Stock
Unit shall mean any unit granted under this Section 7 evidencing the right to receive a Share (or a
cash payment equal to the Fair Market Value of a Share) at some future date. Except as otherwise
specified in a Grant Instrument, the following provisions are applicable to Restricted Stock and
Restricted Stock Units:

     (a) General Requirements. Shares issued or transferred pursuant to Restricted Stock and Restricted
Stock Unit Grants may be issued or transferred with or without payment from a Grantee, as
determined by the Committee. The Committee may establish conditions under which restrictions on
Shares of Restricted Stock and Restricted Stock Units shall lapse over a period of time or
according to such other criteria as the Committee deems appropriate including, without limitation,
restrictions based upon the achievement of specific performance goals. The period of time during
which the Restricted Stock and Restricted Stock Units will remain subject to restrictions will be
designated in the Grant Instrument as the “Restriction Period.” Except with respect to a maximum
of five percent (5%) of the Shares authorized in Section 4(a) and Restricted Stock and Restricted
Stock Unit Grants to new hires, all Restricted Stock and Restricted Stock Unit

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Grants to Associates shall be subject to a minimum vesting schedule as follows: (a) Time-based
Restricted Stock and Restricted Stock Unit Grants (other than time-based Grants following the
achievement of specific performance goals) shall have a minimum three (3) year vesting schedule
with respect to at least a portion of the Restricted Stock and Restricted Stock Unit Grants; and
(b) Performance-based Restricted Stock and Restricted Stock Unit Grants shall be based on a
performance period of no less than one (1) year. Notwithstanding the foregoing minimum vesting
schedule, the Committee or the Grant Instrument may provide for accelerated vesting in the event of
death, disability, retirement, Change of Control or termination of employment following Change of
Control.

     (b) Number of Shares. Subject to Section 4, the Committee shall determine the number of
Shares to be issued or transferred pursuant to a Restricted Stock Grant or issuable or transferable
pursuant to a Restricted Stock Unit Grant and the restrictions applicable to such Restricted Stock
or Restricted Stock Units.

     (c) Requirement of Employment. If the Grantee who is a Service Provider ceases to be employed
by the Company during the Restriction Period, or if other specified conditions are not met, the
Restricted Stock or Restricted Stock Unit Grant shall terminate as to all Shares covered by the
Grant as to which the restrictions have not lapsed at the close of business on the Grantee’s last
day of employment, and those Shares must be immediately returned to the Company. As provided in
the Grant Instrument or as elected by the Committee, in its sole discretion, in the event of death,
disability, retirement, Change of Control or termination of employment following Change of Control,
restrictions for all or a portion of such Restricted Stock or Restricted Stock Unit may lapse upon
the occurrence of such event.

     (d) Restrictions on Transfer and Legend on Share Certificate. During the Restriction Period,
a Grantee may not sell, assign, transfer, pledge or otherwise dispose of the Shares of Restricted
Stock or the rights relating to the Restricted Stock Units except to a Successor Grantee under
Section 11(a). Each certificate for a Share of Restricted Stock shall contain a legend giving
appropriate notice of the restrictions in the Grant. The Grantee shall be entitled to have the
legend removed from the Share certificate covering the Shares subject to restrictions when all
restrictions on such Shares have lapsed. The Committee may determine that the Company will not
issue certificates for Shares of Restricted Stock until all restrictions on such Shares have
lapsed, or that the Company will retain possession of certificates for Shares of Restricted Stock
until all restrictions on such Shares have lapsed.

     (e) Right to Vote and to Receive Dividends. Unless the Committee determines otherwise, during
the Restriction Period the Company, and not the Grantee, shall vote the Shares of Restricted Stock.
A Grantee shall have no voting rights with respect to Restricted Stock Units. During the
Restriction Period the Grantee shall have the right to receive any dividends or other distributions
paid on such Restricted Shares, and may be entitled to receive dividend equivalents with respect to
Restricted Stock Units, subject to any restrictions deemed appropriate by the Committee. Such
dividends or dividend equivalents, if any, may be paid currently, accrued as contingent cash
obligations, or converted into additional Shares of Restricted Stock or additional Restricted Stock
Units, upon such terms as the Committee may establish, including the achievement of specific
performance goals.

