Document:

exv10w2

EXHIBIT 10.2

INDEMNIFICATION AGREEMENT

          THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made as of this            day of
                              ,
200   , by and between United Commercial Bank, a California state-chartered bank, (the “Bank”) and
                              , an individual (“Indemnitee”).

RECITALS

          A.     The Bank and Indemnitee recognize that unforeseen litigation may subject directors,
officers and agents to costs and expenses.

          B.     The Bank desires to attract and retain the services of highly qualified individuals, such
as Indemnitee, to serve as directors, officers and agents of the Bank and to indemnify its
directors, officers and agents so as to provide them with the maximum protection permitted by law.

          In consideration of the Recitals set forth above and mutual covenants and agreements set forth
below, the Bank and Indemnitee do hereby agree as follows:

AGREEMENT

          1.     Indemnification and Expense Advancement.

                  (a)     Proceedings Other than by Right of the Bank. The Bank shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any proceeding (other than
an action by or in the right of the Bank to procure a judgment in its favor) by reason of the fact
that Indemnitee is or was an Agent (as defined in Section 1(i) below) of the Bank, against costs,
expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in
connection with such proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the best interests of the Bank and, in the case of a criminal
proceeding, has no reasonable cause to believe the conduct of Indemnitee was unlawful. The
termination of any proceeding by judgment, order, settlement, conviction or upon a plea of nolo
contendere or its equivalent shall not, of itself, create a presumption that Indemnitee did not act
in good faith and in a manner which Indemnitee reasonably believed to be in the best interests of
the Bank or that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

                  (b)     Proceedings By or in the Right of the Bank. The Bank shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or
completed action by or in the right of the Bank to procure a judgment in its favor by reason of the
fact that Indemnitee is or was an Agent of the Bank, against expenses actually and reasonably
incurred by Indemnitee in connection with the defense or settlement of such action if Indemnitee
acted in good faith, in a manner Indemnitee believed to be in the best interests of the

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Bank and its shareholders; except that no indemnification shall be made under this Section 1(b) for
any of the following:

                           (i)     In respect of any claim, issue or matter as to which Indemnitee shall have been adjudged
to be liable to the Bank in the performance of Indemnitee’s duty to the Bank and its shareholders,
unless and only to the extent that the court in which such proceeding is or was pending shall
determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly
and reasonably entitled to indemnity for the expenses which such court shall determine;

                           (ii)     Of amounts paid in settling or otherwise disposing of a pending action without court
approval; or

                           (iii)    Of expenses incurred in defending a pending action which is settled or otherwise
disposed of without court approval.

                 (c)     Determination of Right of Indemnification. Any indemnification under Sections
1(a) and (b) shall be made by the Bank only if authorized in the specific case, upon a
determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct set forth above in Sections 1(a) and (b) by any of the
following:

                           (i)     A majority vote of a quorum consisting of directors who are not parties to such
proceeding; or

                           (ii)   If such a quorum of directors is not obtainable, by independent legal counsel in a
written opinion; or

                           (iii)   Approval of the shareholders by the affirmative vote of a majority of the shares
entitled to vote represented at a duly held meeting at which a quorum is present or by the written
consent of shareholders as provided in the Bylaws, with the shares owned by the person to be
indemnified not being entitled to vote thereon; or

                           (iv)   By the court in which such proceeding is or was pending upon application made by the Bank
or its Agent or attorney or other person rendering services in connection with the defense, whether
or not such application by the Agent, attorney or other person is opposed by the Bank.

                 (d)     Advances of Expenses. Expenses (including reasonable attorneys’ and experts’
fees), costs, and charges incurred in defending any proceeding shall be advanced promptly by the
Bank prior to the final disposition of such proceeding upon receipt of a written undertaking by or
on behalf of Indemnitee to repay such amount unless it shall be determined ultimately that
Indemnitee is entitled to be indemnified as authorized in this Section 1. The form of such
undertaking shall be substantially similar to Exhibit A hereto.

