Document:

EX-4.2 REGISTRATION RIGHTS AGREEMENT

 

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

Dated as of September 30, 2004

Between

RPM INTERNATIONAL INC.

and

GOLDMAN, SACHS & CO.

as Representative of the several Initial Purchasers

 

 

REGISTRATION RIGHTS AGREEMENT

     RPM International Inc., a Delaware corporation (the “Company”), proposes
to issue and sell to Goldman, Sachs & Co., as Representative of the Initial
Purchasers named in Schedule A hereto (collectively, the “Initial Purchasers”),
upon the terms and subject to the conditions set forth in a purchase agreement
dated September 27, 2004 (the “Purchase Agreement”), $200,000,000 aggregate
principal amount of its 4.45% Senior Notes due 2009 (the “Initial Notes”). The
Initial Notes are to be issued pursuant to an indenture, to be dated as of
September 30, 2004 (the “Indenture”), between the Company and The Bank of New
York, as trustee (the “Trustee”). Capitalized terms used but not defined
herein shall have the meanings given to such terms in the Purchase Agreement.

     To induce the Initial Purchasers to enter into the Purchase Agreement and
in satisfaction of a condition to the obligations of the Initial Purchasers
thereunder, the Company agrees with you for your benefit and the benefit of the
holders (each a “Holder” and, together, the “Holders”) from time to time of the
Initial Notes and the Exchange Notes (as hereinafter defined), as follows:

          In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions.

          As used in this Agreement, the following capitalized defined terms shall
have the following meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended from
time to time.

     “1934 Act” shall mean the Securities Exchange Act of 1934, as
amended from time to time.

     “Additional Interest” shall have the meaning set forth in Section
2(d) hereof.

     “Agreement” shall mean this registration rights agreement.

     “Business Day” shall mean any day other than a Saturday, a Sunday or
a legal holiday or a day on which banking institutions or trust companies
are authorized or obligated by law to close in The City of New York.

     “Company” shall have the meaning set forth in the first paragraph of
this Agreement and shall also include the Company’s successors.

     “Exchange Date” shall have the meaning set forth in Section 2(a)(ii)
hereof.

     “Exchange Notes” shall mean debt securities of the Company to be
issued under the Indenture of up to an equal outstanding principal amount
as and containing terms

 

 

identical to the Initial Notes (except that (i)
interest thereon shall accrue from the last date on which interest was
paid on the Initial Notes or, if no such interest has been paid, from the
Issue Date, (ii) the transfer restrictions thereon shall be modified or
eliminated, as appropriate, and (iii) provisions relating to an increase
in the stated rate of interest thereon shall be eliminated) to be offered
to Holders of Registrable Notes in exchange for such Registrable Notes
pursuant to the Exchange Offer.

     “Exchange Offer” shall mean the exchange offer by the Company of
Exchange Notes for Registrable Notes pursuant to Section 2(a) hereof.

     “Exchange Offer Registration” shall mean a registration under the
1933 Act effected pursuant to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another
appropriate form) and all amendments and supplements to such registration
statement, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

     “Holder” shall have the meaning set forth in the second paragraph of
this Agreement.

     “Holder Information” with respect to any Holder shall mean
information with respect to such Holder required to be included in any
Shelf Registration Statement or the related Prospectus pursuant to the
1933 Act and which information is included therein in reliance upon and
in conformity with information furnished to the Company in writing by
such Holder expressly for inclusion therein.

     “Indenture” shall have the meaning set forth in the first paragraph
of this Agreement.

     “Initial Notes” shall have the meaning set forth in the first
paragraph of this Agreement.

     “Interest Payment Date” shall mean April 15 and October 15 of each
year, commencing April 15, 2005.

     “Issue Date” shall mean the date of the original issuance of the
Initial Notes.

     “Losses” shall have the meaning set forth in Section 5(d) hereof.

     “Majority Holders” shall mean the Holders of a majority of the
aggregate principal amount of outstanding Registrable Notes; provided
that whenever the consent or approval of Holders of a specified
percentage of Registrable Notes is required hereunder, Registrable Notes
held by the Company or any of its affiliates (as such term is defined in
Rule 405 under the 1933 Act) shall not be counted in determining whether
such consent or approval was given by the Holders of such required
percentage or amount.

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     “NASD” shall mean the National Association of Securities Dealers,
Inc.

     “NASD Rules” shall mean the rules and regulations promulgated by the
NASD.

     “Participating Broker-Dealer” shall have the meaning set forth in
Section 4(a) hereof.

     “Person” shall mean an individual, partnership, limited liability
company, corporation, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus
as amended or supplemented by any prospectus supplement, including a
prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Notes covered by a Shelf Registration
Statement, or Exchange Notes covered by an Exchange Offer Registration
Statement, and other amendments and supplements to such prospectus,
including by way of post-effective amendments to the related Registration
Statement, and in each case including all material incorporated by
reference therein.

     “Registrable Notes” shall mean the Initial Notes; provided, however,
that the Initial Notes shall cease to be Registrable Notes upon the
earliest to occur of (i) an exchange of the Initial Notes for Exchange
Notes upon consummation of the Exchange Offer, (ii) a Registration
Statement with respect to such Initial Notes having been declared
effective under the 1933 Act and such Initial Notes having been disposed
of pursuant to such Registration Statement, (iii) such Initial Notes
having been sold to the public pursuant to Rule 144(k) (or any similar
provision then in force, but not Rule 144A) under the 1933 Act or (iv)
such Initial Notes having ceased to be outstanding.

     “Registration Default” shall have the meaning set forth in Section
2(d) hereof.

     “Registration Expenses” shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement,
including without limitation: (i) all SEC, stock exchange or NASD
registration and filing fees, (ii) all fees and expenses incurred in
connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of counsel in connection
with blue sky qualification of any of the Exchange Notes or Registrable
Notes), (iii) all expenses of any Persons in preparing or assisting in
preparing, word processing, printing and distributing of any Registration
Statement, any Prospectus, any amendments or supplements thereto, any
underwriting agreements and other documents relating to the performance
of and compliance with this Agreement, (iv) all rating agency fees, (v)
all fees and disbursements relating to the qualification of the Indenture
under applicable securities laws, (vi) the fees and disbursements of the
Trustee and its counsel, (vii) the fees and disbursements of counsel for
the Company and, in the case of a Shelf Registration Statement, the fees
and disbursements of one counsel for the Holders (which counsel
shall be selected by the Majority Holders and which counsel may also
be counsel for the Initial Purchasers) and (viii) the fees and
disbursements of the independent public

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accountants of the Company,
including the expenses of any special audits or “cold comfort” letters
required by or incident to such performance and compliance, but excluding
fees and expenses of counsel to the underwriters (other than fees and
expenses set forth in clause (ii) above) or the Holders and underwriting
discounts and commissions and transfer taxes, if any, relating to the
sale or disposition of Registrable Notes by a Holder.

     “Registration Statement” shall mean any registration statement of
the Company that covers any of the Registrable Notes or the Exchange
Notes or pursuant to the provisions of this Agreement (including any
Exchange Offer Registration Statement and Shelf Registration Statement)
and all amendments and supplements to any such Registration Statement,
including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

     “SEC” shall mean the U.S. Securities and Exchange Commission.

     “Shelf Registration” shall mean a registration effected pursuant to
Section 2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration
statement of the Company pursuant to the provisions of Section 2(b) of
this Agreement which covers all of the Registrable Notes (but no other
securities unless approved by the Holders whose Registrable Notes are
covered by such Shelf Registration Statement) on an appropriate form
under Rule 415 under the 1933 Act, or any similar rule that may be
adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

     “TIA” shall have the meaning set forth in Section 3(l) of this
Agreement.

     “Trustee” shall have the meaning set forth in the first paragraph of
this Agreement and shall also include the Trustee’s successors.

     “Underwriters” shall have the meaning set forth in the last
paragraph of Section 3 hereof.

     “Underwritten Offering” shall mean a registration under the 1933 Act
in which Registrable Notes are sold to an Underwriter for reoffering to
the public.

          All references in this Agreement to financial statements and schedules and
other information which is “contained,” “included,” or “stated” in any
Registration Statement, any preliminary Prospectus or Prospectus (and all other
references of like import) shall be deemed to mean and include all such
financial statements and schedules and other information which is incorporated
or deemed to be incorporated by reference in such Registration Statement,
preliminary Prospectus or Prospectus, as the case may be; and all references in
this Agreement to
amendments or supplements to the Registration Statement, any preliminary
Prospectus or Prospectus shall be deemed to mean and include any document filed
with the SEC under the

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1934 Act, after the date of such Registration Statement,
preliminary Prospectus or Prospectus, as the case may be, which is incorporated
or deemed to be incorporated by reference therein.

          2. Registration Under the 1933 Act.

          (a) To the extent not prohibited by any applicable law or applicable
interpretation of the SEC staff, the Company shall use its reasonable best
efforts (i) to file with the SEC on or prior to the
120th calendar day after
the Issue Date an Exchange Offer Registration Statement covering the offer by
the Company to the Holders to exchange all of the Registrable Notes for
Exchange Notes (the “Exchange Offer”), (ii) to cause such Exchange Offer
Registration Statement to be declared effective on or prior to the
180th
calendar day after the Issue Date and (iii) to have such Exchange Offer
Registration Statement remain effective until the closing of the Exchange
Offer. The Company shall commence the Exchange Offer promptly after the
Exchange Offer Registration Statement has been declared effective by the SEC
and use its reasonable best efforts to have the Exchange Offer consummated on
or prior to the 45th calendar day after the Exchange Offer Registration
Statement is declared effective by the SEC. The Company shall commence the
Exchange Offer by mailing, or causing to be mailed, the Prospectus forming a
part of the Exchange Offer Registration Statement and the accompanying
documents to each Holder stating, in addition to such other disclosures as are
required by applicable law:

     (i) that the Exchange Offer is being made pursuant to this Agreement
and that all Registrable Notes validly tendered will be accepted for
exchange;

     (ii) the dates of acceptance for exchange (which shall be a period
of at least 20 Business Days from the date such notice is mailed) (the
“Exchange Date”);

     (iii) that, subject to the limited exceptions set forth herein, any
Registrable Notes not tendered in the Exchange Offer will remain
outstanding and will continue to accrue interest, but will not retain any
rights under this Agreement;

     (iv) that Holders electing to have a Registrable Note exchanged
pursuant to the Exchange Offer will be required to surrender such
Registrable Note, together with the relevant letters of transmittal and
related documents, to the institution and at the address (located in the
Borough of Manhattan, The City of New York) specified in the Prospectus
forming a part of the Exchange Offer Registration Statement prior to the
close of business on the last Exchange Date; and

     (v) that Holders will be entitled to withdraw their election, not
later than the close of business on the last Exchange Date, by sending to
the institution and at the address (located in the Borough of Manhattan,
The City of New York) specified in the Prospectus forming a part of the
Exchange Offer Registration Statement a telegram, telex, facsimile
transmission or letter setting forth the name of such Holder, the
principal amount of Registrable Notes delivered for exchange and a
statement that such Holder is
withdrawing his election to have such Registrable Notes exchanged
and the principal amount of Registrable Notes subject to the withdrawal
notice.

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               Promptly after the last Exchange Date, the Company shall:

     (i) accept for exchange Registrable Notes or portions thereof
validly tendered and not withdrawn pursuant to the Exchange Offer; and

     (ii) deliver, or cause to be delivered, to the Trustee for
cancellation all Registrable Notes or portions thereof so accepted for
exchange by the Company and issue, and cause the Trustee to promptly
authenticate and mail to each Holder, Exchange Notes equal in principal
amount to the principal amount of the Registrable Notes tendered by such
Holder and accepted for exchange pursuant to the Exchange Offer.

          The Company shall use its reasonable best efforts to complete the Exchange
Offer as provided above and shall comply with the applicable requirements of
the 1933 Act, the 1934 Act and other applicable laws, rules and regulations in
connection with the Exchange Offer. The Exchange Offer shall not be subject to
any conditions, other than that the Exchange Offer does not violate applicable
law or any applicable interpretation of the SEC staff.

          Each Holder participating in the Exchange Offer shall be required to
represent to the Company that (i) any Exchange Notes received by such Holder
will be acquired in the ordinary course of business, (ii) such Holder will have
no arrangements or understanding with any person to participate in the
distribution of the Registrable Notes or the Exchange Notes within the meaning
of the 1933 Act, and (iii) such Holder is not an “affiliate,” as defined in
Rule 405 of the 1933 Act, of the Company, nor a broker-dealer tendering
Registrable Notes acquired directly from the Company or one of its affiliates
(as defined in Rule 405 of the 1933 Act). If a Holder participating in the
Exchange Offer is a broker-dealer, it will be required to represent that the
Registrable Notes were acquired as a result of market-making activities or
other trading activities and that it will deliver a Prospectus in connection
with any resale of such Exchange Notes. Each such Holder, whether or not it is
a broker-dealer, shall also represent that it is not acting on behalf of any
person that could not truthfully make any of the foregoing representations
contained in this paragraph.

          Upon consummation of the Exchange Offer in accordance with this Section
2(a), the provisions of this Agreement shall continue to apply (to the extent
applicable) solely with respect to Registrable Notes, as provided in (and
subject to) Sections 2(b)(iii), 2(b)(iv) and 2(b)(v) hereof, and the Company
shall have no further obligation to register Initial Notes pursuant to Section
2(b) hereof.

          (b) In the event that (i) changes in the law or the applicable
interpretations of the SEC staff do not permit the Company to effect the
Exchange Offer Registration, (ii) the Exchange Offer is not for any other
reason consummated by on or prior to the 225th calendar day (or, if such 225th
day is not a Business Day, the first Business Day thereafter) after the Issue
Date, or (iii) an Initial Purchaser so requests with respect to the Registrable
Notes held by it not eligible to be exchanged for Exchange Notes in the
Exchange Offer Registration and held by it following the consummation of the
Exchange Offer, (iv) any applicable law or interpretations do
not permit any Holder to participate in the Exchange Offer, or (v) any
Holder that participates in the Exchange Offer does not receive freely
transferable Exchange Notes in exchange for tendered Registrable Notes, the
Company shall, at no cost to the Holders of the Registrable

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Notes, as promptly
as practicable (but in any event within 30 calendar days of the date on which
it is determined that any of (i), (ii), (iii), (iv) or (v) shall exist or 255
calendar days after the Issue Date, whichever is earlier), file with the SEC a
Shelf Registration Statement (or, if required by applicable law or the
interpretations of the SEC staff, additional Shelf Registration Statements)
providing for the sale by the Holders of all of the Registrable Notes (in the
case of clause (i) or (ii) above) or by the relevant Holders of the Registrable
Notes (in the case of clauses (iii), (iv) and (v) above) and use its reasonable
best efforts to cause such Shelf Registration Statement(s) to be declared
effective by the SEC on or prior to the 90th calendar day after the date on
which it is determined that any of clause (i), (ii), (iii), (iv) or (v) of this
Section 2(b) exists. In the event the Company is required to file a Shelf
Registration Statement solely as a result of the matters referred to in clause
(iii) of the preceding sentence, the Company shall use its reasonable best
efforts to file and have declared effective by the SEC both an Exchange Offer
Registration Statement pursuant to Section 2(a) hereof with respect to all
Registrable Notes and such Shelf Registration Statement (which may be a
combined Registration Statement with the Exchange Offer Registration Statement)
with respect to offers and sales of Registrable Notes held by the Holders after
completion of the Exchange Offer. The Company agrees to use its reasonable
best efforts to keep the Shelf Registration Statement continuously effective
until the expiration of the period referred to in Rule 144(k) under the 1933
Act with respect to the Registrable Notes or such shorter period that will
terminate when all of the Registrable Notes covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement or may be
freely sold pursuant to Rule 144(k) under the 1933 Act. The Company further
agrees to supplement or amend the Shelf Registration Statement or file
additional Shelf Registration Statements if required by the rules, regulations
or instructions applicable to the registration form used by the Company for
such Shelf Registration Statement or by the 1933 Act or by the SEC staff or by
any other rules and regulations thereunder for shelf registration or if
reasonably requested by a Holder with respect to information relating to such
Holder, and to use its best efforts to cause any such amendment to become
effective and such Shelf Registration Statement(s) to become usable as soon as
thereafter practicable. Upon written request, the Company agrees to furnish to
such Holders copies of any such supplement or amendment to the Shelf
Registration Statement promptly after it is filed with the SEC.