     (f) Lapse of Restrictions. All restrictions imposed on Restricted Stock and Restricted
Stock Units shall lapse upon the expiration of the applicable Restriction Period and the
satisfaction of all conditions imposed by the Committee. The Committee may terminate the
restrictions, in its discretion, as to any or all Restricted Stock Grants, without regard to any
Restriction Period, in the event of death, disability, retirement, Change of Control or termination
of employment following Change of Control. Upon the lapse of restrictions applicable to Restricted
Stock Units, the Company shall settle the Restricted Stock Units by delivering to the Grantee a
number of Shares equal to the whole number of Shares underlying the Restricted Stock Units then
credited to the Grantee; provided that any fractional Share underlying Restricted Stock Units shall
be distributed in cash in an amount equal to the Fair Market Value of a Share as of the applicable
vesting date multiplied by the remaining fractional Restricted Stock Unit. Notwithstanding the
foregoing, the Committee may elect to settle any outstanding Restricted Stock Units in cash in an
amount equal to the Fair Market Value of the Shares underlying the vesting Restricted Stock Units
and without any delivery of underlying Shares. Upon the settlement of any Restricted Stock Unit,
the underlying Shares or cash payment shall be made within thirty (30) days of such settlement or
as soon as administratively practicable, if later.

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     (g) Recovery of Applicable Withholding Tax. The Grantee of Restricted Stock or Restricted
Stock Units shall reimburse or make appropriate arrangements with the Company for
any Applicable Withholding Tax payable or required to be withheld by the Company
with respect to such Restricted Stock or Restricted Stock Units. The Committee
shall have the right to retain possession of the certificates for Shares of Restricted Stock or
suspend delivery of any payment relating to Restricted Stock Units until appropriate arrangements
have been made for the Applicable Withholding Tax to be paid by or recovered from the Grantee in
accordance with the provisions of Section 10.

     8. Stock Appreciation Rights Grants

     (a) General Requirements. The Committee may grant SARs to a Grantee separately or in tandem
with any Option (for all or a portion of the applicable Option). Tandem SARs may be granted either
at the time the Option is granted or at any time thereafter while the Option remains outstanding;
provided, however, that, in the case of an Incentive Stock Option, SARs may be granted only at the
time of grant of the Incentive Stock Option. The Committee shall establish the base amount of the
SAR at the time the SAR is granted. Unless the Committee determines otherwise, the base amount of
each SAR shall be equal to the per share Exercise Price of the related Option or, if there is no
related Option, a predetermined percentage of the Fair Market Value of a Share as of the date of
grant of the SAR, which percentage shall equal 100% or greater of the Fair Market Value.

     (b) Tandem SARs. In the case of tandem SARs, the number of SARs granted to a Grantee
that shall be exercisable during a specified period shall not exceed the number of Shares that the
Grantee may purchase upon the exercise of the related Option during such period. Upon the exercise
of an Option, the SARs relating to the Shares covered by such Option shall terminate. Upon the
exercise of SARs, the related Option shall terminate to the extent of an equal number of Shares.

     (c) Exercisability. A SAR shall be exercisable during the period specified by the Committee
in the Grant Instrument and shall be subject to such vesting and other restrictions as may be
specified in the Grant Instrument; provided, however, that the term of the SAR shall not exceed ten
years. The Committee or the Grant Instrument may provide for accelerated exercisability in the
event of death, disability, retirement, Change of Control or termination of employment following
Change of Control. SARs may only be exercised while the Grantee is employed by the Company or
during the applicable period after termination of employment as described in Section 6(e) for
Options. For purposes of the preceding sentence, the rules applicable to a tandem SAR shall be the
rules applicable under Section 6(e) to the Option to which it relates, and the rules applicable to
any other SAR shall be the rules applicable under Section 6(e) for a Nonqualified Stock Option. A
tandem SAR shall be exercisable only during the period when the Option to which it is related is
also exercisable.

