Document:

EX-10.2

Exhibit 10.2

EXECUTION VERSION

AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT

dated as of April 7, 2009

among

WEATHERPROOFING TECHNOLOGIES, INC., DAP PRODUCTS INC., THE

TESTOR CORPORATION, TREMCO INCORPORATED, RUST-OLEUM

CORPORATION, THE EUCLID CHEMICAL COMPANY, REPUBLIC POWDERED

METALS, INC., AND TREMCO BARRIER SOLUTIONS, INC.,

as Originators

and

RPM FUNDING CORPORATION,

as Buyer

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	ARTICLE I. AMOUNTS AND TERMS	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	[Reserved]
	 	 	2	 
	Section 1.2

	 	Sales of Receivables
	 	 	2	 
	Section 1.3

	 	Payment for the Purchases
	 	 	3	 
	Section 1.4

	 	Purchase Price Credit Adjustments
	 	 	4	 
	Section 1.5

	 	Payments and Computations, Etc.
	 	 	4	 
	Section 1.6

	 	Transfer of Records
	 	 	5	 
	Section 1.7

	 	Characterization
	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE II. REPRESENTATIONS AND WARRANTIES	 	 	6	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Representations and Warranties of Originators
	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE III. CONDITIONS OF PURCHASE	 	 	10	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	Conditions Precedent to Initial Purchase
	 	 	10	 
	Section 3.2

	 	Conditions Precedent to Subsequent Payments
	 	 	10	 
	Section 3.3

	 	Reaffirmation of Representations and Warranties
	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE IV. COVENANTS	 	 	11	 
	 
	 	 	 	 	 	 
	Section 4.1

	 	Affirmative Covenants of Originators
	 	 	11	 
	Section 4.2

	 	Negative Covenants of Originators
	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE V. TERMINATION EVENTS	 	 	18	 
	 
	 	 	 	 	 	 
	Section 5.1

	 	Termination Events
	 	 	18	 
	Section 5.2

	 	Remedies
	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE VI. INDEMNIFICATION	 	 	20	 
	 
	 	 	 	 	 	 
	Section 6.1

	 	Indemnities by Originators
	 	 	20	 
	Section 6.2

	 	Other Costs and Expenses
	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE VII. MISCELLANEOUS	 	 	23	 
	 
	 	 	 	 	 	 
	Section 7.1

	 	Waivers and Amendments
	 	 	23	 
	Section 7.2

	 	Notices
	 	 	23	 
	Section 7.3

	 	Protection of Ownership Interests of Buyer
	 	 	24	 
	Section 7.4

	 	Confidentiality
	 	 	24	 
	Section 7.5

	 	Bankruptcy Petition
	 	 	25	 
	Section 7.6

	 	CHOICE OF LAW
	 	 	25	 
	Section 7.7

	 	CONSENT TO JURISDICTION
	 	 	25	 

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	 	 	 	 	Page
	 
	 
	 	 	 	 	 	 
	Section 7.8

	 	WAIVER OF JURY TRIAL
	 	 	26	 
	Section 7.9

	 	Integration; Binding Effect; Survival of Terms
	 	 	26	 
	Section 7.10

	 	Counterparts; Severability; Section References
	 	 	27	 

Exhibits and Schedules

	 	 	 	 	 
	Exhibit I

	 	—
	 	Definitions
	Exhibit II

	 	—
	 	States of Organization; Chief Executive Offices;
Locations of Records; Federal Employer Identification
Numbers; Organizational Identification Numbers; Other
Names
	Exhibit III

	 	—
	 	Lock-Boxes; Collection Accounts; Collection Banks
	Exhibit IV

	 	—
	 	[Form of] Compliance Certificate
	Exhibit V

	 	—
	 	Credit and Collection Policy
	Exhibit VI

	 	—
	 	[Form of] Subordinated Note
	Exhibit VII

	 	—
	 	[Form of] Receivables Report for Each Originator
	Schedule A

	 	 	 	Preferred Shares
	Schedule B

	 	 	 	List of Documents to Be Delivered to Buyer Prior to
the initial Purchase

ii

 

AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT

          THIS AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT, dated as of April 7, 2009, is by and
among Weatherproofing Technologies, Inc., a Delaware corporation, DAP Products Inc., a Delaware
corporation, The Testor Corporation, an Ohio corporation, Tremco Incorporated, an Ohio corporation,
Rust-Oleum Corporation, an Illinois corporation, The Euclid Chemical Company, an Ohio corporation,
Republic Powdered Metals, Inc., an Ohio corporation, and Tremco Barrier Solutions, Inc., a Delaware
corporation (each of the foregoing, an “Originator” and collectively, the “Originators”), and RPM
Funding Corporation, a Delaware corporation (“Buyer”). Unless defined elsewhere herein,
capitalized terms used in this Agreement shall have the meanings assigned to such terms in Exhibit
I hereto (or, if not defined in Exhibit I hereto, the meanings assigned to such terms in Exhibit I
to the Purchase Agreement hereinafter defined).

          PRELIMINARY STATEMENTS

          Each of the Originators and the Buyer are parties to a Receivables Sale Agreement dated
as of June 6, 2002, as heretofore amended from time to time (the “Existing Agreement”). The
parties hereto agree to amend and restate the Existing Agreement on the terms and subject to
the conditions hereinafter set forth.

          Each of the Originators now owns, and from time to time hereafter will own,
Receivables. Each of the Originators wishes to sell and assign to Buyer, and Buyer wishes
to purchase from such Originator, all of such Originator’s right, title and interest in and
to its Receivables, together with the Related Security and Collections with respect thereto.

          Each of the Originators and Buyer intends the transactions contemplated hereby to be
true sales of the Receivables from such Originator to Buyer, providing Buyer with the full
benefits of ownership of the Receivables originated by such Originator, and none of the
Originators or Buyer intends these transactions to be, or for any purpose to be
characterized as, loans from Buyer to any Originator.

          Buyer will sell undivided interests in the Receivables and in the associated Related
Security and Collections pursuant to that certain Receivables Purchase Agreement dated as of
April 7, 2009 (as the same may from time to time hereafter be amended, supplemented,
restated or otherwise modified, the “Purchase Agreement”) among Buyer, RPM International
Inc., a Delaware corporation (“RPM-Delaware”), as initial Servicer, 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 Wachovia, in its capacity
as administrative agent for the Purchasers (in such capacity, together with its successors
and assigns, the “Administrative Agent”).

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          NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE I.

AMOUNTS AND TERMS

     Section 1.1 [Reserved]

     Section 1.2 Sales of Receivables.

     (a) In consideration for payment of the Purchase Price in accordance with Section
1.3 and upon the terms and subject to the conditions set forth herein, each Originator
hereby sells, assigns, transfers, sets-over and otherwise conveys to Buyer, without recourse
(except to the extent expressly provided herein), and Buyer hereby agrees to purchase from
each Originator, all of such Originator’s right, title and interest in and to all of such
Originator’s Receivables existing on the Initial Cutoff Date and all Receivables originated
by such Originator on each day from and after the Initial Cutoff Date through and including
such Originator’s Termination Date, together with all Related Security relating thereto and
all Collections thereof. In connection with the payment of the Purchase Price for any
Receivables purchased hereunder, Buyer may request that the applicable Originator deliver,
and such Originator shall deliver, such approvals, opinions, information, reports or
documents as Buyer may reasonably request.

