Document:

exv10w1

Exhibit 10.1

March 27, 2009

Mr. R.
Brooks Borcherding
 225
Shore Road
 Belle Haven

Greenwich, CT 06830

Dear R. Brooks,

NaviSite, Inc. (“NaviSite”) is pleased to extend an offer of employment to you for the “new”
position of SVP of Sales and Chief Revenue Officer (CRO). We believe that your experience and
skill set is an excellent fit with our team and strategy, and that you’ll contribute strongly
to our growing organization. We look forward to welcoming you on a start date to be
determined.

In the position of SVP of Sales and CRO you will report directly to Arthur Becker, CEO. The
bi-weekly salary for this position is $7,692.31 (equivalent to $200,000 on an annualized
basis), less applicable withholdings. Additionally, you will be eligible for participation
in an annual bonus plan with on-target earnings of $325,000 based on achieving set company
new monthly recurring revenue (“MRR”) bookings targets. The MRR target will be set at a rate
of $4 million per year or $1 million per quarter. The MRR target will be pro-rated for the
remainder of FY 2009 and will be for the full amount in FY 2010.

	 	•	 	For FY 2009 you are guaranteed to receive a fourth quarter FY2009 bonus
of 75% of one quarter of your annual on-target bonus, to be paid within 45-days
after quarter’s end.
	 
	 	•	 	For FY 2010 you will receive 100% of your quarterly bonus if the Company
achieves new MRR bookings of $1 million per quarter. You will receive a prorated
bonus for performance both below and above your target achievement.

	 	 	 	For example, on a quarterly basis, your bonus will be 85% of $81,250 if
the Company achieves new MRR bookings of $0.85 million (85% of the $1
million target). Your bonus will be 115% of $81,250 if the Company
achieves $1.15 million in new MRR bookings (115% of the $1 million
target). If the Company achieves less than 75% of the $1 million in new
MRR bookings, there will be no bonus paid. The new MRR bonus will

400 Minuteman Road

Andover, MA 01810

p  978.682.8300

f   978.688.8100

www. navisite.com

 

 

	 	 	 	be paid quarterly but measured on a year-to-date basis for the
calculation of on-target earnings.

Subject to the approval of NaviSite’s Board of Directors, you will be granted 200,000 shares of
NaviSite restricted stock. These shares will vest and become
exercisable (“vest”) as to 25% of the
original number of shares on the sixth month anniversary from date of grant and thereafter in
equal amounts monthly over the next 36 months.

	 	•	 	The vesting of these shares will accelerate upon a change of
contral in NaviSite,
provided the change of control is not a transaction by the current majority owners,
Atlantic investors, LLC.
	 
	 	•	 	If a change of control occurs within six months of your start date, 50% of the
shares will vest. If a change of control occurs after six months of your start date, 100%
of the shares will vest.
	 
	 	•	 	NaviSite will pay you twelve months of severance pay (“the Severance Pay”), if you
are terminated without cause. Payment of such severance will be based upon the receipt of
a signed Severance Agreement & General Release. Severance payments will be paid on a
bi-weekly basis, as a salary continuation, less applicable deductions, taxes and employee
benefits. This severance will continue until you find alternative employment, or for
twelve months, whichever comes first.
	 
	 	•	 	You will be given the President title within (3) three quarters of joining Navisite.
At that time, new bonus targets will be discussed. These targets will include both sales
of new MRR bookings and EBITDA. The annual growth rate for new MRR bookings will be
expected to be in the 20% range, with annual EBITDA targets growing in the 25% range on a
yearly basis.
	 
	 	•	 	NaviSite provides a variety of group benefits for regular employees (full or
part-time working at least 30 hours per week). Benefits may include, but are not limited
to medical, dental, 401(k), flexible spending accounts, employee assistance program,
life insurance and accidental death and dismemberment. Eligible regular employees may
participate as of their date of hire. Employee benefits shall be in accordance with
company policies which may be amended from time to time. The Company reserves the right
to revise or discontinue any or all of its benefit plans, at any time, in the Company’s
sole discretion.

This offer of employment with NaviSite is contingent upon the successful completion of our
standard reference checking process and background check with results that are determined, at the
sole discretion of NaviSite, to be satisfactory. The receipt of responses for such information may
be received by NaviSite post hire.

 

 

As an employee of NaviSite, you will be provided with a copy of NaviSite’s Employee Handbook,
outlining personnel policies and procedures. You will be required to read this material thoroughly,
and sign and return the “Receipt and Acknowledgement of NaviSite’s personnel policies and
procedures” within (3) three days of your start date with the Company. Any questions regarding
NaviSite policy should be directed to your Human Resources Business Partner for clarification.

Your employment with NaviSite is “at-will”, and is also contingent upon the following:

	 	•	 	Signing NaviSite’s Non-Competition Agreement, Employee Inventions and Proprietary
Rights Assignment Agreement, Code of Business Conduct and Ethics, and Anti-Harassment
Policy Acknowledgement.
	 
	 	•	 	Submitting satisfactory proof of your identity and legal authorization to work in
the United States (as required by the Immigration and Control Act of 1986). The enclosed
sheets specify the types of documents that may be submitted as proof. You must exhibit
originals of these document(s) within the first three (3) business days of your start
date with NaviSite. Non-compliance with the I-9 requirements may include disciplinary
action up to and including termination of employment.

In the event of any dispute or claim relating to or arising out of your employment with NaviSite,
this agreement, or the termination of your employment (including, but not limited to, any claims of
wrongful termination or age, sex, disability, race or other discrimination), you and NaviSite agree
that all such disputes shall be fully, finally and exclusively resolved by binding arbitration
conducted by the American Arbitration Association in the state in which you work, and we waive our
rights to have such disputes tried by a court or jury.

 

 

We’re thrilled you will be joining Navisite and look forward to you starting as soon as possible.

This letter will serve as an outline of the terms and conditions of our agreement.

	 	 	 	 	 
	Sincerely,

 	 	 
	

 	 	 
	Cheryl Brody 	 	 
	VP, Human Resources 	 	 
	 

	 	 	 	 	 	 	 
	/s/ R. Brooks Borcherding

	 	4/3/09
	 	4/13/09
	 	 
	R. Brooks Borcherding

	 	Date
	 	Start Dateexv10w1

Exhibit 10.1

IDEX CORPORATION
NORTHBROOK, ILLINOIS

FIRST AMENDMENT TO

REVISED AND RESTATED

IDEX MANAGEMENT INCENTIVE COMPENSATION PLAN

FOR KEY EMPLOYEES

     This First Amendment to the Revised and Restated IDEX Management Incentive Compensation Plan
for Key Employees (the “MICP”) hereby amends the MICP effective as of January 1, 2009 to add the
following to Section 7F TOTAL BONUS CALCULATION:

     “Notwithstanding the foregoing, for the 2009 award year, no bonus will be
earned or paid unless and until the Minimum Quantitative Performance Objective
measured by reference to earnings per share, as set by the Compensation Committee
for 2009 is met.”

     In all other respects the MICP shall remain in full force and effect.

          FURTHER RESOLVED, that the officers of this corporation are authorized to produce a copy of
the MICP as conformed to reflect the foregoing amendment and to take all action appropriate and
necessary to effectuate the foregoing amendment.

* * * * * *

          I, Frank Notaro, the Vice President — General Counsel and Secretary of IDEX Corporation do
hereby certify that the foregoing First Amendment was adopted by the Board of Directors of IDEX
Corporation at a duly held meeting on April 7, 2009.

	 	 	 	 	 
	 	 	 
	 	  /s/ Frank J. Notaro 	 
	 	Vice President — General Counsel and SecretaryEX-10.1

Exhibit 10.1

EXECUTION VERSION

RECEIVABLES PURCHASE AGREEMENT

Dated as of April 7, 2009

among

RPM FUNDING CORPORATION, as Seller,

RPM INTERNATIONAL INC., as Servicer,

WACHOVIA BANK, NATIONAL ASSOCIATION

FIFTH THIRD BANK

and

WACHOVIA BANK, NATIONAL ASSOCIATION, individually, as Administrative
Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I. PURCHASE ARRANGEMENTS	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Purchase Facility	 	 	1	 
	Section 1.2
	 	Increases	 	 	2	 
	Section 1.3
	 	Decreases	 	 	2	 
	Section 1.4
	 	Payment Requirements	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II. PAYMENTS AND COLLECTIONS	 	 	3	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Payments	 	 	3	 
	Section 2.2
	 	Collections Prior to Amortization	 	 	4	 
	Section 2.3
	 	Collections Following Amortization	 	 	4	 
	Section 2.4
	 	Application of Collections	 	 	4	 
	Section 2.5
	 	Payment Rescission	 	 	5	 
	Section 2.6
	 	Maximum Purchaser Interests	 	 	5	 
	Section 2.7
	 	Clean Up Call	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE III. [RESERVED]	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE IV. PURCHASER FUNDING	 	 	6	 
	 
	 	 	 	 	 	 
	Section 4.1
	 	Purchaser Funding	 	 	6	 
	Section 4.2
	 	Yield Payments	 	 	6	 
	Section 4.3
	 	Selection and Continuation of Tranche Periods	 	 	6	 
	Section 4.4
	 	Discount Rates	 	 	7	 
	Section 4.5
	 	Suspension of the LIBO Rate or LMIR	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES	 	 	7	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Representations and Warranties of Seller	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE VI. CONDITIONS OF PURCHASES	 	 	11	 
	 
	 	 	 	 	 	 
	Section 6.1
	 	Conditions Precedent to Initial Incremental Purchase	 	 	11	 
	Section 6.2
	 	Conditions Precedent to All Purchases and Reinvestments	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE VII. COVENANTS	 	 	12	 
	 
	 	 	 	 	 	 
	Section 7.1
	 	Affirmative Covenants of the Seller Parties	 	 	12	 
	Section 7.2
	 	Negative Covenants of the Seller Parties	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE VIII. ADMINISTRATION AND COLLECTION	 	 	21	 
	 
	 	 	 	 	 	 
	Section 8.1
	 	Designation of Servicer	 	 	21	 
	Section 8.2
	 	Duties of Servicer	 	 	22	 
	Section 8.3
	 	Collection Notices	 	 	24	 
	Section 8.4
	 	Responsibilities of Seller	 	 	24	 
	Section 8.5
	 	Reports	 	 	24	 
	Section 8.6
	 	Servicing Fees	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE IX. AMORTIZATION EVENTS	 	 	24	 
	 
	 	 	 	 	 	 
	Section 9.1
	 	Amortization Events	 	 	24	 
	Section 9.2
	 	Remedies	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE X. INDEMNIFICATION	 	 	28	 
	 
	 	 	 	 	 	 
	Section 10.1
	 	Indemnities by the Seller	 	 	28	 
	Section 10.2
	 	Indemnities by the Servicer	 	 	30	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 10.3
	 	Increased Cost and Reduced Return	 	 	31	 
	Section 10.4
	 	Other Costs and Expenses	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE XI. THE ADMINISTRATIVE AGENT	 	 	32	 
	 
	 	 	 	 	 	 
	Section 11.1
	 	Appointment	 	 	32	 
	Section 11.2
	 	Delegation of Duties	 	 	33	 
	Section 11.3
	 	Exculpatory Provisions	 	 	33	 
	Section 11.4
	 	Reliance by the Administrative Agent and the Purchasers	 	 	33	 
	Section 11.5
	 	Notice of Amortization Events	 	 	34	 
	Section 11.6
	 	NonReliance on the Administrative Agent and Other Purchasers	 	 	34	 
	Section 11.7
	 	Indemnification of Administrative Agent	 	 	35	 
	Section 11.8
	 	Administrative Agent in its Individual Capacity	 	 	35	 
	Section 11.9
	 	Successor Administrative Agent	 	 	35	 
	Section 11.10
	 	[RESERVED]	 	 	35	 
	Section 11.11
	 	UCC Filings	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE XII. ASSIGNMENTS; PARTICIPATIONS	 	 	36	 
	 
	 	 	 	 	 	 
	Section 12.1
	 	Assignments	 	 	36	 
	Section 12.2
	 	Participations	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE XIII. [RESERVED]	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE XIV. MISCELLANEOUS	 	 	37	 
	 
	 	 	 	 	 	 
	Section 14.1
	 	Waivers and Amendments	 	 	37	 
	Section 14.2
	 	Notices	 	 	37	 
	Section 14.3
	 	Ratable Payments	 	 	38	 
	Section 14.4
	 	Protection of Purchaser Interests	 	 	38	 
	Section 14.5
	 	Confidentiality	 	 	39	 
	Section 14.6
	 	[RESERVED]	 	 	39	 
	Section 14.7
	 	Limitation of Liability	 	 	39	 
	Section 14.8
	 	CHOICE OF LAW	 	 	39	 
	Section 14.9
	 	CONSENT TO JURISDICTION	 	 	40	 
	Section 14.10
	 	WAIVER OF JURY TRIAL	 	 	40	 
	Section 14.11
	 	Integration; Binding Effect; Survival of Terms	 	 	40	 
	Section 14.12
	 	Counterparts; Severability; Section References	 	 	41	 
	Section 14.13
	 	Characterization	 	 	41	 

ii

 

EXECUTION VERSION

RECEIVABLES PURCHASE AGREEMENT

          THIS RECEIVABLES PURCHASE AGREEMENT dated as of April 7, 2009, is among:

     (a) RPM Funding Corporation, a Delaware corporation (“Seller”),

     (b) RPM International Inc., a Delaware corporation (“RPM-Delaware”), as initial
Servicer,

     (c) Fifth Third Bank (“Fifth Third”), and Wachovia Bank, National Association
(“Wachovia” and each of Fifth Third and Wachovia, a “Purchaser” and, collectively, the
“Purchasers”), and

     (d) Wachovia, in its capacity as administrative agent for the Purchasers (in such
capacity, together with its successors and assigns, the “Administrative Agent”).

Unless defined elsewhere herein, capitalized terms used in this Agreement shall have the meanings
assigned to such terms in Exhibit I.

PRELIMINARY STATEMENTS

     Seller desires to transfer and assign Purchaser Interests to the Purchasers from time
to time.

     Each Purchaser shall purchase its Percentage of each Purchaser Interest from Seller
from time to time.

     Wachovia Bank, National Association has been requested and is willing to act as as
Administrative Agent on behalf of the Purchasers in accordance with the terms hereof.

ARTICLE I.

PURCHASE ARRANGEMENTS

     Section 1.1 Purchase Facility.

     (a) On the terms and subject to the conditions set forth in this Agreement, Seller may
from time to time prior to the Facility Termination Date, sell Purchaser Interests to the
Purchasers by delivering (or causing Servicer to deliver, on Seller’s behalf) a Purchase
Notice to each Purchaser in accordance with Section 1.2. Upon receipt of a Purchase Notice,

     (i) Wachovia agrees to purchase its Percentage of such Purchaser Interest, on
the terms and subject to the conditions hereof, provided that at no time

 

 

may the aggregate Capital of Wachovia at any one time outstanding exceed the
lesser of (A) the amount of Wachovia’s Commitment hereunder, and (B) Wachovia’s
Percentage of the difference between the Net Receivables Balance and the Aggregate
Reserves; and

     (ii) Fifth Third agrees to purchase its Percentage of such Purchaser Interest,
on the terms and subject to the conditions hereof, provided that at no time may the
aggregate Capital of Fifth Third at any one time outstanding exceed the lesser of
(A) the amount of Fifth Third’s Commitment hereunder, and (B) Fifth Third’s
Percentage of the difference between the Net Receivables Balance and the Aggregate
Reserves.

In no event shall the Aggregate Capital outstanding hereunder exceed the lesser of (1) the
Purchase Limit and (2) the difference between the Net Receivables Balance and the Aggregate
Reserves. Each Purchaser’s Commitments to Seller under this Agreement shall terminate on
the Facility Termination Date.

     (b) Seller may, upon at least 10 Business Days’ notice to the Administrative Agent and
each Purchaser, terminate in whole or reduce in part, ratably between Wachovia and Fifth
Third in accordance with their respective Percentages, the unused portion of the Purchase
Limit; provided that each partial reduction of the Purchase Limit shall be in an aggregate
amount equal to $10,000,000 or a larger integral multiple of $1,000,000.

     Section 1.2 Increases. Seller (or Servicer, on Seller’s behalf) shall provide each
Purchaser with notice of each Incremental Purchase by 12:00 p.m. New York City time two (2)
Business Days prior to each such Incremental Purchase in a form set forth as Exhibit II hereto (a
“Purchase Notice”). Each Purchase Notice shall be subject to Section 6.2 hereof and, except as set
forth below, shall be irrevocable and shall specify the requested Purchase Price (which shall be at
least $3,000,000 or a larger integral multiple of $100,000) and date of purchase (which, in the
case of any Incremental Purchase (after the initial Incremental Purchase hereunder), shall only be
on a Settlement Date) and the requested Discount Rate and Tranche Period. In the event that any
Purchase Notice is delivered later than 12:00 p.m. New York City time two (2) Business Days prior
to such Incremental Purchase, the Purchasers shall make such Incremental Purchase on a best-efforts
basis only. On the date of each Incremental Purchase, upon satisfaction of the applicable
conditions precedent set forth in Article VI, each Purchaser, shall deposit to the Facility
Account, in immediately available funds, no later than 2:00 p.m. (New York time), an amount equal
to its Percentage of the Purchase Price of the Purchaser Interest then being purchased.

     Section 1.3 Decreases. Seller (or Servicer, on Seller’s behalf) shall provide each
Purchaser with prior written notice in conformity with the Required Notice Period (each, a
“Reduction Notice”) of any proposed reduction of Aggregate Capital. Such Reduction Notice shall
designate (i) the date upon which any such reduction of Aggregate Capital shall occur (which date shall give effect
to the applicable Required Notice Period), (ii) the amount of Aggregate Capital to be reduced (the
“Aggregate Reduction”), (iii) each Purchaser’s Percentage of such Aggregate Reduction, which shall
be applied ratably to the Purchaser Interests of each

2

 

Purchaser in accordance with the amount of
Capital (if any) owing to such Purchaser. Only one (1) Reduction Notice shall be outstanding at
any time.

     Section 1.4 Payment Requirements. All amounts to be paid or deposited by any Seller
Party pursuant to any provision of this Agreement shall be paid or deposited in accordance with the
terms hereof no later than 12:00 noon (New York time) on the day when due in immediately available
funds, and if not received before 12:00 noon (New York time) shall be deemed to be received on the
next succeeding Business Day. If such amounts are payable to Fifth Third, they shall be paid to
[Redacted], until otherwise notified by Fifth Third (the “Fifth Third
Account”). If such amounts are payable to the Administrative Agent or to Wachovia, they shall be
paid to [Redacted], until otherwise notified by Wachovia (the “Wachovia Account”).
All computations of Yield, per annum fees hereunder and per annum fees under the Fee Letter shall
be made on the basis of a year of 360 days for the actual number of days elapsed. If any amount
hereunder shall be payable on a day which is not a Business Day, such amount shall be payable on
the next succeeding Business Day.

ARTICLE II.

PAYMENTS AND COLLECTIONS

     Section 2.1 Payments. Notwithstanding any limitation on recourse contained in this
Agreement, Seller (or Servicer, on Seller’s behalf) shall immediately remit to each of the
Purchasers when due, for the account of such Purchaser, on a full recourse basis, all of the
following (collectively, the “Obligations”):

     (i) such fees as set forth in the Fee Letter (which fees shall be sufficient to pay all
fees owing to the Administrative Agent and the Purchasers),

     (ii) all amounts payable as Yield,

     (iii) all amounts payable as Deemed Collections (which shall be immediately due and
payable by Seller and applied to reduce outstanding Aggregate Capital hereunder in
accordance with Sections 2.2 and 2.3 hereof),

     (iv) all amounts required pursuant to Section 2.6,

     (v) all amounts payable pursuant to Article X, if any,

     (vi) all Servicer costs and expenses, including the Servicing Fee, in connection with
servicing, administering and collecting the Receivables,

     (vii) all Broken Funding Costs, and

     (viii) all Default Fees.