          (c) The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a) and Section 2(b). Each Holder shall pay
all underwriting discounts and commissions and transfer taxes, if any, relating
to the sale or disposition of such Holder’s Registrable Notes pursuant to a
Shelf Registration Statement. For purposes of this Agreement, the Company will
be deemed not to have used its reasonable best efforts to cause the Exchange
Offer Registration Statement or the Shelf Registration Statement, as the case
may be, to be filed or to become, or to remain, effective during the requisite
periods if it voluntarily takes any action that would result in any such
Registration Statement not being declared effective or in the Holders of
Registrable Notes covered thereby not being able to exchange or offer and sell
such Registrable Notes during that period unless (A) such action is required by
applicable law or (B) such action is taken by the Company in good faith and for
valid business reasons (not including avoidance of the Company’s obligations
hereunder), including the acquisition or
divestiture of assets, so long as the Company promptly complies with the
requirements of Section 3(i) hereof, if applicable.

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     (d) An Exchange Offer Registration Statement pursuant to Section 2(a)
hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof will
not be deemed to have become effective unless it has been declared effective by
the SEC; provided, however, that, if, after it has been declared effective, the
offering of Registrable Notes pursuant to a Shelf Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, such Shelf Registration
Statement will be deemed not to have become effective during the period of such
interference until the offering of Registrable Notes pursuant to such
Registration Statement may legally resume. In the event (i) the Exchange Offer
Registration Statement is not filed with the SEC on or prior to the 120th
calendar day after the Issue Date, (ii) the Exchange Offer Registration
Statement has not been declared effective by the SEC on or prior to the 180th
calendar day after the Issue Date, (iii) the Exchange Offer has not been
consummated on or prior to the 45th calendar day following the date the
Exchange Offer Registration Statement is declared effective by the SEC, or (iv)
if required under the terms of this Agreement, a Shelf Registration Statement
is not filed and declared effective by the SEC within the time periods referred
to in Section 2(b) hereof (each of the events described in the above paragraphs
(i) through (iv) being referred to as a “Registration Default”), the interest
rate on the Initial Notes will be increased by 0.25% per annum from and
including the date on which any such Registration Default shall occur to but
excluding the date on which the Registration Default is cured. In the event
that the Shelf Registration Statement required to be effective pursuant to
Section 2(b) hereof (A) ceases to be effective or becomes unusable for its
intended purpose at any time during the period specified by Section 2(b) hereof
without being succeeded within 30 calendar days by a Prospectus supplement, if
applicable, or a post-effective amendment to the Shelf Registration Statement
or a new Shelf Registration Statement that is declared effective by the SEC, or
(B) ceases to be effective or usable for more than 60 days, whether or not
consecutive, during any 12-month period, the interest rate borne by the Initial
Notes also shall be increased by 0.25% per annum, in the case of (A), from and
including the 31st calendar day to but excluding the date that a Prospectus
supplement, if applicable, or a post-effective amendment to the Shelf
Registration Statement or a new Shelf Registration Statement succeeds the
original Shelf Registration Statement which is usable by Holders for purposes
of resales of their Registrable Notes and, in the case of (B), from and
including the 61st day after the applicable 12-month period such Shelf
Registration Statement ceases to be effective until such time as the Shelf
Registration Statement again becomes effective. The maximum aggregate increase
in the interest rate will in no event exceed 0.25%. Any amounts payable under
this Section 2(d) shall be deemed “Additional Interest” for purposes of this
Agreement. All calculations pursuant to this Section 2(d) shall be carried out
to five decimal places. The Additional Interest due shall be payable on each
Interest Payment Date to the record Holder entitled to receive the interest
payment to be paid on such Interest Payment Date as set forth in the Indenture.
Additional Interest shall be calculated on the basis of a 360-day year
consisting of twelve 30-day months. All of the Company’s obligations under
this Section 2(d) shall survive termination of this Agreement.

     (e) The Company shall immediately notify the Trustee when an event occurs
in respect of which Additional Interest is required to be paid (an “Event
Date”).

     (f) Without limiting the remedies available to the Holders, the Company
acknowledges that any failure by the Company to comply with its obligations
under Section 2(a) and Section 2(b) hereof may result in material irreparable
injury to each Holder for which there

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is no adequate remedy at law, that it
will not be possible to measure damages for such injuries precisely and that,
in the event of any such failure, any Holder may obtain such relief as may be
required to specifically enforce the Company’s obligations under Section 2(a)
and Section 2(b) hereof.

          3. Registration Procedures.

          In connection with the obligations of the Company with respect to the
Registration Statements pursuant to Section 2(a) and Section 2(b) hereof, the
Company shall as reasonably expeditiously as possible:

     (a) prepare and file with the SEC a Registration Statement (or, if
required by applicable law or the interpretations of the SEC staff,
additional Registration Statements) on the appropriate form under the
1933 Act, which form (x) shall be selected by the Company, (y) shall, in
the case of a Shelf Registration, be available for the sale of the
Registrable Notes by the selling Holders thereof and (z) shall comply as
to form in all material respects with the requirements of the applicable
form and include all financial statements required by the SEC to be filed
therewith, and use its reasonable best efforts to cause such Registration
Statement to become effective and remain effective in accordance with
Section 2 hereof;

     (b) prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to (x) keep
such Registration Statement effective for the applicable period under
this Agreement, (y) cause each Prospectus to be supplemented by any
required prospectus supplement and, as so supplemented, to be filed
pursuant to Rule 424 under the 1933 Act and (z) to keep each Prospectus
current during the period described under Section 4(3) and Rule 174 under
the 1933 Act that is applicable to transactions by brokers or dealers
with respect to the Registrable Notes or Exchange Notes;

     (c) in the case of a Shelf Registration, (x) notify the Holders of
Registrable Notes, at least five Business Days prior to filing, that a
Shelf Registration Statement with respect to the Registrable Notes is
being filed and advising such Holders that the distribution of
Registrable Notes will be made in accordance with the method selected by
the Majority Holders participating in the Shelf Registration; (y) furnish
to each Holder of Registrable Notes, to counsel for the Holders and to
each Underwriter of an Underwritten Offering of Registrable Notes, if
any, and each such Underwriter’s counsel, without charge, as many copies
of each Prospectus, including each preliminary Prospectus, if any, and
any amendment or supplement thereto and such other documents as such
Holder or Underwriter may reasonably request, in order to facilitate the
public sale or other disposition of the Registrable Notes; and (z)
consent to the use of any Prospectus and any amendment or supplement
thereto in accordance with applicable law by each of the
selling Holders of Registrable Notes and any such Underwriters in
connection with the offering and sale of the Registrable Notes covered by
and in the manner described in such Prospectus or any amendment or
supplement thereto in accordance with applicable law;

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     (d) use its reasonable best efforts to register or qualify the
Registrable Notes under all applicable state securities or “blue sky”
laws of such jurisdictions as any Holder of Registrable Notes covered by
a Registration Statement shall reasonably request in writing by the time
the applicable Registration Statement is declared effective by the SEC,
to cooperate with such Holders in connection with any filings required to
be made with the NASD and do any and all other acts and things which may
be reasonably necessary or advisable to enable such Holder to consummate
the disposition in each such jurisdiction of such Registrable Notes owned
by such Holder; provided, however, that the Company shall not be required
to (i) qualify as a foreign corporation or as a dealer in securities in
any jurisdiction where it would not otherwise be required to qualify but
for this Section 3(d), (ii) file any general consent to service of
process or (iii) subject itself to taxation in excess of a nominal dollar
amount in any such jurisdiction if it is not otherwise so subject;

     (e) in the case of a Shelf Registration, notify each Holder of
Registrable Notes, if requested by any such Holder, confirm such advice
in writing (i) when a Shelf Registration Statement has become effective
and when any post-effective amendment thereto has been filed and becomes
effective, (ii) of any request by the SEC or any state securities
authority for amendments and supplements to a Shelf Registration
Statement and Prospectus or for material additional information after the
Shelf Registration Statement has become effective, (iii) of the issuance
by the SEC or any state securities authority of any stop order suspending
the effectiveness of a Shelf Registration Statement or the initiation of
any proceedings for that purpose, (iv) if, between the effective date of
a Shelf Registration Statement and the closing of any sale of Registrable
Notes covered thereby, the representations and warranties of the Company
contained in any underwriting agreement, securities sales agreement or
other similar agreement, if any, relating to the offering cease to be
true and correct in all material respects or if the Company receives any
notification with respect to the suspension of the qualification (or
exemption from qualification) of the Registrable Notes or the Exchange
Notes, as the case may be, for sale in any jurisdiction or the initiation
of any proceeding for such purpose, (v) of the happening of any event
during the period a Shelf Registration Statement is effective which makes
any statement made in such Shelf Registration Statement or the related
Prospectus untrue in any material respect or which requires the making of
any changes in such Shelf Registration Statement or Prospectus in order
to make the statements therein (in the case of the Prospectus, in light
of circumstances under which they were made) not misleading and (vi) of
any determination by the Company that a post-effective amendment to a
Shelf Registration Statement would be appropriate;

     (f) make every reasonable effort to obtain (i) the withdrawal of any
order suspending the effectiveness of a Registration Statement and (ii)
the lifting of any suspension of the qualification (or exemption from
qualification) of any of the Registrable Notes or the Exchange Notes, as
the case may be, for offer or sale in any jurisdiction in which they have
been qualified for sale, in each case at the earliest possible
moment and provide immediate notice to each Holder of the withdrawal
of any such order;

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     (g) in the case of a Shelf Registration, upon written request,
furnish to each Holder of Registrable Notes, without charge, at least one
conformed copy of each Shelf Registration Statement and any
post-effective amendment thereto (without documents incorporated therein
by reference or exhibits thereto, unless requested);

     (h) in the case of a Shelf Registration, cooperate with the selling
Holders of Registrable Notes to facilitate the timely preparation and
delivery of certificates representing Registrable Notes to be sold and
not bearing any restrictive legends and enable such Registrable Notes to
be in such denominations (consistent with the provisions of the
Indenture) and registered in such names as the selling Holders may
reasonably request at least two Business Days prior to the closing of any
sale of Registrable Notes;

     (i) in the case of a Shelf Registration, upon the occurrence of any
event contemplated by Section 3(e)(v) or 3(e)(vi) hereof, use its best
efforts to prepare and file with the SEC a supplement or post-effective
amendment to a Shelf Registration Statement or the related Prospectus or
any document incorporated therein by reference or file any other required
document so that, as thereafter delivered to the purchasers of the
Registrable Notes, such Prospectus will not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were
made, not misleading. The Company agrees to notify the Holders to
suspend use of the Prospectus as promptly as practicable after the
occurrence of such an event, and the Holders hereby agree to suspend use
of the Prospectus until the Company has amended or supplemented the
Prospectus to correct such misstatement or omission;

     (j) within a reasonable time prior to the filing of any Shelf
Registration Statement, any Prospectus included therein, any amendment to
a Shelf Registration Statement or amendment or supplement to a Prospectus
included therein, provide copies of such document to the Initial
Purchasers, and shall not at any time file or make any amendment to the
Shelf Registration Statement, any Prospectus included therein or any
amendment of or supplement to a Shelf Registration Statement or a
Prospectus included therein, of which the Initial Purchasers and their
counsel shall not have previously been advised and furnished a copy or to
which the Initial Purchasers or their counsel shall reasonably object;

     (k) obtain a CUSIP number for all Exchange Notes or Registrable
Notes, as the case may be, and cause to be authenticated and delivered to
the Trustee global certificates for such Exchange Notes or Registrable
Notes, in a form eligible for deposit with The Depository Trust Company,
by the date the Exchange Offer is consummated or the effective date of
the initial Shelf Registration Statement, whichever is earlier;

     (l) cause the Indenture to be qualified under the Trust Indenture
Act of 1939, as amended (the “TIA”), in connection with the registration
of the Exchange Notes or
Registrable Notes, as the case may be, cooperate with the Trustee
and the Holders to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the
terms of the TIA and execute, and use its best efforts to

11

 

cause the
Trustee to execute, all documents as may be required to effect such
changes and all other forms and documents required to be filed with the
SEC to enable the Indenture to be so qualified in a timely manner;

     (m) in the case of a Shelf Registration, upon execution of customary
confidentiality agreements reasonably satisfactory to the Company and its
counsel make available for inspection by a representative of the Holders
of the Registrable Notes, any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, and attorneys
and accountants designated by the Holders, at reasonable times and in a
reasonable manner, all financial and other records, pertinent documents
and properties of the Company, and cause the respective officers,
directors and employees of the Company to supply all information
reasonably requested by any such representative, Underwriter, attorney or
accountant in connection with a Shelf Registration Statement as shall be
necessary to enable such persons to conduct a reasonable investigation
within the meaning of Section 11 of the 1933 Act;

     (n) use its reasonable best efforts to cause the Exchange Notes and
Registrable Notes, as the case may be, to be rated by two nationally
recognized statistical rating organizations (as such term is defined in
Rule 436(g)(2) under the 1933 Act);

     (o) if reasonably requested by any Holder of Registrable Notes
covered by a Registration Statement, (i) promptly incorporate in a
Prospectus supplement or post-effective amendment such information with
respect to such Holder as such Holder reasonably requests to be included
therein and (ii) make all required filings of such Prospectus supplement
or such post-effective amendment as soon as reasonably practicable after
the Company has received notification of the matters to be incorporated
in such filing;

     (p) in the case of a Shelf Registration, enter into such customary
agreements and take all such other actions in connection therewith
(including those requested by the Holders of a majority of the
Registrable Notes being sold pursuant to such Shelf Registration
Statement) in order to expedite or facilitate the disposition of such
Registrable Notes including, but not limited to, an Underwritten Offering
and in such connection, (i) to the extent possible, make such
representations and warranties to the Holders and any Underwriters of
such Registrable Notes with respect to the business of the Company and
its subsidiaries, the Registration Statement, Prospectus and documents
incorporated by reference or deemed incorporated by reference therein, if
any, in each case, in form, substance and scope as are customarily made
by issuers to underwriters in underwritten offerings and confirm the same
if and when requested, (ii) obtain opinions of counsel to the Company
(which counsel and opinions, in form, scope and substance, shall be
reasonably satisfactory to the Holders of a majority in principal amount
of Registrable Notes being sold and such Underwriters and their
respective counsel) addressed to each selling Holder and Underwriter of
Registrable Notes, covering the matters customarily covered in opinions
requested in underwritten offerings, (iii) obtain
“cold comfort” letters from the independent certified public
accountants of the Company (and, if necessary, any other certified public
accountant of any subsidiary of the Company, or of any business acquired
by the Company for which financial statements

12

 

and financial data are or
are required to be included in the Registration Statement) addressed to
each Underwriter of Registrable Notes, and use its best efforts to have
such letter addressed to the selling Holders, such letters to be in
customary form and covering matters of the type customarily covered in
“cold comfort” letters in connection with underwritten offerings, and
(iv) deliver such documents and certificates as may be reasonably
requested by the Holders of a majority in principal amount of the
Registrable Notes being sold or the Underwriters, and which are
customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties of the Company
made pursuant to clause (i) above and to evidence compliance with any
customary conditions contained in an underwriting agreement; provided,
that if an underwriting agreement is entered into, cause the same to
contain indemnification provisions and procedures no less favorable than
those set forth in Section 5 hereof (or such other provisions and
procedures acceptable to the Majority Holders and the Underwriters, if
any), with respect to all parties to be indemnified pursuant to Section 5
hereof;

     (q) in the event that any broker-dealer shall underwrite any
Registrable Notes or participate as a member of an underwriting syndicate
or selling group or “assist in the public distribution” (within the
meaning of the NASD Rules) thereof, whether as a Holder of such
Registrable Notes or as an underwriter, a placement or sales agent or a
broker or dealer in respect thereof, or otherwise, the Company shall
assist such broker-dealer in complying with the NASD Rules, including,
without limitation, by:

(i) if the NASD Rules shall so require, engaging a “qualified
independent underwriter” (as defined in the NASD Rules) to
participate in the preparation of the Shelf Registration Statement,
to exercise usual standards of due diligence with respect thereto
and, if any portion of the offering contemplated by the Shelf
Registration Statement is an underwritten offering or is made
through a placement or sales agent, to recommend the price of such
Registrable Notes;

(ii) indemnifying any such qualified independent underwriter to the
extent of the indemnification of Holders provided in Section 5
hereof; and

(iii) providing such information to such broker-dealer as may be
required in order for such broker-dealer to comply with the
requirements of the NASD Rules.