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                 (e)     Indemnification Against Expenses of Successful Party. Notwithstanding the other
provisions of this Section 1, to the extent that Indemnitee has been successful on the merits in a
defense of any proceeding, claim, issue or matter referred to in Sections 1(a) and (b), Indemnitee
shall be indemnified against all expenses actually and reasonably incurred by Indemnitee in
connection therewith.

                 (f)     Right of Indemnitee to Indemnification Upon Application; Procedure Upon
Application. Any indemnification provided for in Sections 1(a), (b) or (e) shall be made no
later than ninety (90) days after the Bank is given notice of request by Indemnitee, provided that
any indemnification under Sections 1(a) and (b) is authorized pursuant to Section 1(c). Any such
request for indemnification must be made within ninety (90) days of the final adjudication,
dismissal, or settlement of the matter for which Indemnitee seeks indemnification, unless an appeal
is filed, in which case the request may be made within ninety (90) days after the appeal is
resolved (hereafter referred to as “Final Disposition”). Upon such notice, if a quorum of
directors who were not parties to the action, suit, or proceeding giving rise to indemnification is
obtainable, the Bank shall within two (2) weeks call a Board of Directors meeting to be held within
four (4) weeks of such notice, to make a determination as to whether Indemnitee has met the
applicable standard of conduct. Otherwise, if a quorum consisting of directors who were not
parties in the relevant action, suit, or proceeding is not obtainable, the Bank shall retain (at
the Bank’s expense) independent legal counsel chosen by the Bank within two (2) weeks to make such
determination.

                          If notice of a request for payment of a claim under any statute, under this Agreement, or
under the Bank’s Articles of Incorporation or Bylaws providing for indemnification or advance of
expenses has been given to the Bank by Indemnitee, and such claim is not paid in full by the Bank
within ninety (90) days of the later occurring of the giving of such notice and Final Disposition
in case of indemnification and ten (10) days of the giving of such notice in case of advance of
expenses, Indemnitee may, but need not, at any time thereafter bring an action against the Bank to
receive the unpaid amount of the claim or the expense advance and, if successful, Indemnitee shall
also be paid for the expenses (including reasonable attorneys’ and experts’ fees) of bringing such
action. It shall be a defense to any such action (other than an action brought to enforce a claim
for expenses incurred in connection with any action, suit, or proceeding in advance of its Final
Disposition) that Indemnitee has not met the standards of conduct which make it permissible under
applicable law for the Bank to indemnify Indemnitee for the amount claimed, and Indemnitee shall be
entitled to receive interim payment of expenses pursuant to Section 1(d) unless and until such
defense may be finally adjudicated by court order or judgment from which no further right of appeal
exists. Neither the failure of the Bank (including its Board of Directors, independent legal
counsel, or its shareholders) to have made a determination that indemnification of Indemnitee is
proper in the circumstances because Indemnitee has met the applicable standard of conduct required
by applicable law, nor an actual determination by the Bank (including its Board of Directors or its
independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall
create a presumption that Indemnitee has or has not met the applicable standard of conduct.

                 (g)     Insurance. The Bank may purchase and maintain insurance on behalf of any person
who is or was an Agent against any liability asserted against such person and incurred

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by him or her in any such capacity, or arising out of his or her status as such, whether or not the
Bank would have the power to indemnify such person against such liability under the provisions of
this Section 1.

                 (h)     Optional Means of Assuring Payment. Upon request by an Indemnitee certifying that
Indemnitee has reasonable grounds to believe Indemnitee may be made a party to a proceeding for
which Indemnitee may be entitled to be indemnified under this Section 1, the Bank may, but is not
required to, create a trust fund, grant a security interest or use other means (including, without
limitation, a letter of credit) to ensure the payment of such sums as may become necessary to
effect indemnification as provided herein.