3

 

If Seller fails to pay any of the Obligations when due, Seller agrees to pay, on demand, the
Default Fee in respect thereof until paid. Notwithstanding the foregoing, no provision of this
Agreement or the Fee Letter shall require the payment or permit the collection of any amounts
hereunder in excess of the maximum permitted by applicable law. If at any time Seller receives any
Collections or is deemed to receive any Collections, Seller (or Servicer, on Seller’s behalf) shall
immediately pay such Collections or Deemed Collections to the Servicer for application in
accordance with the terms and conditions hereof and, at all times prior to such payment, such
Collections or Deemed Collections shall be held in trust by Seller for the exclusive benefit of the
Purchasers and the Administrative Agent.

     Section 2.2 Collections Prior to Amortization. Prior to the Amortization Date, any
Collections and/or Deemed Collections received by the Servicer shall be set aside and held in trust
by the Servicer for the payment of any accrued and unpaid Aggregate Unpaids or for a Reinvestment
as provided in this Section 2.2. If on any Business Day prior to the Amortization Date, any
Collections are received by the Servicer after payment of any Obligations that are then due and
owing, Seller hereby requests and the Purchasers hereby agree to make, simultaneously with such
receipt, a reinvestment (each, a “Reinvestment”) with that portion of the balance of each and every
Collection received by the Servicer that is part of any Purchaser Interest, such that after giving
effect to such Reinvestment, the amount of Capital of such Purchaser Interest immediately after
such receipt and corresponding Reinvestment shall be equal to the amount of Capital immediately
prior to such receipt. On each Settlement Date prior to the occurrence of the Amortization Date,
the Servicer shall remit to the Fifth Third Account and the Wachovia Account each Purchaser’s
respective Percentage of the amounts set aside during the preceding Settlement Period that have not
been subject to a Reinvestment and apply such amounts (if not previously paid in accordance with
Section 2.1) to reduce the Obligations. Once such Obligations shall be reduced to zero, any
additional Collections received by the Servicer (i) if applicable, shall be remitted to the Fifth
Third Account and the Wachovia Account no later than 12:00 noon (New York time) to the extent
required to fund the Purchasers’ respective Percentages of any Aggregate Reduction on such
Settlement Date and (ii) any balance remaining thereafter shall be remitted from the Servicer to
Seller on such Settlement Date.

     Section 2.3 Collections Following Amortization. On the Amortization Date and on each
day thereafter, the Servicer shall set aside and hold in trust, for the holders of each Purchaser
Interest, all Collections received on such day and an additional amount of the Seller’s funds for
the payment of any accrued and unpaid Obligations owed by Seller and not previously paid by Seller
in accordance with Section 2.1. On and after the Amortization Date, the Servicer shall, at any
time upon the request from time to time by (or pursuant to standing instructions from) the Administrative Agent or any
Purchaser (i) remit to the Fifth Third Account and the Wachovia Account the Purchasers’ respective
Percentages of the amounts set aside pursuant to the preceding sentence, and (ii) apply such
amounts to reduce the applicable Purchasers’ Capital associated with each such Purchaser Interest
and any other Aggregate Unpaids.

     Section 2.4 Application of Collections. If there shall be insufficient funds on
deposit for the Servicer to distribute funds in payment in full of the aforementioned amounts
pursuant to Section 2.2 or 2.3 (as applicable), the Servicer shall distribute funds:

4

 

     first, to the payment of the Servicer’s reasonably and properly documented
out-of-pocket costs and expenses in connection with servicing, administering and collecting
the Receivables, including the Servicing Fee, if RPM-Delaware or one of its Affiliates is
not then acting as the Servicer,

     second, to the reimbursement of the Administrative Agent’s costs of collection and
enforcement of this Agreement,

     third, ratably to the payment of all accrued and unpaid fees under the Fee Letter and
Yield,

     fourth, for the ratable payment of all other unpaid Obligations, provided that to the
extent such Obligations relate to the payment of Servicer costs and expenses, including the
Servicing Fee, when RPM-Delaware or one of its Affiliates is acting as the Servicer, such
costs and expenses will not be paid until after the payment in full of all other
Obligations,

     fifth, unless the Amortization Date has occurred or a Reduction Notice has been
delivered, to the making of a Reinvestment,

     sixth, to the ratable reduction of the Aggregate Capital, and

     seventh, after the Aggregate Unpaids have been indefeasibly reduced to zero, to Seller.

Collections applied to the payment of Aggregate Unpaids shall be distributed in accordance with the
aforementioned provisions, and, giving effect to each of the priorities set forth above in this
Section 2.4, shall be shared ratably (within each priority) among the Administrative Agent and the
Purchasers in accordance with the amount of such Aggregate Unpaids owing to each of them in respect
of each such priority.

     Section 2.5 Payment Rescission. No payment of any of the Aggregate Unpaids shall be
considered paid or applied hereunder to the extent that, at any time, all or any portion of such
payment or application is rescinded by application of law or judicial authority, or must otherwise
be returned or refunded for any reason. Seller shall remain obligated for the amount of any payment or
application so rescinded, returned or refunded, and shall promptly pay to the applicable Purchaser
or the Administrative Agent the full amount thereof, plus the Default Fee from the date of any such
rescission, return or refunding.

     Section 2.6 Maximum Purchaser Interests. Seller shall ensure that the Purchaser
Interests of the Purchasers shall at no time exceed in the aggregate 100%. If the aggregate of the
Purchaser Interests of the Purchasers exceeds 100% or the Aggregate Capital of the Purchasers
exceeds the Purchase Limit, Seller shall pay to each of the Purchasers within one (1) Business Day
its respective Percentage of an amount to be applied to reduce its aggregate Capital outstanding,
such that after giving effect to such payment, the aggregate of the Purchaser Interests equals or
is less than 100% and the Aggregate Capital of the Purchasers equals or is less than the Purchase
Limit.

5

 

     Section 2.7 Clean Up Call. In addition to Seller’s rights pursuant to Section 1.3,
Seller shall have the right (after providing written notice to the Administrative Agent and the
Purchasers in accordance with the Required Notice Period), at any time following the reduction of
the Aggregate Capital to a level that is less than 20.0% of the original Purchase Limit, to
repurchase from the Purchasers all, but not less than all, of the then outstanding Purchaser
Interests. The purchase price in respect thereof shall be an amount equal to the Aggregate Unpaids
through the date of such repurchase, payable in immediately available funds. Such repurchase shall
be without representation, warranty or recourse of any kind by, on the part of, or against any
Purchaser except for a representation and warranty that the reconveyance to Seller is being made
free and clear of any Adverse Claim created by the applicable Purchaser.

ARTICLE III.

[RESERVED]

ARTICLE IV.

PURCHASER FUNDING

     Section 4.1 Purchaser Funding. Each Purchaser Interest shall accrue Yield for each
day during its Tranche Period at either the LIBO Rate, LMIR or the Alternate Base Rate in
accordance with the terms and conditions hereof. Until Seller gives notice to the applicable
Purchaser of another Discount Rate in accordance with Section 4.4, the initial Discount Rate for
any Purchaser Interest shall be the Alternate Base Rate. Each Purchaser Interest acquired by a
Purchaser shall be deemed to have a new Tranche Period commencing on the date of any such purchase.

     Section 4.2 Yield Payments. On the Settlement Date for each Purchaser Interest,
Seller shall pay to the applicable Purchaser an aggregate amount equal to the accrued and unpaid
Yield for the entire Tranche Period of each such Purchaser Interest in accordance with Article II.

     Section 4.3 Selection and Continuation of Tranche Periods.

     (a) Seller (or Servicer, on Seller’s behalf) shall from time to time request Tranche
Periods for the Purchaser Interests of each Purchaser, provided that if at any time such
Purchaser shall have a Purchaser Interest, Seller shall always request Tranche Periods such
that at least one Tranche Period shall end on the date specified in clause (A) of the
definition of Settlement Date.

     (b) Seller, Servicer (on Seller’s behalf) or the applicable Purchaser, upon notice to
and consent by the other received at least three (3) Business Days prior to the end of a
Tranche Period (the “Terminating Tranche”) for any Purchaser Interest, may, effective on the
last day of the Terminating Tranche: (i) divide any such Purchaser Interest into multiple
Purchaser Interests, (ii) combine any such Purchaser Interest with one or more other
Purchaser Interests that have a Terminating Tranche ending on the same day as

6

 

such
Terminating Tranche or (iii) combine any such Purchaser Interest with a new Purchaser
Interest to be purchased on the day such Terminating Tranche ends.

     Section 4.4 Discount Rates. Seller may select LMIR, the LIBO Rate, or the Alternate
Base Rate for each Purchaser Interest of any Purchaser. Seller shall by 12:00 noon (New York
time): (i) at least three (3) Business Days prior to the expiration of any Terminating Tranche with
respect to which LMIR or the LIBO Rate is being requested as a new Discount Rate and (ii) at least
one (1) Business Day prior to the expiration of any Terminating Tranche with respect to which the
Alternate Base Rate is being requested as a new Discount Rate, give the applicable Purchaser
irrevocable notice of the new Discount Rate for the Purchaser Interest associated with such
Terminating Tranche. Until Seller gives notice to the applicable Purchaser of another Discount
Rate, the initial Discount Rate for any Purchaser Interest purchased by any Purchaser shall be the
Alternate Base Rate.

     Section 4.5 Suspension of the LIBO Rate or LMIR

          (a) If any Purchaser determines that funding its Purchaser Interests at a LIBO Rate or LMIR
would violate any applicable law, rule, regulation, or directive of any governmental or regulatory
authority, whether or not having the force of law, or that (i) deposits of a type and maturity
appropriate to match fund its Purchaser Interests at such LIBO Rate or LMIR are not available or
(ii) such LIBO Rate or LMIR does not accurately reflect the cost of acquiring or maintaining a
Purchaser Interest at such LIBO Rate or LMIR, then such Purchaser shall suspend the availability of
such LIBO Rate or LMIR, as the case may be, and require Seller to select the Alternate Base Rate
for any of its Purchaser Interests accruing Yield at such LIBO Rate.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

     Section 5.1 Representations and Warranties of Seller. Seller hereby represents and
warrants to the Administrative Agent and the Purchasers, as to itself, as of the date hereof and as
of the date of each Incremental Purchase and the date of each Reinvestment that:

     (a) Existence and Power. Seller is duly organized, validly existing and in
good standing under the laws of its state of organization. Seller is duly qualified to do
business and is in good standing as a foreign corporation, and has and holds all corporate
power and all governmental licenses, authorizations, consents and approvals required to
carry on its business in each jurisdiction in which its business is conducted except where
the failure to so qualify or so hold could not reasonably be expected to have a Material
Adverse Effect.

     (b) Power and Authority; Due Authorization, Execution and Delivery. The
execution and delivery by Seller of this Agreement and each other Transaction Document to
which it is a party, the performance of its obligations hereunder and thereunder and the use
of the proceeds of purchases made hereunder, are within its corporate powers and authority
and have been duly authorized by all necessary corporate action on its part.

7

 

This Agreement
and each other Transaction Document to which Seller Party is a party has been duly executed
and delivered by Seller.

     (c) No Conflict. The execution and delivery by Seller of this Agreement and
each other Transaction Document to which it is a party, and the performance of its
obligations hereunder and thereunder do not contravene or violate (i) its certificate or
articles of incorporation or by-laws, (ii) any law, rule or regulation applicable to it,
(iii) any restrictions under any agreement, contract or instrument to which it is a party or
by which it or any of its property is bound, or (iv) any order, writ, judgment, award,
injunction or decree binding on or affecting it or its property, and do not result in the
creation or imposition of any Adverse Claim on assets of Seller (except as created
hereunder) except, in any case, where such contravention or violation could not reasonably
be expected to have a Material Adverse Effect; and no transaction contemplated hereby
requires compliance with any bulk sales act or similar law.

     (d) Governmental Authorization. Other than the filing of the financing
statements required hereunder, no authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body is required for the
due execution and delivery by Seller of this Agreement and each other Transaction Document
to which it is a party and the performance of its obligations hereunder and thereunder.

     (e) Actions, Suits. Seller represents and warrants that (i) there are no
actions, suits or proceedings pending, or to the best of Seller’s knowledge, threatened,
against or affecting Seller, or any of its properties, in or before any court, arbitrator or
other body, that could reasonably be expected to have a Material Adverse Effect, and (ii) Seller is
not in default with respect to any order of any court, arbitrator or governmental body.

     (f) Binding Effect. This Agreement and each other Transaction Document to
which Seller is a party constitute the legal, valid and binding obligations of Seller
enforceable against Seller in accordance with their respective terms, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other
similar laws relating to or limiting creditors’ rights generally and by general principles
of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

     (g) Accuracy of Information. Seller represents and warrants that all
information heretofore furnished by Seller or by any Responsible Officer of an Originator to
the Administrative Agent or any of the Purchasers for purposes of or in connection with this
Agreement, any of the other Transaction Documents or any transaction contemplated hereby or
thereby is, and all such information hereafter furnished by Seller or any such Responsible
Officer to the Administrative Agent or any of the Purchasers will be, true and accurate in
every material respect on the date such information is stated or certified and does not and
will not contain any material misstatement of fact or omit to state a material fact or any
fact necessary to make the statements contained therein not misleading. Servicer represents
and warrants that each Receivables Report completed and compiled by it accurately aggregates
the information received by it from the

8

 

Originators and correctly computes the ratios and concentrations set forth therein based upon such aggregates.

     (h) Use of Proceeds. Seller represents and warrants that it will not use the
proceeds of any purchase hereunder (i) for a purpose that violates, or would be inconsistent
with, Regulation T, U or X promulgated by the Board of Governors of the Federal Reserve
System from time to time or (ii) to acquire any security in any transaction which is subject
to Section 12, 13 or 14 of the Securities Exchange Act of 1934, as amended.

     (i) Good Title. Seller represents and warrants that immediately prior to each
purchase hereunder, Seller shall be the legal and beneficial owner of the Receivables and
Related Security with respect thereto, free and clear of any Adverse Claim, except as
created by the Transaction Documents. Seller represents and warrants that there have been
duly filed all financing statements or other similar instruments or documents necessary
under the UCC (or any comparable law) of all appropriate jurisdictions to perfect Seller’s
ownership or security interest in each Receivable, its Collections and the Related Security.

     (j) Perfection. Seller represents and warrants that this Agreement, together
with the filing of the financing statements contemplated hereby, is effective to, and shall,
upon each purchase hereunder, transfer to the Administrative Agent for the benefit of the
relevant Purchaser or Purchasers (and the Administrative Agent for the benefit of such
Purchaser or Purchasers shall acquire from Seller) a valid and perfected first priority
undivided percentage ownership or security interest in each Receivable existing or
hereafter arising and in the Related Security and Collections with respect thereto,
free and clear of any Adverse Claim, except as created by the Transactions Documents.
Seller represents and warrants that there have been duly filed all financing statements or
other similar instruments or documents necessary under the UCC (or any comparable law) of
all appropriate jurisdictions to perfect the Administrative Agent’s (on behalf of the
Purchasers) ownership or security interest in the Receivables, the Related Security and the
Collections.

     (k) Places of Business and Locations of Records. The principal places of
business and chief executive office of Seller and the offices where it keeps all of its
Records are located at the address(es) listed on Exhibit III or such other locations of
which the Administrative Agent and the Purchasers have been notified in accordance with
Section 7.2(a) in jurisdictions where all action required by Section 14.4(a) has been taken
and completed. Seller’s Federal Employer Identification Number and Organizational
Identification Number are correctly set forth on Exhibit III.

     (l) Collections. Each of the Seller Parties represents and warrants that the
conditions and requirements set forth in Section 7.1(j) and Section 8.2 have at all times
been satisfied and duly performed. Seller represents and warrants that the names and
addresses of all Collection Banks, together with the account numbers of the Collection
Accounts of Seller at each Collection Bank and the post office box number of each Lock-Box,
are listed on Exhibit IV. Seller represents and warrants that Seller has not granted

9

 

any Person, other than the Administrative Agent as contemplated by this Agreement, dominion and
control of any Lock-Box or Collection Account, or the right to take dominion and control of
any such Lock-Box or Collection Account at a future time or upon the occurrence of a future
event. Notwithstanding the foregoing, Seller confirms that it has granted the Servicer a
right of access to the Lock-Boxes and Collection Accounts to the extent permitted in the
Collection Account Agreements.

     (m) Material Adverse Effect. Seller represents and warrants that since May 31,
2008, no event has occurred that would have a Material Adverse Effect.

     (n) Names. In the past five (5) years, Seller has not used any corporate
names, trade names or assumed names other than the name in which it has executed this
Agreement.

     (o) Ownership of Seller. Seller represents and warrants that RPM-Delaware and
the Originators, collectively, own, directly or indirectly, 100% of the issued and
outstanding capital stock of all classes of Seller, free and clear of any Adverse Claim.
Seller represents and warrants that such capital stock is validly issued, fully paid and
nonassessable, and that there are no options, warrants or other rights to acquire securities
of Seller.

     (p) Not an Investment Company. Seller is not an “investment company” within
the meaning of the Investment Company Act of 1940, as amended, or any successor statute.

     (q) Compliance with Law. Seller has complied in all respects with all
applicable laws, rules, regulations, orders, writs, judgments, injunctions, decrees or
awards to which it may be subject, except where the failure to so comply could not
reasonably be expected to have a Material Adverse Effect. Each Receivable, together with
the Contract related thereto, does not contravene any laws, rules or regulations applicable
thereto (including, without limitation, laws, rules and regulations relating to truth in
lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt
collection practices and privacy), and no part of such Contract is in violation of any such
law, rule or regulation, except where such contravention or violation could not reasonably
be expected to have a Material Adverse Effect.

     (r) Compliance with Credit and Collection Policy. Seller has complied in all
material respects with the Credit and Collection Policy with regard to each Receivable and
the related Contract, and has not made any material change to such Credit and Collection
Policy, except such material change as to which the Administrative Agent and the Purchasers
have been notified in accordance with Section 4.1(a)(vii) of the Receivables Sale Agreement.

     (s) Payments to Applicable Originator. With respect to each Receivable
transferred to Seller under the Receivables Sale Agreement, Seller has given reasonably
equivalent value to the applicable Originator in consideration therefor and such transfer
was not made for or on account of an antecedent debt. No transfer by any Originator of

10

 

any Receivable under the Receivables Sale Agreement is or may be voidable under any section of
the Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et seq.), as amended.

     (t) Enforceability of Contracts. Seller represents and warrants that each
Contract with respect to each Eligible Receivable is effective to create, and has created, a
legal, valid and binding obligation of the related Obligor to pay the Outstanding Balance of
the Eligible Receivable created thereunder and any accrued interest thereon, enforceable
against the Obligor in accordance with its terms, except as such enforcement may be limited
by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or
limiting creditors’ rights generally and by general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law).

     (u) Eligible Receivables. Seller represents and warrants that each Receivable
included in the Net Receivables Balance as an Eligible Receivable was an Eligible Receivable
on the date so included.

     (v) Net Receivables Balance. Seller represents and warrants that Seller has
determined that, immediately after giving effect to each purchase hereunder, the Net
Receivables Balance is at least equal to the sum of (i) the Aggregate Capital, plus (ii) the
Aggregate Reserves.

     (w) Accounting. The manner in which Seller accounts for the transactions
contemplated by this Agreement and the Receivables Sale Agreement does not jeopardize the
true sale analysis.

ARTICLE VI.

CONDITIONS OF PURCHASES

     Section 6.1 Conditions Precedent to Initial Incremental Purchase. The initial
Incremental Purchase of a Purchaser Interest under this Agreement is subject to the conditions
precedent that (a) the Administrative Agent shall have received on or before the date of such
purchase those documents listed on Schedule B, and (b) the Administrative Agent and each of the
Purchasers shall have received all fees and expenses required to be paid on such date pursuant to
the terms of this Agreement and the applicable Fee Letter.