     (b) It is the intention of the parties hereto that each Transfer of Receivables made
hereunder shall constitute a “sale of accounts” (as such term is used in Article 9 of the
UCC) or other absolute conveyance, which Transfer is absolute and irrevocable and provides
Buyer with the full benefits of ownership of the Receivables. Except for the Purchase Price
Credits owed pursuant to Section 1.4, the Transfers of Receivables hereunder are
made without recourse to the Originators; provided, however, that (i) each Originator shall
be liable to Buyer for all representations, warranties and covenants made by such Originator
pursuant to the terms of the Transaction Documents to which such Originator is a party, and
(ii) such Transfers do not constitute and are not intended to result in an assumption by
Buyer or any assignee thereof of any obligation of the applicable Originator or any other
Person arising in connection with the Receivables, the related Contracts and/or other
Related Security or any other obligations of any Originator. In view of the intention of
the parties hereto that each Transfer of Receivables made hereunder shall constitute a sale
or other outright conveyance of such Receivables rather than a loan secured thereby, each
Originator agrees that it will, on or prior to the date hereof and in accordance with
Section 4.1(e)(ii), mark its master data processing records relating to the
Receivables with a legend acceptable to Buyer and to the Administrative Agent (as Buyer’s
collateral assignee), evidencing that Buyer has purchased such Receivables as provided in
this Agreement and agrees to note in its financial statements that its Receivables have been
sold to Buyer. Upon the request of

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Buyer or the Administrative Agent (as Buyer’s collateral
assignee), each Originator will
execute and file such financing or continuation statements, or amendments thereto or
assignments thereof, and such other instruments or notices, as may be necessary or
appropriate to perfect and maintain the perfection of Buyer’s ownership interest in the
Receivables originated by such Originator and the Related Security and Collections with
respect thereto, or as Buyer or the Administrative Agent (as Buyer’s collateral assignee)
may reasonably request.

     Section 1.3 Payment for the Purchases.

     (a) The Purchase Price for each Receivable shall be due and owing in full by Buyer to
the applicable Originator or its designee on the date each such Receivable comes into
existence (except that Buyer may, with respect to any such Purchase Price, offset against
such Purchase Price any amounts owed by such Originator to Buyer hereunder and which have
become due but remain unpaid) and shall be paid to such Originator in the manner provided in
the following paragraphs (b), (c) and (d).

     (b) With respect to any Receivables coming into existence after the Initial Cutoff
Date, on each Settlement Date, Buyer shall pay the Purchase Price therefor to the applicable
Originator in accordance with Section 1.3(d) and in the following manner:

          first, by delivery of immediately available funds, to the extent of funds available to
Buyer from its subsequent sale of an interest in the Receivables to the Administrative Agent
for the benefit of the Purchasers under the Purchase Agreement, or other cash on hand;
and/or

          second, by delivery of the proceeds of a subordinated loan from such Originator to
Buyer (a “Subordinated Loan”) in an amount not to exceed the least of (A) the remaining
unpaid portion of such Purchase Price, and (B) the maximum Subordinated Loan that could be
borrowed without rendering Buyer’s Net Worth less than the Required Capital Amount. Such
Originator is hereby authorized by Buyer to endorse on the schedule attached to its
Subordinated Note an appropriate notation evidencing the date and amount of each advance
thereunder, as well as the date of each payment with respect thereto, provided that the
failure to make such notation shall not affect any obligation of Buyer thereunder and/or

          third, by accepting such Receivables as a contribution to Buyer’s preferred equity
capital associated with such Originator’s Preferred Shares identified on Schedule A hereto;
provided that no such capital contribution shall be made from and after the date on which
any Originator notifies Buyer in writing that it has designated a date as such Originator’s
Termination Date.

Subject to the limitations set forth in clause second above, each Originator irrevocably agrees to
advance each Subordinated Loan requested by Buyer on or prior to such Originator’s Termination
Date. The Subordinated Loans shall be evidenced by, and shall be payable in

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 accordance with the
terms and provisions of such Originator’s Subordinated Note and shall be payable solely from funds
which Buyer is not required under the Purchase Agreement to set
aside for the benefit of, or otherwise pay over to, the Administrative Agent or the Purchasers.

     (c) From and after an Originator’s Termination Date, each Originator shall not be
obligated to (but may, at its option) (i) sell its Receivables to Buyer, or (ii) contribute
Receivables to Buyer’s preferred equity capital pursuant to clause third of Section
1.3(b) unless such Originator reasonably determines that the Purchase Price therefor
will be satisfied with funds available to Buyer from sales of interests in the Receivables
pursuant to the Purchase Agreement, Collections, proceeds of Subordinated Loans, other cash
on hand or otherwise.

     (d) Although the Purchase Price for each Receivable shall be due and payable in full by
Buyer to the applicable Originator on the date such Receivable comes into existence,
settlement of the Purchase Price between Buyer and such Originator shall be effected on a
monthly basis on Settlement Dates with respect to all Receivables coming into existence
during the same Calculation Period and based on the information contained in the Receivables
Report delivered by the Servicer pursuant to Article VIII of the Purchase Agreement for the
Calculation Period then most recently ended. Although settlement shall be effected on
Settlement Dates, increases or decreases in the amount owing under the applicable
Subordinated Note made pursuant to Section 1.3(b) and any contribution of preferred
equity capital by an Originator to Buyer made pursuant to Section 1.3(b) shall be
deemed to have occurred and shall be effective as of the last Business Day of the
Calculation Period to which such settlement relates.

     Section 1.4 Purchase Price Credit Adjustments. If on any day, any Originator is deemed to have
received a Deemed Collection with respect to any Receivable sold by it to Buyer hereunder, then, in
such event, Buyer shall be entitled to a credit (each, a “Purchase Price Credit”) against the
Purchase Price otherwise payable to such Originator hereunder in an amount equal to such Deemed
Collection. If such Purchase Price Credit exceeds the original Outstanding Balance of the
Receivables originated by the applicable Originator on such day, then the applicable Originator
shall pay the remaining amount of such Purchase Price Credit in cash within 10 Business Days
thereafter; provided that if the applicable Originator’s Termination Date has not occurred, such
Originator shall be allowed to deduct the remaining amount of such Purchase Price Credit from any
indebtedness owed to it under its Subordinated Note to the extent permitted thereunder.

     Section 1.5 Payments and Computations, Etc. All amounts to be paid or deposited by Buyer
hereunder shall be paid or deposited in accordance with the terms hereof on the day when due in
immediately available funds to the account of the applicable Originator designated from time to
time by such Originator or as otherwise directed by such Originator. In the event that any payment
owed by any Person hereunder becomes due on a day that is not a Business Day, then such payment
shall be made on the next succeeding Business Day. If any Person fails to

4

 

pay any amount hereunder
when due, such Person agrees to pay, on demand, the Default Fee in respect thereof until paid in
full; provided, however, that such Default Fee shall not at any time exceed the maximum rate
permitted by applicable law.

     Section 1.6 Transfer of Records.

     (a) In connection with each Transfer of a Receivable by an Originator hereunder, such
Originator hereby sells, transfers, assigns and otherwise conveys to Buyer all of such
Originator’s right and title to and interest in the Records relating to such Receivable
without the need for any further documentation in connection with such Transfer. In
connection with each such Transfer, such Originator hereby grants to each of Buyer, the
Administrative Agent and the Servicer an irrevocable, non-exclusive license to use, without
royalty or payment of any kind, all software used by such Originator to account for the
Receivables originated or serviced by such Originator, to the extent necessary to administer
such Receivables, whether such software is owned by such Originator or is owned by others
and used by such Originator under license agreements with respect thereto, provided that
should the consent of any licensor of such software be required for the grant of the license
described herein, to be effective, such Originator hereby agrees that upon the request of
Buyer (or the Administrative Agent, as Buyer’s collateral assignee), such Originator will
use its reasonable efforts to obtain the consent of such third-party licensor. The license
granted hereby shall be irrevocable until the indefeasible payment in full of the Aggregate
Unpaids, and shall terminate on the date this Agreement terminates in accordance with its
terms.

     (b) Each Originator (i) shall take such action requested by Buyer and/or the
Administrative Agent (as Buyer’s collateral assignee), from time to time hereafter, that may
be necessary or appropriate to ensure that Buyer has an enforceable ownership interest in
the Records relating to the Receivables purchased from such Originator hereunder, and (ii)
shall use its reasonable efforts to ensure that Buyer, the Administrative Agent and the
Servicer each has an enforceable right (whether by license or sublicense or otherwise) to
use all of the computer software used to account for such Receivables and/or to recreate
such Records.