          The Company shall use its best efforts to comply with all applicable rules
and regulations of the SEC and shall make generally available to its security
holders an earning statement satisfying the provisions of Section 11(a) of the
Act and Rule 158 promulgated by the SEC thereunder (or any similar rule
promulgated under the 1933 Act) for a 12-month period commencing on the first
day of the first fiscal quarter of the Company commencing after the effective
date of any Shelf Registration Statement or each post-effective amendment to
any Shelf Registration Statement, which such statements shall be made available
no later than 45 days after the end of the 12-month period or 90 days after the
end of the 12-month period, if the 12-month
period coincides with the fiscal year of the Company, or such shorter
period as required under the 1933 Act or 1934 Act and the rules and regulations
promulgated thereunder.

13

 

          In the case of a Shelf Registration Statement, the Company may require
each Holder of Registrable Notes to furnish to the Company such information
regarding the Holder and the proposed distribution by such Holder of such
Registrable Notes as the Company may from time to time reasonably request in
writing for inclusion in such Shelf Registration Statement. The Company may
exclude from such Shelf Registration Statement the Registrable Notes of any
Holder who fails to furnish such information within a reasonable time after
receiving such request.

          In the case of a Shelf Registration Statement, each Holder agrees that,
upon receipt of any notice from the Company of the happening of any event of
the kind described in Section 3(e)(v) or 3(e)(vi) hereof, such Holder will
forthwith discontinue disposition of Registrable Notes pursuant to a Shelf
Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(i) hereof, and, if
so directed by the Company, such Holder will deliver to the Company (at the
Company’s expense) all copies in its possession, other than permanent file
copies then in such Holder’s possession, of the Prospectus covering such
Registrable Notes current at the time of receipt of such notice, provided that
the foregoing shall not prevent the sale, transfer or other disposition of
Registrable Notes by a Holder in a transaction which is exempt from, or not
subject to, the registration requirements of the 1933 Act, so long as such
Holder does not and is not required to deliver the applicable Prospectus or
Shelf Registration Statement in connection with such sale, transfer or other
disposition, as the case may be; and provided, further, that the provisions of
this paragraph shall not prevent the occurrence of an Event Date or otherwise
limit the obligations of the Company to pay Additional Interest. If the
Company shall give any such notice to suspend the disposition of Registrable
Notes pursuant to a Registration Statement, the Company shall extend the period
during which the Registration Statement shall be maintained effective pursuant
to this Agreement by the number of days during the period from and including
the date of the giving of such notice to and including the date when the
Holders shall have received copies of the supplemented or amended Prospectus
necessary to resume such dispositions.

          The Holders of Registrable Notes covered by a Shelf Registration Statement
who desire to do so may sell such Registrable Notes in an Underwritten
Offering. In any such Underwritten Offering, the investment banker or
investment bankers and manager or managers (the “Underwriters”) that will
administer the offering will be selected by the Majority Holders of the
Registrable Notes included in such offering, subject to the consent of the
Company (which shall not be unreasonably withheld).

          4. Participation of Broker-Dealers in Exchange Offer.

          (a) The SEC staff has taken the position that any broker-dealer that
receives Exchange Notes for its own account in the Exchange Offer in exchange
for Initial Notes that were acquired by such broker-dealer as a result of
market-making or other trading activities (a “Participating Broker-Dealer”),
may be deemed to be an “underwriter” within the meaning of
the 1933 Act and must deliver a prospectus meeting the requirements of the
1933 Act in connection with any resale of such Exchange Notes.

          The Company understands that it is the SEC staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution

14

 

containing a statement to the above effect and the means
by which Participating Broker-Dealers may resell the Exchange Notes, without
naming the Participating Broker-Dealers or specifying the amount of Exchange
Notes owned by them, such Prospectus may be delivered by Participating
Broker-Dealers to satisfy their prospectus delivery obligation under the 1933
Act in connection with resales of Exchange Notes for their own accounts, so
long as the Prospectus otherwise meets the requirements of the 1933 Act.

          (b) In light of Section 4(a) hereof, notwithstanding the other provisions
of this Agreement, the Company agrees that the provisions of this Agreement as
they relate to a Shelf Registration shall also apply to an Exchange Offer
Registration to the extent, and with such reasonable modifications thereto as
may be, reasonably requested by one or more Participating Broker-Dealers, in
each case as provided in clause (ii) below, in order to expedite or facilitate
the disposition of any Exchange Notes by Participating Broker-Dealers
consistent with the positions of the SEC staff recited in Section 4(a) hereof;
provided that:

     (i) the Company shall not be required to amend or supplement the
Prospectus contained in the Exchange Offer Registration Statement, as
would otherwise be contemplated by Section 3(i) hereof, for a period
exceeding 90 days after the last Exchange Date (as such period may be
extended pursuant to the penultimate paragraph of Section 3 hereof) and
Participating Broker-Dealers shall not be authorized by the Company to
deliver and shall not deliver such Prospectus after such period in
connection with the resales contemplated by this Section 4;

     (ii) the application of the Shelf Registration procedures set forth
in Section 3 hereof to an Exchange Offer Registration, to the extent not
required by the positions of the SEC staff or the 1933 Act and the rules
and regulations thereunder, will be in conformity with the reasonable
request in writing to the Company by one or more broker-dealers who
certify to the Company in writing that they anticipate that they will be
Participating Broker-Dealers; and provided further that, in connection
with such application of the Shelf Registration procedures set forth in
Section 3 hereof to an Exchange Offer Registration, the Company shall be
obligated (x) to deal only with the Initial Purchasers representing the
Participating Broker-Dealers, unless the Initial Purchasers elect not to
act as such representatives, (y) to pay the fees and expenses of only one
counsel representing the Participating Broker-Dealers, which shall be
counsel to the Initial Purchasers unless such counsel elects not to so
act, and (z) to cause to be delivered only one, if any, “cold comfort”
letter with respect to the Prospectus in the form existing on the last
Exchange Date and with respect to each subsequent amendment or
supplement, if any, effected during the period specified in clause (i)
above.

          (c) None of the Initial Purchasers shall have any liability to the Company
or any Holder with respect to any request that it may make pursuant to Section
4(b) above.

          5. Indemnification and Contribution.

     (a) The Company will indemnify and hold harmless each Holder (including,
if applicable, the Initial Purchasers, Participating Broker-Dealers and each
underwriter who participates in an offering of Registrable Notes) and each
Person who controls such Holder

15

 

within the meaning of either the 1933 Act or
the 1934 Act against any losses, claims, damages or liabilities, joint or
several, to which any of them may become subject, under the 1933 Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon an untrue statement or
alleged untrue statement of a material fact contained in any Registration
Statement, or in any Prospectus, or any amendment thereof or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading, and will
reimburse each such party for any legal or other expenses reasonably incurred
by such party in connection with investigating or defending any such action or
claim as such expenses are incurred; provided, however, (i) that the Company
shall not be liable in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon Holder Information
(including, if applicable, Holder Information furnished by the Initial
Purchasers, Participating Broker-Dealers and each underwriter who participates
in an offering of Registrable Notes), (ii) that with respect to any untrue
statement or omission of material fact made in any Shelf Registration
Statement, or in any Prospectus, the indemnity agreement contained in this
Section 5(a) shall not inure to the benefit of the Holder or any person who
controls the Holder within the meaning of either the 1933 Act or the 1934 Act
from whom the person asserting any such loss, claim, damage or liability
purchased the securities concerned, to the extent that any such loss, claim,
damage or liability of the Holders occurs under the circumstance where it shall
have been established that (w) the Company had previously furnished copies of
the Prospectus, and any amendments and supplements thereto, to the Holder, (x)
delivery of the Prospectus, and any amendment or supplements thereto, was
required by the 1933 Act to be made to such person, (y) the untrue statement or
omission of a material fact contained in the Prospectus was corrected in
amendments or supplements thereto, and (z) there was not sent or given to such
person, at or prior to the written confirmation of the sale of such securities
to such person, a copy of such amendments or supplements to the Prospectus, and
(iii) except as otherwise provided in Section 5(c), the Company will not be
liable for any such loss, claim, damage or liability in connection with any
settlement of any pending or threatened litigation or any pending or threatened
governmental agency investigation or proceeding if that settlement is effected
without the prior written consent of the Company, which consent shall not be
unreasonably withheld. This indemnity agreement will be in addition to any
liability that the Company may otherwise have.

     (b) Each Holder (including, if applicable, the Initial Purchasers,
Participating Broker-Dealers and each underwriter who participates in an
offering of Registrable Notes), severally and not jointly, agrees to indemnify
and hold harmless the Company and each person who controls the Company within
the meaning of either the 1933 Act or the 1934 Act, to the same extent as the
foregoing indemnity from the Company to the Holders and agrees to reimburse
each such indemnified party, as incurred, for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
loss, claim, damage, liability
or action, but only with reference to Holder Information supplied by such
Holder. This indemnity agreement will be in addition to any liability that such
Holder may otherwise have.

     (c) Promptly after receipt by an indemnified party under this Section 5 of
notice of the commencement of any action or proceeding (including any
governmental investigation), such indemnified party will, if a claim for
indemnification in respect thereof is to be made against the indemnifying party
under Section 5(a) or 5(b) hereof, notify the

16

 

indemnifying party in writing of
the commencement thereof; but the omission so to notify the indemnifying party
will not relieve it from any liability which it may have to any indemnified
party otherwise than under Section 5(a) or 5(b) hereof to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this
indemnity agreement. In case any such action or proceeding is brought against
any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein (jointly with any other indemnifying party similarly notified), and to
the extent that it may elect, by written notice, delivered to such indemnified
party promptly after receiving the aforesaid notice from such indemnified
party, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified party; provided, however, that if the defendants (including
any impleaded parties) in any such action include both the indemnified party
and the indemnifying party and the indemnified party shall have reasonably
concluded that there may be legal defenses available to it and/or other
indemnified parties which are different from or additional to those available
to the indemnifying party, the indemnified party or parties shall have the
right to select separate counsel to defend such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying
party to such indemnified party of its election so to appoint counsel to defend
such action and approval by the indemnified party of such counsel, the
indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in accordance with the
proviso to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expense of more than one
separate counsel (in addition to any local counsel), approved by the Holders in
the case of paragraph (a) of this Section 5, representing the indemnified
parties under such paragraph (a) who are parties to such action), (ii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
the indemnified party to represent the indemnified party within a reasonable
time after notice or commencement of the action, (iii) the indemnifying party
has authorized the employment of counsel for the indemnified party at the
expense of the indemnifying party, or (iv) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such
counsel with a conflict of interest; and except that, if clause (i) or (iii) is
applicable, such liability shall be only in respect of the counsel referred to
in such clause (i) or (iii). An indemnifying party will not, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding. If at any
time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as
contemplated by this Section 5(c), the
indemnifying party agrees that it shall be liable for any settlement of
any proceeding effected by the indemnified party without its consent if (i)
such settlement is entered into more than 30 days after receipt by such
indemnifying party of such request for reimbursement and (ii) such indemnifying
party shall not have reimbursed the indemnified person in accordance with such
request prior to the date of any settlement.

17

 

     (d) In the event that the indemnity provided in paragraph (a) or (b) of
this Section 5 is unavailable to or insufficient to hold harmless an
indemnified party for any reason, each indemnifying party (severally and not
jointly) agrees to contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in
connection with investigating or defending same) (collectively, “Losses”) to
which the indemnified party may be subject in such proportion as is appropriate
to reflect the relative benefits received by the Company from the offering and
sale of the Initial Notes, on the one hand, and a Holder with respect to the
sale by such Holder of Registrable Notes pursuant to the Registration Statement
which resulted in such Losses, on the other hand; provided, however, that in no
case shall an indemnifying party under Section 5(b) hereof who is a Holder and
who is also a Initial Purchaser be required to contribute any amount in excess
of the total price at which the Initial Notes were sold by it in accordance
with the Purchase Agreement, nor shall any indemnifying party who is a Holder
and who is also an Underwriter be responsible for any amount in excess of the
underwriting discount or commission applicable to the Registrable Notes
purchased by such Underwriter under the Registration Statement which resulted
in such Losses, nor shall any other indemnifying party that is a Holder be
responsible for any amount in excess of the total price at which the
Registrable Notes are sold by such Holder to a purchaser under the Registration
Statement which resulted in such Losses. If the allocation provided by the
immediately preceding sentence is unavailable for any reason, the indemnifying
party and the indemnified party shall contribute in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of such indemnifying party, on the one hand, and such indemnified party,
on the other hand, in connection with the statements or omissions which
resulted in such Losses as well as any other relevant equitable considerations.
Relative benefits received by the Company on the one hand and a Holder on the
other hand with respect to such offering and such sale shall be deemed to be in
the same proportion as the total net proceeds from the offering of the Initial
Notes (before deducting expenses) received by or on behalf of the Company as
set forth in the Offering Circular, on the one hand, and the total proceeds
received by such Holder with respect to its sale of the Initial Notes or
Exchange Notes, on the other hand, bear to the total gross proceeds from the
sale of the Initial notes or Exchange Notes. Relative fault shall be
determined by reference to, among other things, whether any alleged untrue
statement or omission relates to information provided by the indemnifying
party, on the one hand, or by the indemnified party, on the other hand, the
intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The
parties agree that it would not be just and equitable if contribution pursuant
to this paragraph (d) were determined by pro rata allocation or any other
method of allocation that does not take account of the equitable considerations
referred to above. Notwithstanding the provisions of this paragraph (d), no
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation. For purposes of this
Section 5(d), each person who controls such Holder within the meaning of either
the 1933 Act or the 1934 Act shall have the same rights to contribution as such
Holder, and each person who controls the Company
within the meaning of either the 1933 Act or the 1934 Act and each officer
and director of the Company shall have the same rights to contribution as the
Company, subject in each case to the applicable terms and conditions of this
paragraph (d).

     (e) The provisions of this Section 5 will remain in full force and effect,
regardless of any investigation made by or on behalf of any Holder, any
underwriter or the

18

 

Company or any of the officers, directors or controlling
persons referred to in Section 5 hereof, and will survive the sale by a Holder
of Registrable Notes covered by a Shelf Registration Statement.

     6. Miscellaneous.

     (a) Rules 144 and 144A. The Company covenants that it shall use its
reasonable best efforts to file the reports required to be filed by it under
the 1933 Act and the 1934 Act in a timely manner so long as the Registrable
Notes remain outstanding. If at any time the Company is not required to file
such reports, it will, upon request of any Holder or beneficial owner of
Registrable Notes, make available such information necessary to permit sales
pursuant to Rule 144A. The Company further covenants that, for as long as any
Registrable Notes remain outstanding, it will take such further action as any
Holder of Registrable Notes may reasonably request, all to the extent required
from time to time to enable such Holder to sell Registrable Notes without
registration under the 1933 Act within the limitation of the exemptions
provided by Rule 144 and Rule 144A. Upon the written request of any Holder of
Registrable Notes, the Company shall deliver to such Holder a written statement
as to whether it has complied with such requirements.

     (b) No Inconsistent Agreements. The Company has not entered into, and on
or after the date of this Agreement will not enter into, any agreement that is
inconsistent with the rights granted to the Holders of Registrable Notes in
this Agreement or otherwise conflicts with the provisions hereof. The rights
granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Company’s other
issued and outstanding securities under any such agreements.

     (c) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company has obtained the written consent of Holders of at
least a majority in aggregate principal amount of the outstanding Registrable
Notes affected by such amendment, modification, supplement, waiver or consent;
provided, however, that no amendment, modification, supplement, waiver or
consent to any departure from the provisions of Section 5 hereof shall be
effective as against any Holder of Registrable Notes unless consented to in
writing by such Holder.