     Section 6.2 Conditions Precedent to All Purchases and Reinvestments. Each purchase of
a Purchaser Interest and each Reinvestment shall be subject to the further conditions precedent
that (a) in the case of each such purchase or Reinvestment: (i) the Servicer shall have delivered
to the Purchasers on or prior to the date of such purchase, in form and substance satisfactory to
each of the Purchasers, all Receivables Reports as and when due under Section 8.5 and (ii) upon any
Purchaser’s reasonable request, the Servicer shall have delivered to the Purchasers at least three
(3) days prior to such purchase or Reinvestment an interim Receivables Report showing the amount of
Eligible Receivables; (b) the Facility Termination Date shall not have occurred; (c) the
Administrative Agent and the Purchasers shall have received such other approvals, opinions or
documents as it may reasonably request and (d) on the date of each such Incremental Purchase or
Reinvestment, the following statements shall be true (and acceptance of the proceeds of such

11

 

Incremental Purchase or Reinvestment shall be deemed a representation and warranty by Seller that
such statements are then true):

     (i) the representations and warranties set forth in Section 5.1 are true and
correct on and as of the date of such Incremental Purchase or Reinvestment as though
made on and as of such date; provided, however, that so long as the RPM-Delaware
Credit Agreement does not require the datedown as of each borrowing date of the
absence of material adverse change representation thereunder, the representation
contained in Section 5.1(m) of this Agreement need only be true as of the date of
the initial Purchase hereunder;

     (ii) no event has occurred and is continuing, or would result from such
Incremental Purchase or Reinvestment, that will constitute an Amortization Event,
and no event has occurred and is continuing, or would result from such Incremental
Purchase or Reinvestment, that would constitute a Potential Amortization Event; and

     (iii) the Aggregate Capital does not exceed the Purchase Limit and the
aggregate Purchaser Interests do not exceed 100%.

It is expressly understood that each Reinvestment shall, unless otherwise directed by the
Administrative Agent or any Purchaser, occur automatically on each day that the Servicer shall
receive any Collections without the requirement that any further action be taken on the part of any
Person and notwithstanding the failure of Seller to satisfy any of the foregoing conditions
precedent in respect of such Reinvestment. The failure of Seller to satisfy any of the foregoing
conditions precedent in respect of any Reinvestment shall give rise to a right of each Purchaser,
which right may be exercised at any time on demand of such Purchaser, to rescind the related
purchase and direct Seller to pay to such Purchaser its Percentages of the Collection prior to the
Amortization Date that shall have been applied to the affected Reinvestment.

ARTICLE VII.

COVENANTS

     Section 7.1 Affirmative Covenants of the Seller Parties. Until the date on which the
Aggregate Unpaids have been indefeasibly paid in full and this Agreement terminates in accordance
with its terms:

          (a) Financial Reporting. Such Seller Party will maintain, for itself and each
of its Subsidiaries, a system of accounting established and administered in accordance with
GAAP, and furnish or cause to be furnished to the Administrative Agent and each Purchaser:

          (i) Annual Reporting. As soon as available and in any event within 90
days after the end of each fiscal year of RPM-Delaware, (A) the audited annual
financial statements of RPM-Delaware required to be delivered under Section
4.1(a)(i) of the Receivables Sale Agreement, together with (B) comparable
unaudited annual financial statements of Seller.

12

 

          (ii) Quarterly Reporting. As soon as available and in any event within
45 days after the end of each fiscal quarter of RPM-Delaware, (A) the quarterly
financial statements of RPM-Delaware required to be delivered under Section
4.1(a)(ii) of the Receivables Sale Agreement, together with (B) comparable
unaudited quarterly financial statements of Seller.

          (iii) Compliance Certificate. Together with the financial statements
required hereunder, a compliance certificate in substantially the form of Exhibit V
signed by the applicable Seller Party’s Authorized Officer and dated the date of
such annual financial statement or such quarterly financial statement, as the case
may be.

          (iv) Monthly Report. At any time that (i) the Servicer is rated below “Baa3”
by Moody’s, “BBB-” by S&P, or “BBB-” by Fitch or (ii) the Administrative Agent has
determined, in its reasonable discretion, that there has been material deterioration in the
performance of the Receivables, upon the request of the
Administrative Agent or any Purchaser, for as long as RPM-Delaware Inc. is the
Servicer, the unaudited financial reports of the Servicer for the calendar month most
recently ended.

          (v) Shareholders Statements and Reports. Promptly upon the furnishing
thereof to the shareholders of RPM-Delaware, copies of all financial statements,
reports and proxy statements so furnished.

          (vi) S.E.C. Filings. Promptly upon the filing thereof, copies of all
registration statements (other than any registration statements on Form S-8 or its
equivalent) and any reports which RPM-Delaware files with the Securities and
Exchange Commission.

          (vii) Copies of Notices. Promptly upon its receipt of any notice,
request for consent, financial statements, certification, report or other
communication under or in connection with any Transaction Document from any
Originator, the Performance Guarantor or any Collection Bank, copies of the same.

          (viii) Other Information. Promptly, from time to time, such other
information, documents, records or reports relating to the Receivables or the
financial condition, operations, prospects or business of such Seller Party as the
Administrative Agent or any Purchaser may from time to time reasonably request in
order to protect the interests of the Administrative Agent and the Purchasers under
or as contemplated by this Agreement.

          (b) Notices. Such Seller Party will notify the Administrative Agent and each
Purchaser in writing of any of the following promptly upon learning of the occurrence
thereof, describing the same and, if applicable, the steps being taken with respect thereto:

          (i) Amortization Events or Potential Amortization Events. The
occurrence of each Amortization Event and each Potential Amortization Event, by a
statement of an Authorized Officer of such Seller Party.

13

 

          (ii) Judgment and Proceedings. (A) (1) The entry of any judgment or
decree against the Servicer or any of its respective Subsidiaries if the aggregate
amount of all judgments and decrees then outstanding against the Servicer and its
Subsidiaries exceeds $40,000,000 after deducting (a) the amount with respect to which the Servicer or any such Subsidiary is
insured and with respect to which the insurer has acknowledged responsibility, and
(b) the amount for which the Servicer or any such Subsidiary is otherwise
indemnified if the terms of such indemnification are satisfactory to the
Administrative Agent and each Purchaser, and (2) the institution of any litigation,
arbitration proceeding or governmental proceeding against the Servicer which,
individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect; and (B) the entry of any judgment or decree or the institution of
any litigation, arbitration proceeding or governmental proceeding against Seller.

          (iii) Material Adverse Effect. The occurrence of any event or
condition that has had, or could reasonably be expected to have, a Material Adverse
Effect.

          (iv) Defaults Under Other Agreements. The occurrence of a default or
an event of default under any other financing arrangement relating to a line of
credit or Indebtedness in excess of $5 million in aggregate principal amount
pursuant to which any Originator is a debtor or an obligor.

          (v) Termination Date. The occurrence of the “Termination Date” under
and as defined in the Receivables Sale Agreement.

          (vi) Downgrade of Performance Guarantor. Any downgrade in the rating
of any Indebtedness of Performance Guarantor by S&P, or by Moody’s setting forth the
Indebtedness affected and the nature of such change.

          (c) Compliance with Laws and Preservation of Corporate Existence. Such Seller
Party will comply in all respects with all applicable laws, rules, regulations, orders,
writs, judgments, injunctions, decrees or awards to which it may be subject, except where
the failure to so comply could not reasonably be expected to have a Material Adverse Effect.
Such Seller Party will preserve and maintain its corporate existence, rights, franchises
and privileges in the jurisdiction of its incorporation, and qualify and remain qualified in
good standing as a foreign corporation in each jurisdiction where its business is conducted,
except where the failure to so preserve and maintain or qualify could not reasonably be
expected to have a Material Adverse Effect.

          (d) Audits. Such Seller Party will furnish to the Administrative Agent and
each Purchaser from time to time such information with respect to it and the Receivables as
the Administrative Agent or any of the Purchasers may reasonably request. Such Seller Party
will, from time to time during regular business hours as requested by the Administrative Agent or any
Purchaser upon reasonable notice and at the sole cost of such Seller Party, permit the
Administrative Agent and each of the Purchasers, or their respective agents or
representatives (and shall cause each Originator to permit the Administrative Agent and each
of the Purchasers or their respective agents or representatives): (i) to examine and make
copies of and abstracts from all Records in the possession or under the control of such
Person relating to the Receivables

14

 

and the Related Security, including, without limitation,
the related Contracts, and (ii) to visit the offices and properties of such Person for the
purpose of examining such materials described in clause (i) above, and to discuss matters
relating to such Person’s financial condition or the Receivables and the Related Security or
any Person’s performance under any of the Transaction Documents or any Person’s performance
under the Contracts and, in each case, with any of the officers or employees of Seller or
the Servicer having knowledge of such matters (each of the foregoing examinations and
visits, a “Review”); provided, however, that, except in connection with an Extension
Request, so long as no Amortization Event or Potential Amortization Event has occurred, the
Seller Parties shall only be responsible for the costs and expenses of two (2) Reviews in
any one calendar year.

          (e) Keeping and Marking of Records and Books.

     (i) The Servicer will (and will cause each Originator to) maintain and
implement administrative and operating procedures (including, without limitation, an
ability to recreate records evidencing Receivables in the event of the destruction
of the originals thereof), and keep and maintain all documents, books, records and
other information reasonably necessary or advisable for the collection of all
Receivables (including, without limitation, records adequate to permit the immediate
identification of each new Receivable and all Collections of and adjustments to each
existing Receivable). The Servicer will (and will cause each Originator to) give
the Administrative Agent and each Purchaser notice of any material change in the
administrative and operating procedures referred to in the previous sentence.

     (ii) Servicer will (and will cause each Originator to) (A) on or prior to the
date hereof, mark its master data processing records and other books and records
relating to the Purchaser Interests with a legend, acceptable to the Administrative
Agent and each Purchaser, describing the Purchaser Interests and (B) upon the
request of the Administrative Agent or any of the Purchasers following the
occurrence of an Amortization Event, deliver to the Administrative Agent all
invoices included in the Contracts (including, without limitation, all multiple
originals of any such invoice) relating to the Receivables.

          (f) Compliance with Contracts and Credit and Collection Policy. Servicer will
(and will cause each Originator to) timely and fully (i) perform and comply in all material
respects with all provisions, covenants and other promises required to be observed by it
under the Contracts related to the Receivables, and (ii) comply in all material respects
with the Credit and Collection Policy in regard to each Receivable and the related Contract.

          (g) Performance and Enforcement of Receivables Sale Agreement and Performance
Undertaking. Seller will, and will require each of the Originators to, perform each of
their respective obligations and undertakings under and pursuant to the Receivables Sale
Agreement, will purchase Receivables thereunder in strict compliance with the terms thereof
and will vigorously enforce the rights and remedies accorded to Seller under the Receivables
Sale Agreement. Seller will take all actions to perfect and enforce its rights and
interests (and the rights and interests of the Administrative Agent and the Purchasers as
assignees

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of Seller) under the Receivables Sale Agreement as the Administrative Agent and
any Purchaser may from time to time reasonably request, including, without limitation,
making claims to which it may be entitled under any indemnity, reimbursement or similar
provision contained in the Receivables Sale Agreement. In addition, Seller will vigorously
enforce the rights and remedies accorded to Seller under the Performance Undertaking.

          (h) Ownership. Seller will (or will cause each Originator to) take all
necessary action to (i) vest legal and equitable title to the Receivables, the Related
Security and the Collections purchased under the Receivables Sale Agreement irrevocably in
Seller, free and clear of any Adverse Claims other than Adverse Claims in favor of the
Administrative Agent and the Purchasers (including, without limitation, the filing of all
financing statements or other similar instruments or documents necessary under the UCC (or
any comparable law) of all appropriate jurisdictions to perfect Seller’s interest in such
Receivables, Related Security and Collections and such other action to perfect, protect or
more fully evidence the interest of Seller therein as the Administrative Agent and any
Purchaser may reasonably request), and (ii) establish and maintain, in favor of the
Administrative Agent, for the benefit of the Purchasers, a valid and perfected first
priority undivided percentage ownership interest (and/or a valid and perfected first
priority security interest) in all Receivables, Related Security and Collections to the full
extent contemplated herein, free and clear of any Adverse Claims other than Adverse Claims
in favor of the Administrative Agent for the benefit of the Purchasers (including, without
limitation, the filing of all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect
the Administrative Agent’s (for the benefit of the Purchasers) interest in such Receivables,
Related Security and Collections and such other action to perfect, protect or more fully
evidence the interest of the Administrative Agent for the benefit of the Purchasers as the
Administrative Agent or any Purchaser may reasonably request).

          (i) Purchasers’ Reliance. Seller acknowledges that the Administrative Agent
and the Purchasers are entering into the transactions contemplated by this Agreement in
reliance upon Seller’s identity as a legal entity that is separate from the Norwegian
Company, each of the Originators, the Performance Guarantor and their respective other
Affiliates (collectively, the “RPM Group”). Therefore, from and after the date of execution
and delivery of this Agreement, Seller shall take all reasonable steps, including, without
limitation, all steps that the Administrative Agent or any Purchaser may from time to time
reasonably request, to maintain Seller’s identity as a separate legal entity and to make it manifest to third parties that Seller is an entity with
assets and liabilities distinct from those of the members of the RPM Group thereof and not
just a division thereof. Without limiting the generality of the foregoing and in addition
to the other covenants set forth herein, Seller will:

     (A) conduct its own business in its own name and require that all
full-time employees of Seller, if any, identify themselves as such and not
as employees of any member of the RPM Group (including, without limitation,
by means of providing appropriate employees with business or identification
cards identifying such employees as Seller’s employees);

     (B) compensate all employees, consultants and agents directly, from
Seller’s own funds, for services provided to Seller by such

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employees,
consultants and agents and, to the extent any employee, consultant or agent
of Seller is also an employee, consultant or agent of a member of the RPM
Group, allocate the compensation of such employee, consultant or agent
between Seller and the members of the RPM Group on a basis that reflects the
services rendered to Seller and the RPM Group;

     (C) clearly identify its offices (by signage or otherwise) as its
offices and, if such office is located in the offices of a member of the RPM
Group, Seller shall lease such office at a fair market rent;

     (D) have separate stationery, invoices and checks in its own name;

     (E) conduct all transactions with the members of the RPM Group strictly
on an arm’s-length basis, allocate all overhead expenses (including, without
limitation, telephone and other utility charges) for items shared between
Seller and the RPM Group on the basis of actual use to the extent
practicable and, to the extent such allocation is not practicable, on a
basis reasonably related to actual use;

     (F) at all times have a Board of Directors consisting of not less than
three members, at least one member of which is an Independent Director;

     (G) observe all corporate formalities as a distinct entity, and ensure
that all corporate actions relating to (A) the selection, maintenance or
replacement of the Independent Director, (B) the dissolution or liquidation
of Seller or (C) the initiation of, participation in, acquiescence in or
consent to any bankruptcy, insolvency, reorganization or similar proceeding
involving Seller, are duly authorized by unanimous vote of its Board of
Directors (including the Independent Director);

     (H) maintain Seller’s books and records separate from those of the
members of the RPM Group and otherwise readily identifiable as its own
assets rather than assets of a member of the RPM Group;

     (I) prepare its financial statements separately from those of the RPM
Group and insure that any consolidated financial statements of the RPM Group
(or any member thereof) that include Seller and that are filed with the
Securities and Exchange Commission or any other governmental agency have
notes clearly stating that Seller is a separate legal entity and that its
assets will be available first and foremost to satisfy the claims of the
creditors of Seller;

     (J) except as herein specifically otherwise provided, maintain the
funds or other assets of Seller separate from, and not commingled with,
those of the members of the RPM Group and only maintain bank accounts

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or other depository accounts to which Seller alone is the account party, into
which Seller alone (or Servicer, on Seller’s behalf) makes deposits and from
which Seller alone (or Servicer, on Seller’s behalf, or the Administrative
Agent hereunder) has the power to make withdrawals;

     (K) pay all of Seller’s operating expenses from Seller’s own assets
(except for certain payments by a member of the RPM Group or other Persons
pursuant to allocation arrangements that comply with the requirements of
this Section 7.1(i));

     (L) operate its business and activities such that: it does not engage
in any business or activity of any kind, or enter into any transaction or
indenture, mortgage, instrument, agreement, contract, lease or other
undertaking, other than the transactions contemplated and authorized by this
Agreement and the Receivables Sale Agreement; and does not create, incur,
guarantee, assume or suffer to exist any indebtedness or other liabilities,
whether direct or contingent, other than (1) as a result of the endorsement
of negotiable instruments for deposit or collection or similar transactions
in the ordinary course of business, (2) the incurrence of obligations under
this Agreement, (3) the incurrence of obligations, as expressly contemplated
in the Receivables Sale Agreement, to make payment to Originators thereunder
for the purchase of Receivables from Originators under the Receivables Sale
Agreement, and (4) the incurrence of operating expenses in the ordinary
course of business of the type otherwise contemplated by this Agreement;

     (M) maintain its Organic Documents in conformity with this Agreement,
such that it does not amend, restate, supplement or otherwise modify its
Organic Documents in any respect that would impair its ability to comply
with the terms or provisions of any of the Transaction Documents, including,
without limitation, this Section 7.1(i);

     (N) maintain the effectiveness of, and continue to perform under the
Receivables Sale Agreement and the Performance Undertaking, such that it
does not amend, restate, supplement, cancel, terminate or otherwise modify
the Receivables Sale Agreement or the Performance Undertaking, or give any
consent, waiver, directive or approval thereunder or waive any default,
action, omission or breach under the Receivables Sale Agreement or the
Performance Undertaking or otherwise grant any indulgence thereunder,
without (in each case) the prior written consent of the Administrative Agent
and each of the Purchasers;

     (O) maintain its legal separateness such that it does not merge or
consolidate with or into, or convey, transfer, lease or otherwise dispose of
(whether in one transaction or in a series of transactions, and except as
otherwise contemplated herein) all or substantially all of its assets
(whether now owned or hereafter acquired) to, or acquire all or

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substantially all of the assets of, any Person, nor at any time create,
have, acquire, maintain or hold any interest in any Subsidiary;

     (P) maintain at all times the Required Capital Amount (as defined in
the Receivables Sale Agreement) and refrain from making any dividend,
distribution, redemption of capital stock or payment of any subordinated
indebtedness which would cause the Required Capital Amount to cease to be so
maintained;

     (Q) maintain its investment in the Norwegian Company at a level not to
exceed 5% of the Norwegian Company’s outstanding voting Equity Interests;
and

     (R) take such other actions as are necessary on its part to ensure that
the facts and assumptions set forth in the opinion issued by Calfee, Halter
& Griswold, LLP, as counsel for Seller, in connection with the closing or
initial Incremental Purchase under this Agreement and relating to
substantive consolidation issues, and in the certificates accompanying such
opinion, remain true and correct in all material respects at all times.

          (j) Collections. Such Seller Party will cause (1) all proceeds from all
Lock-Boxes to be directly deposited by a Collection Bank into a Collection Account and (2)
each Lock-Box and Collection Account to be subject at all times to a Collection Account
Agreement that is in full force and effect. In the event any payments relating to
Receivables are remitted directly to Seller or any Affiliate of Seller, Seller will remit
(or will cause all such payments to be remitted) directly to a Collection Bank and deposited
into a Collection Account within two (2) Business Days following receipt thereof, and, at
all times prior to such remittance, Seller will itself hold or, if applicable, will cause
such payments to be held in trust for the exclusive benefit of the Administrative Agent and
the Purchasers. Seller will maintain exclusive ownership, dominion and control (subject to
the terms of this Agreement) of each Lock-Box and Collection Account
and shall not grant the right to take dominion and control of any Lock-Box or
Collection Account at a future time or upon the occurrence of a future event to any Person,
except to the Administrative Agent as contemplated by this Agreement and except that Seller
may authorize the Servicer to make deposits to and withdrawals from the Collection Accounts
prior to delivery of the Collection Notices.

          (k) Taxes. Such Seller Party will file all tax returns and reports required by
law to be filed by it and will promptly pay all taxes and governmental charges at any time
owing, except any such taxes which are not yet delinquent or are being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in accordance with
GAAP shall have been set aside on its books. Seller will pay when due any taxes payable in
connection with the Receivables, exclusive of taxes on or measured by income or gross
receipts of the Administrative Agent or any of the Purchasers.

          (l) Insurance. Seller will maintain in effect, or cause to be maintained in
effect, at Seller’s own expense, such casualty and liability insurance as Seller shall deem
appropriate in its good faith business judgment.