                 (i)     Definition of Agent. For the purposes of this Agreement, “Agent” means any person
who is or was a director, officer, employee or other agent of the Bank, or is or was serving at the
request of the Bank as a director, officer, employee or agent of another foreign or domestic Bank,
partnership, joint venture, trust or other enterprise, or was a director, officer, employee or
agent of a foreign or domestic Bank which was a predecessor Bank of the Bank or of another
enterprise at the request of such predecessor Bank; “proceeding” means any threatened, pending or
completed action or proceeding, whether civil, criminal, administrative or investigative; and
“expenses” includes without limitation reasonable attorneys’ and experts’ fees and any expenses of
establishing a right to indemnification.

                 (j)     Indemnification under Section 204(a)(11) of the California General Corporation
Law. Subject to the provisions of California General Corporation Law Section 204(a)(11) and
any other applicable law, notwithstanding any other provisions of this Section 1, the following
shall apply to the indemnification of Indemnitee:

                         (i)     The Bank shall indemnify Indemnitee pursuant to this Section 1(l) if the Bank would be
required to indemnify Indemnitee pursuant to Sections 1(a) or (b) if in Section 1(a) or (b) the
phrase “in a manner Indemnitee reasonably believed to be in the best interests of the Bank” is
replaced with the phrase “in a manner Indemnitee did not believe to be contrary to the best
interests of the Bank.” If pursuant to Sections 1(c) and (f) the person making the Section 1(a)
and/or (b) conduct standard determination determines that such standard has not been satisfied,
such person shall also determine whether this Section 1(l)(i) conduct standard has been satisfied;

                         (ii)    There shall be a presumption that Indemnitee met the applicable standard of conduct
required to be met in Section 1(c) for indemnification, rebuttable by clear and convincing evidence
to the contrary;

                         (iii)   The Bank shall have the burden of proving that Indemnitee did not meet the applicable
standard of conduct in Section 1(c);

                         (iv)   In addition to the methods provided for in Section 1(c), a determination that
indemnification is proper in the circumstances because that Indemnitee met the applicable standard
of conduct may also be made by the arbitrator in any arbitration proceeding in which such matter is
or was pending; and

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                         (v)    Unless otherwise agreed to in writing between an Indemnitee and the Bank in any specific
case, indemnification may be made under Section 1(b) for amounts paid in settling or otherwise
disposing of a pending action without court approval.

          2.     Changes.

                  In the event of any change, after the date of this Agreement, in any applicable law, statute,
or rule which expands the right of a California state-chartered bank to indemnify a member of its
board of directors, its officers or its Agents, such changes shall automatically expand, without
further action of the parties, Indemnitee’s rights and the Bank’s obligations, under this
Agreement. In the event of any change in any applicable law, statute or rule which narrows the
right to indemnify a member of its board of directors, its officers or its Agents, such changes, to
the extent not otherwise required by such law, statute or rule to be applied to this Agreement,
shall have no effect on this Agreement or the parties’ rights and obligations hereunder. In the
event of an amendment to the Bank’s Bylaws which expands the right to indemnify a member of its
board of directors, its officers or its Agents, such change shall automatically expand, without
further action of the parties, Indemnitee’s rights and Bank’s obligations under this Agreement. In
the event of any amendment to the Bank’s Bylaws which narrows such right of a California
state-chartered bank to indemnify a member of its board of directors, its officers or its Agents,
such change shall only apply to the indemnification of Indemnitee for acts committed, or lack of
action, by Indemnitee after such amendment. The Bank agrees to give Indemnitee prompt written
notice of amendments to the Bank’s Bylaws which concern indemnification.

          3.     Nonexclusivity.

                  The indemnification provided by this Agreement shall not be deemed exclusive of any rights to
which Indemnitee may be entitled under the Bank’s Articles of Incorporation, its Bylaws, any
agreement, any vote of shareholders or disinterested Directors, the California General Corporation
Law, or otherwise, both as to action in Indemnitee’s official capacity and as to action in any
other capacity while holding such office (an “Indemnified Capacity”). The indemnification provided
under this Agreement shall continue as to Indemnitee for any action taken or not taken while
serving in an Indemnified Capacity even though such Indemnitee may have ceased to serve in an
Indemnified Capacity at the time of any action, suit or other covered proceeding, and shall inure
to the benefit of the heirs, executors, and administrators of Indemnitee.