     (d) Value of SARs. When a Grantee exercises SARs, the Grantee shall receive in settlement of
such SARs an amount equal to the value of the stock appreciation for the number of SARs exercised.
The stock appreciation for a SAR is the amount by which the Fair Market Value of the underlying
Shares on the date of exercise of the SAR exceeds the base amount of the SAR as described in
Subsection (a).

     (e) Form of Payment. The Committee shall determine whether the appreciation in a SAR shall be
paid in the form of cash, Shares, or a combination of the two, in such proportion as the Committee
deems appropriate. For purposes of calculating the number of Shares to be received, Shares shall
be valued at their Fair Market Value on the date of exercise of the SAR. If Shares are to be
received upon exercise of a SAR, cash shall be delivered in lieu of any fractional share.

     (f) Recovery of Applicable Withholding Tax. The Grantee of a SAR shall reimburse or make
appropriate arrangements with the Company for any Applicable Withholding Tax payable or
required to be withheld by the Company with respect to the exercise of such
SAR. The Company shall have the right to prevent the exercise of any SAR until appropriate
arrangements have been made for the Applicable Withholding Tax to be paid by or recovered from the
Grantee in accordance with the provisions of Section 10.

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     (g) Notwithstanding anything in this Plan to the contrary, in no event may the Committee: (A)
grant SARs in replacement of SARs previously granted under this Plan or any other compensation plan
of the Company, or amend outstanding SARs (including amendments to adjust a SAR base amount), in
each case with a lower base amount than that of the replaced or outstanding SAR, (B) cancel
outstanding SARs in exchange for a cash payment or for a grant of replacement SARs or (C) engage in
any transaction that would be deemed a repricing under the applicable rules of The NASDAQ Stock
Market or other governing body, in each case (A), (B) or (C) without first obtaining the approval
of the Company’s shareholders.

     9. Performance Units, Performance Shares, Performance Grants and Bonus Shares Grants

     (a) General Requirements. The Committee may grant Performance Units, Performance Shares,
Performance Grants or Bonus Shares to a Grantee. Each Performance Unit/Share shall represent the
right of the Grantee to receive an amount based on the value of the Performance Unit/Share, if
performance goals established by the Committee are met. A Performance Unit shall have a value
based on such measurements or criteria as the Committee determines. A Performance Share shall have
a value equal to the Fair Market Value of a Share. A Performance Grant is any other Grant
authorized under this Plan that will be issued or granted, or become vested or payable, as the case
may be, upon the achievement of certain performance goals, including those described in Section 12.
A Bonus Share is a Share awarded to a Grantee without cost and without restriction in recognition
of past performance (whether determined by reference to another associate benefit plan of the
Company or otherwise) or in connection with the Company or one of its subsidiaries hiring an
associate, as permitted by applicable law. The Committee shall determine the number of Performance
Units/Shares, Performance Grants and Bonus Shares to be granted and the requirements applicable to
any such Grants.

     (b) Performance Period and Performance Goals. When Performance Units/Shares are granted, the
Committee shall establish the performance period during which performance shall be measured (the
“Performance Period”), performance goals applicable to the Units/Shares (“Performance Goals”) and
such other conditions of the Grant as the Committee deems appropriate. In no event shall a
Performance Period be less than twelve (12) months.

     (c) Payment with respect to Performance Units/Shares. At the end of each Performance Period,
the Committee shall determine to what extent the Performance Goals and other conditions of the
Performance Units/Shares are met, the value of the Performance Units (if applicable) and the
amount, if any, to be paid with respect to the number of Performance Units/Shares that have been
earned. Payments with respect to Performance Units/Shares shall be made in cash, in Shares, or in
a combination of the two, as determined by the Committee.

     (d) Requirement of Employment. If the Grantee who is an Associate ceases to be employed by
the Company during a Performance Period, or if other conditions established by the Committee are
not met, the Grantee’s Performance Units/Shares shall be forfeited at the close of business on the
Grantee’s last day of employment. The Committee may, however, provide for complete or partial
exceptions to this requirement as it deems appropriate. If the Grantee ceases to be employed by
the Company after the expiration of a Performance Period but prior to payment, payment shall be
made to the Grantee or the Successor Grantee, if applicable, as soon as practicable following the
end of the Performance Period, but in no event more than two and a half (2 1/2) months following the
end of the Performance Period.