     Section 1.7 Characterization.

     (a) If, notwithstanding the intention of the parties expressed in Section
1.2(b), any sale by any Originator to Buyer of Receivables hereunder shall be
characterized as a secured loan and not a sale, or such sale shall for any reason be
ineffective or unenforceable, then this Agreement shall be deemed to constitute a security
agreement under the UCC and other applicable law. For this purpose and without being in
derogation of the parties’ intention that each sale of Receivables hereunder shall
constitute a true sale thereof, each Originator hereby grants to Buyer a valid and perfected
security interest in all of such Originator’s right, title and interest in, to and under all
Receivables now existing and hereafter arising, and in all Collections and

5

 

Related Security
with respect thereto (including, without limitation, each Lock-Box and Collection Account),
all other rights and payments relating to the Receivables and all
proceeds of the foregoing to secure the prompt and complete payment of a loan deemed to
have been made in an amount equal to the Purchase Price of the Receivables originated by
such Originator together with all other obligations of such Originator hereunder, which
security interest shall be prior to all other Adverse Claims thereto. Buyer shall have, in
addition to the rights and remedies which 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. Each Originator hereby authorizes Buyer (or
the Administrative Agent, as Buyer’s collateral assignee), within the meaning of Section
9-509 of any applicable enactment of the UCC, as secured party, to file, without the
signature of the debtor, the UCC financing statements contemplated hereby.

     (b) Each Originator acknowledges that Buyer, pursuant to the Purchase Agreement, shall
collaterally assign to the Administrative Agent, for the benefit of the Administrative Agent
and the Purchasers thereunder, all of its rights, remedies, powers and privileges under this
Agreement and that the Administrative Agent may further assign such rights, remedies, powers
and privileges to the extent permitted in the Purchase Agreement. Each Originator agrees
that the Administrative Agent, as the collateral assignee of Buyer, shall, following the
occurrence and during the continuance of an Amortization Event, have the right to enforce
this Agreement and to exercise directly all of Buyer’s rights and remedies under this
Agreement (including, without limitation, the right to give or withhold any consents or
approvals of Buyer to be given or withheld hereunder, and, in any case, without regard to
whether specific reference is made to Buyer’s assigns or collateral assignees in the
provisions of this Agreement which set forth such rights and remedies) and each Originator
agrees to cooperate fully with the Administrative Agent and the Purchasers in the exercise
of such rights and remedies. Each Originator further agrees to give to the Administrative
Agent copies of all notices it is required to give to Buyer hereunder.

ARTICLE II.

REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties of Originators. Each Originator hereby represents and
warrants to Buyer, as to such Originator and the Receivables originated by it, that, as of the date
of each Purchase:

          (a) Corporate Existence and Power. Such Originator is a corporation duly organized,
validly existing and in good standing under the laws of the state mentioned after its name in the
preamble to this Agreement, and 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

6

 

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 such Originator of this Agreement and each other Transaction Document to which it is a
party, and the performance of its obligations hereunder and thereunder and such Originator’s use of
the proceeds of each Purchase made from it hereunder, are within its corporate powers and authority
and have been duly authorized by all necessary corporate action on its part. This Agreement and
each other Transaction Document to which such Originator is a party has been duly executed and
delivered by such Originator.

          (c) No Conflict; No Bulk Sale. The execution and delivery by such Originator 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 or any shareholder agreements, voting trusts, and similar arrangements
applicable to any of its authorized shares, (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 such Originator or its Subsidiaries (except as created hereunder)
except, in any case, where such contravention or violation could not reasonably be expected to have
a Material Adverse Effect. No transaction contemplated hereby with respect to such Originator
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 such Originator 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. There are no actions, suits or proceedings pending, or to the best of
such Originator’s knowledge, threatened, against or affecting such Originator, 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. Such Originator 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 such
Originator is a party constitute the legal, valid and binding obligations of such Originator
enforceable against such Originator 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).

7

 

          (g) Accuracy of Information. All information heretofore furnished by a Responsible
Officer of such Originator to Buyer (or to the Administrative Agent, as Buyer’s collateral
assignee) 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 a Responsible Officer of such Originator to Buyer (or to the Administrative Agent, as
Buyer’s collateral assignee) 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.

          (h) Use of Proceeds. No proceeds of any Purchase from such Originator hereunder will be
used (i) for a purpose that violates, or would be inconsistent with, any law, rule or regulation
applicable to such Originator 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. Immediately prior to each Purchase from such Originator hereunder, such
Originator (i) is the legal and beneficial owner of the Receivables which are to be the subject of
such Purchase and (ii) is the legal and beneficial owner of the Related Security with respect
thereto or possesses a valid and perfected security interest therein, in each case, free and clear
of any Adverse Claim, except as created by the Transaction Documents.

          (j) Perfection. This Agreement, together with the filing of the financing statements
contemplated hereby, is effective to transfer to Buyer (and Buyer shall acquire from such
Originator) (i) legal and equitable title to, with the right to sell and encumber each Receivable
originated by such Originator, whether now existing or hereafter arising, together with the
Collections with respect thereto, and (ii) all of such Originator’s right, title and interest in
the Related Security associated with each such Receivable, in each case, free and clear of any
Adverse Claim, except as created by the Transaction Documents. There have been duly filed (or
delivered to the Administrative Agent (as Buyer’s collateral assignee) in form suitable for filing)
all financing statements or other similar instruments or documents necessary under the UCC (or any
comparable law) of all appropriate jurisdictions to perfect Buyer’s ownership interest in the
Receivables originated by such Originator, the Related Security and the Collections.

          (k)
Places of Business and Locations of Records. The state of organization and chief executive office of such Originator and the offices
where it keeps all of its Records are located at the address(es) listed on Exhibit II or such other
locations of which Buyer has been notified in accordance with Section 4.2(a) in
jurisdictions where all action required by Section 4.2(a) has been taken and completed.
Such Originator’s Federal Employer Identification Number and organizational identification number
are correctly set forth on Exhibit II.

          (l) Collections. The conditions and requirements set forth in Section 4.1(i) have
at all times been satisfied and duly performed. The names and addresses of all Collection Banks,
together with the account numbers of the Collection Accounts of such Originator at each Collection
Bank and the post office box number of each Lock-Box, are listed on Exhibit III.

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Such Originator
has not granted any Person, other than Buyer (and, to the extent contemplated by the Purchase
Agreement, the Servicer and the Administrative Agent, as Buyer’s collateral assignee) 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.

          (m) Material Adverse Effect. Since May 31, 2008, no event has occurred that would have a
Material Adverse Effect.

          (n) Names. In the past five (5) years, such Originator has not used any corporate names,
trade names or assumed names other than the name in which it has executed this Agreement and as
listed on Exhibit II.

          (o) Ownership of Originators. RPM-Delaware owns, directly or indirectly, 100% of the
issued and outstanding shares of capital stock of such Originator, free and clear of any Adverse
Claim. Such capital stock is validly issued, fully paid and nonassessable, and there are no
options, warrants or other rights to acquire securities of such Originator.

          (p) Not an Investment Company. Such Originator 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. Such Originator 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 originated by such Originator, 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. Such Originator has complied in all
material respects with its Credit and Collection Policy with regard to each Receivable originated
by it and the related Contract, and has not made any material change to such Credit and Collection
Policy, except such material change as permitted by Section 4.2(c) and in compliance with
the notification requirements in Section 4.1(a)(viii).

          (s) Payments to such Originator. With respect to each Receivable transferred hereunder by
such Originator to Buyer, the Purchase Price received by such Originator constitutes reasonably
equivalent value in consideration therefor and such transfer was not made for or on account of an
antecedent debt. No transfer by such Originator of any Receivable hereunder is or may be voidable
under any section of the Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et seq.), as amended.