          4.     Partial Indemnification.

                  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Bank
for some or a portion of the expenses, judgment, fines or penalties actually or reasonably incurred
by Indemnitee in the investigation, defense, appeal or settlement of any civil or criminal action,
suit or proceeding, but not, however, for the total amount thereof, the Bank shall nevertheless
indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which
Indemnitee is entitled pursuant to this Agreement.

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          5.     Potential Limitations.

                  Both the Bank and Indemnitee acknowledge that in certain instances, California state law and
federal banking laws and regulations, federal law or public policy may override applicable state
law and prohibit the Bank from indemnifying its directors and officers under this Agreement or
otherwise. For example, the Bank and Indemnitee acknowledge that the federal regulators have taken
the position that indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal legislation prohibits indemnification for certain ERISA violations.
Indemnitee understands and acknowledges that the Bank has undertaken or may be required in the
future to undertake with federal regulators to submit questions of indemnification to a court in
certain circumstances for a determination of the Bank’s right under public policy to indemnify
Indemnitee. Furthermore, Indemnitee and Bank acknowledge that the extent of (i) indemnification
permissible under Section 204(a)(11) of the California General Corporation Law has not been
judicially determined; therefore, the enforceability of Indemnitee’s rights under Section 1(l) is
uncertain; and (ii) advancement of expenses and indemnification of Indemnitee in the event of a
proceeding or action described in Section 7(a) below, is also uncertain and may not be permissible
or may be subject to applicable regulatory restrictions.

          6.     Severability.

                  Nothing in this Agreement is intended to require or shall be construed as requiring the Bank
to do or fail to do any act in violation of applicable law. The Bank’s inability, pursuant to
court order, to perform its obligations under this Agreement shall not constitute a breach of the
Agreement. If the application of any provision or provisions of the Agreement to any particular
facts or circumstances shall be held to be invalid or unenforceable by any court of competent
jurisdiction, then (i) the validity and enforceability of such provision or provisions as applied
to any other particular facts or circumstances and the validity of other provisions of this
Agreement shall not in any way be affected or impaired thereby and (ii) such provision(s) shall be
reformed without further action by the parties to make such provision(s) valid and enforceable when
applied to such facts and circumstances with a view toward requiring the Bank to indemnify
Indemnitee to the fullest extent permissible by law.

          7.     Exceptions.

                  Notwithstanding any other provision herein to the contrary, the Bank shall not be obligated
pursuant to the terms of this Agreement:

                  (a)     Regulatory Agency Proceedings. To indemnify Indemnitee for expenses, penalties or
other payments incurred in an administrative proceeding or action threatened instituted by a bank
regulatory agency, which proceeding or action results in a final order imposing injunctive or
similar relief or assessing civil money penalties or in any other resolution requiring or
preventing action by the Indemnitee; or

                  (b)     Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to proceedings or claims (except counter-claims or cross-claims)

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initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to
proceedings brought to establish or enforce a right to indemnification under this Agreement or any
other statute or law or otherwise as required by the California General Corporation Law, but such
indemnification or advancement of expenses may be provided by the Bank in specific cases if the
Board of Directors finds it to be appropriate; or

                  (c)     Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a majority of the Bank’s directors or a court of competent jurisdiction determines
that the material assertions made by Indemnitee in such proceeding were not made in good faith or
was frivolous; or

                  (d)     Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) which have been paid directly to Indemnitee by an insurance carrier
under a policy of officers’ and directors’ liability or other insurance maintained by the Bank; or

                  (e)     Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

          8.     Counterparts.

                  This Agreement may be executed in one or more counterparts, each of which shall constitute an
original.