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          (m) Payment to Originators. With respect to any Receivable purchased by Seller
from an Originator, such sale shall be effected under, and in strict compliance with the
terms of, the Receivables Sale Agreement, including, without limitation, the terms relating
to the amount and timing of payments to be made to such Originator in respect of the
purchase price for such Receivable.

     Section 7.2 Negative Covenants of the Seller Parties. Until the date on which the
Aggregate Unpaids have been indefeasibly paid in full and this Agreement terminates in accordance
with its terms:

          (a) Name Change, Offices and Records. Seller will not change its name,
identity or legal structure (within the meaning of Section 9-507(c) of any applicable
enactment of the UCC) or relocate its chief executive office or any office where Records are
kept unless it shall have: (i) given the Administrative Agent and each Purchaser at least
forty-five (45) days’ prior written notice thereof and (ii) delivered to the Administrative
Agent all financing statements, instruments and other documents reasonably requested by the
Administrative Agent or any Purchaser in connection with such change or relocation.

          (b) Change in Payment Instructions to Obligors. Except as may be required by
the Administrative Agent pursuant to Section 8.2(b), such Seller Party will not add or
terminate any bank as a Collection Bank, or make any
change in the instructions to Obligors regarding payments to be made to any Lock-Box or
Collection Account, unless the Administrative Agent and the Purchasers shall have received,
at least ten (10) days before the proposed effective date therefor, (i) written notice of
such addition, termination or change and (ii) with respect to the addition of a Collection
Bank or a Collection Account or Lock-Box, an executed Collection Account Agreement with
respect to the new Collection Account or Lock-Box; provided, however, that the Servicer may
make changes in instructions to Obligors regarding payments if such new instructions require
such Obligor to make payments to another existing Collection Account.

          (c) Modifications to Contracts and Credit and Collection Policy. No Seller
Party will, and will not permit any Originator to, make any change to the Credit and
Collection Policy that could adversely affect the collectibility of the Receivables or
decrease the credit quality of any newly created Receivables. Except as provided in
Section 8.2(d), no Seller Party will, or will permit any Originator to, extend,
amend or otherwise modify the terms of any Receivable or any Contract related thereto in any
material respect other than in accordance with the Credit and Collection Policy.

          (d) Sales, Liens. Seller will not sell, assign (by operation of law or
otherwise) or otherwise dispose of, or grant any option with respect to, or create or suffer
to exist any Adverse Claim upon (including, without limitation, the filing of any financing
statement) or with respect to, any Receivable, Related Security or Collections, or upon or
with respect to any Contract under which any Receivable arises, or any Lock-Box or
Collection Account, or assign any right to receive income with respect thereto (other than,
in each case, the creation of the interests therein in favor of the Administrative Agent and
the Purchasers provided for herein), and Seller will defend the right, title and interest of
the Administrative Agent and the Purchasers in, to and

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under any of the foregoing property,
against all claims of third parties claiming through or under Seller or any Originator.

          (e) Net Receivables Balance. At no time prior to the Amortization Date shall
Seller permit the Net Receivables Balance to be less than an amount equal to the sum of (i)
the Aggregate Capital plus (ii) the Aggregate Reserves.

          (f) Termination Date Determination. Seller will not designate the Termination
Date (as defined in the Receivables Sale Agreement), or send any written notice to any
Originator in respect thereof, without the prior written consent of the Administrative Agent
and the Purchasers, except with respect to the occurrence of such Termination Date arising
pursuant to Section 5.1(d) of the Receivables Sale Agreement.

          (g) Restricted Junior Payments. From and after the occurrence of any Amortization Event, Seller will not make any
Restricted Junior Payment if, after giving effect thereto, Seller would fail to meet its
obligations set forth in Section 7.2(e).

          (h) Seller Indebtedness. Seller will not incur or permit to exist any
Indebtedness or liability on account of deposits except: (i) the Obligations, (ii) the
Subordinated Loans (as defined in the Receivables Sale Agreement), and (iii) other current
accounts payable arising in the ordinary course of business and not overdue.

          (i) Prohibition on Additional Negative Pledges. Seller will not (and will not
authorize any Originator to) enter into or assume any agreement (other than this Agreement
and the other Transaction Documents) prohibiting the creation or assumption of any Adverse
Claim upon the Receivables, Collections or Related Security except as contemplated by the
Transaction Documents, or otherwise prohibiting or restricting any transaction contemplated
hereby or by the other Transaction Documents. Seller will not (and will not authorize any
Originator to) enter into or assume any agreement creating any Adverse Claim upon the
Subordinated Notes (as defined in the Receivables Sale Agreement).

ARTICLE VIII.

ADMINISTRATION AND COLLECTION

     Section 8.1 Designation of Servicer.

     (a) The servicing, administration and collection of the Receivables shall be conducted
by such Person (the “Servicer”) so designated from time to time in accordance with this
Section 8.1. RPM-Delaware is hereby designated as, and hereby agrees to perform the duties
and obligations of, the Servicer pursuant to the terms of this Agreement. At any time after
the occurrence of an Amortization Event, the Administrative Agent and the Purchasers may at
any time designate as Servicer any Person to succeed RPM-Delaware or any successor Servicer.

     (b) RPM-Delaware may delegate, and RPM-Delaware hereby advises the Purchasers and the
Administrative Agent that it has delegated, to the Originators, as sub-servicers of the
Servicer, certain of its duties and responsibilities as Servicer hereunder in

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respect of the
Receivables originated by such Originators. Without the prior written consent of the
Purchasers, the Servicer shall not be permitted to delegate any of its duties or
responsibilities as Servicer to any Person other than (i) Seller, (ii) the Originators, and
(iii) with respect to certain Charged-Off Receivables, outside collection agencies in
accordance with its customary practices, except as permitted in Section 8.1(a). Seller
shall not be permitted to further delegate to any other Person any of the duties or
responsibilities of Servicer delegated to it by RPM-Delaware. If at any time following the
occurrence of an Amortization Event, the Purchasers shall designate as Servicer any
Person other than RPM-Delaware, all duties and responsibilities theretofore delegated
by RPM-Delaware to Seller or any Originator may, at the discretion of any of the
Administrative Agent, be terminated forthwith on notice given by the Administrative Agent or
any Purchaser to the Administrative Agent or the other Purchaser, as applicable,
RPM-Delaware and to Seller.

     (c) Notwithstanding the foregoing subsection (b), (i) Servicer shall be and remain
primarily liable to the Administrative Agent and the Purchasers for the full and prompt
performance of all duties and responsibilities of the Servicer hereunder and (ii) the
Administrative Agent and the Purchasers shall be entitled to deal exclusively with Servicer
in matters relating to the discharge by the Servicer of its duties and responsibilities
hereunder. The Administrative Agent and the Purchasers shall not be required to give
notice, demand or other communication to any Person other than Servicer in order for
communication to the Servicer and its sub-servicer or other delegate with respect thereto to
be accomplished. Servicer, at all times that it is the Servicer, shall be responsible for
providing any sub-servicer or other delegate of the Servicer with any notice given to the
Servicer under this Agreement.

     Section 8.2 Duties of Servicer.

     (a) The Servicer shall take or cause to be taken all such actions as may be necessary
or advisable to collect each Receivable from time to time, all in accordance with applicable
laws, rules and regulations, with reasonable care and diligence, and in accordance with the
Credit and Collection Policy.

     (b) The Servicer will instruct all Obligors to pay all Collections directly to a
Lock-Box or Collection Account. The Servicer shall effect a Collection Account Agreement
substantially in the form of Exhibit VI with each bank party to a Collection Account at any
time. In the case of any remittances received in any Lock-Box or Collection Account that
shall have been identified, to the satisfaction of the Servicer, to not constitute
Collections or other proceeds of the Receivables or the Related Security, the Servicer shall
promptly remit such items to the Person identified to it as being the owner of such
remittances. From and after the date the Administrative Agent delivers to any Collection
Bank a Collection Notice pursuant to Section 8.3, the Administrative Agent may request that
the Servicer, and the Servicer thereupon promptly shall instruct all Obligors with respect
to the Receivables, to remit all payments thereon to a new depositary account specified by
the Administrative Agent and, at all times thereafter, Seller and the Servicer shall not
deposit or otherwise credit, and shall not permit any

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other Person to deposit or otherwise
credit to such new depositary account any cash or payment item other than Collections.

     (c) The Servicer shall administer the Collections in accordance with the procedures
described herein and in Article II. The Servicer shall set aside and hold in trust for the
account of Seller and the Purchasers their respective shares of the Collections (or such
funds or other assets arising therefrom) in accordance with Article II. The Servicer shall,
upon the request of any Agent, segregate, in a manner acceptable to the Administrative Agent
and the Purchasers, all cash, checks and other instruments received
by it from time to time constituting Collections from the general funds of the Servicer
or Seller prior to the remittance thereof in accordance with Article II. If the Servicer
shall be required to segregate Collections pursuant to the preceding sentence, the Servicer
shall segregate and deposit with a bank designated by the Administrative Agent such
allocable share of Collections of Receivables set aside for the Purchasers on the first
Business Day following receipt by the Servicer of such Collections, duly endorsed or with
duly executed instruments of transfer.

     (d) The Servicer may, in accordance with the Credit and Collection Policy, extend the
maturity of any Receivable or adjust the Outstanding Balance of any Receivable as the
Servicer determines to be appropriate to maximize Collections thereof; provided, however,
that such extension or adjustment shall not alter the status of such Receivable as a
Delinquent Receivable, Defaulted Receivable or Charged-Off Receivable or limit the rights of
the Administrative Agent or the Purchasers under this Agreement. Notwithstanding anything
to the contrary contained herein, the Administrative Agent shall have the absolute and
unlimited right to direct the Servicer to commence or settle any legal action with respect
to any Receivable or to foreclose upon or repossess any Related Security.

     (e) The Servicer shall hold in trust for Seller and the Purchasers all Records that (i)
evidence or relate to the Receivables, the related Contracts and Related Security or (ii)
are otherwise necessary or desirable to collect the Receivables and shall, as soon as
practicable upon demand of any Agent, deliver or make available to the Administrative Agent
all such Records, at a place selected by the Administrative Agent. The Servicer shall, as
soon as practicable following receipt thereof turn over to Seller any cash collections or
other cash proceeds received with respect to Indebtedness not constituting Receivables. The
Servicer shall, from time to time at the request of any Purchaser, furnish to the Purchasers
(promptly after any such request) a calculation of the amounts set aside for the Purchasers
pursuant to Article II.

     (f) Any payment by an Obligor in respect of any indebtedness owed by it to an
Originator or Seller shall, except as otherwise specified by such Obligor or otherwise
required by contract or law and unless otherwise instructed by the Administrative Agent, be
applied as a Collection of any Receivable of such Obligor (starting with the oldest such
Receivable) to the extent of any amounts then due and payable thereunder before being
applied to any other receivable or other obligation of such Obligor.

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     Section 8.3 Collection Notices. The Administrative Agent is authorized at any time to
date and to deliver to the Collection Banks the Collection Notices. Seller hereby transfers to the
Administrative Agent for the benefit of the Purchasers, effective when the Administrative Agent
delivers such notice, the exclusive ownership and control of each Lock-Box and the Collection
Accounts. In case any authorized signatory of Seller whose signature appears on a Collection
Account Agreement shall cease to have such authority before the delivery of such notice, such
Collection Notice shall nevertheless be valid as if such authority had remained in force. Seller
hereby authorizes the Administrative Agent, and agrees that the Administrative Agent shall be
entitled after the occurrence of an Amortization Event to (i) endorse Seller’s name on checks and other
instruments representing Collections, (ii) enforce the Receivables, the related Contracts and the
Related Security and (iii) take such action as shall be necessary or desirable to cause all cash,
checks and other instruments constituting Collections of Receivables to come into the possession of
the Administrative Agent rather than Seller.

     Section 8.4 Responsibilities of Seller. Anything herein to the contrary
notwithstanding, the exercise by the Administrative Agent and the Purchasers of their rights
hereunder shall not release the Servicer, any Originator or Seller from any of their duties or
obligations with respect to any Receivables or under the related Contracts. The Purchasers shall
have no obligation or liability with respect to any Receivables or related Contracts, nor shall any
of them be obligated to perform the obligations of Seller.

     Section 8.5 Reports. The Servicer shall compile and complete the following reports
based on information received by it from the Originators under the Receivables Sale Agreement and
forward to the Administrative Agent and the Purchasers (i) on the 15th day of each month
or if such date is not a Business Day, the next Business Day (the “Monthly Reporting Date”), and at
such times as the Administrative Agent or any Purchaser shall request (an “Interim Reporting
Date”), a Receivables Report and (ii) at such times as the Administrative Agent or any Purchaser
shall reasonably request, a listing by Obligor of all Receivables together with an aging of such
Receivables.

     Section 8.6 Servicing Fees. In consideration of RPM-Delaware’s agreement to act as
Servicer hereunder, the Purchasers hereby agree that, so long as RPM-Delaware shall continue to
perform as Servicer hereunder, Seller shall pay over to RPM-Delaware a fee (the “Servicing Fee”) on
the first calendar day of each month, in arrears for the immediately preceding month, equal to 1%
per annum of the average aggregate Outstanding Balance of all Receivables during such period, as
compensation for its servicing activities.

ARTICLE IX.

AMORTIZATION EVENTS

     Section 9.1 Amortization Events. The occurrence of any one or more of the following
events shall constitute an “Amortization Event”:

     (a) Any Seller Party shall fail to make any payment or deposit required under this
Agreement or any other Transaction Document to which it is a party on or within one (1)
Business Day after the date on which the same is required to be made.

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     (b) Any Seller Party shall fail to perform or observe any covenant contained in any
provision of Section 7.2 (other than Section 7.2(c)) or Section 8.5.

     (c) Any Seller Party shall fail to perform or observe any other covenant, agreement or
other obligation hereunder (other than as referred to in another paragraph of this
Section 9.1) or any other Transaction Document to which it is a party and such
failure shall continue for three (3) consecutive Business Days following the earlier to
occur of (i) notice from the Administrative Agent or any Purchaser of such non-performance
or non-observance, or (ii) the date on which a Responsible Officer of such Seller Party
otherwise becomes aware of such non-performance or non-observance.

     (d) Any representation, warranty, certification or statement made by any Seller Party
in this Agreement, any other Transaction Document or in any other document required to be
delivered pursuant hereto or thereto shall prove to have been incorrect when made or deemed
made in any material respect and is not cured within five (5) Business Days following the
earlier to occur of (i) notice from the Administrative Agent or any Purchaser of such
inaccuracy or (ii) the date on which a Responsible Officer of such Seller Party otherwise
becomes aware of such inaccuracy; provided that the materiality threshold in this subsection
shall not be applicable with respect to any representation or warranty which itself contains
a materiality threshold although the five (5) Business Day cure period shall continue to
apply.

     (e) (i) Seller shall default in the payment when due of any principal or of or interest
on any Indebtedness, or any event or condition shall occur which results in the acceleration
of the maturity of any such Indebtedness; or (ii) any Originator shall default, or the
Performance Guarantor or any of its Subsidiaries (other than an Originator or Seller) shall
default, in the payment when due of any principal or of or interest on any Material
Indebtedness; or any event or condition shall occur which results in the acceleration of the
maturity of any such Material Indebtedness.

     (f) (i) Any Seller Party, any Originator or any Significant Subsidiary (as defined in
the RPM Credit Agreement) shall generally not pay its debts as such debts become due or
shall admit in writing its inability to pay its debts generally or shall make a general
assignment for the benefit of creditors; or (ii) any proceeding shall be instituted by or
against any Seller Party, any Originator or any Significant Subsidiary seeking to adjudicate
it bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee or other similar official for it
or any substantial part of its property or (iii) any Seller Party, any Originator or any
Significant Subsidiary shall take any corporate action to authorize any of the actions set
forth in clauses (i) or (ii) above in this subsection (f).

     (g) Seller shall fail to comply with the terms of Section 2.6 hereof.

     (h) As at the end of any calendar month:

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     (i) the average of the Dilution Ratios for the three months then most
recently ended shall exceed 4.5%;

     (ii) the Days Sales Outstanding shall not exceed 73; or

     (iii) the average of the Past Due Ratios for the three months then most
recently ended shall exceed 6.0%.

     (i) A Change of Control shall occur.

     (j) (i) One or more final judgments for the payment of money shall be entered against
Seller or (ii) one or more final judgments for the payment of money in an amount in excess
of $40,000,000, individually or in the aggregate, shall be entered against the Servicer on
claims not covered by insurance or as to which the insurance carrier has denied its
responsibility, and such judgment shall continue unsatisfied and in effect for ten (10)
consecutive days without a stay of execution.

     (k) Either (i) the “Termination Date” under and as defined in the Receivables Sale
Agreement shall occur with respect to any Originator or (ii) any Originator shall for any
reason cease to transfer, or cease to have the legal capacity to transfer, or otherwise be
incapable of transferring Receivables to Seller under the Receivables Sale Agreement,
provided, however, that upon 30 days’ prior written notice, an Originator may cease to sell
or contribute Receivables to the Seller under the Receivables Sale Agreement without causing
an Amortization Event under this Agreement if (1) such Originator has consolidated or merged
with or into another Originator, or (2) to the extent that (a) Aggregate Capital plus
Aggregate Reserves continue to be equal to or less than the Net Receivables Balance after
such Originator ceases to sell or contribute, (b) RPM-Delaware and the remaining Originators
agree to such modified transaction terms which may be requested by the Administrative Agent
and the Purchasers as being necessary to maintain an implied rating equivalent to the
implied rating of the facility evidenced by this Agreement prior to such Originator ceasing
to sell or contribute, as determined in the exercise of the Administrative Agent’s and the
Purchasers’ reasonable credit judgment, including to (I) establish the Dilution Ratio,
Delinquency Ratio and Past Due Ratio for this Agreement after such Originator ceases to sell
or contribute which shall be set and calculated consistent with the methodology used to set
and calculate such ratios prior to such Originator ceasing to sell or contribute, (II)
establish Concentration Limits and Aggregate Reserves (such Aggregate Reserves to be
structured to an “AA” level using S&P’s trade receivables securitization methodology) for
the facility evidenced by this Agreement after such Originator ceases to sell or contribute
which shall be set and calculated consistent with such methodology prior to such
Originator’s ceasing to sell or contribute and (III) establish standards for items (ii)-(v)
of the definition of “Eligible Receivable” which are consistent with those required for the
Facility prior to such Originator’s ceasing to sell or contribute and are based on the
Receivables of the remaining Originators, and (c) no Amortization Event or Potential
Amortization Event shall exist after such Originator shall cease to sell or contribute.

26

 

     (l) This Agreement shall terminate in whole or in part (except in accordance with its
terms), or shall cease to be effective or to be the legally valid, binding and enforceable
obligation of Seller, or any Obligor shall directly or indirectly contest in any manner such
effectiveness, validity, binding nature or enforceability, or the Administrative Agent for
the benefit of the Purchasers shall cease to have a valid and perfected first priority
security interest in the Receivables, the Related Security and the Collections with respect
thereto and the Collection Accounts.

     (m) The Performance Guarantor shall fail to pay, upon demand, any amount required to be
paid by it under the Performance Undertaking, or the Performance Undertaking shall cease to
be effective or to be the legally valid, binding and enforceable obligation of RPM-Delaware,
or RPM-Delaware shall directly or indirectly contest in any manner such effectiveness,
validity, binding nature or enforceability.

     (n) RPM-Delaware shall permit the Indebtedness of RPM-Delaware and its Subsidiaries,
determined on a consolidated basis, on any date to exceed 65% of the sum of such
Indebtedness and consolidated shareholders’ equity of RPM-Delaware and its consolidated
Subsidiaries on such date.

     (o) RPM-Delaware shall permit the ratio, calculated as at the end of each fiscal
quarter ending after the date of this Agreement for the four fiscal quarters then ended, of
EBITDA for such period to Interest Expense for such period to be less than 3.5:1.0.