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          (t) Enforceability of Contracts. Each Contract with respect to each Receivable originated
by such Originator is effective to create, and has created, a legal, valid and binding obligation
of the related Obligor to pay the Outstanding Balance of the 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) Nature of Receivables. Each Receivable originated by such Originator is an “account”
under and as defined in the UCC of all applicable jurisdictions.

          (v) Accounting. The manner in which such Originator accounts for the transactions
contemplated by this Agreement does not jeopardize the true sale analysis.

          (w) Purpose. Such Originator has determined that, from a business viewpoint, its sales of Receivables to
Buyer and the other transactions contemplated herein and in the Purchase Agreement are in the best
interests of such Originator.

          (x) Eligible Receivables. Each Receivable originated by such Originator that was included
on any Receivables Report as an Eligible Receivable was an Eligible Receivable on the date on which
it was sold or contributed to Buyer hereunder.

ARTICLE III.

CONDITIONS OF PURCHASE

     Section 3.1 Conditions Precedent to Initial Purchase. The initial Purchase from each Originator
under this Agreement is subject to the conditions precedent that (a) Buyer shall have received on
or before the date of such Purchase those documents listed on Schedule B and (b) all of the
conditions to the initial purchase under the Purchase Agreement shall have been satisfied or waived
in accordance with the terms thereof.

     Section 3.2 Conditions Precedent to Subsequent Payments. Buyer’s obligation to pay each
Originator for Receivables coming into existence after the Initial Cutoff Date shall be subject to
the further conditions precedent that: (a) the Facility Termination Date shall not have occurred;
(b) Buyer (or the Administrative Agent, as Buyer’s collateral assignee) shall have received such
other opinions or documents as it may reasonably request pursuant to Section 6.2 of the
Purchase Agreement, and (c) on the date such Receivable came into existence, the following
statements shall be true (and acceptance of the proceeds of any payment for such Receivable shall
be deemed a representation and warranty by such Originator that such statements are then true):

     (i) the representations and warranties of such Originator set forth in
Article II are true and correct on and as of the date such Receivable came
into existence as though made on and as of such date; and

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     (ii) no event has occurred and is continuing that will constitute a Termination
Event or a Potential Termination Event.

     Section 3.3 Reaffirmation of Representations and Warranties. Each Originator, by accepting the
Purchase Price related to each Purchase of such Originator’s Receivables and Related Security,
shall be deemed to have certified that the representations and warranties of such Originator
contained in Article II are true and correct as to such Originator on and as of the date of
such Purchase, with the same effect as though made on
and as of such day, and that each of the applicable conditions precedent set forth in this
Article III has been satisfied as of the date of such purchase.

ARTICLE IV.

COVENANTS

     Section 4.1 Affirmative Covenants of Originators. Until the date on which this Agreement
terminates in accordance with its terms, each Originator hereby covenants as set forth below:

          (a) Financial Reporting. Such Originator will maintain, for itself and each of its
Subsidiaries, a system of accounting established and administered in accordance with GAAP, and
furnish to Buyer (or to the Administrative Agent, as Buyer’s collateral assignee):

          (i) Annual Reporting. As soon as available and in any event within 90 days
after the end of each fiscal year of such Originator, consolidated statements of
income, shareholders’ equity and cash flows of RPM-Delaware (or, once applicable,
Parent) and its Subsidiaries for such year and the related consolidated balance
sheet as at the end of such year, setting forth in each case in comparative form the
corresponding figures for the preceding fiscal year, and accompanied by an opinion
thereon of independent certified public accountants of recognized national standing,
which opinion shall state that said consolidated financial statements fairly present
in all material respects the consolidated financial condition and results of
operations of such Originator and its Subsidiaries as at the end of, and for, such
fiscal year; provided that delivery to the Buyer of RPM-Delaware’s (or, once
applicable, Parent’s) filing with the SEC of SEC Form 10-K for each fiscal year
shall satisfy the requirements of this Section 4.1(a)(i) for each
Originator.

          (ii) Quarterly Reporting. As soon as available and in any event within 45
days after the end of each fiscal quarter of such Originator other than the last
fiscal quarter in each fiscal year, consolidated statements of income, shareholders’
equity and cash flows of RPM-Delaware (or, once applicable, Parent) and its
Subsidiaries for such fiscal quarter and for the portion of the fiscal year ended at
the end of such fiscal quarter, and the related consolidated balance sheet as at the
end of such fiscal quarter, accompanied, in each case, by a certificate of a Senior
Officer, which certificate shall state that said consolidated financial statements

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fairly present in all material respects the consolidated financial condition and
results of operations of RPM-Delaware (or, once applicable, Parent) in accordance
with GAAP (except
for footnotes of the type required by the SEC to be included in quarterly
reports on Form 10-Q), consistently applied, as at the end of, and for, such period
(subject to normal year-end audit adjustments); provided that delivery to the Buyer
of RPM-Delaware’s (or, once applicable, Parent’s) filing with the SEC of SEC Form
10-Q for the first three quarters of each fiscal year shall satisfy the requirements
of this Section 4.1(a)(ii) for each Originator.

          (iii) Compliance Certificate. Together with the financial statements
required hereunder, a compliance certificate in substantially the form of Exhibit IV
signed by an Authorized Officer of each Originator 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 Buyer (or the Administrative Agent as
its collateral assignee) has determined, in its reasonable discretion, that there has been
material deterioration in the performance of the Receivables, upon the request of the Buyer
(or the Administrative Agent or any Purchaser as its collateral assignees), 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 (or, once applicable, Parent), copies
of all financial statements, reports and proxy statements so furnished.

          (vi) SEC Filings. Promptly upon the filing thereof, copies of all
registration statements and annual, quarterly, monthly or other regular reports
(other than SEC Forms 10-K and 10-Q filed by RPM-Delaware (or, once applicable,
Parent) and delivered in accordance with Sections 4.1(a)(i) and (ii)
and other than SEC Forms 3, 4 or 5) which RPM-Delaware or any of its Subsidiaries
files with the SEC.

          (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 Person other than
Buyer, the Administrative Agent or any of the Purchasers, copies of the same.

          (viii) Change in Credit and Collection Policy. At least thirty (30) days prior to the effectiveness of any material change
in or material amendment to such Originator’s Credit and Collection Policy, a copy
of its Credit and Collection Policy then in effect and a notice (A) indicating such
change or amendment, and

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(B) if such proposed change or amendment would be
reasonably likely to adversely affect the collectibility of the Receivables
originated by such Originator or decrease the credit quality of any newly created
Receivables, requesting Buyer’s consent thereto.

          (ix) Other Information. Promptly, from time to time, such other
information, documents, records or reports relating to the Receivables or the
condition or operations, financial or otherwise, of such Originator as Buyer (or the
Administrative Agent, as Buyer’s collateral assignee) may from time to time
reasonably request in order to protect the interests of Buyer (and the
Administrative Agent, as Buyer’s collateral assignee) under or as contemplated by
this Agreement.

          (b) Notices. Such Originator will notify the Buyer (and the Administrative Agent, as
Buyer’s collateral assignee) 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) Termination Events or Potential Termination Events. The occurrence of
each Termination Event and each Potential Termination Event, by a statement of an
Authorized Officer of such Originator.

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

          (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 involving Indebtedness or a
line of credit in excess of $5,000,000 in aggregate principal amount pursuant to
which such Originator is a debtor or an obligor.

          (v) Downgrade of RPM-Delaware (or, once applicable, Parent). Any
downgrade in the rating of any Indebtedness of RPM-Delaware (or, once

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applicable,
Parent) by Standard and Poor’s Ratings Group or by Moody’s Investors Service, Inc.,
setting forth the Indebtedness affected and the nature of such change.

          (c) Compliance with Laws and Preservation of Corporate Existence. Such Originator 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 Originator 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 qualify or remain in
good standing could not reasonably be expected to have a Material Adverse Effect and except that
any Originator may merge with and into another Originator.