          9.     Successors and Assigns.

                  This Agreement shall be binding upon the Bank and its successors and assigns, and shall inure
to the benefit of Indemnitee and Indemnitee’s estate, heirs, and legal representatives and
permitted assigns. Indemnitee may not assign this Agreement without the prior written consent of
the Bank.

          10.   Attorneys’ Fees.

                  In the event that any action is instituted by Indemnitee under this Agreement to enforce or
interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and
expenses, including reasonable attorneys’ and experts’ fees, incurred by Indemnitee with respect to
such action, unless as a part of such action, the court of competent jurisdiction determines that
each of the material assertions made by Indemnitee as a basis for such action were not made in good
faith or were frivolous. In the event of an action instituted by or in the name of the Bank under
this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all court costs and expenses, including reasonable attorneys’ and experts’
fees, incurred by Indemnitee in defense of such action

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(including with respect to Indemnitee’s counterclaims and cross-claims made in such action), unless
as a part of such action the court determines that each of Indemnitee’s material defenses to such
action were made in bad faith or were frivolous.

          11.   Notice.

                  All notices, requests, demands and other communications under this Agreement shall be in
writing and shall be deemed duly given (i) if delivered by hand and signed for by the party
addressee, on the date of such receipt, or (ii) if mailed by certified or registered mail with
postage prepaid, on the third business day after the date postmarked. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as subsequently modified by
written notice.

          12.   Section Headings.

                  The Section headings in this Agreement are solely for convenience and shall not be considered
in its interpretation.

          13.   Waiver.

                  A waiver by either party of any term or condition of the Agreement or any breach thereof, in
any one instance, shall not be deemed or construed to be a waiver of such term or condition or of
any subsequent breach thereof.

          14.   Entire Agreement; Amendment.

                  This instrument contains the entire integrated Agreement between the parties hereto and
supersedes all prior negotiations, representations or agreements, whether written or oral except
for the Bank’s Articles of Incorporation and Bylaws. It may be amended only by a written
instrument signed by a duly authorized officer of Bank and by Indemnitee.

          15.   Choice of Law and Forum.

                  Except for that body of law governing choice of law, this Agreement shall be governed by, and
construed in accordance with, internal laws of the State of California which govern transactions
between California residents.

          16.   Mediation/Arbitration.

                  (a)     All disputes, claims or controversies arising out of or relating to this Agreement
(collectively, “Disputes”) shall be submitted to non-binding mediation by either party to an
impartial mediator, as agreed to by the parties, and appointed through JAMS in San Francisco,
California, for a good faith effort at resolution. The mediator shall review the Dispute within
thirty (30) days of submission or at such other time provided the parties so agree. Any mediation
fee shall be paid equally among the parties. Any Dispute which is not resolved through such
mandatory mediation shall be settled by final and binding arbitration before a single neutral
arbitrator of JAMS in accordance with the then current Commercial Arbitration

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Rules of the American Arbitration Association in San Francisco, California. Judgment on the
award rendered by the arbitrator may be entered in any court in California. In the event that any
Dispute between Indemnitee and the Bank should result in arbitration, the prevailing party in the
Dispute shall be entitled to recover from the other party all reasonable fees, costs and expenses
of enforcing any right of the prevailing party, including, without limitation, reasonable
attorneys’ fees, experts’ fees, and expenses. Each party agrees that the Dispute as mediated
and/or arbitrated and the final resolution of such Dispute shall be considered to be confidential
information, and shall be kept confidential by each party.

             (b)     Indemnitee specifically acknowledges and understands that by agreeing to this provision,
Indemnitee is waiving all rights to have his or her claims brought, investigated, and/or
adjudicated by an administrative agency, or heard before a judge or jury. Indemnitee also
understands that Indemnitee’s rights to discovery may be lesser or narrower in arbitration, that
there may be fees and costs associated with mediation and/or arbitration that Indemnitee may not
otherwise have, and that Indemnitee is waiving substantial time that Indemnitee might otherwise
have to make a claim, prepare his or her case, or investigate his or her claims. The claims
include claims of any kind relating to Indemnitee’s relationship with the Bank, including claims
relating to compensation, discrimination, any benefits, status as an officer, director or Agent of
the Bank, conflict of interest, or any other claim or dispute relating to or arising out of
Indemnitee’s relationship with the Bank. The underlying Disputes shall be fully and finally
resolved through arbitration, including any right to permanent injunctive relief.