     (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (i) if to a Holder, at the most current address given by such Holder
to the Company by means of a notice given in accordance with the
provisions of this Section 6(d), which address initially is, with respect
to the Initial Purchasers, the address set forth in the Purchase Agreement; and
(ii) if to the Company, initially at the Company’s address set forth in the
Purchase Agreement and thereafter at such other address, notice of which is
given in accordance with the provisions of this Section 6(d).

     All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; three Business
Days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telexed; when receipt is

19

 

acknowledged, if telecopied; and on
the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery.

     Copies of all such notices, demands, or other communications shall be
concurrently delivered by the Person giving the same to the Trustee, at the
address specified in the Indenture.

     (e) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Notes in
violation of the terms of the Indenture. If any transferee of any Holder shall
acquire Registrable Notes, in any manner, whether by operation of law or
otherwise, such Registrable Notes shall be held subject to all of the terms of
this Agreement, and by taking and holding such Registrable Notes such Person
shall be conclusively deemed to have agreed to be bound by and to perform all
of the terms and provisions of this Agreement and such Person shall be entitled
to receive the benefits hereof. The Initial Purchasers (in their capacity as
Initial Purchasers) shall have no liability or obligation to the Company with
respect to any failure by any Holder to comply with, or breach by any Holder
of, any of the obligations of such Holder under this Agreement.

     (f) Purchases and Sales of Initial Notes. The Company shall not, and
shall use its best efforts to cause its affiliates (as defined in Rule 405
under the 1933 Act) to not, purchase and then resell or otherwise transfer any
Initial Notes prior to the consummation of the Exchange Offer or a Shelf
Registration Statement being declared effective.

     (g) Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right
to enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect its rights or the rights of Holders
hereunder.

     (h) Securities Held by the Company, etc. Whenever the consent or approval
of Holders of a specified percentage of principal amount of Registrable Notes
is required hereunder, Registrable Notes held by the Company or its affiliates,
as defined in Rule 405 under the 1933 Act (other than subsequent Holders of
Registrable Notes if such subsequent Holders are deemed to be affiliates solely
by reason of their holdings of such Registrable Notes), shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage.

     (i) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

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

20

 

     (k) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

     (l) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

     (k) Trustee. The Trustee shall take action as may be reasonably requested
by the Company in connection with the Company satisfying its obligations
arising under this Agreement.

21

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

	 	 	 	 	 
	 	 	RPM INTERNATIONAL INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ P. Kelly Tompkins

	

	 	 	 	Name: P. Kelly Tompkins
	

	 	 	 	Title: Senior Vice President, General
	 	 	Counsel and Secretary

REGISTRATION RIGHTS AGREEMENT

 

 

Confirmed and accepted as of the date hereof.

GOLDMAN, SACHS & CO.

Acting severally on behalf of themselves

     and the several Initial Purchasers named

     in Schedule A hereto

	 	 	 
	BY:	 	/s/ Goldman, Sachs & Co.
	 	
	 
	 	 	(Goldman, Sachs & Co.)

REGISTRATION RIGHTS AGREEMENT

 

 

SCHEDULE A

Goldman, Sachs & Co

McDonald Investments Inc.

NatCity Investments, Inc.

Wachovia Capital Markets, LLC

BNY Capital Markets, Inc.

Fifth Third Securities, Inc.

Mellon Financial Markets, LLC

Mizuho International plc

Piper Jaffray & Co.EX-10.1 PURCHASE AGREEMENT

 

Exhibit 10.1

RPM INTERNATIONAL INC.

(a Delaware corporation)

4.45% Senior Notes due 2009

PURCHASE AGREEMENT

Dated: September 27, 2004

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page

	SECTION 1.	 	Representations and Warranties	 	 	2	 
	                    (a)	 	 	 	Representations and Warranties by the Company	 	 	2	 
	 
	 	 	 	(i)	 	Offering Circular	 	 	2	 
	 
	 	 	 	(ii)	 	Incorporated Documents	 	 	2	 
	 
	 	 	 	(iii)	 	Independent Accountants	 	 	3	 
	 
	 	 	 	(iv)	 	Financial Statements	 	 	3	 
	 
	 	 	 	(v)	 	No Material Adverse Change in Business	 	 	3	 
	 
	 	 	 	(vi)	 	Good Standing of the Company	 	 	3	 
	 
	 	 	 	(vii)	 	Good Standing of Subsidiaries	 	 	4	 
	 
	 	 	 	(viii)	 	Authorization of this Agreement	 	 	4	 
	 
	 	 	 	(ix)	 	Authorization of the Indenture	 	 	4	 
	 
	 	 	 	(x)	 	Authorization of the Registration Rights Agreement	 	 	4	 
	 
	 	 	 	(xi)	 	Authorization of the Notes	 	 	4	 
	 
	 	 	 	(xii)	 	Description of the Notes, the Indenture and the Registration Rights Agreement	 	 	5	 
	 
	 	 	 	(xiii)	 	Absence of Defaults and Conflicts	 	 	5	 
	 
	 	 	 	(xiv)	 	Absence of Labor Dispute	 	 	6	 
	 
	 	 	 	(xv)	 	Absence of Proceedings	 	 	6	 
	 
	 	 	 	(xvi)	 	Absence of Manipulation	 	 	6	 
	 
	 	 	 	(xvii)	 	Possession of Intellectual Property	 	 	6	 
	 
	 	 	 	(xviii)	 	Absence of Further Requirements	 	 	6	 
	 
	 	 	 	(xix)	 	Investment Company Act	 	 	6	 
	 
	 	 	 	(xx)	 	Good and Marketable Title	 	 	7	 
	 
	 	 	 	(xxi)	 	Environmental Laws	 	 	7	 
	 
	 	 	 	(xxii)	 	ERISA	 	 	8	 
	 
	 	 	 	(xxiii)	 	Insurance	 	 	8	 
	 
	 	 	 	(xxiv)	 	Taxes	 	 	8	 
	 
	 	 	 	(xxv)	 	Internal Controls	 	 	8	 
	 
	 	 	 	(xxvi)	 	No Unlawful Payments	 	 	8	 
	 
	 	 	 	(xxvii)	 	No Brokerage Commission; Finder’s Fee	 	 	9	 
	 
	 	 	 	(xxviii)	 	Dividend Payments	 	 	9	 
	 
	 	 	 	(xxix)	 	Similar Offering	 	 	9	 
	 
	 	 	 	(xxx)	 	Rule 144A Eligibility	 	 	9	 
	 
	 	 	 	(xxxi)	 	No General Solicitation or General Advertising	 	 	9	 
	 
	 	 	 	(xxxii)	 	No Registration Required	 	 	9	 
	 
	 	 	 	(xxxiii)	 	Reporting Company	 	 	9	 
	 
	 	 	 	(xxxiv)	 	Sarbanes-Oxley Compliance	 	 	9	 
	 
	 	 	 	(xxxv)	 	Reclassification	 	 	10	 
	                    (b)	 	 	 	Officer’s Certificates	 	 	10	 
	SECTION 2.	 	Sale and Delivery to Initial Purchasers; Closing	 	 	10	 
	                    (a)	 	 	 	Notes	 	 	10	 
	                    (b)	 	 	 	Payment	 	 	10	 
	                    (c)	 	 	 	Denominations; Registration	 	 	11	 

i 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page

	SECTION 3.	 	Covenants of the Company	 	 	11	 
	                    (a)	 	 	 	Offering Circular	 	 	11	 
	                    (b)	 	 	 	Notice and Effect of Material Events	 	 	11	 
	                    (c)	 	 	 	Amendments to Offering Circular and Supplements	 	 	11	 
	                    (d)	 	 	 	Qualifications of Notes for Offer and Sale	 	 	12	 
	                    (e)	 	 	 	Use of Proceeds	 	 	12	 
	                    (f)	 	 	 	Rating of Notes	 	 	12	 
	                    (g)	 	 	 	Restriction on Sale of Notes	 	 	12	 
	                    (h)	 	 	 	DTC	 	 	12	 
	                    (i)	 	 	 	Reporting Requirements	 	 	12	 
	SECTION 4.	 	Payment of Expenses	 	 	12	 
	                    (a)	 	 	 	Expenses	 	 	12	 
	                    (b)	 	 	 	Termination of Agreement	 	 	13	 
	SECTION 5.	 	Conditions of Initial Purchasers’ Obligations	 	 	13	 
	                    (a)	 	 	 	Opinions of Counsel for the Company	 	 	13	 
	                    (b)	 	 	 	Opinion of Counsel for Initial Purchasers	 	 	13	 
	                    (c)	 	 	 	Officers’ Certificate	 	 	14	 
	                    (d)	 	 	 	Accountant’s Comfort Letter	 	 	14	 
	                    (e)	 	 	 	Bring-down Comfort Letter	 	 	14	 
	                    (f)	 	 	 	Maintenance of Rating	 	 	14	 
	                    (g)	 	 	 	Indenture and Registration Rights Agreement	 	 	14	 
	                    (h)	 	 	 	Additional Documents	 	 	14	 
	                    (i)	 	 	 	Termination of Agreement	 	 	15	 
	SECTION 6.	 	Subsequent Offers and Resales of the Notes	 	 	15	 
	                    (a)	 	 	 	Offer and Sale Procedures	 	 	15	 
	 
	 	 	 	(i)	 	Offers and Sales to Qualified Institutional Buyers	 	 	15	 
	 
	 	 	 	(ii)	 	No General Solicitation	 	 	15	 
	 
	 	 	 	(iii)	 	Purchases by Non-Bank Fiduciaries	 	 	15	 
	 
	 	 	 	(iv)	 	Subsequent Purchaser Notification	 	 	15	 
	 
	 	 	 	(v)	 	Restrictions on Transfer	 	 	16	 
	                    (b)	 	 	 	Covenants of the Company	 	 	16	 
	 
	 	 	 	(i)	 	Integration	 	 	16	 
	 
	 	 	 	(ii)	 	Rule 144A Information	 	 	16	 
	 
	 	 	 	(iii)	 	Restriction on Purchases	 	 	16	 
	                    (c)	 	 	 	Qualified Institutional Buyer	 	 	16	 
	SECTION 7.	 	Indemnification	 	 	17	 
	                    (a)	 	 	 	Indemnification of Initial Purchasers	 	 	17	 
	                    (b)	 	 	 	Indemnification of the Company	 	 	17	 
	                    (c)	 	 	 	Actions against Parties; Notification	 	 	18	 
	                    (d)	 	 	 	Settlement without Consent if Failure to Reimburse	 	 	18	 
	SECTION 8.	 	Contribution	 	 	18	 
	SECTION 9.	 	Representations, Warranties and Agreements to Survive Delivery	 	 	20	 
	SECTION 10.	 	Termination of Agreement	 	 	20	 
	                    (a)	 	 	 	Termination; General	 	 	20	 
	                    (b)	 	 	 	Liabilities	 	 	20	 
	SECTION 11.	 	Default by One or More of the Initial Purchasers	 	 	20	 

ii 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page

	SECTION 12.	 	Tax Disclosure	 	 	21	 
	SECTION 13.	 	Notices	 	 	21	 
	SECTION 14.	 	Parties	 	 	22	 
	SECTION 15.	 	GOVERNING LAW AND TIME	 	 	22	 
	SECTION 16.	 	Effect of Headings	 	 	22	 
	SECTION 17.	 	Counterparts	 	 	22	 

	 	 	 
	SCHEDULES
	 	 
	Schedule A

	 	List of Initial Purchasers
	Schedule B

	 	RPM International Inc. — 4.45% Senior Notes due 2009
	Schedule C

	 	List of Material Subsidiaries
	 
	 	 
	EXHIBITS
	 	 
	Exhibit A

	 	Form of Registration Rights Agreement
	Exhibit B

	 	Form of Opinion of P. Kelly Tompkins, General Counsel of the Company, to be Delivered Pursuant to Section 5(a)
	Exhibit C

	 	Form of Opinion of Calfee, Halter & Griswold LLP, United States Counsel for the Company, to be Delivered Pursuant to Section 5(a)

iii 

 

RPM INTERNATIONAL INC.

$200,000,000

4.45% Senior Notes due 2009

PURCHASE AGREEMENT

September 27, 2004

Goldman, Sachs & Co.
    As
Representative of the several Initial Purchasers
    c/o
Goldman Sachs & Co.
    85
Broad Street
    New
York, New York 10004

Ladies and Gentlemen:

     RPM International Inc., a Delaware corporation (the “Company”), proposes
to issue and sell to the Initial Purchasers named in Schedule A hereto
(collectively, the “Initial Purchasers,” which term shall also include any
initial purchaser substituted as hereinafter provided in Section 11 hereof),
for whom Goldman, Sachs & Co. is acting as representative (in such capacity,
the “Representative”), with respect to the issue and sale by the Company and
the purchase by the Initial Purchasers, acting severally and not jointly, of
the respective principal amounts set forth in said Schedule A of $200,000,000
aggregate principal amount of the Company’s 4.45% Senior Notes due 2009 (the
“Notes”).

     The Notes are to be issued pursuant to an indenture, to be dated as of the
Closing Time (as defined in Section 2(c)) (the “Indenture”), between the
Company and The Bank of New York, as trustee (the “Trustee”). The holders of
Notes will be entitled to the benefits of a Registration Rights Agreement
between the Company and the Initial Purchasers, to be dated as of the Closing
Time, which agreement shall be substantially in the form attached hereto as
Exhibit A, with such changes as shall be agreed to by the parties hereto (the
“Registration Rights Agreement”).

     The Company understands that the Initial Purchasers propose to make an
offering of the Notes on the terms and in the manner set forth herein and
agrees that the Initial Purchasers may resell, subject to the conditions set
forth herein, all or a portion of the Notes to purchasers (“Subsequent
Purchasers”) at any time after this Agreement has been executed and delivered.
The Notes are to be offered and sold through the Initial Purchasers without
being registered under the Securities Act of 1933, as amended (the “1933 Act”),
in reliance upon exemptions therefrom. Pursuant to the terms of the Notes and
the Indenture, investors that acquire Notes may only resell or otherwise
transfer such Notes if such Notes are hereafter registered under the 1933 Act
or if an exemption from the registration requirements of the 1933 Act is
available (including the exemption afforded by Rule 144A (“Rule 144A”) of the
rules and regulations promulgated under the 1933 Act (the “1933 Act
Regulations”) by the Securities and Exchange Commission (the “Commission”)).

 

 

     The Company has prepared and delivered to each Initial Purchaser copies of
a preliminary offering circular dated September 27, 2004 (the “Preliminary
Offering Circular”) and has prepared and will deliver to each Initial
Purchaser, by 9:00 A.M. (Eastern time) on the second calendar day after the
date hereof, copies of a final offering circular dated September 27, 2004 (the
“Final Offering Circular”), each for use by such Initial Purchaser in
connection with its solicitation of purchases of, or offering of, the Notes.
“Offering Circular” means, with respect to any date or time referred to in this
Agreement, the most recent offering circular (whether the Preliminary Offering
Circular or the Final Offering Circular, or any amendment or supplement to
either such document), including exhibits thereto and any documents
incorporated therein by reference, which has been prepared and delivered by the
Company to the Initial Purchasers in connection with their solicitation of
purchases of, or offering of, the Notes.

     All references in this Agreement to financial statements and schedules and
other information which is “contained,” “included,” “stated” or “described” in
the Offering Circular (or other references of like import) shall be deemed to
mean and include all such financial statements and schedules and other
information which are incorporated by reference in the Offering Circular; and
all references in this Agreement to amendments or supplements to the Offering
Circular shall be deemed to mean and include the filing of any document under
the Securities Exchange Act of 1934, as amended (the “1934 Act”), which is
incorporated by reference in the Offering Circular.

     SECTION 1. Representations and Warranties.