          (d) Audits. Such Originator will furnish to Buyer (and to the Administrative Agent and
each Purchaser, as Buyer’s collateral assignees) from time to time such information with respect to
it and the Receivables originated or serviced by it as Buyer (or the Administrative Agent or any of
the Purchasers) may reasonably request. Such Originator will, from time to time during regular
business hours as requested by Buyer (or the Administrative Agent or any of the Purchasers), upon
reasonable notice and at the sole cost of such Originator, permit Buyer and 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
Originator relating to such Receivables and the Related Security, including, without limitation,
the related Contracts, and (ii) to visit the offices and properties of such Originator for the
purpose of examining such materials described in clause (i) above, and to discuss matters relating
to such Originator’s financial condition or such Receivables and the Related Security or such
Originator’s performance under any of the Transaction Documents or such Originator’s performance
under the Contracts and, in each case, with any of the officers or employees of such Originator
having knowledge of such matters (each of the foregoing examinations and visits, a “Review”);
provided, however, that, except in connection with an Extension Request under and as defined in the
Purchase Agreement, so long as no Amortization Event or Potential Amortization Event (each, as
defined in the Purchase Agreement) has
occurred, the Originators 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) Such Originator will maintain and implement administrative and operating
procedures (including, without limitation, an ability to recreate records evidencing
Receivables originated by it 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 such Receivables
(including, without limitation, records adequate to permit the immediate
identification of each such new Receivable and all Collections of and

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adjustments to
each such existing Receivable). Such Originator will give Buyer (and the
Administrative Agent and each Purchaser, as Buyer’s collateral assignees) notice of
any material change in the administrative and operating procedures referred to in
the previous sentence other than a change in the type of software used by such
Originator.

     (ii) Such Originator will: (A) on or prior to the date hereof, mark its master
data processing records and other books and records relating to the Receivables
originated by it with a legend, acceptable to Buyer (and to the Administrative
Agent, as Buyer’s collateral assignee), describing Buyer’s ownership interests in
such Receivables and further describing the Purchaser Interests of the
Administrative Agent (on behalf of the Purchasers) under the Purchase Agreement and
(B) upon the request of Buyer (or the Administrative Agent or any of the Purchasers,
as Buyer’s collateral assignees) following the occurrence of a Termination Event or
an Amortization Event (as defined in the Purchase Agreement: (x) mark each Contract
with a legend describing Buyer’s ownership interests in such Receivables and further
describing the Purchaser Interests of the Administrative Agent (on behalf of the
Purchasers) and (y) deliver to Buyer (or, following the occurrence and during the
continuance of an Amortization Event, to the Administrative Agent, as Buyer’s
collateral assignee) all Contracts (including, without limitation, all multiple
originals of any such Contract that constitutes an instrument, a certificated
security or chattel paper under the UCC) relating to such Receivables.

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

          (g) Ownership. Such Originator will take all necessary action to establish and maintain, irrevocably in
Buyer, (i) legal and equitable title to the Receivables originated by such Originator and the
associated Collections and (ii) all of such Originator’s right, title and interest in the Related
Security associated with such Receivables, in each case, free and clear of any Adverse Claims other
than Adverse Claims in favor of Buyer (and the Administrative Agent, as Buyer’s collateral
assignee) (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 Buyer’s interest in such Receivables, Related Security and Collections and
such other action to perfect, protect or more fully evidence the interest of Buyer as Buyer (or the
Administrative Agent, as Buyer’s collateral assignee) may reasonably request).

          (h) Purchasers’ Reliance. Such Originator acknowledges that the Administrative Agent and
the Purchasers are entering into the transactions contemplated by the Purchase Agreement in
reliance upon Buyer’s identity as a legal entity that is separate from such

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Originator and any Affiliates thereof. Therefore, from and after the date of execution and
delivery of this Agreement, such Originator will take all reasonable steps including, without
limitation, all steps that Buyer (or the Administrative Agent, as Buyer’s collateral assignee) may
from time to time reasonably request to maintain Buyer’s identity as a separate legal entity and to
make it manifest to third parties that Buyer is an entity with assets and liabilities distinct from
those of such Originator and any Affiliates thereof and not just a division of such Originator or
any such Affiliate. Without limiting the generality of the foregoing and in addition to the other
covenants set forth herein, such Originator (i) will not hold itself out to third parties as liable
for the debts of Buyer nor purport to own the Receivables and other assets acquired by Buyer, (ii)
will take all other actions necessary on its part to ensure that Buyer is at all times in
compliance with the covenants set forth in Section 7.1(i) of the Purchase Agreement and
(iii) will cause all tax liabilities arising in connection with the transactions contemplated
herein or otherwise to be allocated between such Originator and Buyer on an arm’s-length basis and
in a manner consistent with the procedures set forth in U.S. Treasury Regulations §§1.1502-33(d)
and 1.1552-1.

          (i) Collections. Such Originator shall direct all Obligors to make payments of such Originator’s Receivables
directly to a Lock Box or Collection Account that has been transferred into the name of the Buyer
(or the Administrative Agent, as Buyer’s collateral assignee) and is the subject of a Collection
Account Agreement at a Collection Bank. If, notwithstanding the foregoing, any Obligor makes
payment to such Originator, such Originator further agrees to remit any Collections (including any
security deposits applied to the Outstanding Balance of any Receivable) that it receives on such
Receivables directly to a Collection Bank for deposit into a Collection Account within two (2)
Business Days after receipt thereof, and agrees that all such Collections shall be deemed to be
received in trust for Buyer (and the Administrative Agent, as Buyer’s collateral assignee);
provided that, to the extent permitted pursuant to Section 1.3, such Originator may retain
such Collections as a portion of the Purchase Price then payable to or apply such Collections to
the reduction of the outstanding balance of its Subordinated Note.

          (j) Taxes. Except to the extent that such Originator is included in consolidated tax returns or
reports filed by RPM-Delaware (or, once applicable, Parent), such Originator 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. Such Originator will also pay when
due any taxes payable in connection with the Receivables originated by it, exclusive of taxes on or
measured by income or gross receipts of Buyer and its assigns.

          (k) Insurance. Such Originator will maintain in effect, at such Originator’s expense, such casualty and
liability insurance as such Originator deems appropriate in its good faith business judgment. Such
Originator will pay the premiums therefor. The foregoing

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requirements shall
not be construed to negate, reduce or modify, and are in addition to, such Originator’s
obligations hereunder.

          (l) Reports. Such Originator shall prepare the following reports and forward to the Servicer (i) on the
13th day of each month or if such date is not a Business Day, the next Business Day, and
at such times as the Servicer shall request (the “Receivables Reporting Date”), a Receivables
Report and (ii) at such times as the Servicer shall reasonably request, a listing by Obligor of all
Receivables originated by such Originator together with an aging of such Receivables.

     Section 4.2 Negative Covenants of Originators. Until the date on which this Agreement terminates in accordance with its terms, each
Originator hereby covenants that:

          (a) Name Change, Offices and Records. Such Originator will not (i) change its name (within the meaning of Section 9-507(c) of any
applicable enactment of the UCC), identity, corporate structure or location of books and records
unless, at least fifteen (15) Business Days prior to the effective date of any such name change,
change in corporate structure or change in location of books and records, such Originator notifies
Buyer thereof and delivers to Buyer (or to the Administrative Agent, as Buyer’s collateral
assignee) such financing statements (Forms UCC-1 and UCC-3) executed by such Originator (if
required under applicable law) which Buyer (or the Administrative Agent, as Buyer’s collateral
assignee) may reasonably request to reflect such name change, location change or change in
corporate structure, together with such other documents and instruments that Buyer (or the
Administrative Agent, as Buyer’s collateral assignee) may reasonably request in connection
therewith and has taken all other steps to ensure that Buyer continues to have an exclusive
perfected ownership or security interest in the Receivables originated by it, the Related Security
related thereto and any Collections thereon, or (ii) change its jurisdiction of organization unless
Buyer (and the Administrative Agent, as Buyer’s collateral assignee) shall have received from such
Originator, prior to such change, (A) those items described in clause (i) hereof, and (B) if Buyer
(or the Administrative Agent, as Buyer’s collateral assignee) shall so request, an opinion of
counsel, in form and substance reasonably satisfactory to such Person, as to such organization and
such Originator’s valid existence and good standing and the perfection and priority of Buyer’s
ownership or security interest in the Receivables originated by such Originator and the Related
Security and the Collections related thereto.