     Section 9.2 Remedies. Upon the occurrence and during the continuation of an
Amortization Event, the Administrative Agent may, and upon the direction of either of the
Purchasers, shall, take any of the following actions: (i) replace the Person then acting as
Servicer, (ii) declare the Amortization Date to have occurred, whereupon the Amortization Date
shall forthwith occur, without demand, protest or further notice of any kind, all of which are
hereby expressly waived by each Seller Party; provided, however, that upon the occurrence of an
Amortization Event described in Section 9.1(f)(ii), or of an actual or deemed entry of an order for
relief with respect to any Seller Party under the Federal Bankruptcy Code, the Amortization Date
shall automatically occur, without demand, protest or any notice of any kind, all of which are
hereby expressly waived by each Seller Party, (iii) to the fullest extent permitted by applicable
law, declare that the Default Fee shall accrue with respect to any of the Aggregate Unpaids
outstanding at such time, (iv) deliver the Collection Notices to the Collection Banks, and (v)
notify Obligors of the Purchasers’ interest in the Receivables. The aforementioned rights and
remedies shall be without limitation, and shall be in addition to all other rights and remedies of
the Administrative Agent and the Purchasers otherwise available under any other provision of this
Agreement, by operation of law, at equity or otherwise, all of which are hereby expressly
preserved, including, without limitation, all rights and remedies provided under the UCC, all of
which rights shall be cumulative.

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ARTICLE X.

INDEMNIFICATION

     Section 10.1 Indemnities by the Seller. Without limiting any other rights that the
Administrative Agent or any Purchaser may have hereunder or under applicable law, Seller hereby
agrees to indemnify (and pay upon demand to) the Administrative Agent and each of the Purchasers
and their respective assigns, officers, directors, agents and employees (each an “Indemnified
Party”) from and against any and all damages, losses, claims, taxes, liabilities, costs, expenses
and for all other amounts payable, including reasonable attorneys’ fees (which attorneys may be
employees of the Administrative Agent or such Purchaser) and disbursements (all of the foregoing
being collectively referred to as “Indemnified Amounts”) awarded against or incurred by any of them
arising out of or as a result of this Agreement or the acquisition, either directly or indirectly,
by a Purchaser of an interest in the Receivables excluding, however, in all of the foregoing
instances:

          (a) Indemnified Amounts to the extent a final judgment of a court of competent jurisdiction
holds that such Indemnified Amounts resulted from gross negligence or willful misconduct on the
part of the Indemnified Party seeking indemnification;

          (b) Indemnified Amounts to the extent the same includes losses in respect of Receivables that
are uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness of the
related Obligor; or

          (c) taxes imposed by the jurisdiction in which such Indemnified Party’s principal executive
office is located, on or measured by the overall net income of such Indemnified Party to the extent
that the computation of such taxes is consistent with the characterization for income tax purposes
of the acquisition by the Purchasers of Purchaser Interests as a loan or loans by the Purchasers to
Seller secured by the Receivables, the Related Security, the Collection Accounts and the
Collections;

provided, however, that nothing contained in this sentence shall limit the liability of Seller or
limit the recourse of the Purchasers to Seller for amounts otherwise specifically provided to be
paid by Seller under the terms of this Agreement. Without limiting the generality of the foregoing
indemnification, Seller shall indemnify the Indemnified Parties for Indemnified Amounts (including,
without limitation, losses in respect of uncollectible receivables, regardless of whether
reimbursement therefor would constitute recourse to Seller) relating to or resulting from:

     (i) any representation or warranty made by any Seller Party or any Originator
(or any officers of any such Person) under or in connection with this Agreement, any
other Transaction Document or any other information or report required to be
delivered by any such Person pursuant hereto or thereto, which shall have been false
or incorrect when made or deemed made;

     (ii) the failure by any Seller Party or any Originator to comply with any
applicable law, rule or regulation with respect to any Receivable or Contract

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related thereto, or the nonconformity of any Receivable or Contract included therein
with any such applicable law, rule or regulation or any failure of any Originator to
keep or perform any of its obligations, express or implied, with respect to any
Contract;

     (iii) any failure of any Seller Party or any Originator to perform its duties,
covenants or other obligations in accordance with the provisions of this Agreement
or any other Transaction Document;

     (iv) any products liability, personal injury or damage suit, or other similar
claim arising out of or in connection with merchandise, insurance or services that
are the subject of any Contract or any Receivable;

     (v) any dispute, claim, offset or defense (other than discharge in bankruptcy
of the Obligor) of the Obligor to the payment of any Receivable (including, without
limitation, a defense based on such Receivable or the related Contract not being a
legal, valid and binding obligation of such Obligor enforceable against it in
accordance with its terms), or any other claim resulting from the sale of the
merchandise or service related to such Receivable or the furnishing or failure to
furnish such merchandise or services;

     (vi) the commingling of Collections of Receivables at any time with other
funds;

     (vii) any investigation, litigation or proceeding related to or arising from
this Agreement or any other Transaction Document, the transactions contemplated
hereby, the use of the proceeds of an Incremental Purchase or a Reinvestment, the
ownership of the Purchaser Interests or any other investigation, litigation or
proceeding relating to any Seller Party or any Originator in which any Indemnified
Party becomes involved as a result of any of the transactions contemplated hereby;

     (viii) any inability to litigate any claim against any Obligor in respect of
any Receivable as a result of such Obligor being immune from civil and commercial
law and suit on the grounds of sovereignty or otherwise from any legal action, suit
or proceeding;

     (ix) any Amortization Event described in Section 9.1(f);

     (x) any failure of Seller to acquire and maintain legal and equitable title to,
and ownership of any Receivable and the Related Security and Collections with
respect thereto from any Originator, free and clear of any Adverse Claim (other than
as created hereunder); or any failure of Seller to give reasonably equivalent value
to the applicable Originator under the Receivables Sale Agreement in consideration
of the transfer by such Originator of any Receivable,
or any attempt by any Person to void such transfer under statutory provisions
or common law or equitable action;

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     (xi) any failure to vest and maintain vested in the Administrative Agent for
the benefit of the Purchasers, or to transfer to the Administrative Agent for the
benefit of the Purchasers, legal and equitable title to, and ownership of, a first
priority perfected undivided percentage ownership interest (to the extent of the
Purchaser Interests contemplated hereunder) or security interest in the Receivables,
the Related Security and the Collections, free and clear of any Adverse Claim
(except as created by the Transaction Documents);

     (xii) the failure to have filed, or any delay in filing, financing statements
or other similar instruments or documents under the UCC of any applicable
jurisdiction or other applicable laws with respect to any Receivable, the Related
Security and Collections with respect thereto, and the proceeds of any thereof,
whether at the time of any Incremental Purchase or Reinvestment or at any subsequent
time;

     (xiii) any action or omission by any Seller Party which reduces or impairs the
rights of the Administrative Agent or the Purchasers with respect to any Receivable
or the value of any such Receivable;

     (xiv) any attempt by any Person to void any Incremental Purchase or
Reinvestment hereunder under statutory provisions or common law or equitable action;
and

     (xv) the failure of any Receivable included in the calculation of the Net
Receivables Balance as an Eligible Receivable to be an Eligible Receivable at the
time so included.

     Section 10.2 Indemnities by the Servicer. Without limiting any other rights that the
Administrative Agent or any Purchaser may have hereunder or under applicable law, Servicer hereby
agrees to indemnify (and pay upon demand to) each Indemnified Party from and against any and all
damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts payable,
including reasonable attorneys’ fees (which attorneys may be employees of the Administrative Agent
or such Purchaser) and disbursements (all of the foregoing being collectively referred to as
“Servicer Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a
result of Servicer’s failure to duly and punctually perform its obligations under this Agreement
excluding, however, in all of the foregoing instances:

          (a) Servicer Indemnified Amounts to the extent a final judgment of a court of competent
jurisdiction holds that such Servicer Indemnified Amounts resulted from gross negligence or willful
misconduct on the part of the Indemnified Party seeking indemnification; and

          (b) Servicer Indemnified Amounts to the extent the same includes losses in respect of
Receivables that are uncollectible on account of the insolvency, bankruptcy or lack of
creditworthiness of the related Obligor;

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provided, however, that nothing contained in this sentence shall limit the liability of Servicer or
limit the recourse of the Purchasers to Servicer for Collections received by the Servicer and
required to be remitted by it under the terms of this Agreement. Without limiting the generality
of the foregoing indemnification, Servicer shall indemnify the Indemnified Parties for Servicer
Indemnified Amounts (including, without limitation, losses in respect of uncollectible receivables,
regardless of whether reimbursement therefor would constitute recourse to the Servicer) relating to
or resulting from:

     (i) any representation or warranty made by Servicer (or any officers of
Servicer) under or in connection with this Agreement, any other Transaction Document
or any other information or report delivered by any such Person pursuant hereto or
thereto, which shall have been false or incorrect when made or deemed made;

     (ii) the failure by Servicer to comply with any applicable law, rule or
regulation with respect to the collection of any Receivable or Related Security;

     (iii) any failure of Servicer to perform its duties, covenants or other
obligations in accordance with the provisions of this Agreement or any other
Transaction Document;

     (iv) the commingling by the Servicer of Collections of Receivables or funds or
other assets arising therefrom at any time with other funds;

     (v) any investigation, litigation or proceeding relating to Servicer in which
any Indemnified Party becomes involved as a result of any of the transactions
contemplated hereby;

     (vi) any Amortization Event of the described in Section 9.1(f) with respect to
Servicer; and

     (vii) any action or omission by Servicer relating to its obligations hereunder
which reduces or impairs the rights of the Administrative Agent or the Purchasers
with respect to any Receivable or the value of any such Receivable.

     Section 10.3 Increased Cost and Reduced Return. If after the date hereof, any
Purchaser shall be charged any fee, expense or increased cost on account of the adoption of any
applicable law, rule or regulation (including any applicable law, rule or regulation regarding
capital adequacy), any accounting principles or any change in any of the foregoing, or any change
in the interpretation or administration thereof by the Financial Accounting Standards Board
(“FASB”), any governmental authority, any central bank or any comparable agency charged with the
interpretation or administration thereof, or compliance with any request or directive (whether or
not having the force of law) of any such authority or agency: (i) that subjects any Purchaser to any charge or withholding on or with
respect to this Agreement or a Purchaser’s obligations hereunder, or on or with respect to the
Receivables, or changes the basis of taxation of payments to any Purchaser of any amounts payable
hereunder (except for changes in the rate of tax on the overall net income of a Purchaser or taxes
excluded by Section 10.1) or

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(ii) that imposes, modifies or deems applicable any reserve,
assessment, insurance charge, special deposit or similar requirement against assets of, deposits
with or for the account of a Purchaser, or credit extended by a Purchaser pursuant to this
Agreement or (iii) that imposes any other condition the result of which is to increase the cost to
a Purchaser of performing its obligations hereunder, or to reduce the rate of return on a
Purchaser’s capital as a consequence of its obligations hereunder, or to reduce the amount of any
sum received or receivable by a Purchaser under this Agreement or to require any payment calculated
by reference to the amount of interests or loans held or interest received by it, then, upon demand
by the applicable Purchaser, Seller shall pay to such Purchaser, such amounts charged to such
Purchaser or such amounts to otherwise compensate such Purchaser for such increased cost or such
reduction. Notwithstanding the foregoing, no Purchaser that is not organized under the laws of the
United States of America, or a state thereof, shall be entitled to reimbursement or compensation
hereunder unless and until it has delivered to the Seller two (2) duly completed and signed
originals of United States Internal Revenue Service Form W-8BEN or W-8ECI, as applicable,
certifying in either case that such Purchaser is entitled to receive payments under this Agreement
without deduction or withholding of any United States federal income taxes.

     Section 10.4 Other Costs and Expenses. Subject to the limitations set forth in the
Fee Letter, Seller shall pay to the Administrative Agent and the Purchasers on demand all costs and
out-of-pocket expenses in connection with the preparation, execution, delivery and administration
of this Agreement, the transactions contemplated hereby and the other documents to be delivered
hereunder, including without limitation, the cost of Purchasers’ auditors auditing the books,
records and procedures of Seller, reasonable fees and out-of-pocket expenses of legal counsel for
the Administrative Agent and the Purchasers (which such counsel may be employees of the
Administrative Agent or a Purchaser) with respect thereto and with respect to advising the
Administrative Agent and the Purchasers as to their respective rights and remedies under this
Agreement. Seller shall pay to the Administrative Agent and the Purchasers on demand any and all
costs and expenses of the Administrative Agent and the Purchasers, if any, including reasonable
counsel fees and expenses in connection with the enforcement of this Agreement and the other
documents delivered hereunder and in connection with any restructuring or workout of this Agreement
or such documents, or the administration of this Agreement following an Amortization Event.

ARTICLE XI.

THE ADMINISTRATIVE AGENT

     Section 11.1 Appointment.

          (a) Each Purchaser hereby irrevocably designates and appoints Wachovia Bank, National
Association, as Administrative Agent hereunder, and authorizes the Administrative Agent to take
such action on its behalf under the provisions of the Transaction Documents and to
exercise such powers and perform such duties as are expressly delegated to the Administrative
Agent by the terms of the Transaction Documents, together with such other powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with any Purchaser, and no implied

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covenants,functions, responsibilities, duties, obligations or liabilities on the part of the Administrative
Agent shall be read into this Agreement or otherwise exist against the Administrative Agent.

          (b) The provisions of this Article XI are solely for the benefit of the Administrative Agent
and the Purchasers, and neither of the Seller Parties shall have any rights as a third-party
beneficiary or otherwise under any of the provisions of this Article XI, except that this Article
XI shall not affect any obligations which the Administrative Agent or any Purchaser may have to
either of the Seller Parties under the other provisions of this Agreement.

          (c) In performing its functions and duties hereunder, the Administrative Agent shall act
solely as the agent of the Purchasers and does not assume nor shall be deemed to have assumed any
obligation or relationship of trust or agency with or for either of the Seller Parties or any of
their respective successors and assigns.

     Section 11.2 Delegation of Duties. The Administrative Agent may execute any of its
duties under the applicable Transaction Documents by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

     Section 11.3 Exculpatory Provisions. Neither the Administrative Agent nor any of its
directors, officers, agents or employees shall be (i) liable for any action lawfully taken or
omitted to be taken by it or them or any Person described in Section 11.2 under or in connection
with the Transaction Documents (except for its, their or such Person’s own bad faith, gross
negligence or willful misconduct), or (ii) responsible in any manner to any of the Purchasers or
other agents for any recitals, statements, representations or warranties made by the Seller
contained in any Transaction Document or in any certificate, report, statement or other document
referred to or provided for in, or received under or in connection with, any Transaction Document
or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other document furnished in connection herewith, or for any failure of either of
the Seller Parties to perform its respective obligations hereunder, or for the satisfaction of any
condition specified in Article VI, except receipt of items required to be delivered to the
Administrative Agent. The Administrative Agent shall not be under any obligation to any Purchaser
to ascertain or to inquire as to the observance or performance of any of the agreements or
covenants contained in, or conditions of, any Transaction Document, or to inspect the properties,
books or records of the Seller Parties. This Section 11.3 is intended solely to govern the
relationship between the Administrative Agent, on the one hand, and the Purchasers on the other.

     Section 11.4 Reliance by the Administrative Agent and the Purchasers.

          (a) The Administrative Agent and each Purchaser shall in all cases be entitled to rely, and
shall be fully protected in relying, upon any note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons and upon advice and statements of
legal counsel (including, without limitation, counsel to the Seller Parties), independent

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accountants and other experts selected by the Administrative Agent or such Purchaser. The
Administrative Agent shall in all cases be fully justified in failing or refusing to take any
action under this Agreement or any other document furnished in connection herewith unless it shall
first receive such advice or concurrence of each Purchaser (except where another provision of this
Agreement specifically authorizes the Administrative Agent to take action based on the instructions
of either Purchaser).

          (b) Any action taken by the Administrative Agent in accordance with Section 11.4(a) shall be
binding upon all Purchasers.

     Section 11.5 Notice of Amortization Events. Neither the Administrative Agent nor any
Purchaser shall be deemed to have knowledge or notice of the occurrence of any Amortization Event
or Potential Amortization Event unless it has received notice from the Administrative Agent or
another Purchaser, as applicable, or a Seller Party referring to this Agreement, stating that an
Amortization Event or Potential Amortization Event has occurred hereunder and describing such
Amortization Event or Potential Amortization Event. In the event that the Administrative Agent or
any Purchaser receives such a notice, it shall promptly give notice thereof to the Administrative
Agent and the other Purchasers, as applicable. The Administrative Agent shall take such action
with respect to such Amortization Event or Potential Amortization Event as shall be directed by any
Purchaser.

     Section 11.6 Non-Reliance on the Administrative Agent and Other Purchasers. Each of
the Purchasers expressly acknowledges that neither the Administrative Agent, nor any of the
Administrative Agent’s officers, directors, employees, agents, attorneys-in-fact or affiliates has
made any representations or warranties to it and that no act by the Administrative Agent hereafter
taken, including, without limitation, any review of the affairs of the Seller Parties, shall be
deemed to constitute any representation or warranty by the Administrative Agent. Each of the
Purchasers also represents and warrants to the Administrative Agent and the other Purchasers that
it has, independently and without reliance upon any such Person (or any of their Affiliates) and
based on such documents and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, prospects, financial and other conditions
and creditworthiness of the Seller Parties and made its own decision to enter into this Agreement.
Each of the Purchasers also represents that it will, independently and without reliance upon the
Administrative Agent or any other Purchaser, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit analysis, appraisals and
decisions in taking or not taking action under this Agreement, and to make such investigation as it
deems necessary to inform itself as to the
business, operations, property, prospects, financial and other condition and creditworthiness
of the Seller Parties. Neither the Administrative Agent nor any Purchaser, nor any of their
respective Affiliates, shall have any duty or responsibility to provide any party to this Agreement
with any credit or other information concerning the business, operations, property, prospects,
financial and other condition or creditworthiness of the Seller Parties which may come into the
possession of such Person or any of its respective officers, directors, employees, agents,
attorneys-in-fact or affiliates.

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     Section 11.7 Indemnification of Administrative Agent.

          (a) Each Purchaser agrees to indemnify the Administrative Agent and its officers, directors,
employees, representatives and agents (to the extent not reimbursed by the Seller Parties and
without limiting the obligation of the Seller Parties to do so), ratably in accordance with their
respective Percentages or Capital, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever (including, without limitation, the reasonable fees and disbursements of counsel
for the Administrative Agent or such Person in connection with any investigative, administrative or
judicial proceeding commenced or threatened, whether or not the Administrative Agent in its
capacity as Administrative Agent or such Person shall be designated a party thereto) that may at
any time be imposed on, incurred by or asserted against the Administrative Agent or such Person as
a result of, or arising out of, or in any way related to or by reason of, any of the transactions
contemplated hereunder or the execution, delivery or performance of this Agreement or any other
document furnished in connection herewith (but excluding any such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely
from the bad faith, gross negligence or willful misconduct of the Administrative Agent or such
Person as finally determined by a court of competent jurisdiction).

     Section 11.8 Administrative Agent in its Individual Capacity. The Administrative
Agent in its individual capacity and its affiliates may make loans to, accept deposits from and
generally engage in any kind of business with the Seller Parties and their Affiliates as though the
Administrative Agent were not the Administrative Agent hereunder. With respect to its Purchaser
Interests, if any, pursuant to this Agreement, the Administrative Agent shall have the same rights
and powers under this Agreement as any Purchaser and may exercise the same as though it were not
the Administrative Agent, and the terms “Purchaser” and “Purchasers” shall include the
Administrative Agent in its individual capacity.

     Section 11.9 Successor Administrative Agent. The Administrative Agent, upon five (5)
days’ notice to the Seller Parties and the Purchasers, may voluntarily resign and may be removed at
any time, with or without cause, by both Purchasers, whereupon Fifth Third Bank shall become the
successor Administrative Agent; provided, however, that Wachovia Capital Markets, LLC shall not
voluntarily resign as the Administrative Agent so long as Wachovia’s Commitment remains in effect
or Wachovia has any outstanding Purchaser Interests hereunder. Upon resignation or replacement of
any Administrative Agent in accordance with this Section 11.9, the retiring Administrative Agent
shall execute such UCC-3 assignments and amendments, and assignments and amendments of the
Transaction Documents, as may be necessary to give effect to its replacement by a successor
Administrative Agent. After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of Article X and this Article XI shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Administrative Agent under this
Agreement.