     (e) Recovery of Applicable Withholding Tax. The Grantee of Bonus Shares, Performance Grants,
Performance Units or Performance Shares shall reimburse or make appropriate arrangements
with the Company for any Applicable Withholding Tax payable or required to be
withheld by the Company with respect to the Bonus Shares, Performance Grants,
Performance Units or Performance Shares. The Committee will have the right to recover such
Applicable Withholding Tax from the cash payable or shares to be allotted to the Grantee. The
amount of Applicable Withholding Tax shall be payable by or recoverable from the Grantee in
accordance with the provisions of Section 10.

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     10. Withholding/Recovery of Taxes

     (a) Recovery of Applicable Withholding Tax. All Grants under the Plan shall be subject to the
Grantee’s obligation to the Company to pay or have withheld any Applicable Withholding
Tax, wherever payable by the Company — with respect to Options, SARs,
Restricted Stock, Bonus Shares, Restricted Stock Units, Performance Units or Performance Shares.
The Company shall have the right to recover such Applicable Withholding Tax by deducting such
amounts from all Grants paid in cash or from other wages or compensation
paid to the Grantee. In case of Options and other Grants paid in Shares, the Company may require
the Grantee or any other person receiving such Shares to pay to the Company the amount of such
Applicable Withholding Tax with respect to such Grants or the Company may deduct from other wages
paid by the Company the amount of any Applicable Withholding Tax payable by the Company with
respect to such Grants. The Company shall have the right to withhold an allotment of Shares in
respect of SARs, Restricted Stock Units, Bonus Shares, Performance Shares or Performance Units
until such Applicable Withholding Tax is paid by or recovered from the Grantee.

     (b) Election to Withhold Shares. If the Committee so permits, a Grantee may elect to satisfy
the Company’s Applicable Withholding Tax obligation with respect to an Option, SAR, Restricted
Stock, Restricted Stock Units, Performance Units, Bonus Shares or Performance Shares, any
of which is paid in Shares, by having Shares withheld having an aggregate Fair Market Value up to
an amount that does not exceed the required minimum amount necessary to satisfy Applicable
Withholding Tax. The election must be in a form and manner prescribed by the Committee and shall
be subject to the prior approval of the Committee. Once filed, such election will be irrevocable.
The Committee may require such election to be made during specified periods during the year and at
times during which a Section 16 Officer would otherwise be prohibited from engaging in purchases or
sales with respect to the Shares.

     11. Transferability of Grants

     (a) Nontransferability of Grants. Except as provided below, only the Grantee may exercise
rights under a Grant during the Grantee’s lifetime. A Grantee may not transfer those rights except
by will or by the laws of descent and distribution or, with respect to Grants other than Incentive
Stock Options, if permitted in any specific case by the Committee, pursuant to a domestic relations
order (as defined under the Code or Title I of the Employee Retirement Income Security Act of 1974,
as amended, or the regulations thereunder). When a Grantee dies, the personal representative or
other person entitled to succeed to the rights of the Grantee (“Successor Grantee”) may exercise
such rights which have not been extinguished by the Grantee’s death. A Successor Grantee must
furnish proof satisfactory to the Company of his or her right to receive the Grant under the
Grantee’s will or under the applicable laws of descent and distribution.

     (b) Transfer of Nonqualified Stock Options. Notwithstanding the foregoing, the Committee may
provide in a Grant Instrument that a Grantee may transfer a Grant to family members or
other persons or entities according to such terms as the Committee may determine; provided that the
Grantee receives no consideration for the transfer of a Nonqualified Stock Option and the
transferred Nonqualified Stock Option shall continue to be subject to the same terms and conditions
as were applicable to the Nonqualified Stock Option immediately before the transfer.