          17.   Consideration.

                  Part of the consideration the Bank is receiving from Indemnitee to enter into this Agreement
is Indemnitee’s agreement to serve or to continue to serve, as applicable, for the present as an
officer, director or Agent of the Bank. Nothing in this Agreement shall preclude Indemnitee from
resigning as an officer, director or Agent of the Bank nor the Bank, by action of its shareholders,
board of directors, or officers, as the case may be, from terminating Indemnitee’s services as an
officer, director or Agent, as the case may be, with or without cause.

[Remainder of page intentionally left blank]

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

	 	 	 	 	 	 	 	 	 
	INDEMNITEE:	 	 	 	UNITED COMMERCIAL BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	By 
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Printed Name	 	 	 	Printed Name and Title	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	(address)	 	 	 	(address)	 	 

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EXHIBIT A

UNDERTAKING TO REPAY ADVANCEMENT

OF EXPENSES

          A.     Indemnitee is or has been a director, officer, employee or other agent of UNITED COMMERCIAL
BANK, a California state-chartered bank (the “Bank”); and

          B.     On account of such fact, Indemnitee was or is or is threatened to be made a party to the
proceeding described and designated hereinafter (the “Proceeding”); and

          C.     Indemnitee has requested that the Bank advance to Indemnitee, prior to final disposition of
the Proceeding, Indemnitee’s costs and expenses incurred in defense of the Proceeding; and

          D.     As a condition to advancement of such expenses, the Bank has required that the following
undertaking be made by or on behalf of Indemnitee.

The undersigned herein undertakes as follows:

          1.     This undertaking is executed in accordance with and is subject to Section 317 of the
California General Corporation Law, and that certain Indemnification Agreement between Indemnitee
and the Bank dated                                , and is subject to all provisions, including definitions of
terms, thereof.

          2.     Indemnitee was or is or is threatened to be made a party to the following proceeding:

          Name of Claimant or Title

          of Action or Proceeding:
 

          Court or Agency

          (if any):
 

A-1

 

          Date Filed Or Presented:
 

          Status:
 

           

           

          Indemnitee’s Counsel:
 

          Nature and Amount

          of Claim:
 

           

           

           

          3.     In consideration of the advancement by the Bank of Indemnitee’s expenses incurred or to be
incurred in defense of the Proceeding, the undersigned hereby undertakes to repay all amounts
advanced by the Bank on account of Indemnitee’s defense of the Proceeding, unless it shall be
determined ultimately that Indemnitee is entitled to be indemnified with respect to the Proceeding
in accordance with Section 317 of the California General Corporation Law.

	 	 	 	 	 	 	 	 	 
	Date:

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(Signature of Indemnitee)	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(Printed Name of Indemnitee)	 	 

A-2exv4w1

Exhibit 4.1

RPM INTERNATIONAL INC.

OFFICERS’ CERTIFICATE AND AUTHENTICATION ORDER

FOR 6.125% NOTES DUE 2019

     Pursuant to the Indenture dated as of February 14, 2008 (the “Indenture”) between RPM
International Inc. (the “Company”) and The Bank of New York Mellon Trust Company, N.A., as trustee
(the “Trustee”), and the resolutions adopted by the Board of Directors of the Company on January
26, 2009 (the “January Board Resolutions”), this Officers’ Certificate is being delivered to the
Trustee to establish the terms of a series of Securities in accordance with Section 2.01 of the
Indenture, to establish the form of the Securities of such series in accordance with Section 2.02
of the Indenture, and to request the authentication and delivery of the Securities of such series
pursuant to Section 2.04 of the Indenture and to comply with the provisions of Section 14.05 of the
Indenture.