     Section 11.10 [RESERVED].

     Section 11.11 UCC Filings. Each of the Purchasers hereby expressly recognizes and
agrees that the Administrative Agent may be designated as the secured party of record on the

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various UCC filings required to be made under this Agreement and the party entitled to amend,
release and terminate the UCC filings under the Receivable Sale Agreement in order to perfect their
respective interests in the Receivables, Collections and Related Security, that such designation
shall be for administrative convenience only in creating a record or nominee holder to take certain
actions hereunder on behalf of the Purchasers and that such listing will not affect in any way the
status of the Purchasers as the true parties in interest with respect to the Purchaser Interests.
In addition, such listing shall impose no duties on the Administrative Agent other than those
expressly and specifically undertaken in accordance with this Article XI.

ARTICLE XII.

ASSIGNMENTS; PARTICIPATIONS

     Section 12.1 Assignments. Any Purchaser may at any time and from time to time assign
to one or more Persons (each, an “Assignee Purchaser”) all or any part of its rights and
obligations under this Agreement pursuant to an assignment agreement, substantially in the form set
forth in Exhibit VII hereto (the “Assignment Agreement”) executed by such Assignee Purchaser and
such selling Purchaser. The consent of the Seller (which consent shall not be unreasonably
withheld or delayed) shall be required prior to the effectiveness of any such assignment other than
to an existing Purchaser. Each assignee of a Purchaser must (i) have a short-term debt rating of
A-1 or better by S&P and P-1 by Moody’s Investor Service, Inc. or a long term debt rating of “A”
by S&P and “A2” or better by Moody’s. Upon delivery of the executed Assignment Agreement to the
Administrative Agent, such selling Purchaser shall be released from its obligations hereunder to
the extent of such assignment. Thereafter the Assignee Purchaser shall for all purposes be a
Purchaser party to this Agreement and shall have all the rights and obligations of a Purchaser
under this Agreement to the same extent as if it were an original party hereto and thereto, and no
further consent or action by Seller, the Purchasers or the Administrative Agent shall be required.
Neither Seller nor the Servicer shall have the right to assign its rights or obligations under this
Agreement.

     Section 12.2 Participations. Any Purchaser may, in the ordinary course of its business at any time sell to one or more
Persons (each a “Participant”) participating interests in its Commitment and Purchaser Interest.
Notwithstanding any such sale by a Purchaser of a participating interest to a Participant, such
Purchaser’s rights and obligations under this Agreement shall remain unchanged, such Purchaser
shall remain solely responsible for the performance of its obligations hereunder, and each of the
parties hereto shall continue to deal solely and directly with such Purchaser in connection with
such Purchaser’s rights and obligations under this Agreement. Each Purchaser agrees that any
agreement between such Purchaser and any such Participant in respect of such participating interest
shall not restrict such Purchaser’s right to agree to any amendment, supplement, waiver or
modification to this Agreement, except for any amendment, supplement, waiver or modification
described in Section 14.1(b)(i).

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ARTICLE XIII.

[RESERVED].

ARTICLE XIV.

MISCELLANEOUS

     Section 14.1 Waivers and Amendments.

     (a) No failure or delay on the part of the Administrative Agent or any Purchaser in
exercising any power, right or remedy under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or remedy
preclude any other further exercise thereof or the exercise of any other power, right or
remedy. The rights and remedies herein provided shall be cumulative and nonexclusive of any
rights or remedies provided by law. Any waiver of this Agreement shall be effective only in
the specific instance and for the specific purpose for which given.

     (b) No provision of this Agreement may be amended, supplemented, modified or waived
except in writing in accordance with the provisions of this Section 14.1(b). This Agreement
and the provisions hereof may only be amended, supplemented, modified or waived in a writing
signed by the Purchasers, the Seller and the Administrative Agent.

Notwithstanding the foregoing, (i) without the consent of the Purchasers, but with the consent of
Seller, the Administrative Agent may amend this Agreement solely to add additional Persons as
Purchasers hereunder and (ii) the Administrative Agent and the Purchasers may enter into
amendments to modify any of the terms or provisions of Article XI, Article XII, or Section 14.13 of
this Agreement without the consent of Seller, provided that such amendment has no negative impact
upon Seller. Any modification or waiver made in accordance with this Section 14.1 shall apply to
each of the Purchasers equally and shall be binding upon Seller, the Purchasers and the
Administrative Agent.

     Section 14.2 Notices. Except as provided in this Section 14.2, all communications and notices provided for
hereunder shall be in writing (including bank wire, telecopy or electronic facsimile transmission
or similar writing) and shall be given to the other parties hereto at their respective addresses or
telecopy numbers set forth on the signature pages hereof or at such other address or telecopy
number as such Person may hereafter specify for the purpose of notice to each of the other parties
hereto. Each such notice or other communication shall be effective (i) if given by telecopy, upon
the receipt thereof, (ii) if given by mail, three (3) Business Days after the time such
communication is deposited in the mail with first class postage prepaid or (iii) if given by any
other means, when received at the address specified in this Section 14.2. Seller hereby authorizes
the Purchasers to effect purchases and Tranche Period and Discount Rate selections based on
telephonic notices made by any Person whom the Administrative Agent in good faith believes to be
acting on behalf of Seller. Seller agrees to deliver promptly to the Administrative Agent a
written confirmation of each telephonic notice signed by an authorized

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officer of Seller; provided,
however, the absence of such confirmation shall not affect the validity of such notice. If the
written confirmation differs from the action taken by the Administrative Agent, the records of the
Administrative Agent shall govern absent manifest error.

     Section 14.3 Ratable Payments. If any Purchaser, whether by setoff or otherwise, has
payment made to it with respect to any portion of the Aggregate Unpaids owing to such Purchaser
(other than payments received pursuant to Section 10.3 or 10.4) in a greater proportion than that
received by any other Purchaser entitled to receive a ratable share of such Aggregate Unpaids, such
Purchaser agrees, promptly upon demand, to purchase for cash without recourse or warranty a portion
of such Aggregate Unpaids held by the other Purchasers so that after such purchase each Purchaser
will hold its ratable proportion of such Aggregate Unpaids; provided that if all or any portion of
such excess amount is thereafter recovered from such Purchaser, such purchase shall be rescinded
and the purchase price restored to the extent of such recovery, but without interest.

     Section 14.4 Protection of Purchaser Interests.

     (a) Seller agrees that from time to time, at its expense, it will promptly execute and
deliver all instruments and documents, and take all actions, that may be necessary or
desirable, or that the Administrative Agent may request, to perfect, protect or more fully
evidence the Purchaser Interests, or to enable the Administrative Agent or the Purchasers to
exercise and enforce their rights and remedies hereunder. At any time after the occurrence
of an Amortization Event, the Administrative Agent may, or the Administrative Agent may
direct Seller or the Servicer to, notify the Obligors of Receivables, at Seller’s expense,
of the ownership or security interests of the Purchasers under this Agreement and may also
direct that payments of all amounts due or that become due under any or all Receivables be
made directly to the Administrative Agent or its designee. Seller or the Servicer (as
applicable) shall, at any Purchaser’s request, withhold the identity of such Purchaser in
any such notification.

     (b) If any Seller Party fails to perform any of its obligations hereunder, the
Administrative Agent or any Purchaser may (but shall not be required to) perform, or cause
performance of, such obligations, and the Administrative Agent’s or such
Purchaser’s costs and expenses incurred in connection therewith shall be payable by
Seller as provided in Section 10.4. Each Seller Party irrevocably authorizes the
Administrative Agent at any time and from time to time in the sole discretion of the
Administrative Agent, and appoints the Administrative Agent as its attorney-in-fact, to act
on behalf of such Seller Party (i) to execute on behalf of Seller as debtor and to file
financing statements necessary or desirable in the Administrative Agent’s sole discretion to
perfect and to maintain the perfection and priority of the interest of the Purchasers in the
Receivables and (ii) to file a carbon, photographic or other reproduction of this Agreement
or any financing statement with respect to the Receivables as a financing statement in such
offices as the Administrative Agent in its sole discretion deems necessary or desirable to
perfect and to maintain the perfection and priority of the interests of the Purchasers in
the Receivables. This appointment is coupled with an interest and is irrevocable.

38

 

     Section 14.5 Confidentiality.

     (a) Each of the parties hereto shall maintain and shall cause each of its employees and
officers to maintain the confidentiality of the Fee Letter and the other confidential or
proprietary information with respect to the Originators, the Administrative Agent, the
Purchasers and their respective businesses obtained by it or them in connection with the
structuring, negotiating and execution of the transactions contemplated herein, except that
such party and its directors, officers and employees may disclose such information (i) to
such party’s external accountants, attorneys, investors, potential investors and credit
enhancers and the agents or advisors of such Persons and (ii) as required by any applicable
law, regulation or order of any judicial or administrative proceeding provided that each
party shall use commercially reasonable efforts to ensure, to the extent permitted given the
circumstances, that any such information which is so disclosed is kept confidential.

     (b) Anything herein to the contrary notwithstanding, each Originator hereby consents to
the disclosure of any nonpublic information with respect to it (i) to the Administrative
Agent and each of the Purchasers, (ii) to any prospective or actual assignee or participant
of the Administrative Agent or any of the Purchasers, and (iii) to any rating agency, and to
any officers, directors, employees, outside accountants, advisors and attorneys of any of
the foregoing, provided each such Person is advised of the confidential nature of such
information and, in the case of a Person described in clause (ii) above, agrees to be bound
by the provisions of this Section 14.5. In addition, the Administrative Agent and
the Purchasers may disclose any such nonpublic information pursuant to any law, rule,
regulation, direction, request or order of any judicial, administrative or regulatory
authority or proceedings (whether or not having the force or effect of law) although each of
them shall use commercially reasonable efforts to ensure, to the extent permitted given the
circumstances, that any such information which is so disclosed is kept confidential.

     Section 14.6 [RESERVED].

     Section 14.7 Limitation of Liability. Except with respect to any claim arising out of
the willful misconduct or gross negligence of the Administrative Agent or any Purchaser, no claim
may be made by any Seller Party or any other Person against the Administrative Agent or any
Purchaser or their respective Affiliates, directors, officers, employees, attorneys or agents for
any special, indirect, consequential or punitive damages in respect of any claim for breach of
contract or any other theory of liability arising out of or related to the transactions
contemplated by this Agreement, or any act, omission or event occurring in connection therewith;
and each Seller Party hereby waives, releases, and agrees not to sue upon any claim for any such
damages, whether or not accrued and whether or not known or suspected to exist in its favor.

     Section 14.8 CHOICE OF LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW
WHICH SHALL APPLY HERETO) EXCEPT TO THE EXTENT

39

 

THAT THE PERFECTION OF THE ADMINISTRATIVE AGENT’S OR
PURCHASERS’ OWNERSHIP OF OR SECURITY INTEREST IN THE RECEIVABLES AND RELATED SECURITY OR REMEDIES
HEREUNDER IN RESPECT THEREOF ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW
YORK.

     Section 14.9 CONSENT TO JURISDICTION. EACH SELLER PARTY HEREBY IRREVOCABLY SUBMITS TO
THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT SITTING IN THE BOROUGH
OF MANHATTAN, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO THIS AGREEMENT AND EACH SELLER PARTY HEREBY
IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS
TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS
AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY
PURCHASER TO BRING PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF ANY OTHER JURISDICTION.
ANY JUDICIAL PROCEEDING BY ANY SELLER PARTY AGAINST THE ADMINISTRATIVE AGENT OR ANY PURCHASER OR
ANY AFFILIATE OF THE ADMINISTRATIVE AGENT OR ANY PURCHASER INVOLVING, DIRECTLY OR INDIRECTLY, ANY
MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT
EXECUTED BY SUCH SELLER PARTY PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN THE
BOROUGH OF MANHATTAN, NEW YORK.

     Section 14.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN
ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, ANY
DOCUMENT EXECUTED BY ANY SELLER PARTY PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED
HEREUNDER OR THEREUNDER.

     Section 14.11 Integration; Binding Effect; Survival of Terms.

     (a) This Agreement and each other Transaction Document contain the final and complete
integration of all prior expressions by the parties hereto with respect to the subject
matter hereof and shall constitute the entire agreement among the parties hereto with
respect to the subject matter hereof superseding all prior oral or written understandings.

     (b) This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns (including any trustee in bankruptcy).
This Agreement shall create and constitute the continuing obligations of the parties hereto
in accordance with its terms and shall remain in full force and effect until terminated in
accordance with its terms; provided, however, that the rights and remedies

40

 

with respect to
(i) any breach of any representation and warranty made by any Seller Party pursuant to
Article V, (ii) the indemnification and payment provisions of Article X, and Sections 14.5
and 14.6 shall be continuing and shall survive any termination of this Agreement.

     Section 14.12 Counterparts; Severability; Section References. This Agreement may be
executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same Agreement. Any provisions of this Agreement which are
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. Unless otherwise expressly
indicated, all references herein to “Article,” “Section,” “Schedule” or “Exhibit” shall mean
articles and sections of, and schedules and exhibits to, this Agreement.

     Section 14.13 Characterization.

     (a) It is the intention of the parties hereto that each purchase hereunder shall
constitute and be treated as an absolute and irrevocable sale, which purchase shall provide
the applicable Purchaser with the full benefits of ownership of the applicable Purchaser
Interest. Except as specifically provided in this Agreement, each sale of a Purchaser
Interest hereunder is made without recourse to Seller; provided, however, that
(i) Seller shall be liable to each of the Purchasers and the Administrative Agent for
all representations, warranties, covenants and indemnities made by Seller pursuant to the
terms of this Agreement, and (ii) such sale does not constitute and is not intended to
result in an assumption by any Purchaser or the Administrative Agent or any assignee thereof
of any obligation of Seller or any Originator or any other Person arising in connection with
the Receivables, the Related Security, or the related Contracts, or any other obligations of
Seller or any Originator.

     (b) In addition to any ownership interest which the Administrative Agent may from time
to time acquire pursuant hereto, Seller hereby grants to the Administrative Agent for the
ratable benefit of the Purchasers a valid and perfected security interest in all of Seller’s
right, title and interest in, to and under all Receivables now existing or hereafter
arising, the Collections, each Lock-Box, each Collection Account, all Related Security, all
other rights and payments relating to such Receivables, and all proceeds of any thereof
prior to all other liens on and security interests therein to secure the prompt and complete
payment of the Aggregate Unpaids. The Administrative Agent and the Purchasers shall have,
in addition to the rights and remedies that they may have under this Agreement, all other
rights and remedies provided to a secured creditor under the UCC and other applicable law,
which rights and remedies shall be cumulative.

41

 

EXECUTION VERSION

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered
by their duly authorized officers as of the date hereof.

	 	 	 	 	 
	RPM FUNDING CORPORATION, as Seller

 	 	 
	By:  	/s/ Edward W. Moore
 	 	 
	 	Name:  	Edward W. Moore 	 	 
	 	Title:  	Secretary 	 	 
	 

Address:

RPM Funding Corporation

2628 Pearl Road, Suite 100

Medina, Ohio 44258

Attention: Treasurer

Phone: (330) 273-8837

Fax: (330) 225-6574

	 	 	 	 	 
	RPM INTERNATIONAL INC., as Servicer

 	 	 
	By:  	/s/ Edward W. Moore
 	 	 
	 	Name:  	Edward W. Moore 	 	 
	 	Title:  	Vice President, General Counsel and Secretary 	 	 
	 

Address:

RPM International Inc.

2628 Pearl Road

P.O. Box 777

Medina, Ohio 44258

Attention: Treasurer

Phone: (330) 273-8837

Fax: (330) 225-6574

42

 

	 	 	 	 	 
	FIFTH THIRD BANK, as a Purchaser

 	 	 
	By:  	/s/ Andrew D. Jones
 	 	 
	 	Name:  	Andrew D. Jones 	 	 
	 	Title:  	Assistant Vice President 	 	 
	 

Address:

Fifth Third Bank

38 Fountain Square Plaza, MD 109046

Cincinnati, OH 45263

Attention: Andrew D. Jones

Phone: (513) 534-0836

Fax: (513) 534-0319

43

 

WACHOVIA BANK, NATIONAL ASSOCIATION, individually as a Purchaser and as Administrative
Agent

	 	 	 	 	 
	 	 	 
	By:  	/s/ Michael J. Landry
 	 	 
	 	Name:  	Michael J. Landry 	 	 
	 	Title:  	Vice President 	 	 
	 

	Address: 	 	Wachovia Bank, National Association

171 17th Street, N.W., 4th Floor

Mail-stop GA4524

Atlanta, GA 30363

Attention: Michael Landry

Phone: (404) 214-6388

Fax: (404) 214-5481

44

 

EXHIBIT I

DEFINITIONS

          As used in this Agreement, the following terms shall have the following meanings (such
meanings to be equally applicable to both the singular and plural forms of the terms defined):

          “Accrual Period” means each calendar month, provided that the initial Accrual Period hereunder
means the period from (and including) the date of the initial purchase hereunder to (and including)
the last day of the calendar month thereafter.

          “Adjusted Dilution Ratio” means, at any time, the rolling average of the Dilution Ratio for
the 12 Calculation Periods then most recently ended.

          “Adjusted Eligible Receivables” means the aggregate Outstanding Balance of Eligible
Receivables less (i) the Cash Discount Exposure Factor; (ii) the Contractual Rebate Accruals; (iii)
the aggregate Outstanding Balance of all State Government Receivables in excess of 3% of the
aggregate Outstanding Balance of all Receivables; (iv) the aggregate Outstanding Balance of all
other Government Receivables in excess of 5% of the aggregate Outstanding Balance of all
Receivables; (v) the aggregate Outstanding Balance of all Canadian Receivables in excess of 3% of
the aggregate Outstanding Balance of all Receivables; (vi) the aggregate Outstanding Balance of all
Foreign Receivables in excess of 3% of the aggregate Outstanding Balance of all Receivables; (vii)
the aggregate Outstanding Balance of all Eligible Receivables which by their terms are due 62-91
days after the date of invoice in excess of 15% of the aggregate Outstanding Balance of all
Receivables; (viii) the aggregate Outstanding Balance of all Eligible Receivables which by their
terms are due 92-121 days after the date of invoice in excess of 3% of the aggregate Outstanding
Balance of all Receivables; and (ix) Excluded Government Receivables; provided, however, that
either Purchaser may, upon not less than five Business Days’ notice to Seller and the other
Purchaser, decrease or eliminate any of the percentages specified in clauses (iii)-(viii) of this
definition.

          “Administrative Agent” has the meaning set forth in the preamble to this Agreement.

          “Adverse Claim” means a lien, security interest, charge or encumbrance, or other right or
claim in, of or on any Person’s assets or properties in favor of any other Person.

          “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with, such Person or any
Subsidiary of such Person. A Person shall be deemed to control another Person if the controlling
Person owns 10% or more of any class of voting securities of the controlled Person or possesses,
directly or indirectly, the power to direct or cause the direction of the management or policies of
the controlled Person, whether through ownership of stock, by contract or otherwise.

45

 

          “Aggregate Capital” means, on any date of determination, the aggregate amount of Capital of
all Purchaser Interests outstanding on such date.

          “Aggregate Reduction” has the meaning specified in Section 1.3.

          “Aggregate Reserve Percentage” means, on any date of determination, the greater of (i) the
Required Reserve Factor Floor and (ii) the sum of the Loss Reserve, the Yield Reserve, the Dilution
Reserve and the Servicing Reserve.

          “Aggregate Reserves” means the Aggregate Reserve Percentage multiplied by the Net Receivables
Balance.

          “Aggregate Unpaids” means, at any time, an amount equal to the sum of all Aggregate Capital
and unpaid Obligations (whether due or accrued) at such time.

          “Agreement” means this Receivables Purchase Agreement, as it may be amended, restated,
supplemented or otherwise modified and in effect from time to time.