     12. Grants Subject to Code Section 162(m)

     Any Grant to a Grantee who is a “covered employee” within the meaning of Code Section 162(m),
the exercisability or settlement of which is subject to the achievement of performance goals, shall
qualify as “qualified performance-based compensation” within the meaning of Code Section 162(m) and
regulations thereunder. The performance goals for such a Grant shall consist of one or more of any
business criteria under any Company-shareholder-approved performance plan, including, but not
limited to, the Company’s Performance-Based Compensation Plan, and subject in all respects to the
terms and conditions set forth in such plan.

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     13. Deferrals

     Except with respect to any Option or SAR for which no form of deferral election may be made,
the Committee may permit or require a Grantee to defer receipt of the payment of cash or the
delivery of shares that would otherwise be due to such Grantee by virtue of the settlement or
payment with respect to any Restricted Stock Unit, Bonus Shares, Performance Unit, Performance
Share or Performance Grant. If any such deferral election is permitted or required, the Company
shall establish rules and procedures for such deferrals and such rules and procedures will, at all
times, be subject to and consistent with the requirements of Code Section 409A and all applicable
guidance thereunder such that none of the additive taxes under Code Section 409A will apply.

     14. Requirements for Issuance or Transfer of Shares

     No Shares shall be issued or transferred in connection with any Grant hereunder unless and
until all legal requirements applicable to the issuance or transfer of such Shares have been
complied with to the satisfaction of the Committee. The Committee shall have the right to
condition any Grant made to any Grantee hereunder on such Grantee’s undertaking in writing to
comply with such restrictions on his or her subsequent disposition of such Shares as the Committee
shall deem necessary or advisable as a result of any applicable law, regulation or official
interpretation thereof, and certificates representing such shares may be legended to reflect any
such restrictions. Certificates representing Shares issued or transferred under the Plan will be
subject to such stop-transfer orders and other restrictions as may be required by applicable laws,
regulations and interpretations, including any requirement that a legend be placed thereon.

     15. Amendment and Termination of the Plan

     (a) Amendment. The Committee or the Board of Directors of the Company may amend or terminate
the Plan at any time or from time to time, without obtaining the approval of the Company’s
shareholders, except that the Plan may not be amended without the approval of the Company’s
shareholders (i) to increase the aggregate number of shares issuable under the Plan (excepting
proportionate adjustments made under Section 4(e) to give effect to stock splits, etc) or (ii) make
any material amendment or other amendment if shareholder approval is required by the rules of
the Securities and Exchange Commission or any stock exchange on which Shares are listed.

     (b) Termination of Plan. The Plan shall terminate on the day immediately preceding the tenth
anniversary of the Effective Date, unless the Plan is terminated earlier by the Committee or is
extended by the Committee with the approval of the shareholders.

     (c) Termination and Amendment of Outstanding Grants. A termination or amendment of the Plan
that occurs after a Grant is made shall not materially impair the rights of a Grantee unless the
Grantee consents or unless the Committee acts under Section 22(b). The termination of
the Plan shall not impair the power and authority of the Committee with respect to an outstanding
Grant. Whether or not the Plan has terminated, an outstanding Grant may be terminated or amended
under Section 22(b) or may be amended by agreement of the Company and the Grantee
consistent with the Plan.

     (d) Governing Document. The Plan shall be the controlling document. No other statements,
representations, explanatory materials or examples, oral or written, may amend the Plan in any
manner. The Plan shall be binding upon and enforceable against the Company and its successors and
assigns.

     16. Funding of the Plan

     This Plan shall be unfunded. The Company shall not be required to establish any special or
separate fund or to make any other segregation of assets to assure the payment of any Grants under
this Plan. In no event shall interest be paid or accrued on any Grant, including unpaid
installments of Grants.

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     17. Rights of Participants

     Nothing in this Plan shall entitle any Associate, Non-Employee Director, Consultant
or other person to any claim or right to be awarded a Grant under this Plan, and no Grant shall
entitle any Associate, Non-Employee Director, Consultant or other person to any future
Grant. Neither this Plan nor any action taken hereunder shall be construed as giving any
individual any rights to be retained by or in the employ of the Company or any other employment
rights.