     (a) Representations and Warranties by the Company. The Company represents
and warrants to each Initial Purchaser as of the date hereof, as of the Closing
Time referred to in Section 2(c) hereof, and agrees with each Initial
Purchaser, as follows:

     (i) Offering Circular. The Offering Circular does not, and at the
Closing Time referred to in Section 2 will not, include an untrue
statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The
representations and warranties in this subsection shall not apply to
statements in or omissions from the Offering Circular made in reliance
upon and in conformity with information furnished to the Company in
writing by any Initial Purchaser through the Representative expressly for
use in the Offering Circular.

     (ii) Incorporated Documents. The Offering Circular as delivered from time to
time shall incorporate by reference the most recent Annual Report of the
Company on Form 10-K filed with the Commission, each Quarterly Report of
the Company on Form 10-Q and each Current Report of the Company on Form
8-K filed (not furnished) with the Commission subsequent to the date of
filing of the most recent Annual Report of the Company on Form 10-K and
such other reports as specifically incorporated by reference in the
Offering Circular. The documents
incorporated by reference in the Offering Circular (the “Incorporated
Documents”), at the time they were or hereafter are filed with the
Commission, or if amended, as so amended, complied and will comply in all
material respects with the requirements of the 1934 Act and the rules and
regulations of the Commission thereunder (the “1934 Act Regulations”).
There are no contracts or

2

 

documents which are required to be described in
the Offering Circular or the Incorporated Documents which have not been
so described, and there are no contracts or documents which are required
to be filed as exhibits to the Incorporated Documents which have not been
so filed as required.

     (iii) Independent Accountants. The accountants who certified the
financial statements and supporting schedules incorporated by reference
in the Offering Circular are independent public accountants within the
meaning of Regulation S-X under the 1933 Act and the 1933 Act
Regulations.

     (iv) Financial Statements. The financial statements, together with
the related schedules and notes, incorporated by reference into the
Offering Circular present fairly the financial position of the Company
and its consolidated subsidiaries at the dates indicated and the
statement of income, shareholders’ equity and cash flows of the Company
and its consolidated subsidiaries for the periods specified; said
financial statements have been prepared in conformity with generally
accepted accounting principles (“GAAP”) applied on a consistent basis
throughout the periods involved. The supporting schedules incorporated
by reference into the Offering Circular present fairly in accordance with
GAAP the information required to be stated therein.

     (v) No Material Adverse Change in Business. Since the respective
dates as of which information is given in the Offering Circular
(exclusive of any amendment thereto), except as otherwise stated therein,
(A) there has been no material adverse change in the condition, financial
or otherwise, or in the earnings, business or business prospects of the
Company and its subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business (a “Material Adverse Effect”),
(B) there have been no transactions entered into by the Company or any of
its Material Subsidiaries (as defined below), other than those in the
ordinary course of business, which are material with respect to the
Company and its Material Subsidiaries considered as one enterprise, (C)
except for regular quarterly dividends on the Common Stock in amounts per
share that are consistent with past practice, there has been no dividend
or distribution of any kind declared, paid or made by the Company on any
class of its capital stock, and (D) there has not been any material
change in the capital stock, short-term debt or long-term debt of the
Company and its Material Subsidiaries (as defined below), except as
disclosed in the Offering Circular.

     (vi) Good Standing of the Company. The Company has been duly
organized and is validly existing as a corporation in good standing under
the laws of the State of Delaware and has corporate power and
authority to own, lease and operate its properties and to conduct
its business as described in the Offering Circular and to enter into and
perform its obligations under, or as contemplated by, this Agreement.
The Company is duly qualified as a foreign corporation to transact
business and is in good standing in each other jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing
of property or the conduct of business, except where the failure so to
qualify or to be in good standing would not result in a Material Adverse
Effect.

3

 

     (vii) Good Standing of Subsidiaries. Each subsidiary of the Company
listed on Schedule C hereto (collectively, the “Material Subsidiaries”)
has been duly organized and is validly existing as a corporation in good
standing under the laws of the jurisdiction of its incorporation, has
corporate power and authority to own, lease and operate its properties
and to conduct its business as described in the Offering Circular. Each
Material Subsidiary is duly qualified as a foreign corporation to
transact business and is in good standing in each jurisdiction in which
such qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except where the failure
to so qualify or to be in good standing would not result in a Material
Adverse Effect. All of the issued and outstanding shares of capital
stock of each subsidiary of the Company have been duly authorized and
validly issued, are fully paid and non-assessable, and except for
directors’ qualifying shares and third party interests in joint ventures
in which the Company invests, are owned directly or indirectly by the
Company, free and clear of all liens, encumbrances, equities or claims.
The Material Subsidiaries are the only subsidiaries of the Company
which meet the criteria in the definition of “significant subsidiary”
pursuant to Rule 1-02(w) of Regulation S-X under the 1933 Act.

     (viii) Authorization of this Agreement. This Agreement has been
duly authorized, executed and delivered by the Company.

     (ix) Authorization of the Indenture. The Indenture has been duly
authorized by the Company and, when executed and delivered by the Company
and the Trustee, will constitute a valid and binding agreement of the
Company, enforceable against the Company in accordance with its terms,
except as the enforcement thereof may be limited by bankruptcy,
insolvency (including, without limitation, all laws relating to
fraudulent transfers), reorganization, moratorium or similar laws
affecting enforcement of creditors’ rights generally and except as
enforcement thereof is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in
equity or at law).

     (x) Authorization of the Registration Rights Agreement. The
Registration Rights Agreement has been authorized by the Company and,
when executed and delivered by the Company and the Initial Purchasers,
will constitute a valid and binding agreement of the Company, enforceable
against the Company in
accordance with its terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency (including, without limitation, all
laws relating to fraudulent transfers), reorganization, moratorium or
similar laws affecting enforcement of creditors’ rights generally and
except as enforcement thereof is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in
equity or at law).

     (xi) Authorization of the Notes. The Notes have been duly
authorized and, at the Closing Time, will have been duly executed by the
Company and, when authenticated, issued and delivered in the manner
provided for in the Indenture and delivered against payment of the
purchase price therefor as provided in this Agreement, will constitute
valid and binding obligations of the Company, enforceable against the
Company in accordance with their terms, except as the enforcement thereof
may be limited by bankruptcy, insolvency (including, without limitation,
all laws relating to

4

 

fraudulent transfers), reorganization, moratorium or
similar laws affecting enforcement of creditors’ rights generally and
except as enforcement thereof is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in
equity or at law), and will be in the form contemplated by, and entitled
to the benefits of, the Indenture and the Registration Rights Agreement.

     (xii) Description of the Notes, the Indenture and the Registration
Rights Agreement. The Notes, the Indenture and the Registration Rights
Agreement will conform in all material respects to the respective
statements relating thereto contained in the Offering Circular.

     (xiii) Absence of Defaults and Conflicts. Neither the Company nor
any of its Material Subsidiaries is in violation of its charter or
by-laws or other constituting or organizational document or in default in
the performance or observance of any obligation, agreement, covenant or
condition contained in any contract, indenture, mortgage, deed of trust,
loan or credit agreement, note, lease or other agreement or instrument to
which the Company or any of its Material Subsidiaries is a party or by
which the Company or any of its Material Subsidiaries may be bound, or to
which any of the property or assets of the Company or any of its Material
Subsidiaries is subject (collectively, “Agreements and Instruments”)
except for such defaults that would not reasonably be expected to result
in a Material Adverse Effect; and the execution, delivery and performance
of this Agreement, the Registration Rights Agreement, the Indenture and
the Notes and the consummation of the transactions contemplated herein
and in the Offering Circular (including the issuance and sale of the
Notes and the use of the proceeds from the sale of the Notes as described
in the Offering Circular under the caption “Use of Proceeds”) and
compliance by the Company with its obligations hereunder and under the
Indenture, the Registration Rights Agreement and the Notes do not and
will not, whether with or without the giving of notice or passage of time
or both, conflict with or constitute a breach of, or default or a
Repayment Event (as
defined below) under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company or
any of its subsidiaries pursuant to, the Agreements and Instruments
(except for such conflicts, breaches, defaults or Repayment Events or
liens, charges or encumbrances that, singly or in the aggregate, would
not reasonably be expected to result in a Material Adverse Effect or
prevent the Company from performing its obligations hereunder), nor will
such action result in any violation of (i) the provisions of the charter
or by-laws or other constituting or organizational document of the
Company or any of its Material Subsidiaries or (ii) any applicable law,
statute, rule, regulation, judgment, order, writ or decree of any
government, government instrumentality or court, domestic or foreign,
having jurisdiction over the Company or any of its subsidiaries or any of
their assets, properties or operations, except in the case of clause
(ii), for such violation that would not result in a Material Adverse
Effect or prevent the Company from performing its obligations hereunder.
As used herein, a “Repayment Event” means any event or condition which
gives the holder of any note, debenture or other evidence of indebtedness
(or any person acting on such holder’s behalf) the right to require the
repurchase, redemption or repayment prior to the stated maturity or
repayment thereof of all or a portion of such indebtedness by the Company
or any of its subsidiaries.

5

 

     (xiv) Absence of Labor Dispute. No labor dispute with the employees
of the Company or any of its Material Subsidiaries exists or, to the
knowledge of the Company, is imminent which, in either case, might be
expected to have a Material Adverse Effect.

     (xv) Absence of Proceedings. Except as disclosed in the Offering
Circular, there is no action, suit, proceeding, inquiry or investigation
before or brought by any court or governmental agency or body, domestic
or foreign, now pending, or, to the knowledge of the Company, threatened,
against or affecting the Company or any of its subsidiaries, which,
singly or in the aggregate, if determined adversely, would reasonably be
expected to result in a Material Adverse Effect.

     (xvi) Absence of Manipulation. Neither the Company nor any
affiliate of the Company has taken, nor will the Company or any affiliate
take, directly or indirectly, any action which is designed to or which
has constituted or which would be expected to cause or result in
stabilization or manipulation of the price of any security of the Company
to facilitate the sale or resale of the Notes.

     (xvii) Possession of Intellectual Property. The Company and its
subsidiaries own or possess, or can acquire on reasonable terms, adequate
patents, patent rights, licenses, inventions, copyrights, know-how
(including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures),
trademarks, service marks, trade names
or other intellectual property (collectively, “Intellectual
Property”) necessary to carry on the business now operated by them, and
to the Company’s knowledge, neither the Company nor any of its
subsidiaries has received any notice or is otherwise aware of any
infringement of or conflict with asserted rights of others with respect
to any Intellectual Property or of any facts or circumstances which would
render any Intellectual Property invalid or inadequate to protect the
interest of the Company or any of its subsidiaries therein, and which
infringement or conflict (if the subject of any unfavorable decision,
ruling or finding) or invalidity or inadequacy, singly or in the
aggregate, would result in a Material Adverse Effect.

     (xviii) Absence of Further Requirements. No filing with, or
authorization, approval, consent, license, order, registration,
qualification or decree of, any court or governmental authority or agency
is necessary or required for the performance by the Company of its
obligations hereunder or under the Registration Rights Agreement or the
Indenture, in connection with the offering, issuance or sale of the Notes
hereunder, or the consummation of the transactions contemplated by this
Agreement or the Offering Circular, or for the due execution, delivery or
performance by the Company of this Agreement, the Registration Rights
Agreement or the Indenture, or for the valid authorization, issuance,
sale and delivery of the Notes, except such as have been already obtained
and or as may be required under the 1933 Act or the 1933 Act Regulations
or state securities laws in connection with the transactions contemplated
in the Registration Rights Agreement and except for the qualification of
the Indenture under the Trust Indenture Act of 1939, as amended (the
“1939 Act”).

     (xix) Investment Company Act. Neither the Company nor any of its
subsidiaries is, nor upon the issuance and sale of the Notes as herein
contemplated and

6

 

the application of the net proceeds therefrom as
described in the Offering Circular will be, an “investment company” or an
entity “controlled” by an “investment company,” as such terms are defined
in the Investment Company Act of 1940, as amended.

     (xx) Good and Marketable Title. The Company and each of its
Material Subsidiaries have good and marketable title in fee simple to all
real property and good and marketable title to all personal property
owned by them, in each case free and clear of all liens, encumbrances and
defects, and all assets held under lease by the Company and its Material
Subsidiaries are held by them under valid, subsisting and enforceable
leases, with such exceptions to each of the above statements that are
described in the Offering Circular or that have not had and would not,
singly or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     (xxi) Environmental Laws. There has been no storage, disposal,
generation, manufacture, refinement, transportation, handling or
treatment of toxic wastes, medical wastes, hazardous wastes
or hazardous substances by the Company or any of its subsidiaries
(or, to the knowledge of the Company, any of their predecessors in
interest) at, upon or from any of the property now or previously owned or
leased by the Company or its subsidiaries in violation of, and the
Company or any of its subsidiaries has no liability under, any applicable
law, ordinance, rule, regulation, order, judgment, decree or permit or
which would require remedial action under any applicable law, ordinance,
rule, regulation, order, judgment, decree or permit, except for any
violation or remedial action which would not have, or could not be
reasonably likely to have, singularly or in the aggregate with all such
violations and remedial actions, a Material Adverse Effect; there has
been no material spill, discharge, leak, emission, injection, escape,
dumping or release of any kind onto such property or into the environment
surrounding such property of any toxic wastes, medical wastes, solid
wastes, hazardous wastes or hazardous substances due to or caused by the
Company or any of its subsidiaries or with respect to which the Company
or any of its subsidiaries have knowledge, except for any such spill,
discharge, leak, emission, injection, escape, dumping or release which
would not have or would not be reasonably likely to have, singularly or
in the aggregate with all such spills, discharges, leaks, emissions,
injections, escapes, dumpings and releases, a Material Adverse Effect.
The terms “hazardous wastes,” “toxic wastes,” “hazardous substances” and
“medical wastes” shall have the meanings specified in any applicable
local, state, federal and foreign laws or regulations with respect to
environmental protection.

     In the ordinary course of its business, the Company conducts a
periodic review of the effect of any and all applicable foreign, federal,
state and local laws and regulations relating to the protection of human
health and safety, the environment or hazardous or toxic substances or
wastes, pollutants or contaminants (“Environmental Laws”) on the
business, operations and properties of the Company and its subsidiaries,
in the course of which it identifies and evaluates associated costs and
liabilities (including, without limitation, any capital or operating
expenditures required for clean-up, closure of properties or compliance
with Environmental Laws or any permit, license or approval, any related
constraints on operating activities and any potential liabilities to
third parties). On the basis of such review, the Company has reasonably
concluded that such associated

7

 

costs and liabilities have not had and
would not, singularly or in the aggregate, reasonably be expected to have
a Material Adverse Effect.

     (xxii) ERISA. The Company is in compliance in all material respects
with all presently applicable provisions of the Employee Retirement
Income Security Act of 1974, as amended, including the regulations and
published interpretations thereunder (“ERISA”); no “reportable event” (as
defined in ERISA) has occurred with respect to any “pension plan” (as
defined in ERISA) for which the Company would have any liability; the
Company has not incurred and does not expect to incur liability under (A)
Title IV of ERISA with respect to the termination of, or withdrawal from,
any “pension plan” or (B) Section 412 or 4971 of the Internal Revenue
Code of 1986, as amended, including the regulations and published
interpretations thereunder (the “Code”); and each “pension plan” for
which the Company would have any liability that is intended to be
qualified under Section 401(a) of the Code is so qualified in all
material respects and nothing has
occurred, whether by action or by failure to act, which would cause
the loss of such qualification.

     (xxiii) Insurance. The Company and each of its subsidiaries carry,
or are covered by, insurance in such amounts and covering such risks as
is adequate for the conduct of their respective businesses and the value
of their respective properties, other than as otherwise disclosed in the
Offering Circular.

     (xxiv) Taxes. The Company has filed all federal, state and local
income and franchise tax returns required to be filed through the date
hereof and has paid all taxes due thereon, and no tax deficiency has been
determined adversely to the Company or any of its subsidiaries which has
had, nor does the Company have any knowledge of any tax deficiency which,
if determined adversely to the Company or any of its subsidiaries, might
have, a Material Adverse Effect.

     (xxv) Internal Controls. The Company (A) makes and keeps accurate
books and records and (B) maintains internal accounting controls which
provide reasonable assurance that (i) transactions are executed in
accordance with management’s authorization, (ii) transactions are
recorded as necessary to permit preparation of its financial statements
and to maintain accountability for its assets, (iii) access to its assets
is permitted only in accordance with management’s authorization and (iv)
the reported accountability for its assets is compared with existing
assets at reasonable intervals.