          (b) Change in Payment Instructions to Obligors. Such Originator 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 Buyer (and the Administrative Agent, as Buyer’s collateral assignee) 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 such
Originator may make changes in

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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. Such Originator will not make any change to its Credit and Collection Policy that could
adversely affect the collectibility of the Receivables originated or serviced by such Originator or
decrease the credit quality of any such newly created Receivables. Except as otherwise permitted
in its capacity as a permitted sub-Servicer pursuant to Article VIII of the Purchase Agreement,
such Originator will not extend, amend or otherwise modify the terms of any Receivable originated
or serviced by it or any Contract related thereto in any material respect other than in accordance
with its Credit and Collection Policy.

          (d) Sales, Liens. Except pursuant to the Transaction Documents, such Originator 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 originated by it or the associated 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 Buyer provided for
herein), and such Originator will defend the right, title and interest of Buyer in, to and under
any of the foregoing property, against all claims of third parties claiming through or under such
Originator. Such Originator shall not create or suffer to exist any mortgage, pledge, security
interest, encumbrance, lien, charge or other similar arrangement on any of its inventory.

          (e) Accounting for Purchase. Such Originator will not, and will not permit any Affiliate to, account for the
transactions contemplated hereby in any manner other than as a sale by such Originator to Buyer of
Receivables originated by such Originator and the associated Collections and Related Security.

ARTICLE V.

TERMINATION EVENTS

     Section 5.1 Termination Events. The occurrence of any one or more of the following events shall constitute a “Termination
Event” with respect to an Originator:

     (a) Such Originator shall fail to make any payment or deposit required hereunder on or
within one (1) Business Day after the date on which the same is required to be made.

     (b) Such Originator or Performance Guarantor shall fail to perform or observe any
covenant contained in Section 4.1(l) or any provision of Section 4.2 other
than Section 4.2(c).

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     (c) (i) Such Originator or Performance Guarantor 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 5.1) 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 Buyer (or the Administrative Agent or any Purchaser,
as its collateral assignee) of such non-performance or non-observance, or (ii) the date on
which a Responsible Officer of such Originator (or Performance Guarantor, as the case may
be) otherwise becomes aware of such non-performance or non-observance.

     (d) Any representation, warranty, certification or statement made by such Originator 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 Buyer (or the Administrative Agent or any Purchaser, as
its collateral assignee) of such inaccuracy, or (ii) the date on which a Responsible Officer
of such Originator (or Performance Guarantor, as the case may be) 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) Any Originator shall default, or the Performance Guarantor or any of its
Subsidiaries (other than an Originator) 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) Such Originator, Performance Guarantor or any of their respective Subsidiaries
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 such
Originator, Performance Guarantor or any of their respective Subsidiaries 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) such Originator,
Performance Guarantor or any of their respective Subsidiaries shall take any corporate
action to authorize any of the actions set forth in the foregoing clauses (i) or (ii) of
this subsection (f).

     (g) A Change of Control shall occur with respect to such Originator or Performance
Guarantor.

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     (h) 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 such Originator or
Performance Guarantor 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.

     Section 5.2 Remedies. Upon the occurrence and during the continuation of a Termination Event, Buyer may take any
of the following actions: (i) declare the applicable Originator’s Termination Date to have
occurred, whereupon such Originator’s Termination Date shall forthwith occur, without demand,
protest or further notice of any kind, all of which are hereby expressly waived by the Originators;
provided, however, that upon the occurrence of a Termination Event described in Section
5.1(f), or of an actual or deemed entry of an order for relief with respect to Performance
Guarantor or any Originator under the Federal Bankruptcy Code, such Originator’s Termination Date
shall automatically occur, without demand, protest or any notice of any kind, all of which are
hereby expressly waived by each Originator and (ii) to the fullest extent permitted by applicable
law, declare that the Default Fee shall accrue with respect to any amounts then due and owing by
each Originator to Buyer. The aforementioned rights and remedies shall be without limitation and
shall be in addition to all other rights and remedies of Buyer (or the Administrative Agent, as
Buyer’s collateral assignee) 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.

ARTICLE VI.

INDEMNIFICATION

     Section 6.1 Indemnities by Originators. Without limiting any other rights that Buyer may have hereunder or under applicable law,
each Originator hereby agrees to indemnify (and pay upon demand to) Buyer and its 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 Buyer or any such assign)
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 Buyer of an interest in the Receivables originated
by such Originator, excluding, however, in all of the foregoing cases:

     (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;

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     (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 United States, the Indemnified Party’s jurisdiction of
organization (or, in the case of an individual, primary residence) or any other
jurisdiction in which such Indemnified Party has established a taxable nexus other
than in connection with the transactions contemplated hereby and by the Purchase
Agreement 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 Intended
Characterization;

provided, however, that nothing contained in this sentence shall limit the liability of such
Originator or limit the recourse of Buyer to such Originator for amounts otherwise specifically
provided to be paid by such Originator under the terms of this Agreement. Without limiting the
generality of the foregoing indemnification, but subject to the exclusions in clauses (a), (b) and
(c) above, each Originator shall indemnify Buyer for Indemnified Amounts (including, without
limitation, losses in respect of uncollectible Receivables, regardless of whether reimbursement
therefor would constitute recourse to such Originator) relating to or resulting from:

     (i) any representation or warranty made by such Originator (or any of its
officers) under or in connection with this Agreement, any other Transaction Document
to which such Originator is a party 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 such Originator to comply with any applicable law, rule or
regulation with respect to any Receivable originated by it, or any Contract related
thereto, or the nonconformity of any such Receivable or Contract 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 such
Contract;

     (iii) any failure of such Originator to perform its duties, covenants or other
obligations in accordance with the provisions of this Agreement or any other
Transaction Document to which it is a party;

     (iv) any products liability, personal injury or damage suit, or other similar
claim arising out of or in connection with goods that are the subject of any
Contract or any Receivable originated by such Originator;

     (v) any dispute, claim, offset or defense (other than discharge in bankruptcy
of the Obligor) of the Obligor to the payment of any Receivable originated by such
Originator (including, without limitation, a defense based on such Receivable or the
related Contract not being a legal, valid and binding

21

 

obligation of such Obligor
enforceable against it in accordance with its terms), or any other claim resulting
from the sale of goods or services related to such Receivable or the furnishing or
failure to furnish such goods or services;

     (vi) the commingling of Collections of such 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 to which such Originator is a
party, the transactions contemplated hereby, the use by such Originator of the
proceeds of any purchase from it hereunder or any other investigation, litigation or
proceeding relating to such 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 such 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) (A) failure of such Originator generally to pay its debts as such debts
become due or admission by such Originator in writing of its inability to pay its
debts generally or any making by such Originator of a general assignment for the
benefit of creditors; or (B) the institution of any proceeding by or against such
Originator 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 (C) the taking by such Originator
of any corporate action to authorize any of the actions set forth in clauses (A) or
(B) above in this clause (ix);

     (x) any failure to vest and maintain vested in Buyer, or to transfer to Buyer,
legal and equitable title to, and ownership of, an exclusive perfected ownership
interest in the Receivables originated by such Originator and the associated Related
Security and Collections, free and clear of any Adverse Claim (except as created by
the Transaction Documents);

     (xi) 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 such Receivable, the Related Security
and Collections with respect thereto, and the proceeds of any thereof, whether at
the time of sale to Buyer or at any subsequent time; and

22

 

     (xii) any action or omission by such Originator which reduces or impairs the
rights of Buyer with respect to any Receivable or the value of any such Receivable.