          “Alternate Base Rate” means for any day, the rate per annum equal to the higher as of such day
of (i) the Prime Rate, or (ii) one-half of one percent (0.50%) above the Federal Funds Rate, plus,
in either case, the Applicable Margin. For purposes of determining the Alternate Base Rate for any
day, changes in the Prime Rate or the Federal Funds Rate shall be effective on the date of each
such change.

          “Amortization Date” means the earliest to occur of (i) the day on which any of the conditions
precedent set forth in Section 6.2 are not satisfied, (ii) the Business Day immediately prior to
the occurrence of an Amortization Event set forth in Section 9.1(f)(ii), (iii) the Business Day
specified in a written notice from any Agent following the occurrence of any other Amortization
Event, and (iv) the date which is 10 Business Days after the Purchasers’ receipt of written notice
from Seller that it wishes to terminate the facility evidenced by this Agreement.

          “Amortization Event” has the meaning specified in Section 9.1.

          “Applicable Margin” means, for so long as the Servicer has investment grade public debt
ratings from any two of (i) S&P, (ii) Moody’s, or (iii) Fitch Ratings 1.75%, otherwise, 2.25%.

          “Assignee Purchaser” has the meaning set forth in Section 12.1.

          “Assignment Agreement” has the meaning set forth in Section 12.1.

          “Authorized Officer” means, with respect to any Person, its president, corporate controller,
treasurer, chief financial officer or secretary.

          “Broken Funding Costs” means for any Purchaser Interest which: (i) has its Capital reduced
without compliance by Seller with the notice requirements hereunder or (ii) does not become subject
to an Aggregate Reduction following the delivery of any Reduction Notice or

46

 

(iii) is terminated prior to the date on which it was originally scheduled to end; an amount
equal to the excess, if any, of (A) the Yield (as applicable) that would have accrued during the
remainder of the Tranche Periods determined by the applicable Purchaser to relate to such Purchaser
Interest (as applicable) subsequent to the date of such reduction, assignment or termination (or in
respect of clause (ii) above, the date such Aggregate Reduction was designated to occur pursuant to
the Reduction Notice) of the Capital of such Purchaser Interest if such reduction, assignment or
termination had not occurred or such Reduction Notice had not been delivered, over (B) the sum of
(x) to the extent all or a portion of such Capital is allocated to another Purchaser Interest, the
amount of Yield actually accrued during the remainder of such period on such Capital for the new
Purchaser Interest, and (y) to the extent such Capital is not allocated to another Purchaser
Interest, the income, if any, actually received during the remainder of such period by the holder
of such Purchaser Interest from investing the portion of such Capital not so allocated. In the
event that the amount referred to in clause (B) exceeds the amount referred to in clause (A), the
relevant Purchaser or Purchasers agree to pay to Seller the amount of such excess. All Broken
Funding Costs shall be due and payable hereunder upon written demand.

          “Business Day” means any day on which banks are not authorized or required to close in New
York, New York or Atlanta, Georgia and The Depository Trust Company of New York is open for
business, and, if the applicable Business Day relates to any computation or payment to be made with
respect to the LIBO Rate or LMIR, any day on which dealings in dollar deposits are carried on in
the London interbank market.

          “Calculation Period” means a calendar month.

          “Canadian Receivable” means a Receivable as to which the Obligor (a) if a natural person, is a
resident of Canada, and (b) if a corporation or other business entity, is organized under the laws
of and/or maintains its chief executive office in Canada.

          “Capital” of any Purchaser Interest means, at any time, (A) the Purchase Price of such
Purchaser Interest, minus (B) the sum of the aggregate amount of Collections and other payments
received by the Administrative Agent which in each case are applied to reduce such Capital in
accordance with the terms and conditions of this Agreement; provided that such Capital shall be
restored (in accordance with Section 2.5) in the amount of any Collections or other payments so
received and applied if at any time the distribution of such Collections or payments are rescinded,
returned or refunded for any reason.

          “Capital Lease Obligations” means, as to any Person, the obligations of such Person to pay
rent or other amounts under a lease of (or other agreement conveying the right to use) real and/or
personal property to the extent such obligations are required to be classified and accounted for as
a capital lease on a balance sheet of such Person under GAAP (including Statement of Financial
Accounting Standards No. 13 of the Financial Accounting Standards Board) and, for purposes of this
Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in
accordance with GAAP (including such Statement No. 13).

47

 

          “Cash Discount Exposure Factor” means 1.5% multiplied by the aggregate Outstanding Balance of
all Receivables less than 31 days past due; provided that the Administrative Agent, by written
notice to the Seller, the Servicer and each Purchaser, may modify the factors appearing in this
definition as may be necessary to more accurately reflect the cash discounts offered by the
Originators to Obligors.

          “Change of Control” has the meaning set forth in the Receivables Sale Agreement.

          “Charged-Off Receivable” means a Receivable: (i) as to which the Obligor thereof has taken any
action, or suffered any event to occur, of the type described in Section 9.1(f) (as if references
to Seller Party therein refer to such Obligor); (ii) as to which the Obligor thereof, if a natural
person, is deceased, (iii) which, consistent with the Credit and Collection Policy, would be
written off Seller’s books as uncollectible, or (iv) which has been identified by Seller as
uncollectible.

          “Collection Account” means each concentration account, depositary account, lock-box account or
similar account in which any Collections are collected or deposited and which is listed on Exhibit
IV.

          “Collection Account Agreement” means an agreement among an Originator, Seller, the
Administrative Agent and a Collection Bank perfecting the Administrative Agent’s security interest
in one or more Collection Accounts.

          “Collection Bank” means, at any time, any of the banks holding one or more Collection
Accounts.

          “Collection Notice” means a notice, in substantially the form attached to any Collection
Account Agreement from the Administrative Agent to a Collection Bank, terminating the Seller
Parties’ rights to access, or give instructions with respect to, any Collection Account.

          “Collections” means, with respect to any Receivable, all cash collections and other cash
proceeds in respect of such Receivable, including, without limitation, all yield, Finance Charges
or other related amounts accruing in respect thereof and all cash proceeds of Related Security with
respect to such Receivable.

          “Commitment” means, for each Purchaser, the commitment of such Purchaser to purchase Purchaser
Interests from Seller, in an amount not to exceed (i) in the aggregate, the amount set forth
opposite such Purchaser’s name on Schedule A to this Agreement, as such amount may be modified in
accordance with the terms hereof and (ii) with respect to any individual purchase hereunder, its
Percentage of the Purchase Price therefor.

          “Concentration Limit” means, at any time, for any Obligor and its Affiliates, considered as if
they were one and the same Obligor, the percentage of Adjusted Eligible Receivables set forth in
the table below opposite such Obligor’s applicable short-term unsecured debt ratings Moody’s (or in
the absence thereof, the equivalent long term unsecured senior debt ratings), or such other amount
(a “Special Concentration Limit”) for such Obligor designated by the Purchasers:

48

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Allowable % of
	Short-Term	 	Long-Term S&P	 	Short-Term	 	Long-Term	 	Adjusted Eligible
	S&P Rating	 	Rating	 	Moody’s Rating	 	Moody’s Rating	 	Receivables
	A-1+

	 	AAA
	 	P-1
	 	Aaa
	 	 	12	%
	A-1

	 	AA+, AA, AA- or A+
	 	P-1
	 	Aa1, Aa2, Aa3 or A1
	 	 	10	%
	A-2

	 	A, A- or BBB+
	 	P-2
	 	A2, A3 or Baa1
	 	 	6	%
	A-3

	 	BBB or BBB-
	 	P-3
	 	Baa2 or Baa3
	 	 	4.5	%
	Below A-3 or Not
Rated by either S&P
or Moody’s

	 	Below BBB- or Not
Rated by either S&P
or Moody’s
	 	Below P-3 or Not
Rated by either S&P
or Moody’s
	 	Below Baa3 or Not
Rated by either S&P
or Moody’s
	 	 	3	%

; provided, however, that (a) if any Obligor has a split rating, the applicable rating will be the
lower of the two, (b) if any Obligor is not rated by either S&P or Moody’s, the applicable
Concentration Limit shall be the one set forth in the last line of the table above, and (c) either
of the Purchasers may, upon not less than five Business Days’ notice to Seller, cancel any Special
Concentration Limit. As of the date hereof, (x) the Special Concentration Limit for The Home
Depot, Inc. and its Affiliates is 20% of Adjusted Eligible Receivables; (y) the Special
Concentration Limit for Ace Hardware and its Affiliates is 4% of Adjusted Eligible Receivables, and
(z) the Special Concentration Limit for Lowe’s Companies, Inc. and its Affiliates is 12% of
Adjusted Eligible Receivables.

          “Contract” means, with respect to any Receivable, any and all instruments, agreements,
invoices or other writings pursuant to which such Receivable arises or which evidences such
Receivable.

          “Contractual Rebate Accrual” means, with respect to any Receivable on any date of
determination, the ending balance of all accounting accruals or reserves for Rebates on such
Receivable; provided that the Administrative Agent, by written notice to the Seller, Servicer and
each Purchaser may require an adjustment to the Contractual Rebate Accrual if its determines
pursuant to a Review that accounting accruals and reserves do not accurately reflect the actual
amount of Rebates.

          “Credit and Collection Policy” means the Originators’ credit and collection policies and
practices relating to Contracts and Receivables existing on the date hereof and summarized in
Exhibit VIII hereto, as modified from time to time in accordance with this Agreement.

          “Cut-Off Date” means the last day of a Calculation Period.

49

 

          “Days Sales Outstanding” means, as of any day, an amount equal to the product of (x) 91,
multiplied by (y) the amount obtained by dividing (i) the aggregate Outstanding Balance of all
Receivables as of the most recent Cut-Off Date, by (ii) the aggregate amount of Receivables created
during the three (3) Calculation Periods including and immediately preceding such Cut-Off Date.

          “Deemed Collections” means the aggregate of all amounts Seller shall have been deemed to have
received as a Collection of a Receivable (excluding Excluded Government Receivables). Seller shall
be deemed to have received a Collection in full of a Receivable if at any time any of the
representations or warranties in Article V are no longer true with respect to any Receivable. If
(i) the Outstanding Balance of any Receivable is either (x) reduced as a result of any defective or
rejected goods or services, any discount or any adjustment or otherwise by Seller (other than cash
Collections on account of the Receivables) or (y) reduced or canceled as a result of a setoff in
respect of any claim by any Person (whether such claim arises out of the same or a related
transaction or an unrelated transaction), Seller shall be deemed to have received a Collection of
such Receivable to the extent of such reduction or cancellation.

          “Default Fee” means with respect to any amount due and payable by Seller in respect of any
Aggregate Unpaids, an amount equal to interest on any such unpaid Aggregate Unpaids at a rate per
annum equal to 2% above the Alternate Base Rate.

          “Default Horizon Ratio” means, as of any Cut-Off Date, the ratio (expressed as a decimal)
computed by dividing (a) the aggregate sales (excluding Excluded Government Receivables) generated
by the Originators during the five Calculation Periods ending on such Cut-Off Date, by (b) the Net
Receivables Balance as of such Cut-Off Date.

          “Default Ratio” means, as of any Cut-Off Date, the ratio (expressed as a percentage) computed
by dividing (x) the total amount of Receivables (excluding Excluded Government Receivables) which
became Defaulted Receivables or which became Charged-Off Receivables before becoming Defaulted
Receivables, in either case during the Calculation Period that includes such Cut-Off Date, by (y)
the aggregate sales (excluding Excluded Government Receivables) generated by the Originators during
the Calculation Period occurring four months prior to the Calculation Period ending on such Cut-Off
Date.

          “Defaulted Receivable” means a Receivable as to which any payment, or part thereof, remains
unpaid for 91 days or more from the original due date for such payment.

          “Delinquency Ratio” means, at any time, a percentage equal to (i) the aggregate Outstanding
Balance of all Receivables (excluding Excluded Government Receivables) that were Delinquent
Receivables at such time divided by (ii) the aggregate Outstanding Balance of all Receivables
(excluding Excluded Government Receivables) at such time.

          “Delinquent Receivable” means a Receivable as to which any payment, or part thereof, remains
unpaid for 61-90 days from the original due date for such payment.

          “Designated Obligor” means an Obligor indicated by the Administrative Agent or any Purchaser
to Seller in writing.

50

 

          “Dilution Horizon Ratio” means, as of any Cut-off Date, a ratio (expressed as a decimal),
computed by dividing (a) the sum of (i) the aggregate sales (excluding Excluded Government
Receivables) generated by the Originators during the three Calculation Periods ending on such
Cut-Off Date, plus 50% of the aggregate sales (excluding Excluded Government Receivables) generated
by the Originators during the Calculation Period ending three months prior to such Cut-Off Date by
(b) the Net Receivables Balance as of such Cut-Off Date.

          “Dilution Ratio” means, as of any Cut-Off Date, a ratio (expressed as a percentage), computed
by dividing (a) the total amount of Dilutions during the Calculation Period ending on such Cut-Off
Date, by (b) the aggregate sales (excluding Excluded Government Receivables) generated by the
Originators during the Calculation Period that ended three Cut-Off Dates prior to such Cut-Off
Date.

          “Dilution Reserve” means, for any Calculation Period, the product (expressed as a percentage)
of (a) the sum of (i) the Stress Factor times the Adjusted Dilution Ratio as of the Cutoff Date for
such Calculation Period, plus (ii) the Dilution Volatility Component as of the Cutoff Date for such
Calculation Period, times (b) the Dilution Horizon Ratio as of the Cutoff Date for such Calculation
Period.

          “Dilution Volatility Component” means the product (expressed as a percentage) of (i) the
difference between (a) the highest three (3)-month rolling average Dilution Ratio over the past 12
Calculation Periods and (b) the Adjusted Dilution Ratio, and (ii) a fraction, the numerator of
which is equal to the amount calculated in (i)(a) of this definition and the denominator of which
is equal to the amount calculated in (i)(b) of this definition.

          “Dilutions” means, at any time, the aggregate amount of reductions or cancellations described
in clause (i) of the definition of “Deemed Collections” other than those for which a Contractual
Rebate Accrual has been booked.

          “Discount Rate” means, the LIBO Rate, LMIR or the Alternate Base Rate, as applicable, with
respect to each Purchaser Interest.

          “EBITDA” means, for any period, determined on a consolidated basis for RPM-Delaware and its
Subsidiaries, (i) net income of RPM-Delaware and its Subsidiaries (calculated before provision for
income taxes, interest expense, extraordinary items, non-recurring gains or losses in connection
with asset dispositions, income attributable to equity in affiliates, all amounts attributable to
depreciation and amortization and non-cash charges associated with asbestos liabilities) for such
period, minus (ii) cash payments made by RPM-Delaware or any of its Subsidiaries in respect
of asbestos liabilities (which liabilities include, without limitation, defense costs and
indemnification liabilities incurred in connection with asbestos liabilities) during such period.

          “Eligible Assignee” means any Qualifying Purchaser having a combined capital and surplus of at
least $250,000,000.

          “Eligible Receivable” means, at any time, a Receivable:

51

 

     (i) the Obligor of which (a) if a natural person, is a resident of the United
States, Puerto Rico or Canada or, if a corporation or other business organization,
is organized under the laws of the United States, Puerto Rico, Canada or any
political subdivision of the foregoing and has its chief executive office in the
United States, Puerto Rico or Canada; (b) is not an Affiliate of any of the parties
hereto; and (c) is not a Designated Obligor;

     (ii) the Obligor of which is not the Obligor of any Charged-Off Receivable,

     (iii) which is not a Charged-Off Receivable or a Defaulted Receivable,

     (iv) which is not owing from an Obligor as to which more than 25% of the
aggregate Outstanding Balance of all Receivables owing from such Obligor are
Delinquent Receivables or Defaulted Receivables,

     (v) which by its terms is due and payable on or within 121 days of the original
billing date therefor and has not had its payment terms extended,

     (vi) which is an “account” within the meaning of Section 9-102 of the UCC of
all applicable jurisdictions,

     (vii) which is denominated and payable only in United States dollars in the
United States,

     (viii) which arises under a Contract in substantially the form of one of the
form contracts set forth on Exhibit IX hereto or otherwise approved by the
Purchasers in writing, which, together with such Receivable, is in full force and
effect and constitutes the legal, valid and binding obligation of the related
Obligor enforceable against such Obligor in accordance with its terms subject to no
offset, counterclaim or other defense,

     (ix) which arises under a Contract which (A) does not require the Obligor under
such Contract to consent to the transfer, sale or assignment of the rights and
duties of the applicable Originator or any of its assignees under such Contract and
(B) does not contain a confidentiality provision that purports to restrict the
ability of any Purchaser to exercise its rights under this Agreement, including,
without limitation, its right to review the Contract,

     (x) which arises under a Contract that contains an obligation to pay a
specified sum of money, contingent only upon the sale of goods or the provision of
services by the applicable Originator,

     (xi) which, together with the Contract related thereto, does not contravene any
law, rule or regulation applicable thereto (including, without limitation, any law,
rule and regulation relating to truth in lending, fair credit billing, fair credit
reporting, equal credit opportunity, fair debt collection practices

52

 

and privacy) and with respect to which no part of the Contract related thereto
is in violation of any such law, rule or regulation,

     (xii) which satisfies in all material respects the applicable requirements of
the Credit and Collection Policy,

     (xiii) which was generated in the ordinary course of the applicable
Originator’s business,

     (xiv) which arises solely from the sale of goods or the provision of services
to the related Obligor by an Originator, and not by any other Person (in whole or in
part),

     (xv) as to which a Purchaser has not notified Seller that such Purchaser has
determined in the exercise of its commercially reasonable credit judgment that such Receivable or class of Receivables is not acceptable as an Eligible Receivable,
including, without limitation, because such Receivable arises under a Contract that
is not acceptable to such Purchaser,

     (xvi) which is not subject to (A) any right of rescission or set-off, or (B)
any currently asserted counterclaim or other defense (including defenses arising out
of violations of usury laws) of the applicable Obligor against any Originator or any
other Adverse Claim, and the Obligor thereon holds no right as against any
Originator to cause any Originator to repurchase the goods or merchandise the sale
of which shall have given rise to such Receivable (except with respect to sale
discounts effected pursuant to the Contract, or defective goods returned in
accordance with the terms of the Contract); provided, however, that if such dispute,
offset, counterclaim or defense affects only a portion of the Outstanding Balance of
such Receivable, then such Receivable may be deemed an Eligible Receivable to the
extent of the portion of such Outstanding Balance which is not so affected, and
provided, further, that Receivables of any Obligor which has any accounts payable by
the applicable Originator or by a wholly-owned Subsidiary of such Originator (thus
giving rise to a potential offset against such Receivables) may be treated as
Eligible Receivables to the extent that the Obligor of such Receivables has agreed
pursuant to a written agreement in form and substance satisfactory to the
Administrative Agent and the Purchasers, that such Receivables shall not be subject
to such offset,

     (xvii) as to which the applicable Originator has satisfied and fully performed
all obligations on its part with respect to such Receivable required to be fulfilled
by it, and no further action is required to be performed by any Person with respect
thereto other than payment thereon by the applicable Obligor, and

     (xviii) all right, title and interest to and in which has been validly
transferred by the applicable Originator directly to Seller under and in accordance
with the Receivables Sale Agreement, and Seller has good and marketable title
thereto free and clear of any Adverse Claim.

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          “Equity Interests” means, with respect to any Person, any and all shares, interests,
participations or other equivalents, including membership interests (however designated, whether
voting or non-voting), of capital of such Person, including, if such Person is a partnership,
partnership interests (whether general or limited) and any other interest or participation that
confers on a Person the right to receive a share of the profits and losses of, or distributions of
assets of, such partnership, whether outstanding on the date hereof or issued after the date of
this Agreement.

          “Excluded Government Receivables” means, as of any date of determination, the aggregate
Outstanding Balance of all State Government Receivables and other Government Receivables, in each
case, originated by Weatherproofing Technologies, Inc.

          “Facility Account” means [Redacted].

          “Facility Termination Date” means the earlier of (i) April 7, 2012, and (ii) the Amortization
Date.

          “Federal Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as
amended and any successor statute thereto.

          “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum for each day
during such period equal to (i) the weighted average of the rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the preceding Business Day) by
the Federal Reserve Bank of New York in the Composite Closing Quotations for U.S. Government
Securities; or (ii) if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 11:30 a.m. (New York time) for such day on such
transactions received by the Agent from three federal funds brokers of recognized standing selected
by it.