     (xxvi) No Unlawful Payments. To the best of the Company’s knowledge
after due inquiry, neither the Company nor any of its subsidiaries, nor
any director, officer, agent, employee or other person associated with or
acting on behalf of the Company or any of its subsidiaries, has used any
corporate funds for any unlawful contribution, gift, entertainment or
other unlawful expense relating to political activity; made any direct or
indirect unlawful payment to any foreign or domestic government official
or employee from corporate funds; violated or is in violation of any
provision of the Foreign Corrupt Practices Act of 1977; or made any
bribe, rebate, payoff, influence payment, kickback or other unlawful
payment.

8

 

     (xxvii) No Brokerage Commission; Finder’s Fee. To the best of the
Company’s knowledge after due inquiry, there are no contracts, agreements
or understandings between the Company and any person that would give rise
to a valid claim against the Company or any Initial Purchaser for a
brokerage commission, finder’s fee or other like payment in connection
with this offering.

     (xxviii) Dividend Payments. No Material Subsidiary of the Company
is currently prohibited, directly or indirectly, under any agreement or
other instrument to which it is a party or is subject, from paying any
dividends to the Company, from making any other distribution on such
Material Subsidiary’s capital stock or from repaying to the Company any
loans or advances to such Material Subsidiary from the Company.

     (xxix) Similar Offering. Neither the Company nor any of its
affiliates, as such term is defined in Rule 501(b) under the 1933 Act
(each, an “Affiliate”), has, directly or indirectly, solicited any offer
to buy, sold or offered to sell or otherwise negotiated in respect of, or
will solicit any offer to buy, sell or offer to sell or otherwise
negotiate in respect of, in the United States or to any United States
citizen or resident, any security which is or would be integrated with
the sale of the Notes in a manner that would require the Notes to be
registered under the 1933 Act.

     (xxx) Rule 144A Eligibility. The Notes are eligible for resale
pursuant to Rule 144A and will not be, at the Closing Time, of the same
class as securities listed on a national securities exchange registered
under Section 6 of the 1934 Act, or quoted in a U.S. automated
interdealer quotation system.

     (xxxi) No General Solicitation or General Advertising. None of the
Company, its Affiliates or any person acting on its or any of their
behalf (other than the Initial Purchasers and their respective
Affiliates, as to whom the Company makes no representation) has engaged
or will engage, in connection with the offering of the Notes, in any form
of general solicitation or general advertising within the meaning of Rule
502(c) under Regulation D of the 1933 Act.

     (xxxii) No Registration Required. Subject to compliance by the
Initial Purchasers with the representations and warranties and the
procedures set forth in Section 6 hereof, it is not necessary in
connection with the offer, sale and delivery of the Notes to the Initial
Purchasers and the initial resale by the Initial Purchasers to each
Subsequent Purchaser in the manner contemplated by this Agreement and the
Offering Circular to register the Notes under the 1933 Act or to qualify
the Indenture under the 1939 Act.

     (xxxiii) Reporting Company. The Company is subject to and in
compliance with the reporting requirements of Section 13 or Section 15(d)
of the 1934 Act.

     (xxxiv) Sarbanes-Oxley Compliance. There is and has been no failure in any material respect on the
part of the Company or, to the Company’s knowledge, any of the Company’s
directors or officers in their capacities as such, to comply with any
provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations
promulgated in

9

 

connection therewith (the “Sarbanes-Oxley Act”), including
Section 402 related to loans and Sections 302 and 906 related to
certifications.

     (xxxv) Reclassification. The Company’s reclassification of its
co-op advertising expenses for the quarter ended August 31, 2004 and any
corresponding reclassification that is made to the Company’s financial
statements for prior periods or prior years (collectively, the
“Reclassified Periods”) will have the effect of reducing the Company’s
net sales and selling, general and administrative expenses by the same
amount in respect of each Reclassified Period, estimated at approximately
1% to 1.5% of the Company’s sales for such Reclassified Period. Such
reclassification will not affect the Company’s net income, income before
income taxes or consolidated statements of cashflows as set forth in its
consolidated financial statements and does not reflect a material change
to the Company’s audited and unaudited consolidated financial statements
for any of the Reclassified Periods included or incorporated by reference
in the Offering Circular.

     (b) Officer’s Certificates. Any certificate signed by any officer of the
Company delivered to the Initial Purchasers or to counsel for the Initial
Purchasers shall be deemed a representation and warranty by the Company to the
Initial Purchasers as to the matters covered thereby.

     SECTION 2. Sale and Delivery to Initial Purchasers; Closing.

     (a) Notes. On the basis of the representations, warranties and agreements
herein contained and subject to the terms and conditions herein set forth, the
Company agrees to sell to each Initial Purchaser, severally and not jointly,
and each Initial Purchaser, severally and not jointly, agrees to purchase from
the Company at the price set forth in Schedule B hereto the principal amount of
the Notes set forth opposite the name of such Initial Purchaser in Schedule A
plus any additional principal amount of Notes that such Initial Purchaser may
become obligated to purchase pursuant to the provisions of Section 11 hereof.

     (b) Payment. Payment of the purchase price for, and delivery of one or
more global certificates for, the Notes shall be made at the offices of
Shearman & Sterling LLP, 599 Lexington Avenue, New York, New York 10022, or at
such other place as shall be agreed upon by the Representative and the Company,
at 9:00 A.M. (Eastern time) on the third business day after the date hereof
(unless postponed in accordance with the provisions of Section 11 hereof), or
at such other time not later
than ten business days after such date as shall be agreed upon by the
Representative and the Company (such time and date of payment and delivery
being herein called the “Closing Time”).

     Payment shall be made to the Company by wire transfer of immediately
available funds to a bank account designated by the Company, against delivery
to the Representative for the respective accounts of the Initial Purchasers of
the Notes to be purchased by them. It is understood that each Initial
Purchaser has authorized the Representative, for their accounts, to accept
delivery of, receipt for, and make payment of the purchase price for the Notes
that it has agreed to purchase. Goldman, Sachs & Co., individually and not as
representative of the Initial Purchasers, may (but shall not be obligated to)
make payment of the purchase price for the Notes to be purchased by any Initial
Purchaser whose funds have not been received by the Closing

10

 

Time or the
relevant Date of Delivery, as the case may be, but such payment shall not
relieve such Initial Purchaser from its obligations hereunder.

     (c) Denominations; Registration. Certificates for the Notes shall be in
such denominations (of $1,000 or integral multiples thereof) and registered in
such names as the Representative may request in writing at least one full
business day before the Closing Time or the relevant Date of Delivery, as the
case may be; provided that any Notes in global form be registered in the name
of Cede & Co. The certificates for the Notes will be made available for
examination and packaging by the Initial Purchasers in The City of New York not
later than 10:00 A.M. (Eastern time) on the business day prior to the Closing
Time or the relevant Date of Delivery, as the case may be.

     SECTION 3. Covenants of the Company. The Company covenants with each
Initial Purchaser as follows:

     (a) Offering Circular. The Company, as promptly as possible, will furnish
to the Initial Purchasers, without charge, such number of copies of the
Offering Circular and any amendments and supplements thereto and any
Incorporated Documents as the Initial Purchasers may reasonably request.

     (b) Notice and Effect of Material Events. The Company will immediately
notify each Initial Purchaser, and confirm such notice in writing, of (x) any
filing made by the Company of information relating to the offering of the Notes
with any securities exchange or any other securities regulatory body in the
United States or any other jurisdiction, and (y) prior to the completion of the
placement of the Notes by the Initial Purchasers as evidenced by a notice from
the Initial Purchasers to the Company in writing, any material changes in or
affecting the condition, financial or otherwise, or the earnings, business or
business prospects of the Company and its subsidiaries considered as one
enterprise which (i) make any statement in the Offering Circular false or
misleading or (ii) are not disclosed in the Offering Circular. In such event
or if during such time any event shall occur as a result of which it is
necessary, in the reasonable opinion of any of the Company, its counsel, the
Initial Purchasers or counsel for the Initial Purchasers, to amend or
supplement the Offering Circular in order that the Offering Circular not
include any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein
not misleading in the light of the circumstances then existing, the Company
will forthwith amend or supplement the Offering Circular by preparing and
furnishing to each Initial Purchaser an amendment or amendments of, or a
supplement or supplements to, the Offering Circular (in form and substance
satisfactory in the reasonable opinion of counsel for the Initial Purchasers)
so that, as so amended or supplemented, the Offering Circular will not include
an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances existing at the time it is delivered to a Subsequent Purchaser,
not misleading.

     (c) Amendments to Offering Circular and Supplements. The Company will
advise each Initial Purchaser promptly of any proposal to amend or supplement
the Offering Circular and will not effect any such amendment or supplement
without the consent of the Initial Purchasers. Neither the consent of the
Initial Purchasers, nor the Initial Purchasers’ delivery of any such

11

 

amendment
or supplement, shall constitute a waiver of any of the conditions set forth in
Section 5 hereof.

     (d) Qualifications of Notes for Offer and Sale. The Company will use its
best efforts, in cooperation with the Initial Purchasers, to qualify the Notes
for offering and sale under the applicable securities laws of such states and
other jurisdictions as the Representative may designate and will maintain such
qualification in effect as long as required in connection with the distribution
of the Notes; provided, however, that the Company shall not be obligated to
file any general consent to service of process or to qualify as a foreign
corporation or as a dealer in securities in any jurisdiction in which it is not
so qualified or to subject itself to taxation in respect of doing business in
any jurisdiction in which it is not otherwise so subject. In each jurisdiction
in which the Notes have been so qualified, the Company will file such
statements and reports as may be required by the laws of such jurisdiction to
continue such qualification in effect for so long as may be required in
connection with the distribution of the Notes.

     (e) Use of Proceeds. The Company will use the net proceeds received by it
from the sale of the Notes in the manner indicated in the Offering Circular
under “Use of Proceeds.”

     (f) Rating of Notes. The Company shall take all reasonable action
necessary to enable Standard & Poor’s Rating Services, a division of The
McGraw-Hill Companies, Inc. (“S&P”) and Moody’s Investor Service, Inc.
(“Moody’s”) to provide their respective credit ratings of the Notes.

     (g) Restriction on Sale of Notes. During a period of 45 days from the
date of the Offering Circular, the Company will not, without the prior written
consent of the Representative, directly or indirectly, issue, sell, offer or
agree to sell, grant any option for the sale of, or otherwise dispose of, any
other similar debt securities of the Company or securities of the Company that
are convertible into, or
exchangeable for, the offered Notes or such other similar debt securities.
The foregoing sentence shall not apply to (A) the Notes to be sold hereunder,
(B) the Exchange Notes (as defined in the Registration Rights Agreement) to be
issued by the Company pursuant to the terms of the Registration Rights
Agreement and (C) commercial paper issued by the Company in the ordinary course
of its business.

     (h) DTC. The Company will cooperate with the Representative and use its
best efforts to permit the Notes to be eligible for clearance and settlement
through the facilities of DTC.

     (i) Reporting Requirements. The Company, during the period when the
Offering Circular is required to be delivered, will file all documents required
to be filed with the Commission pursuant to the 1934 Act within the time
periods required by the 1934 Act and the 1934 Act Regulations.

     SECTION 4. Payment of Expenses.

     (a) Expenses. The Company will pay all expenses incident to the
performance of its obligations under this Agreement, including (i) the
preparation, printing, delivery to the Initial Purchasers and any filing of the
Offering Circular (including financial statements and any schedules or exhibits
and any Incorporated Document) and of each amendment or supplement thereto,
(ii) the preparation, printing and delivery to the Initial Purchasers of this
Agreement, any

12

 

Agreement among Initial Purchasers, the Indenture, the Notes,
the Registration Rights Agreement and such other documents as may be required
in connection with the offer, purchase, sale, issuance or delivery of the
Notes, (iii) the preparation, issuance and delivery of the certificates for the
Notes to the Initial Purchasers including any transfer taxes, any stamp or
other duties payable upon the sale, issuance and delivery of the Notes to the
Initial Purchasers and any charges of DTC in connection therewith, (iv) the
fees and disbursements of the Company’s counsel, accountants and other
advisors, (v) the qualification of the Notes under securities laws in
accordance with the provisions of Section 3(d), including filing fees and the
reasonable fees and disbursements of counsel for the Initial Purchasers in
connection therewith and in connection with the preparation of the Blue Sky
Survey and any supplement thereto, (vi) any fees of the NASD in connection with
the Notes, (vii) the fees and expenses of the Trustee, including the fees and
disbursements of counsel for the Trustee in connection with the Indenture and
the Notes, (viii) the fees and expenses of any transfer agent or registrar for
the Notes, (ix) any fees payable in connection with the rating of the Notes and
(x) all reasonable costs and expenses relating to investor presentations,
including any “road show” presentations undertaken in connection with the
marketing of the offering of the Notes, including, without limitation, expenses
associated with the production of road show slides, graphics and Bloomberg
presentation recordings.

     (b) Termination of Agreement. If this Agreement is terminated by the Representative in accordance
with the provisions of Section 5 or Section 10 hereof, the Company shall
reimburse the Initial Purchasers for all of their out-of-pocket expenses,
including the reasonable fees and disbursements of counsel for the Initial
Purchasers.

     SECTION 5. Conditions of Initial Purchasers’ Obligations. The obligations
of the several Initial Purchasers hereunder are subject to the accuracy of the
representations and warranties of the Company contained in Section 1 hereof or
in certificates of any officer of the Company delivered pursuant to the
provisions hereof, to the performance by the Company of its covenants and other
obligations hereunder, and to the following further conditions:

     (a) Opinions of Counsel for the Company. At the Closing Time, the Initial
Purchasers shall have received the opinion of P. Kelly Tompkins, General
Counsel of the Company, and the opinion of Calfee, Halter & Griswold LLP,
counsel for the Company, each in form and substance satisfactory to counsel for
the Initial Purchasers and dated as of the Closing Time, to the effect set
forth in Exhibits B and C hereto, respectively. Such counsel may also state
that, insofar as such opinion involves factual matters, they have relied, to
the extent they deem proper, upon certificates of the officers of the Company
and certificates of public officials.

     (b) Opinion of Counsel for Initial Purchasers. At the Closing Time, the
Initial Purchasers shall have received the opinion, dated as of the Closing
Time, of Shearman & Sterling LLP, counsel for the Initial Purchasers, in form
and substance satisfactory to the Initial Purchasers. In giving such opinion
such counsel may rely, as to all matters governed by the laws of jurisdictions
other than the law of the State of New York, the federal law of the United
States and the General Corporation Law of the State of Delaware, upon the
opinions of counsel satisfactory to the Initial Purchasers. Such counsel may
also state that, insofar as such opinion involves factual matters, they have
relied, to the extent they deem proper, upon certificates of officers of the
Company and certificates of public officials.

13

 

     (c) Officers’ Certificate. At the Closing Time, there shall not have
been, since the date hereof or since the respective dates as of which
information is given in the Offering Circular (exclusive of any amendments or
supplements thereto after the date of this Agreement), any material adverse
change in the condition, financial or otherwise, or in the earnings, business
or business prospects of the Company and its subsidiaries considered as one
enterprise, whether or not arising in the ordinary course of business, and the
Initial Purchasers shall have received a certificate of the President or a
Senior Vice President of the Company and the Chief Financial Officer of the
Company, dated as of the Closing Time, to the effect that (i) there has been no
such material adverse change, (ii) the representations and warranties in
Section 1(a) hereof are true and correct with the same force and effect as
though expressly made at and as of the Closing Time, and (iii) the Company has
complied with all of the agreements entered into in connection with the
transaction contemplated herein and satisfied all conditions on its part
to be performed or satisfied at or prior to the Closing Time.

     (d) Accountant’s Comfort Letter. At the time of the execution of this
Agreement, the Initial Purchasers shall have received from Ciulla, Smith &
Dale, LLP a letter dated such date, in the form and substance satisfactory to
the Initial Purchasers, containing statements and information of the type
ordinarily included in accountants’ comfort letters to Initial Purchasers with
respect to the financial statements and certain financial information contained
in the Offering Circular.