     18. No Fractional Shares

     No fractional Shares shall be issued or delivered pursuant to the Plan or any Grant. The
Committee shall determine whether cash, other awards or other property shall be issued or paid in
lieu of such fractional Shares or whether such fractional Shares or any rights thereto shall be
forfeited or otherwise eliminated.

     19. Reorganization, Merger, Consolidation, Sale of Assets or Change of Control

     (a) General. Except as otherwise provided in any Grant Instrument or other agreement approved
by the Committee to which any Non-Employee Director, Consultant or Associate is a party,
in the event that the Company undergoes a Change of Control, as defined in Section 19(c), each
Option, share of Restricted Stock and other Grant held by a Non-Employee Director shall
without regard to any vesting schedule, restriction or performance target, automatically become
fully exercisable or payable, as the case may be, as of the date of such Change of Control. In
addition to the foregoing, in the event the Company undergoes a Change of Control or in the event
of a corporate merger, consolidation, major acquisition of property for stock, separation,
reorganization or liquidation in which the Company is a party to and in which a Change of Control
does not occur, the Committee, or the board of directors of any corporation assuming the
obligations of the Company, shall also have the full power and discretion to prescribe and amend
the terms and conditions of any outstanding Grants granted hereunder. The Committee may remove
restrictions on Restricted Stock and Restricted Stock Units and may modify the
performance requirements for any other Grants. The Committee may provide that Options or other
Grants granted hereunder must be exercised in connection with the closing of such transactions, and
that if not so exercised such Grants will expire. Any such determinations by the Committee may be
made generally with respect to all Grantees, or may be made on a case-by-case basis with respect to
particular Grantees. Notwithstanding the foregoing, any transaction undertaken for the purpose of
reincorporating the Company under the laws of another jurisdiction, if such transaction does not
materially affect the beneficial ownership of the Company’s capital stock shall not constitute a
merger, consolidation, major acquisition of property for stock, separation, reorganization,
liquidation or Change of Control.

     (b) Stock Options. By way of illustration, and not by way of limitation, in the event of a
Change of Control or in the event of corporate merger, consolidation, major acquisition of property
for stock, separation, reorganization or liquidation in which the Company is a party to and in
which a Change of Control does not occur, the Committee may, without obtaining shareholder approval
(i) in all such events other than a liquidation, cause any Option then outstanding to be assumed by
the surviving corporation in such corporate transaction; (ii) require the mandatory surrender to
the Company by any Grantee of some (in all such events other than a liquidation) or all of the
outstanding Options held by a Grantee as of a date specified by the Company or the surviving
corporation, in which event the Company or the surviving corporation shall thereupon cancel such
Options and pay to each Grantee an amount of cash per share equal to the amount that could have
been attained upon the exercise of such Option or realization of the Grantee’s rights to the extent
that such cash is available for distribution to Grantees after payment of all debt and senior
securities of the Company; (iii) in all such events other than a liquidation, require the
substitution of a new Option for some or all of the outstanding Options held by a Grantee provided
that any replacement or substituted Option shall be equivalent in economic value to the Grantee; or
(iv) in all such events other than a liquidation, make such adjustment to any such Option then
outstanding as the Company deems appropriate to reflect such merger, consolidation, major
acquisition of property for stock, separation, reorganization or liquidation.

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     (c) Definition of Change of Control. For purposes of this Plan, a Change of Control of the
Company shall mean:

     (i) The acquisition by any individual, entity or group within the meaning of Section 12(d)(3)
or 13(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act” a (“Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35%
or more of either: (A) the then outstanding shares of common stock of the Company (the “outstanding
Corporation Common Stock”) or (B) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Corporation Voting Securities”); provided, however, that for purposes of this subsection (i), the
following acquisitions shall not constitute a Change of Control: (X) any acquisition directly from
the Company, (Y) any acquisition by the Company, or (Z) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the
Company; or