          “Fee Letter” means that certain Fee Letter dated as of April 7, 2009 by and between Seller,
the Administrative Agent and the Purchasers, as the same may be amended, restated or otherwise
modified from time to time.

          “Finance Charges” means, with respect to a Contract, any finance, interest, late payment
charges or similar charges owing by an Obligor pursuant to such Contract.

          “Foreign Receivable” means a Receivable (other than a Canadian Receivable) as to which the
Obligor (a) if a natural person, is not a resident of the United States of America, and (b) if a
corporation or other business entity, is organized under the laws of and/or maintains its chief
executive office in a jurisdiction other than the United States of America.

          “GAAP” means generally accepted accounting principles in effect in the United States of
America from time to time.

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          “Government Receivable” means a Receivable as to which the Obligor is a government or a
governmental subdivision or agency.

          “Guaranteed” has the meaning ascribed thereto in the definition of “Guaranty” in the RPM
Credit Agreement.

          “Incremental Purchase” means a purchase of a Purchaser Interest which increases the total
outstanding Aggregate Capital hereunder.

          “Indebtedness” means, as to any Person (determined without duplication): (i) indebtedness of
such Person for borrowed money (whether by loan or the issuance and sale of debt securities) or for
the deferred purchase or acquisition price of property or services other than accounts payable
(other than for borrowed money) incurred in the ordinary course of such Person’s business, (ii)
obligations of such Person in respect of letters of credit or similar instruments issued or
accepted by banks and other financial institutions for the account of such Person (whether or not
such obligations are contingent); (iii) Capital Lease Obligations of such Person; (iv) obligations
of such Person to redeem or otherwise retire shares of capital stock of such Person; (v)
indebtedness of others of the type described in clause (i), (ii), (iii) or (iv) above secured by a
lien on the property of such Person, whether or not the respective obligation so secured has been
assumed by such Person; and (vi) indebtedness of others of the type described in clause (i), (ii),
(iii) or (iv) above Guaranteed by such Person.

          “Independent Director” shall mean a member of the Board of Directors of Seller who is not at
such time, and has not been at any time during the preceding five (5) years, (A) a director,
officer, employee or affiliate of any Seller Party, any Originator, or any of their respective
Subsidiaries or Affiliates, or (B) the beneficial owner (at the time of such individual’s
appointment as an Independent Director or at any time thereafter while serving as an Independent
Director) of any of the outstanding common shares of any Seller Party, any Originator, or any of
their respective Subsidiaries or Affiliates, having general voting rights.

          “Interest Expense” means, for any period, the sum (determined without duplication) of the
aggregate amount of interest accruing during such period on Indebtedness of RPM-Delaware and its
Subsidiaries (on a consolidated basis), including the interest portion of payments under Capital
Lease Obligations and any capitalized interest, and excluding amortization of debt discount and
expense.

          “Interim Reporting Date” shall have the meaning set forth in Section 8.5.

          “LIBOR Market Index Rate” means, for any day, the one-month Eurodollar Rate for U.S. dollar
deposits as reported on the Reuters Screen LIBOR01 Page or any other page that may replace such
page from time to time for the purpose of displaying offered rates of leading banks for London
interbank deposits in United States dollars, as of 11:00 a.m. (London time) on such date, or if
such day is not a Business Day, then the immediately preceding Business Day (or if not so reported,
then as determined by the Administrative Agent from another recognized source for interbank
quotation), in each case, changing when and as such rate changes.

55

 

          “LIBO Rate” means the rate per annum equal to the sum of (i) (a) the applicable British
Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars appearing on Reuters
Screen FRBD as of 11:00 a.m. (London time) two Business Days prior to the first day of the relevant
Tranche Period, and having a maturity equal to such Tranche Period, provided that, (i) if Reuters
Screen FRBD is not available to the Administrative Agent for any reason, the applicable LIBO Rate
for the relevant Tranche Period shall instead be the applicable British Bankers’ Association
Interest Settlement Rate for deposits in U.S. dollars as reported by any other generally recognized
financial information service as of 11:00 a.m. (London time) two Business Days prior to the first
day of such Tranche Period, and having a maturity equal to such Tranche Period, and (ii) if no such
British Bankers’ Association Interest Settlement Rate is available to the Administrative Agent, the
applicable LIBO Rate for the relevant Tranche Period shall instead be the rate determined by each
Purchaser to be the rate at which such Purchaser offers to place deposits in U.S. dollars with
first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Tranche Period, in the approximate amount to be funded
at the LIBO Rate and having a maturity equal to such Tranche Period, divided by (b) one minus the
maximum aggregate reserve requirement (including all basic, supplemental, marginal or other
reserves) which is imposed against the Administrative Agent in respect of Eurocurrency liabilities,
as defined in Regulation D of the Board of Governors of the Federal Reserve System as in effect
from time to time (expressed as a decimal), applicable to such Tranche Period plus (ii) the
Applicable Margin per annum. The LIBO Rate shall be rounded, if necessary, to the next higher 1/16
of 1%.

          “LMIR” means, on any date of determination, a rate per annum equal to the LIBOR Market Index
Rate plus the Applicable Margin.

          “Lock-Box” means each locked postal box with respect to which a bank who has executed a
Collection Account Agreement has been granted exclusive access for the purpose of retrieving and
processing payments made on the Receivables and which is listed on Exhibit IV.

          “Loss Reserve” means, for any Calculation Period, the product (expressed as a percentage) of
(a) the Stress Factor, times (b) the highest three-month rolling average Default Ratio during the
12 Calculation Periods ending on the immediately preceding Cut-Off Date, times (c) the Default
Horizon Ratio as of the immediately preceding Cut-Off Date.

          “Material Adverse Effect” means a material adverse effect on (i) the financial condition or
operations of Seller or RPM-Delaware and any of its subsidiaries, taken as a whole, (ii) the
ability of Seller to perform its obligations under this Agreement or (at any time RPM-Delaware is
acting as Servicer or Performance Guarantor), the ability of the Servicer or the Performance
Guarantor to perform its obligations under this Agreement or the Performance Undertaking, as the
case may be, (iii) the legality, validity or enforceability of this Agreement or any other
Transaction Document, (iv) any Purchaser’s interest in the Receivables generally or in any
significant portion of the Receivables, the Related Security or the Collections with respect
thereto, or (v) the collectibility of the Receivables generally or of any material portion of the
Receivables.

          “Material Indebtedness” means (a) with respect to the Performance Guarantor and its
Subsidiaries (other than the Originators), Indebtedness in excess of $25 million in

56

 

aggregate principal amount and (b) with respect to any Originator, Indebtedness in excess of
$10 million in aggregate principal amount.

          “Monthly Reporting Date” shall have the meaning set forth in Section 8.5.

          “Moody’s”: means Moody’s Investors Service, Inc.

          “Net Receivables Balance” means, at any time, Adjusted Eligible Receivables at such time
reduced by the aggregate amount by which (a) the difference of (i) the Outstanding Balance of all
Eligible Receivables of each Obligor and its Affiliates minus (ii) the Cash Discount Exposure
Factor and Contractual Rebate Accrual attributable to such Obligor and its Affiliates exceeds (b)
the Concentration Limit for such Obligor.

          “Norwegian Company” means Carboline Norge A/S , a Norwegian corporation or any successor
thereof.

          “Obligations” shall have the meaning set forth in Section 2.1.

          “Obligor” means a Person obligated to make payments pursuant to a Contract.

          “Organic Document” means, relative to any Person, its certificate of incorporation, its
by-laws, its partnership agreement, its memorandum and articles of association, its limited
liability company agreement and/or operating agreement, share designations or similar organization
documents and all shareholder agreements, voting trusts and similar arrangements applicable to any
of its authorized Equity Interests.

          “Originator” has the meaning specified in the Receivables Sale Agreement.

          “Outstanding Balance” of any Receivable at any time means the then outstanding principal
balance thereof.

          “Participant” has the meaning set forth in Section 12.2.

          “Past Due Ratio” means, at any time, the following quotient (expressed as a percentage): (a)
the sum (without duplication) of Defaulted Receivables and Charged-Off Receivables at such time,
divided by (b) the aggregate Outstanding Balance of all Receivables.

          “Percentage” means (a) 33.333% as to Fifth Third, and (b) 66.666% as to Wachovia.

          “Performance Guarantor” means RPM-Delaware and its successors.

          “Performance Undertaking” means that certain Second Amended and Restated Performance
Undertaking, dated as of April 7, 2009, by Performance Guarantor in favor of Seller, substantially
in the form of Exhibit XI, as the same may be amended, restated or otherwise modified from time to
time.

57

 

          “Person” means an individual, partnership, corporation (including a business trust), limited
liability company, joint stock company, trust, unincorporated association, joint venture or other
entity, or a government or any political subdivision or agency thereof.

          “Potential Amortization Event” means an event which, with the passage of any applicable cure
period or the giving of notice, or both, would constitute an Amortization Event.

          “Prime Rate” means a rate per annum equal to the prime rate of interest announced from time to
time by Wachovia (which is not necessarily the lowest rate charged to any customer), changing when
and as said prime rate changes.

          “Purchase Limit” means $150,000,000.

          “Purchase Notice” has the meaning set forth in Section 1.2.

          “Purchase Price” means, with respect to any Incremental Purchase of a Purchaser Interest, the
amount paid to Seller for such Purchaser Interest which shall not exceed the least of (i) the
amount requested by Seller in the applicable Purchase Notice, (ii) the unused portion of the
Purchase Limit on the applicable purchase date and (iii) the excess, if any, of the Net Receivables
Balance (less the Aggregate Reserves) on the applicable purchase date over the aggregate
outstanding amount of Aggregate Capital determined as of the date of the most recent Receivables
Report, taking into account such proposed Incremental Purchase.

          “Purchasers” has the meaning set forth in the preamble to this Agreement.

          “Purchaser Interest” means, at any time, an undivided percentage interest (computed as set
forth below) associated with a designated amount of Capital, selected pursuant to the terms and
conditions hereof in (i) each Receivable arising prior to the time of the most recent computation
or recomputation of such undivided interest, (ii) all Related Security with respect to each such
Receivable, and (iii) all Collections with respect to, and other proceeds of, each such Receivable.
Each such undivided percentage interest shall equal:

C

 

NRB - AR

          where:

          C = the Capital of such Purchaser Interest.

          AR = the Aggregate Reserves.

          NRB = the Net Receivables Balance.

Such undivided percentage interest shall be initially computed on its date of purchase.
Thereafter, until the Amortization Date, each Purchaser Interest shall be automatically recomputed
(or deemed to be recomputed) on each day prior to the Amortization Date. The variable percentage
represented by any Purchaser Interest as computed (or deemed recomputed)

58

 

as of the close of the Business Day immediately preceding the Amortization Date shall remain
constant at all times thereafter.

          “Qualifying Purchaser” means a Purchaser with a rating of its short-term securities equal to
or higher than (i) A-1 by S&P and (ii) P-1 by Moody’s.

          “Rebates” means, with respect to any Receivable on any date of determination, potential volume
rebates, seasonal and other promotional discounts, advertising and other cooperative subsidies, or
similar contractual credits booked with respect to such Receivable.

          “Receivable” means any “Receivable” under and as defined in the Receivables Sale Agreement in
which Seller now has or hereafter acquires any right, title or interest. Indebtedness and other
rights and obligations arising from any one transaction, including, without limitation,
indebtedness and other rights and obligations represented by an individual invoice, shall
constitute a Receivable separate from a Receivable consisting of the indebtedness and other rights
and obligations arising from any other transaction; provided that any indebtedness, rights or
obligations referred to in the immediately preceding sentence shall be a Receivable regardless of
whether the account debtor or Seller treats such indebtedness, rights or obligations as a separate
payment obligation.

          “Receivables Report” means a report in substantially the form of Exhibit X hereto
(appropriately completed), furnished by the Servicer to the Administrative Agent and the Purchasers
pursuant to Section 8.5.

          “Receivables Sale Agreement” means that certain Amended and Restated Receivables Sale
Agreement, dated as of April 7, 2009, between Originators and Seller, as the same may be amended,
restated or otherwise modified from time to time.

          “Records” means, with respect to any Receivable, all Contracts and other documents, books,
records and other information (including, without limitation, computer programs, tapes, disks,
punch cards, data processing software and related property and rights) relating to such Receivable,
any Related Security therefor and the related Obligor.

          “Reduction Notice” has the meaning set forth in Section 1.3.

          “Reference Bank” means Wachovia Bank, National Association.

          “Reinvestment” has the meaning set forth in Section 2.2.

          “Related Security” means, with respect to any Receivable:

          (i) all “Related Security” under and as defined in the Receivables Sale Agreement in which
Seller now has or hereafter acquires any right, title or interest,

          (ii) all of Seller’s right, title and interest in, to and under the Receivables Sale Agreement
in respect of such Receivable and all of Seller’s right, title and interest in, to and under the
Performance Undertaking, and

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          (iii) all proceeds of any of the foregoing.

          “Reporting Date” means an Interim Reporting Date or a Monthly Reporting Date.

          “Required Notice Period” means the number of days required notice set forth below applicable
to the Aggregate Reduction indicated below:

	 	 	 
	Aggregate Reduction	 	Required Notice Period
	< $100,000,000

	 	two Business Days
	$100,000,000 to $125,000,000

	 	five Business Days

          “Required Reserve Factor Floor” means, as of any date of determination, the sum (expressed as
a percentage) of (a) 20%, plus (b) the product of the Dilution Ratio and the Dilution Horizon
Ratio, in each case, as of the Cut-Off Date immediately preceding such date.

          “Responsible Officer” means, with respect to any Person, each of the following officers (if
applicable) of such Person (or anyone performing substantially the same functions as the following
officers typically perform): any of such Person’s Senior Officers, or such Person’s assistant
treasurer, credit manager or controller .

          “Restricted Junior Payment” means (i) any dividend or other distribution, direct or indirect,
on account of any shares of any class of capital stock of Seller now or hereafter outstanding,
except a dividend payable solely in shares of that class of stock or in any junior class of stock
of Seller, (ii) any redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of capital stock of Seller
now or hereafter outstanding, (iii) any payment or prepayment of principal of, premium, if any, or
interest, fees or other charges on or with respect to, and any redemption, purchase, retirement,
defeasance, sinking fund or similar payment and any claim for rescission with respect to the
Subordinated Loans (as defined in the Receivables Sale Agreement), (iv) any payment made to redeem,
purchase, repurchase or retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire shares of any class of capital stock of Seller now or hereafter
outstanding, and (v) any payment of management fees by Seller (except for reasonable management
fees to an Originator or its Affiliates in reimbursement of actual management services performed).

          “RPM Credit Agreement” means that certain Credit Agreement dated as of December 29, 2006, as
amended, restated or replaced from time to time, among RPM-Delaware and certain of its Affiliates,
the lenders from time to time party thereto, Keybank National Association, as joint lead arranger,
joint book runner and syndication agent, Wachovia, as co-documentation agent, and National City
Bank, as swing-line lender, letter of credit issuer and administrative agent.

          “S&P” means Standard & Poors, a division of the McGraw Hill Companies, Inc.

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          “Seller” has the meaning set forth in the preamble to this Agreement.

          “Seller Parties” means, collectively, (a) Seller, and (b) at any time that RPM-Delaware is
acting as Servicer or Performance Guarantor, RPM-Delaware.

          “Senior Officer” shall mean the chief executive officer, president, chief financial officer or
vice president-treasurer of the Performance Guarantor.

          “Servicer” means at any time the Person (which may be the Administrative Agent) then
authorized pursuant to Article VIII to service, administer and collect Receivables.

          “Servicing Fee” has the meaning set forth in Section 8.6.

          “Servicing Reserve” means, the product (expressed as a percentage) of (a) 1%, times (b) a
fraction, the numerator of which is the highest Days Sales Outstanding for the most recent 12
months and the denominator of which is 360.

          “Settlement Date” means (A) two (2) Business Days after each Monthly Reporting Date, (B) the
Business Day following each Interim Reporting Date and (C) the last day of the relevant Tranche
Period in respect of each Purchaser Interest of the Purchasers.

          “Settlement Period” means, in respect of each Purchaser Interest, the entire Tranche Period of
such Purchaser Interest.

          “State Government Receivable” means a Receivable as to which the Obligor is a state or local
government or a state or local governmental subdivision or agency in the United States of America.

          “Stress Factor” means, for so long as the Servicer has investment grade public debt ratings
from any two of (i) S&P, (ii) Moody’s, or (iii) Fitch Ratings, 2.25%, otherwise, 2.50%.

          “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding securities
having ordinary voting power of which shall at the time be owned or controlled, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more
of its Subsidiaries, or (ii) any partnership, association, limited liability company, joint venture
or similar business organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned or controlled. Unless otherwise expressly provided,
all references herein to a “Subsidiary” shall mean a Subsidiary of Servicer; provided, however,
that solely for purposes of Section 7.1(i)(O), the Norwegian Company shall not constitute a
Subsidiary.

          “Terminating Tranche” has the meaning set forth in Section 4.3(b).

          “Tranche Period” means, with respect to any Purchaser Interest:

          (a) if Yield for such Purchaser Interest is calculated on the basis of the LIBO Rate, a period
of one, two, three or six months, or such other period as may be mutually

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agreeable to the applicable Purchaser and Seller, commencing on a Business Day selected by
Seller or such Purchaser pursuant to this Agreement. Such Tranche Period shall end on the day in
the applicable succeeding calendar month which corresponds numerically to the beginning day of such
Tranche Period, provided, however, that if there is no such numerically corresponding day in such
succeeding month, such Tranche Period shall end on the last Business Day of such succeeding month;
or

          (b) if Yield for such Purchaser Interest is calculated on the basis of LMIR, initially, a
period commencing on a Business Day selected by Seller and agreed to by the applicable Purchaser
and ending on the last day of the calendar month in which such Business Day falls, and thereafter,
each calendar month while such Purchaser Interest remains funded at LMIR

          (c) if Yield for such Purchaser Interest is calculated on the basis of the Alternate Base
Rate, a period commencing on a Business Day selected by Seller, provided that no such period shall
exceed one month.

If any Tranche Period would end on a day which is not a Business Day, such Tranche Period shall end
on the next succeeding Business Day, provided, however, that in the case of Tranche Periods
corresponding to the LIBO Rate or LMIR, if such next succeeding Business Day falls in a new month,
such Tranche Period shall end on the immediately preceding Business Day. In the case of any
Tranche Period for any Purchaser Interest which commences before the Amortization Date and would
otherwise end on a date occurring after the Amortization Date, such Tranche Period shall end on the
Amortization Date. The duration of each Tranche Period which commences after the Amortization Date
shall be of such duration as selected by the applicable Purchaser.

          “Transaction Documents” means, collectively, this Agreement, each Purchase Notice, the
Receivables Sale Agreement, each Collection Account Agreement, the Performance Undertaking, the Fee
Letter, the Liquidity Agreements, the Subordinated Notes (as defined in the Receivables Sale
Agreement) and all other instruments, documents and agreements required to be executed and
delivered pursuant hereto.

          “UCC” means the Uniform Commercial Code as from time to time in effect in the specified
jurisdiction.

          “Wachovia Account” has the meaning set forth in Section 1.4.

          “Yield” means for each respective Tranche Period relating to Purchaser Interests, an amount
equal to the product of the applicable Discount Rate for each Purchaser Interest multiplied by the
Capital of such Purchaser Interest for each day elapsed during such Tranche Period, annualized on a
360 day basis.

          “Yield Reserve” means for any Calculation Period, the product (expressed as a percentage) of
(i) the sum of (a) 1.0% plus (b) the product of 1.5 times the Alternate Base Rate as of the
immediately preceding Cut-Off Date times (ii) a fraction, the numerator of which is the

62

 

highest Days Sales Outstanding for the most recent 12 Calculation Periods and the denominator
of which is 360.

          All accounting terms not specifically defined herein shall be construed in accordance with
GAAP. All terms used in Article 9 of the UCC in the State of New York, and not specifically
defined herein, are used herein as defined in such Article 9.

63

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