     (e) Bring-down Comfort Letter. At the Closing Time, the Initial
Purchasers shall have received from Ciulla, Smith & Dale, LLP a letter, dated
as of the Closing Time, to the effect that they reaffirm the statements made in
the letter furnished pursuant to subsection (d) of this Section, except that
the specified date referred to shall be a date not more than three business
days prior to the Closing Time.

     (f) Maintenance of Rating. At the Closing Time, the Notes shall be rated
at least BBB (negative outlook) by S&P and Baa3 (negative outlook) by Moody’s,
and the Company shall have delivered to the Initial Purchasers a letter dated
the Closing Time, from each such rating agency, or other evidence satisfactory
to the Initial Purchasers, confirming that the Notes have such rating. Since
the date of this Agreement, there shall not have occurred a downgrading in the
rating assigned to the Notes or any of the Company’s other securities by any
“nationally recognized statistical rating organization,” as that term is
defined by the Commission for purposes of Rule 436(g)(2) under the 1933 Act,
and no such security rating organization shall have publicly announced that it
has under surveillance or review, with possible negative implications (other
than as indicated above), its rating on the Notes or any of the Company’s other
securities.

     (g) Indenture and Registration Rights Agreement. At or prior to the
Closing Time, the Company and the Trustee shall have duly executed and
delivered the Indenture, and the Company and the Initial Purchasers shall have
duly executed and delivered the Registration Rights Agreement.

     (h) Additional Documents. At the Closing Time counsel for the Initial
Purchasers shall have been furnished with such documents, certificates and
opinions as they may reasonably request for the purpose of enabling them to
pass upon the issuance and sale of the Notes as

14

 

herein contemplated, or in
order to evidence the accuracy and completeness of any of the representations
or warranties, or the fulfillment of any of the conditions, herein contained;
and all proceedings taken by the Company in connection with the issuance and
sale of the Notes as herein contemplated shall be satisfactory in form and
substance to the Initial Purchasers and counsel for the Initial Purchasers.

     (i) Termination of Agreement. If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement may be
terminated by the Initial Purchasers by notice to the Company at any time at or
prior to the Closing Time and such termination shall be without liability of
any party to any other party except as provided in Section 4 and except that
Sections 1, 7, 8 and 9 shall survive any such termination and remain in full
force and effect.

     SECTION 6. Subsequent Offers and Resales of the Notes.

     (a) Offer and Sale Procedures. Each of the Initial Purchasers and the
Company, as the case may be, hereby establish and agree to observe the
following procedures in connection with the offer and sale of the Notes.

     (i) Offers and Sales to Qualified Institutional Buyers. Offers and
sales of the Notes shall only be made to persons whom the offeror or
seller reasonably believes to be qualified institutional buyers, as
defined in Rule 144A (“Qualified Institutional Buyer”). In each case,
persons acquiring the Notes from the Initial Purchasers are deemed to
have represented and agreed as provided in the Final Offering Circular
under the caption “Notice to Investors.”

     (ii) No General Solicitation. No general solicitation or general
advertising (within the meaning of Rule 502(c) under the 1933 Act) shall
be used in the United Stated in connection with the offering or sale of
the Notes.

     (iii) Purchases by Non-Bank Fiduciaries. In the case of a non-bank
Subsequent Purchaser of Notes acting as a fiduciary for one or more third
parties, each third party shall, in the reasonable belief of such Initial
Purchaser, be a Qualified Institutional Buyer, to whom the notice
required in subsection (iv) below has been given.

     (iv) Subsequent Purchaser Notification. Each Initial Purchaser will
take reasonable steps to inform, and cause each of its U.S. affiliates to
take reasonable steps to inform, persons acquiring Notes from such
Initial Purchaser or its affiliate that the Notes (A) have not been and
will not be registered under the 1933 Act, (B) are being sold to them
without registration under the 1933 Act in reliance on Rule 144A or in
accordance with another exemption from registration under the 1933 Act,
as the case may be, and (C) may not be offered, sold or otherwise
transferred except (1) to the Company or (2) outside the United States in
accordance with Regulation S or inside the United States in accordance
with (x) Rule 144A to a person whom the seller reasonably believes is a
Qualified Institutional Buyer that is purchasing such Notes for its own
account or for the account of a Qualified Institutional Buyer to
whom notice is given that the offer, sale or

15

 

transfer is being made
in reliance on Rule 144A or (y) pursuant to another available exemption
from registration under the 1933 Act.

     (v) Restrictions on Transfer. The transfer restrictions and the
other provisions set forth in the Offering Circular under the caption
“Notice to Investors,” including the legend required thereby, shall apply
to the Notes except as otherwise agreed by the Company and the Initial
Purchasers. Following the sale of the Notes by the Initial Purchasers to
each Subsequent Purchaser pursuant to the terms hereof, the Initial
Purchasers shall not be liable or responsible to the Company for any
losses, damages or liabilities suffered or incurred by the Company,
including any losses, damages or liabilities under the 1933 Act, arising
from or relating to any subsequent resale or transfer of any Note.

     (b) Covenants of the Company. The Company covenants with each Initial
Purchaser as follows:

     (i) Integration. The Company agrees that it will not and will cause
its Affiliates not to, directly or indirectly, solicit any offer to buy,
sell or make any offer or sale of, or otherwise negotiate in respect of,
securities of the Company or any Affiliate thereof of any class if, as a
result of the doctrine of “integration” referred to in Rule 502 under the
1933 Act, such offer and sale would render invalid (for the purpose of
(A) the sale of the Notes by the Company to the Initial Purchasers, (B)
the resale of the Notes by the Initial Purchasers to Subsequent
Purchasers, or (C) the resale of the Notes by such Subsequent Purchasers
to others) the exemption from the registration requirements of the 1933
Act provided by Section 4(2) thereof or by Rule 144A thereunder or
otherwise.

     (ii) Rule 144A Information. The Company agrees that, in order to
render the Notes eligible for resale pursuant to Rule 144A under the 1933
Act, while any of the Notes remain outstanding, it will make available,
upon request, to any holder of Notes or prospective purchasers of Notes
the information specified in Rule 144A(d)(4), unless the Company
furnishes information to the Commission pursuant to Section 13 or 15(d)
of the 1934 Act.

     (iii) Restriction on Purchases. Until the expiration of two years
after the original issuance of the Notes, the Company will not, and will
cause its “affiliates” (as such term is defined in Rule 144(a)(1) under
the 1933 Act) not to, purchase or agree to purchase or otherwise acquire
any Notes which are “restricted securities” (as such term is defined
under Rule 144(a)(3) under the 1933 Act), whether as beneficial owner or
otherwise (except as agent on behalf of and for the account of customers
in the ordinary course of business as a securities
broker in unsolicited broker’s transactions) unless, immediately
upon any such purchase, the Company or any such affiliate shall submit
such Notes to the Trustee for cancellation.

     (c) Qualified Institutional Buyer. Each Initial Purchaser severally and
not jointly represents and warrants to, and agrees with, the Company that it is
a Qualified Institutional Buyer.

16

 

     SECTION 7. Indemnification.

     (a) Indemnification of Initial Purchasers. The Company agrees to
indemnify and hold harmless each Initial Purchaser and each person, if any, who
controls such Initial Purchaser within the meaning of Section 15 of the 1933
Act or Section 20 of the 1934 Act as follows:

     (i) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in any Preliminary Offering
Circular or the Final Offering Circular (or any amendment or supplement
thereto), or the omission or alleged omission therefrom of a material
fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading;

     (ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section
7(d) below) any such settlement is effected with the written consent of
the Company; and

     (iii) against any and all expense whatsoever, as incurred (including
the fees and disbursements of counsel chosen by the Representative),
reasonably incurred in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency
or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement
or omission, to the extent that any such expense is not paid under (i) or
(ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by any
Initial Purchaser through the Representative expressly for use in the Offering
Circular (or any amendment or supplement thereto). The Company acknowledges
that the statements in (A) the last full paragraph on page i of the Offering
Circular, and (B) the fourth, fifth and sixth paragraphs under the
“Underwriting” section of the Preliminary Offering
Circular and Final Offering Circular relating to stabilization and
market-making activities constitute the only information furnished in writing
by or on behalf of the Initial Purchasers for inclusion in the Preliminary
Offering Circular, the Final Offering Circular or in any amendment or
supplement thereto.

     (b) Indemnification of the Company. Each Initial Purchaser severally
agrees to indemnify and hold harmless the Company and each person, if any, who
controls the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act against any and all loss, liability, claim, damage
and expense described in the indemnity contained in subsection (a) of this
Section, as incurred, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions, made in the Offering Circular (or
any amendment or

17

 

supplement thereto) in reliance upon and in conformity with
written information furnished to the Company by such Initial Purchaser through
the Representative expressly for use in the Offering Circular (or any amendment
or supplement thereto).

     (c) Actions against Parties; Notification. Each indemnified party shall
give notice as promptly as reasonably practicable to each indemnifying party of
any action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve
such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this
indemnity agreement. In the case of parties indemnified pursuant to Section
7(a) above, counsel to the indemnified parties shall be selected by the
Representative, and, in the case of parties indemnified pursuant to Section
7(b) above, counsel to the indemnified parties shall be selected by the
Company. An indemnifying party may participate at its own expense in the
defense of any such action; provided, however, that counsel to the indemnifying
party shall not (except with the consent of the indemnified party) also be
counsel to the indemnified party. In no event shall the indemnifying parties
be liable for fees and expenses of more than one counsel (in addition to any
local counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or
circumstances. No indemnifying party shall, without the prior written consent
of the indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be sought
under this Section 7 or Section 8 hereof (whether or not the indemnified
parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified
party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any indemnified
party.

     (d) Settlement without Consent if Failure to Reimburse. If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 7(a)(ii) effected without its
written consent if (i) such settlement is entered into more than 45 days after
receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement
at least 30 days prior to such settlement being entered into, and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

     SECTION 8. Contribution. If the indemnification provided for in Section 7
hereof is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Initial Purchasers on the other hand from the offering of the
Notes pursuant to this Agreement or (ii) if the allocation

18

 

provided by clause
(i) is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the Company on the one hand and of the Initial Purchasers
on the other hand in connection with the statements or omissions which resulted
in such losses, liabilities, claims, damages or expenses, as well as any other
relevant equitable considerations.

     The relative benefits received by the Company on the one hand and the
Initial Purchasers on the other hand in connection with the offering of the
Notes pursuant to this Agreement shall be deemed to be in the same respective
proportions as the total net proceeds from the offering of the Notes pursuant
to this Agreement (before deducting expenses) received by the Company and the
total discount received by the Initial Purchasers, bear to the aggregate
initial offering price of the Notes.

     The relative fault of the Company on the one hand and the Initial
Purchasers on the other hand shall be determined by reference to, among other
things, whether any such untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to information
supplied by the Company or by the Initial Purchasers and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

     The Company and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 8 were determined by pro
rata allocation (even if the Initial Purchasers were treated as one entity for
such purpose) or by any other method of allocation which does not take account
of the equitable considerations referred to above in this Section 8. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 8 shall be deemed
to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency
or body, commenced or threatened, or any claim whatsoever based upon any
such untrue or alleged untrue statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 8, no Initial Purchaser
shall be required to contribute any amount in excess of the amount by which the
total price at which the Notes purchased and sold by it hereunder exceeds the
amount of any damages which such Initial Purchaser has otherwise been required
to pay by reason of any such untrue or alleged untrue statement or omission or
alleged omission.

     No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

     For purposes of this Section 8, each person, if any, who controls an
Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section
20 of the 1934 Act shall have the same rights to contribution as such Initial
Purchaser, and each person, if any, who controls the Company within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Company. The Initial Purchasers’ respective

19

 

obligations to contribute pursuant to this Section are several in proportion to
the principal amount of Notes set forth opposite their respective names in
Schedule A hereto and not joint.

     SECTION 9. Representations, Warranties and Agreements to Survive Delivery.
All representations, warranties and agreements contained in this Agreement or
in certificates of officers of the Company or any of its subsidiaries submitted
pursuant hereto shall remain operative and in full force and effect, regardless
of (i) any investigation made by or on behalf of any Initial Purchaser or its
affiliates or selling agents, any person controlling any Initial Purchaser, its
officers or directors or any person controlling the Company and (ii) delivery
of and payment for the Notes.

     SECTION 10. Termination of Agreement.

     (a) Termination; General. The Representative may terminate this Agreement
by notice to the Company at any time at or prior to Closing Time (i) if there
has been, since the time of execution of this Agreement or since the respective
dates as of which information is given in the Offering Circular (exclusive of
any amendments or supplements thereto subsequent to the date of this
Agreement), any material adverse change in the condition, financial or
otherwise, or in the earnings, business or business prospects of the Company
and its subsidiaries considered as one enterprise, whether or not arising in
the ordinary course of business, otherwise than as set forth or contemplated in
the Offering Circular, or (ii) if the Company and its subsidiaries shall have
sustained since the date of the latest audited financial statements included in
the Offering Circular any material loss or interference with its business from
fire, explosion, flood or other calamity, whether or not covered by insurance,
or (iii) if there has occurred any material adverse change in the financial
markets in the United States or the international financial markets, any
outbreak of hostilities or
escalation thereof or other calamity or crisis or any change or
development involving a prospective change in national or international
political, financial or economic conditions, the effect of which, in any such
case described in clauses (i) through (iii), is such as to make it, in the
judgment of the Representative, impracticable or inadvisable to market the
Notes or to enforce contracts for the sale of the Notes, or (iv) if trading in
any securities of the Company has been suspended or materially limited by the
Commission or the New York Stock Exchange, or if trading generally on the
American Stock Exchange or the New York Stock Exchange or in the Nasdaq
National Market has been suspended or materially limited, or minimum or maximum
prices for trading have been fixed, or maximum ranges for prices have been
required, by any of said exchanges or by such system or by order of the
Commission, the National Association of Securities Dealers, Inc. or any other
governmental authority, or (v) if a material disruption has occurred in
commercial banking or securities settlement or clearance services in the United
States, or (vi) if a banking moratorium has been declared by either federal or
New York authorities.

     (b) Liabilities. If this Agreement is terminated pursuant to this
Section, such termination shall be without liability of any party to any other
party except as provided in Section 4 hereof, and provided further that
Sections 1, 7, 8 and 9 shall survive such termination and remain in full force
and effect.

     SECTION 11. Default by One or More of the Initial Purchasers. If one or
more of the Initial Purchasers shall fail at the Closing Time to purchase the
Notes which it or they are

20

 

obligated to purchase under this Agreement (the
“Defaulted Securities”), the Initial Purchasers shall have the right, within 24
hours thereafter, to make arrangements for one or more of the non-defaulting
Initial Purchasers, or any other initial purchasers, to purchase all, but not
less than all, of the Defaulted Securities in such amounts as may be agreed
upon and upon the terms herein set forth; if, however, the Initial Purchasers
shall not have completed such arrangements within such 24-hour period, then:

     (a) if the number of Defaulted Securities does not exceed 10%
of the aggregate principal amount of the Notes to be purchased
hereunder, each of the non-defaulting Initial Purchasers shall be
obligated, severally and not jointly, to purchase the full amount
thereof in the proportions that their respective underwriting
obligations hereunder bear to the underwriting obligations of all
non-defaulting Initial Purchasers; or

     (b) if the number of Defaulted Securities exceeds 10% of the
aggregate principal amount of the Notes to be purchased hereunder,
this Agreement shall terminate without liability on the part of any
non-defaulting Initial Purchaser.

     No action taken pursuant to this Section shall relieve any defaulting
Initial Purchaser from liability in respect of its default.

     In the event of any such default which does not result in a termination of
this Agreement, either the Initial Purchasers or the Company shall have the
right to postpone the Closing Time
for a period not exceeding seven days in order to effect any required
changes in the Offering Circular or in any other documents or arrangements. As
used herein, the term “Initial Purchaser” includes any person substituted for
an Initial Purchaser under this Section.