     Section 6.2 Other Costs and Expenses. In addition to the obligations of each Originator under Section 6.1, each
Originator agrees to pay on demand:

     (a) all reasonable costs and expenses, including attorneys’ fees, in connection
with the enforcement against such Originator of this Agreement and the other
Transaction Documents executed by such Originator; and

     (b) all stamp duties and other similar filing or recording taxes and fees
payable or determined to be payable in connection with the execution, delivery,
filing and recording of this Agreement or the other Transaction Documents executed
by such Originator, and agrees to indemnify Indemnified Parties against any
liabilities with respect to or resulting from any delay in paying or omission to pay
such taxes and fees.

ARTICLE VII.

MISCELLANEOUS

     Section 7.1 Waivers and Amendments.

          (a) No failure or delay on the part of Buyer (or, following the occurrence and during
the continuance of an Amortization Event, the Administrative Agent, as Buyer’s
collateral assignee) 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 signed by each Originator and Buyer and, to the extent required under the
Purchase Agreement, the Administrative Agent and the Purchasers.

     Section 7.2 Notices. 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 (a) if given by telecopy, upon the receipt thereof, (b) if given by mail, three
(3) Business Days after the time such communication is

23

 

deposited in the mail with first class
postage prepaid or (c) if given by any other means, when received at the address specified in this
Section 7.2.

     Section 7.3 Protection of Ownership Interests of Buyer.

     (a) Each Originator 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 Buyer (or the Administrative Agent, as Buyer’s collateral
assignee) may request, to perfect, protect or more fully evidence the interest of Buyer
hereunder and the Purchaser Interests, or to enable Buyer (or, following the occurrence and
during the continuance of an Amortization Event, the Administrative Agent, as Buyer’s
collateral assignee) to exercise and enforce its (or their) rights and remedies hereunder.
At any time, Buyer may, at the applicable Originator’s sole cost and expense, direct such
Originator to notify the Obligors of Receivables originated or serviced by it of the
ownership interests of Buyer 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 Buyer or its
designee.

     (b) If any Originator fails to perform any of its obligations hereunder, Buyer may (but
shall not be required to) perform, or cause performance of, such obligation, and Buyer’s
costs and expenses incurred in connection therewith shall be payable by such Originator as
provided in Section 6.2. Each Originator irrevocably authorizes Buyer (and, from
and after the occurrence and during the continuance of an Amortization Event, the
Administrative Agent, as Buyer’s collateral assignee) at any time and from time to time in
the sole discretion of Buyer (or the Administrative Agent), and appoints Buyer
(and, from and after the occurrence and during the continuance of an Amortization
Event, the Administrative Agent) as its attorney(ies)-in-fact, to act on behalf of such
Originator (i) to execute on behalf of such Originator as debtor and to file financing
statements necessary or desirable in Buyer’s sole discretion to perfect and to maintain the
perfection and priority of the ownership interest of Buyer 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 Buyer
(or, as applicable, the Administrative Agent) in its sole discretion deem necessary or
desirable to perfect and to maintain the perfection and priority of Buyer’s interests in the
Receivables. This appointment is coupled with an interest and is irrevocable.

     Section 7.4 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 Letters 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 officers and employees may disclose

24

 

such information (i) to such party’s
external accountants and attorneys 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,
Commercial Paper dealer or provider of a surety, guaranty or credit or liquidity enhancement
to a Purchaser or any entity organized for the purpose of purchasing, or making loans
secured by, financial assets for which any of the Purchasers acts as the administrative
agent or administrator and to any officers, directors, employees, outside accountants 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 7.4. In addition, the
Administrative Agent and each Purchaser 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 7.5 Bankruptcy Petition.

          (a) Each Originator covenants and agrees that, prior to the date that is one year and one day
after the payment in full of all Aggregate Unpaids under the Purchase Agreement, it will not
institute against, or join any other Person in instituting against, Buyer any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding
under the laws of the United States or any state of the United States.

     Section 7.6 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).

     Section 7.7 CONSENT TO JURISDICTION. EACH ORIGINATOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED
STATES FEDERAL OR NEW YORK 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
ORIGINATOR PURSUANT TO THIS AGREEMENT, AND EACH ORIGINATOR HEREBY

25

 

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 BUYER (OR ITS ASSIGNS) TO BRING PROCEEDINGS AGAINST ANY ORIGINATOR
IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY ORIGINATOR AGAINST BUYER
(OR ITS ASSIGNS) OR ANY AFFILIATE THEREOF 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
ORIGINATOR PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN THE BOROUGH OF MANHATTAN,
NEW YORK.

     Section 7.8 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
ORIGINATOR PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

     Section 7.9 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 Originators,
Buyer and their respective successors and permitted assigns (including any trustee in
bankruptcy). No Originator may assign any of its rights and obligations hereunder or any
interest herein without the prior written consent of Buyer. Buyer may pledge and assign at
any time its rights and obligations hereunder and interests herein to any other Person
without the consent of any Originator, and hereby notifies the Originators that it has
pledged and collaterally assigned its right, title and interest hereunder with respect to
each Receivable in which the Purchasers have acquired any interest under the Receivables
Purchase Agreement to the Administrative Agent, for the benefit of the Administrative Agent
and each Purchaser under the Purchase Agreement. This Agreement shall create and constitute
the continuing obligation of each 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 with respect to (i) any breach of any
representation and warranty made by any Originator

26

 

pursuant to Article II; (ii) the
indemnification and payment provisions of Article VI; and (iii) Section 7.5 shall be
continuing and shall survive any termination of this Agreement.

     Section 7.10 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, 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.

[SIGNATURE PAGES FOLLOW]

27

 

     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.

	 	 	 	 	 
	 	DAP PRODUCTS INC.,

THE TESTOR CORPORATION,

TREMCO INCORPORATED,

RUST-OLEUM CORPORATION,

THE EUCLID CHEMICAL COMPANY

REPUBLIC POWDERED METALS, INC.

TREMCO BARRIER SOLUTIONS, INC.

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

	 	 	 	 	 
	 	Address:  	
c/o RPM International Inc.

2628 Pearl Road, P.O. Box 777

Medina, Ohio 44258

Attention: Treasurer

Phone: (330) 273-8837

Fax: (330) 225-6574
 	 

	 	 	 	 	 
	 	WEATHERPROOFING TECHNOLOGIES, INC.

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

	 	 	 	 	 
	 	Address:  	
c/o RPM International Inc.

2628 Pearl Road, P.O. Box 777

Medina, Ohio 44258

Attention: Treasurer

Phone: (330) 273-8837

Fax: (330) 225-6574

 	 

	 	 	 	 	 
	 	RPM FUNDING CORPORATION

 	 
	 	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

 	 

28

 

Exhibit I

Definitions

          This is Exhibit I to the Agreement (as hereinafter defined). As used in the Agreement and the
Exhibits and Schedules thereto, capitalized terms have the meanings set forth in this Exhibit I
(such meanings to be equally applicable to the singular and plural forms thereof). If a
capitalized term is used in the Agreement, or any Exhibit or Schedule thereto, and not otherwise
defined therein or in this Exhibit I, such term shall have the meaning assigned thereto in Exhibit
I to the Purchase Agreement.

          “Administrative Agent” has the meaning set forth in the Preliminary Statements to the
Agreement.

          “Agreement” means the Amended and Restated Receivables Sale Agreement, dated as of April 7,
2009, among the Originators and Buyer, as the same may be amended, restated or otherwise modified.

          “Amortization Event” has the meaning set forth in the Purchase Agreement.

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

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

          “Calculation Period” means each calendar month or portion thereof which elapses during the
term of the Agreement. The first Calculation Period for each Originator shall commence on the date
of the initial Purchase of Receivables from such Originator hereunder and the final Calculation
Period shall terminate on its Termination Date.