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

          (a) There is hereby established pursuant to Section 2.02 of the Indenture a series of
Securities which shall have the terms set forth below and set forth in the form of note attached
hereto as Annex A.

     (1) The series of Securities hereby being authorized shall bear the title “6.125% Notes
due 2019” (referred to herein as the “Notes”).

     (2) The aggregate principal amount of Notes which may be authenticated and delivered
under the Indenture shall be limited to $300,000,000 (except for Notes authenticated and
delivered upon registration of transfer of, or in the exchange for, or in lieu of, other
Notes of the series pursuant to Section 2.05, 2.06, 2.07, 3.05, or 10.06 and except for any
Notes which, pursuant to Section 2.04, are deemed never to have been authenticated and
delivered).

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

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

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

          (c) It is hereby ordered pursuant to Section 2.04 of the Indenture that the Trustee
authenticate, in the manner provided by the Indenture, one Note in the aggregate principal amount
of $300,000,000 registered in the name of Cede & Co., which Note will be duly executed by the
proper officers of the Company and delivered to the Trustee as provided in the Indenture,

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          and to deliver said authenticated Note to or upon the order of Wells Fargo Securities, LLC on
October 9, 2009.

          (d) The undersigned have read the pertinent sections of the Indenture, including Sections
2.01, 2.02 and 2.04 thereof and the definitions in the Indenture relating thereto, and certain
other corporate documents and records. In the opinion of the undersigned, the undersigned have made
such examination or investigation as is necessary to enable the undersigned to express an informed
opinion as to whether or not the conditions precedent to (i) the establishment of (a) a series of
Securities and (b) the form of such Securities, and (ii) the authentication and delivery of such
series of Securities, contained in the Indenture have been complied with. In the opinion of the
undersigned, such conditions have been complied with.

[Signature page follows]

2

 

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

Dated: October 9, 2009

	 	 	 	 	 	 	 
	 	 	RPM INTERNATIONAL INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ P. Kelly Tompkins
 

P. Kelly Tompkins
	 	 
	 

	 	Title:
	 	Executive Vice President —Administration 

and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Edward W. Moore
 

Edward W. Moore
	 	 
	 

	 	Title
	 	Vice President, General Counsel and Secretary	 	 

3

 

[Face of Note]

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

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

	 	 	 
	CUSIP NO. 749685AR4

	 	PRINCIPAL AMOUNT: $300,000,000
	ISIN US749685AR45
	 	 
	Common Code No.
	 	 
	 
	 	 
	REGISTERED NO.         
	 	 

RPM INTERNATIONAL INC.

6.125% Notes due 2019

     RPM INTERNATIONAL INC., a corporation duly organized and existing under the laws of the State
of Delaware (hereinafter called the “Company,” which term includes any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of Three Hundred Million Dollars
($300,000,000) on October 15, 2019 and to pay interest thereon from October 9, 2009 or from the
most recent Interest Payment Date to which interest has been paid or duly provided for
semi-annually on April 15 and October 15 of each year, commencing April 15, 2010, at the rate of
6.125% per annum, until the principal hereof is paid or made available for payment. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided
in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest
next preceding such Interest Payment Date. The Regular Record Date for an Interest Payment Date
shall be the date 15 calendar days prior to that Interest Payment Date (whether or not a Business
Day). As used herein, “Business Day” has the meaning ascribed thereto in the Indenture.

 

 

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

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

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

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

 

 

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

DATED: October 9, 2009

	 	 	 	 	 
	 	RPM INTERNATIONAL INC.

 	 
	 	By:  	 	 
	 	 	Name:  	P. Kelly Tompkins 	 
	 	 	Title:  	Executive Vice
President Administration and Chief
Financial Officer 	 
	 

[SEAL]

	 	 	 	 	 	 	 
	 

	 	Attest:	 	 	 	 
	 

	 	 	 	 

Name: Edward W. Moore
	 	 
	 

	 	 	 	Title: Vice President,
General Counsel and Secretary	 	 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

This is one of the Securities of the

series designated therein referred to

in the within-mentioned Indenture.