     SECTION 12. Tax Disclosure. Notwithstanding any other provision of this
Agreement, from the commencement of discussions with respect to the
transactions contemplated hereby, the Company (and each employee,
representative or other agent of the Company) may disclose to any and all
persons, without limitation of any kind, the tax treatment and tax structure
(as such terms are used in Sections 6011, 6111 and 6112 of the U.S. Code and
the Treasury Regulations promulgated thereunder) of the transactions
contemplated by this Agreement and all materials of any kind (including
opinions or other tax analyses) that are provided relating to such tax
treatment and tax structure.

     SECTION 13. Notices. All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of telecommunication.

     Notices to the Initial Purchasers shall be directed to:

Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

Attention: Registration Department

With a copy to:

21

 

Shearman & Sterling LLP

599 Lexington Avenue

New York, 10022

Attention: Abigail Arms

Fax: (202) 508-8100

     Notices to the Company shall be directed to:

RPM International Inc.

P.O. Box 777

2628 Pearl Road

Medina, Ohio 44258

Attention: General Counsel

Fax: (330) 225-6574

With a copy to:

Calfee, Halter & Griswold LLP

800 Superior Avenue, Suite 1400

Cleveland, Ohio 44114

Attention: Edward W. Moore

Fax: (216) 241-0816

     SECTION 14. Parties. This Agreement shall inure to the benefit of and be
binding upon the Initial Purchasers and the Company and their respective
successors. Nothing expressed or mentioned in this Agreement is intended or
shall be construed to give any person, firm or corporation, other than the
Initial Purchasers and the Company and their respective successors and the
controlling persons referred to in Sections 7 and 8 and their heirs and legal
representatives, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision herein contained. This Agreement
and all conditions and provisions hereof are intended to be for the sole and
exclusive benefit of the Initial Purchasers and the Company and their
respective successors, and said controlling persons and their heirs and legal
representatives, and for the benefit of no other person, firm or corporation.
No purchaser of Notes from the Initial Purchasers shall be deemed to be a
successor by reason merely of such purchase.

     SECTION 15. GOVERNING LAW AND TIME. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EXCEPT AS
OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.

     SECTION 16. Effect of Headings. The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the
construction hereof.

     SECTION 17. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.

22

 

     If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof,
whereupon this instrument, along with all counterparts, will become a binding
agreement between the Initial Purchasers and the Company in accordance with its
terms.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	RPM INTERNATIONAL INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ P. Kelly Tompkins
	

	 	 	 	
 
	

	 	 	 	Name: P. Kelly Tompkins
	

	 	 	 	Title: Senior Vice President, General
	

	 	 	 	Counsel and Secretary

Accepted as of the date hereof.

GOLDMAN, SACHS & CO.

Acting severally on behalf of themselves
    and
the several Initial Purchasers named
    in
Schedule A hereto

	 	 	 
	By:

	 	/s/ Goldman, Sachs & Co.
	

	 	

	

	 	(Goldman, Sachs & Co.)

 

 

SCHEDULE A

	 	 	 	 	 
	 	 	Principal Amount of
	Name of Initial Purchaser
	 	Notes

	Goldman, Sachs & Co.
	 	$	120,000,000	 
	McDonald Investments Inc.
	 	$	20,000,000	 
	NatCity Investments, Inc.
	 	$	20,000,000	 
	Wachovia Capital Markets, LLC.
	 	$	20,000,000	 
	BNY Capital Markets, Inc.
	 	$	4,000,000	 
	Fifth Third Securities, Inc.
	 	$	4,000,000	 
	Mellon Financial Markets, LLC.
	 	$	4,000,000	 
	Mizuho International plc
	 	$	4,000,000	 
	Piper Jaffray & Co.
	 	$	4,000,000	 
	 
	 	 	
 	 
	Total
	 	$	200,000,000	 
	 
	 	 	
 	 

SCH A-1

 

SCHEDULE B

RPM INTERNATIONAL INC.

4.45% SENIOR NOTES DUE 2009

     1. The initial offering price per $1,000 principal amount of the Notes
shall be $998.55.

     2. The purchase price to be paid by the Initial Purchasers for the Notes
shall be $992.55 per $1,000 principal amount of Notes, being an amount equal to
the initial offering price set forth in paragraph 1 above, less $6.00 per
$1,000 principal amount of Notes.

     3. Cash interest on the Notes will be payable semi-annually in arrears on
April 15 and October 15 of each year, beginning April 15, 2004. The notes will
accrue interest from September 30, 2004.

     4. The Notes are redeemable at any time and from time to time at a redemption
price equal to the greater of 100% of the principal amount of Notes being
redeemed and the “make-whole amount” described in the Final Offering Circular.

SCH B-1

 

SCHEDULE C

LIST OF MATERIAL SUBSIDIARIES

	 	 	 	 	 
	 	 	Jurisdiction of
	Subsidiary
	 	Corporation

	RPM, Inc.
	 	Ohio
	RPM Industrial Holding Company
	 	Delaware
	RPM Consumer Holding Company
	 	Delaware
	RPM Holdco Corp.
	 	Delaware
	StonCor Group, Inc.
	 	Delaware
	Dryvit Holdings, Inc.
	 	Rhode Island
	Rust-Oleum Corporation
	 	Illinois
	Tremco Incorporated
	 	Ohio
	DAP Products Inc.
	 	Delaware

Exhibit A-1

 

 

Exhibit A

FORM OF REGISTRATION RIGHTS AGREEMENT

[Filed as Exhibit 4.2 herewith]

Exhibit A-1

 

 

EXHIBIT B

FORM OF OPINION OF P. KELLY TOMPKINS

GENERAL COUNSEL OF THE COMPANY,

TO BE DELIVERED PURSUANT TO SECTION 5(a)

          (i) The Company is duly qualified to do business and is in good
standing as a foreign corporation in each jurisdiction in which its
ownership or lease of property or the conduct of its businesses require
such qualification and has all power and authority necessary to own or
hold its properties and conduct the businesses in which it is engaged,
except where the failure to be so qualified or to be in good standing as
a foreign corporation have not had and would not, singularly or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

          (ii) Each of the Material Subsidiaries has been duly incorporated
and is validly existing as a corporation in good standing under the laws
of its jurisdiction of incorporation, is duly qualified to do business
and is in good standing as a foreign corporation in each jurisdiction in
which its ownership or lease of property or the conduct of its business
requires such qualification and has all power and authority necessary to
own or hold its properties and conduct the business in which its is
engaged, except where the failure to be so qualified or to be in good
standing as a foreign corporation has not and would not, singularly or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

          (iii) All of the issued shares of capital stock of each Material
Subsidiary have been duly and validly authorized and issued and are fully
paid and non-assessable and are owned directly or indirectly by the
Company, free and clear of all liens, encumbrances, equities or claims.

          (iv) To the best of such counsel’s knowledge after due inquiry and
other than as set forth in the Offering Circular, there are no legal or
governmental proceedings pending to which the Company or any of its
subsidiaries is a party or of which any property or assets of the Company
or any of its subsidiaries is the subject which, if determined adversely
to the Company or any of its subsidiaries, singularly or in the
aggregate, might have a Material Adverse Effect; and, to the best of such
counsel’s knowledge, no such proceedings are threatened or contemplated
by governmental authorities or threatened by others.

          (v) The statements contained in the Offering Circular under the
captions “Business—Environmental Matters,” “Business—Legal Proceedings,”
“Risk Factors—The chemical and construction products industries in which
we serve expose us to inherent risks of claims and other
litigation-related costs, which could adversely impact our business”
“Risk Factors—Certain of our subsidiaries, principally Bondex
International, Inc., are defendants in numerous asbestos-related personal
injury lawsuits. Resolutions of existing and future asbestos related
lawsuits may have a material and adverse effect on our future
consolidated financial condition, operating results and

 

 

liquidity,” “Risk Factors—Environmental laws and regulations could
subject us to significant future expenditures or liabilities, which could
have an adverse impact on our business” and “Item 13. Certain
Relationships and Related Transactions” (incorporated by reference to the
Company’s Annual Report on Form 10-K for the year ended May 31, 2004)
insofar as they describe charter documents, contracts, legal proceedings,
federal and state statutes, rules and regulations, constitute a fair
summary thereof.

          (vi) The issue and sale of the Notes and the execution, delivery and
compliance by the Company with all of the provisions of the Purchase
Agreement, the Indenture, the Registration Rights Agreement and the Notes
and the consummation of the transactions contemplated thereby do not and
will not conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other similar agreement or
instrument to which the Company or any of its Material Subsidiaries is a
party or by which the Company or any of its Material Subsidiaries is
bound or to which any of the properties or assets of the Company or any
of it Material Subsidiaries is subject, (except for such conflicts,
breaches or violations that, singly or in the aggregate, would not result
in a Material Adverse Effect), nor will such actions result in any
violation of the provisions of the charter or by-laws of the Company or
any of its Material Subsidiaries or any statute or any order, rule or
regulation known to such counsel of any court or governmental agency or
body having jurisdiction over the Company or any of its Material
Subsidiaries or any of their properties or assets.

          (vii) Neither the Company nor any of its Material Subsidiaries is in
violation of its charter or by-laws or other constituting or
organizational document.

          (viii) There has been no storage, disposal, generation, manufacture,
refinement, transportation, handling or treatment of toxic wastes,
medical wastes, hazardous wastes or hazardous substances by the Company
or any of its subsidiaries (or, to the knowledge of the Company, any of
their predecessors in interest) at, upon or from any of the property now
or previously owned or leased by the Company or its subsidiaries in
violation of any applicable law, ordinance, rule, regulation, order,
judgment, decree or permit or which would require remedial action under
any applicable law, ordinance, rule, regulation, order, judgment, decree
or permit, except for any violation or remedial action which would not
have, or could not be reasonably likely to have, singularly or in the
aggregate with all such violations and remedial actions, a Material
Adverse Effect; there has been no material spill, discharge, leak,
emission, injection, escape, dumping or release of any kind onto such
property or into the environment surrounding such property of any toxic
wastes, medical wastes, solid wastes, hazardous wastes or hazardous
substances due to or caused by the Company or any of its subsidiaries or
with respect to which the Company or any of its subsidiaries have
knowledge, except for any such spill, discharge, leak, emission,
injection, escape, dumping or release which have had and would not be
reasonably likely to have, singularly or in the aggregate with all such
spills, discharges, leaks, emissions, injections, escapes, dumpings and
releases, a Material Adverse Effect.

 

 

     In rendering such opinion, such counsel may state that their opinion is
limited to matters governed by the Federal laws of the United States of
America, the General Corporation Law of the State of Ohio and the General
Corporation Law of the State of Delaware. Such opinion shall also be to the
effect that (x) such counsel has acted as counsel to the Company in connection
with the preparation of the Offering Circular and (y) based on the foregoing,
no facts have come to the attention of such counsel which lead them to believe
that the Offering Circular or any amendment or supplement thereto (except for
the financial statements and related schedules and other financial data
included or incorporated by reference therein, as to which such counsel need
express no belief), at the time the Offering Circular was issued, at the time
any such amended or supplemented Offering Circular was issued or at the Closing
Time, contained or contains any untrue statement of a material fact or omitted
or omits to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading. The foregoing opinion and statement may be qualified by a statement
to the effect that such counsel does not assume any responsibility for the
accuracy, completeness or fairness of the statements contained in the Offering
Circular (other than as set forth in clause (v) above).

 

 

EXHIBIT C

FORM OF OPINION OF CALFEE, HALTER & GRISWOLD LLP

UNITED STATES COUNSEL FOR THE COMPANY,

TO BE DELIVERED PURSUANT TO SECTION 5(a)

          (i) The Company has been duly incorporated and is validly existing
as a corporation in good standing under the laws of the State of
Delaware.

          (ii) The documents incorporated by reference in the Offering
Circular (other than the financial statements and related schedules
therein, as to which such counsel need express no belief), when they were
filed with the Commission complied as to form in all material respects
with the requirements of the 1934 Act and the 1934 Act Regulations.

          (iii) The statements contained in the Offering Circular under the
captions, “Description of Notes,” “Exchange Offer; Registration Rights,”
“Description of Our Other Indebtedness,” “Underwriting” and “Certain U.S.
Federal Income Tax Considerations,” insofar as they describe charter
documents, contracts, legal proceedings, federal and state statutes,
rules and regulations and other legal matters, constitute a fair summary
thereof.

          (iv) The Purchase Agreement has been duly authorized, executed and
delivered by the Company.

          (v) The Indenture has been duly authorized, executed and delivered
by the Company and constitutes a valid and binding agreement of the
Company, enforceable against the Company in accordance with its terms,
except as the enforcement thereof may be limited by bankruptcy,
insolvency (including, without limitation, all laws relating to
fraudulent transfers), reorganization, moratorium or similar laws
affecting enforcement of creditors’ rights generally and except as
enforcement thereof is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in
equity or at law).

          (vi) The Registration Rights Agreement has been duly authorized,
executed and delivered by the Company and constitutes a valid and binding
agreement of the Company, enforceable against the Company in accordance
with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency (including, without limitation, all laws relating
to fraudulent transfers), reorganization, moratorium or similar laws
affecting enforcement of creditors’ rights generally and except as
enforcement thereof is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in
equity or at law).

          (vii) The Notes are in the form contemplated by the Indenture, have
been duly authorized, executed, issued and delivered by the Company and,
when authenticated by the Trustee in the manner provided in the
Indenture, will constitute valid and binding obligations of the Company,
enforceable against the Company in accordance with their

Exhibit C-1

 

 

terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency (including, without limitation, all laws relating
to fraudulent transfers), reorganization, moratorium or similar laws
affecting enforcement of creditors’ rights generally and except as
enforcement thereof is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in
equity or at law).

          (viii) The issue and sale of the Notes and the execution, delivery
and performance by the Company with all of the provisions of the Purchase
Agreement, the Indenture, the Registration Rights Agreement and the Notes
and the consummation of the transactions contemplated thereby do not and
will not conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument
filed as an exhibit to any of the documents incorporated by reference in
the Offering Circular, nor will such actions result in any violation of
the provisions of the charter or by-laws of the Company; and no consent,
approval, authorization or order of, or filing or registration with, any
such court or governmental agency or body is required for the execution,
delivery and performance of the Purchase Agreement, the Registration
Rights Agreement or the Indenture or the consummation of the transactions
contemplated thereby, except for such consents, approvals,
authorizations, orders, filings or registrations as have been obtained or
made and or as may be required under the 1933 Act or the 1933 Act
Regulations or state securities laws in connection with the transactions
contemplated in the Registration Rights Agreement and except for the
qualification of the Indenture under the 1939 Act.

          (ix) It is not necessary in connection with the offer, sale and
delivery of the Notes to the Initial Purchasers and each Subsequent
Purchaser in the manner contemplated by the Purchase Agreement and the
Offering Circular to register the Notes under the 1933 Act or to qualify
the Indenture under the 1939 Act.

          (x) The Company is not, nor as of the Closing Time after giving
effect to the offering and sale of the Notes and the application of the
net proceeds therefrom will it be, an “investment company” as defined in
the Investment Company Act of 1940, as amended.

          (xi) The Notes, the Registration Rights Agreement and the Indenture
conform in all material respects to the descriptions thereof contained in
the Offering Circular.

     In rendering such opinion, such counsel may state that their opinion is
limited to matters governed by the Federal laws of the United States of
America, the laws of the State of New York, the General Corporation Law of the
State of Ohio and the General Corporation Law of the State of Delaware. Such
opinion shall also be to the effect that (x) such counsel has acted as counsel
to the Company in connection with the preparation of the Offering Circular and
(y) based on the foregoing, no facts have come to the attention of such counsel
which lead them to believe that the Offering Circular or any amendment or
supplement thereto (except for the financial statements and related schedules
and other financial data included or incorporated by reference therein, as to
which such counsel need express no belief), at the time the Offering

Exhibit C-2

 

 

Circular was issued, at the time any such amended or supplemented Offering
Circular was issued or at the Closing Time, contained or contains any untrue
statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The foregoing opinion
and statement may be qualified by a statement to the effect that such counsel
does not assume any responsibility for the accuracy, completeness or fairness
of the statements contained in the Offering Circular (other than as set forth
in clauses (iii) and (xi) above).

Exhibit C-3

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