     (ii) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

     (iii) Consummation of a reorganization, merger or consolidation or sale or other disposition
of all or substantially all of the assets of the Company (a “Business Combination”), in each case,
unless, following such Business Combination, (A), all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding Corporation Common Stock
and Outstanding Corporation Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding
shares of common stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the company
resulting from such Business Combination (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination of the Outstanding Corporation Common
Stock and Outstanding Corporation Voting Securities, as the case may be, (B) no Person (excluding
any employee benefit plan (or related trust) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly, 35% or more of, respectively, the
then outstanding shares of common stock of the Company resulting from such Business Combination or
the combined voting power of the then outstanding voting securities of such corporation except to
the extent that such ownership existed prior to the Business Combination and (C) at least a
majority of the members of the board of directors of the Company resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the board, providing for such Business Combination; or

     (iv) Approval by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

     20. Effective Date of the Plan

     This Plan is effective on May 27, 2011 if approved by the shareholders of the Company on such
date (the “Effective Date”).

     21. Headings

     Section headings are for reference only. In the event of a conflict between a title and the
content of a Section, the content of the Section shall control.

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     22. Miscellaneous

     (a) Grants in Connection with Corporate Transactions and Otherwise. Nothing contained in this
Plan shall be construed to (i) limit the right of the Committee to make Grants under this Plan in
connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business or assets of any corporation, firm or association, including Grants to associates thereof
who become Associates of the Company, or for other proper corporate purposes, or (ii) limit the
right of the Company to grant stock options or make other awards outside of this Plan. Without
limiting the foregoing, the Committee may make a Grant to an associate of another corporation who
becomes an Associate by reason of a corporate merger, consolidation, acquisition of stock or
property, reorganization or liquidation involving the Company or any of its subsidiaries in
substitution for a stock option, restricted stock grant or any other equity award made by such
corporation. The terms and conditions of the substitute Grants may vary from the terms and
conditions required by the Plan and from those of the substituted stock incentives. The Committee
shall prescribe the provisions of the substitute Grants.

     (b) Compliance with Law. The Plan, the exercise of Options and SARs and the obligations of
the Company to issue or transfer Shares under Grants shall be subject to all applicable laws and to
approvals by any governmental or regulatory agency as may be required. With respect to persons
subject to Section 16 of the Exchange Act, it is the intent of the Company that the Plan and all
transactions under the Plan comply with the Sarbanes Oxley Act of 2002 and all applicable
provisions of Rule 16b-3 or its successors under the Exchange Act. In particular, and without
otherwise limiting the provisions of this Section 22(b), no Grantee subject to section 16 of the
Exchange Act may exercise any Option or SAR except in accordance with applicable requirements of
Rule 16b-3 or its successors under the Exchange Act. The Committee may revoke any Grant if it is
contrary to law or modify a Grant to bring it into compliance with any valid and mandatory
government regulation. The Committee may also adopt rules regarding the withholding of taxes on
payments to Grantees. The Committee may, in its sole discretion, agree to limit its authority
under this Section.

     (c) Military Service. Grants shall be administered in accordance with Section 414(u) of the
Code and the Uniformed Services Employment and Reemployment Rights Act of 1994.

     (d) Code Section 409A. This Plan is intended to meet the requirements of Section 409A of the
Code and may be administered in a manner that is intended to meet those requirements and will be
construed and interpreted in accordance with such intent. All payments hereunder are subject to
Section 409A of the Code and will be paid in a manner that will meet the requirements of Section
409A of the Code, including regulations or other guidance issued with respect thereto, such that
the payment will not be subject to the excise tax applicable under Section 409A of the Code. Any
provision of this Plan that would cause the payment to fail to satisfy Section 409A of the Code
will be amended (in a manner that as closely as practicable achieves the original intent of this
Plan) to comply with Section 409A of the Code on a timely basis, which may be made on a retroactive
basis, in accordance with regulations and other guidance issued under Section 409A of the Code.

     (e) Governing Law. The validity, construction, interpretation and effect of the Plan and
Grant Instruments issued under the Plan shall exclusively be governed by and determined in
accordance with the law of the State of Missouri.

Adopted by Shareholders on May 27, 2011

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