THE BANK OF NEW YORK MELLON TRUST COMPANY,

N.A.,

     as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

 

 

[Reverse of Note]

RPM INTERNATIONAL INC.

6.125% Notes due 2019

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture dated
as of February 14, 2008 between the Company and The Bank of New York Mellon Trust Company, N.A., as
trustee, as amended or supplemented from time to time (herein called the “Indenture”) (in
its capacity as trustee, The Bank of New York Mellon Trust Company, N.A., being herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face
hereof, such series being limited in initial aggregate principal amount to $300,000,000; provided,
however, that the Company may, without the consent of the Holders of the Securities of this series,
issue additional Securities with the same terms as the Securities of this series, and such
additional Securities shall be considered part of the same series under the Indenture as the
Securities of this series.

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

Optional Redemption

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

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

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

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

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

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

 

 

     “Reference Treasury Dealer” means a primary treasury dealer selected by Wells Fargo
Securities, LLC; and Banc of America Securities LLC or their respective successors and any other
primary treasury dealer selected by the Quotation Agent after consultation with the Company.

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

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

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

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

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

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

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

Change of Control Offer

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

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

 

 

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

	 	(i)	 	the name of the Holder of this Security;
	 
	 	(ii)	 	the principal amount of this Security;
	 
	 	(iii)	 	the principal amount of this Security to be repurchased;
	 
	 	(iv)	 	the certificate number or a description of the tenor and terms of
this Security;
	 
	 	(v)	 	a statement that the Holder is accepting the Change of
Control Offer; and
	 
	 	(vi)	 	a guarantee that this Security, together with the form entitled
“Election Form” duly completed, will be received by the Paying Agent at least five
Business Days prior to the Change of Control Payment Date.

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

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

	 	(i)	 	accept for payment all Securities of this series or portions of such
Securities properly tendered pursuant to the Change of Control Offer;
	 
	 	(ii)	 	deposit with the Paying Agent an amount equal to the Change of Control
Payment in respect of all Securities of this series or portions of such Securities
properly tendered; and
	 
	 	(iii)	 	deliver or cause to be delivered to the Trustee the Securities of this
series properly accepted together with an Officers’ Certificate stating the aggregate
principal amount of Securities of this series or portions of such Securities being
repurchased.

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

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

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

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

 

 

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

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

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

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

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

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

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

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

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

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

 

 

Events of Default

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

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

Limitation on Liens

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

“Permitted Liens” means:

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

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

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

 

 

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

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

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

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

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

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

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

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

 

 

Restrictions on Sale-Leaseback Transactions

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

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

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

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

Exempted Liens and Sale-Leaseback Transactions

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

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

Other Provisions

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

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

 

 

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

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

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

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

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

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

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

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

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

 

 

ABBREVIATIONS

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

	 	 	 
	TEN COM —

	 	as tenants in common
	 
	 	 
	TEN ENT —

	 	as tenants by the entireties
	 
	 	 
	JT TEN —

	 	as joint tenants with right

of survivorship and not

as tenants in common

	 	 	 	 	 	 	 
	UNIF GIFT MIN ACT —

	 	 
	 	Custodian
	 	 
	 

	 	 
	 	 	 	 
	 

	 	(Cust)
	 	 	 	(Minor)

Under Uniform Gifts to Minors Act

	 	 	 
	 

(State)

	 	 

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

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

Please Insert Social Security or

Other Identifying Number of Assignee

	 	 	 
	 

	 	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 

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

 

 

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

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 
 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

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

 

 

 

ELECTION FORM

TO BE COMPLETED ONLY IF THE HOLDER

ELECTS TO ACCEPT THE CHANGE OF CONTROL OFFER

 

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

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

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

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