          “Change of Control” means (a) the acquisition by any Person (other than Parent), or two or
more Persons acting in concert (other than Parent and any Subsidiary of Parent), of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the
Securities Exchange Act of 1934) of 30% or more of the outstanding shares of voting stock of
RPM-Delaware (or, once applicable, Parent) or (b) RPM-Delaware (or, once applicable, Parent) ceases
to own, directly or indirectly, 100% of the outstanding voting stock of any Originator or Buyer.

          “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.

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

29

 

          “Deemed Collections” means the aggregate of all amounts an Originator shall have been deemed
to have received as a Collection of a Receivable sold by it. An Originator shall be deemed to have
received a Collection (but only to the extent of the reduction or cancellation identified below) of
a Receivable sold by it if at any time (i) the Outstanding Balance of any such Receivable is either
(x) reduced as a result of any defective or rejected goods, any discount or any adjustment or
otherwise by such Originator (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) or (ii) any of
the representations or warranties in Article II were not true with respect to such Receivable at
the time of its sale hereunder (in which case, such Originator shall be deemed to have received a
Collection in an amount equal to the Outstanding Balance of such Receivable).

          “Default Fee” means a per annum rate of interest equal to the sum of (i) the Alternate Base
Rate, plus (ii) 2% per annum (computed for actual days elapsed on the basis of a year consisting of
360 days).

          “Discount Factor” means, with respect to any Receivable, a percentage calculated to provide
Buyer with a reasonable return on its investment in such Receivable after taking account of (i) the
time value of money based upon the anticipated dates of collection of such Receivable and the cost
to Buyer of financing its investment in such Receivable during such period and (ii) the risk of
nonpayment by the related Obligor. Each Originator and Buyer may agree from time to time to change
the Discount Factor with respect to the Receivables originated by such Originator based on changes
in one or more of the items affecting the calculation thereof, provided that any change to the
Discount Factor shall take effect as of the commencement of a Calculation Period, shall apply only
prospectively and shall not affect the Purchase Price payment in respect of a Purchase which
occurred during any Calculation Period ending prior to the Calculation Period during which any
Originator and Buyer agree to make such change.

          “Excluded Obligor” means AutoZone, Inc.

          “Excluded Receivable” means, unless and until the Administrative Agent and each Purchaser
otherwise consents in writing: any account or other right to payment arising from or in connection
with the sale of goods or the rendering of services by any hereafter acquired division of any of
the Originators.

          “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.

          “Initial Cutoff Date” means the close of business on June 6, 2002.

          “Intended Characterization” means, for income tax purposes, the characterization of the
acquisition by the Purchasers of Purchaser Interests under the Purchase

30

 

Agreement as a loan or loans by the Purchasers to the Seller secured by the Receivables, the Related Security and the
Collections.

          “Material Adverse Effect” means a material adverse effect on (i) the financial condition or
operations of any Originator, or of RPM-Delaware (or, once applicable, Parent) and its
Subsidiaries, taken as a whole, (ii) the ability of any Originator to perform its obligations under
the Agreement or any other Transaction Document, (iii) the legality, validity or enforceability of
the Agreement or any other Transaction Document, (iv) Buyer’s (or any of its assigns’) interest in
the Receivables generally or in any significant portion of the Receivables, the Related Security or
Collections with respect thereto, or (v) the collectibility of the Receivables generally or of any
material portion of the Receivables, in each case, relating to Receivables sold by such Originator
hereunder.

          “Material Indebtedness” means (a) with respect to the Performance Guarantor and its
Subsidiaries (other than the Originators), Indebtedness in excess of $25 million in aggregate
principal amount and (b) with respect to any Originator, Indebtedness in excess of $10 million in
aggregate principal amount.

          “Net Worth” means as of the last Business Day of each Calculation Period preceding any date of
determination, the excess, if any, of (a) the aggregate Outstanding Balance of the Receivables at
such time, over (b) the sum of (i) the Aggregate Capital outstanding at such time, plus (ii) the
aggregate outstanding principal balance of the Subordinated Loans (including any Subordinated Loan
proposed to be made on the date of determination).

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

          “Original Balance” means, with respect to any Receivable coming into existence after the
Initial Cutoff Date, the Outstanding Balance of such Receivable on the date it was created.

          “Originator(s)” has the meaning set forth in the preamble to the Agreement.

          “Parent” means any publicly-held corporation, limited liability company or partnership that
(a) is formed for the sole purpose of acquiring, directly or indirectly (whether by distribution or
otherwise), substantially all of the outstanding voting stock of all classes of RPM-Delaware, (b)
is owned immediately after the acquisition described in clause (a) of this definition by the same
shareholders as were shareholders of RPM-Delaware immediately prior to the acquisition described in
clause (a) of this definition, and (c) hereafter owns, directly or indirectly, all of the
outstanding voting stock of all classes of RPM-Delaware.

          “Performance Guarantor” means RPM-Delaware (or any Parent that hereafter unconditionally
assumes in writing RPM-Delaware’s obligations under the Performance Undertaking in accordance with
the Purchase Agreement).

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          “Performance Undertaking” has the meaning provided in the Purchase Agreement.

          “Potential Termination Event” means an event which, without remedial action and with the
passage of time or the giving of notice, or both, would constitute a Termination Event.

          “Preferred Shares” means shares of Buyer’s Serial Preferred Stock, as defined in Buyer’s
Certificate of Incorporation, as amended.

          “Purchase” means each purchase pursuant to Section 1.2(a) of the Agreement by Buyer
from an Originator of Receivables originated by such Originator and the Related Security and
Collections related thereto, together with all related rights in connection therewith.

          “Purchase Agreement” has the meaning set forth in the Preliminary Statements to the Agreement.

          “Purchase Price” means, with respect to any Receivable, the price to be paid by Buyer to the
applicable Originator for such Receivable and the Related Security and Collections with respect
thereto in accordance with Section 1.3 of the Agreement, which price shall equal (i) the
product of (x) the Original Balance of such Receivable, multiplied by (y) one minus
the Discount Factor then in effect, minus (ii) any Purchase Price Credits to be credited against
the Purchase Price otherwise payable in accordance with Section 1.4 of the Agreement.

          “Purchase Price Credit” has the meaning set forth in Section 1.4 of the Agreement.

          “Receivable” means all rights to payment owed to an Originator (at the times it arises, and
before giving effect to any transfer or conveyance under the Agreement) or Buyer (after giving
effect to the transfers under the Agreement) constituting an account arising in connection with the
sale of goods or the rendering of services by such Originator and further includes, without
limitation, the obligation to pay any Finance Charges with respect thereto; provided, however, that
in no event shall the term “Receivable” include such right to payment arising from any sale of
goods or the rendering of services by any Originator to any Excluded Obligor which occurs after the
effective date of the amendment designating such Obligor as being an Excluded Obligor.
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, further, that any
indebtedness, rights or obligations referred to in the immediately preceding sentence shall be a
Receivable regardless of whether the account debtor or such Originator treats such indebtedness,
rights or obligations as a separate payment obligation.

32

 

          “Receivables Report” means a report, in substantially the form of Exhibit VII hereto
(appropriately completed), furnished by an Originator to the Servicer pursuant to Section
4.1(l).

          “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.

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

          (i) all of the applicable Originator’s interest in the inventory and goods (including
returned or repossessed inventory or goods), if any, the sale of which by such Originator
gave rise to such Receivable, and all insurance contracts with respect thereto,

          (ii) all other security interests or liens and property subject thereto from time to
time, if any, purporting to secure payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise, together with all financing statements and
security agreements describing any collateral securing such Receivable,

          (iii) all guaranties, letters of credit, insurance and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such Receivable
whether pursuant to the Contract related to such Receivable or otherwise,

          (iv) all enforcement rights or rights to receive payment with respect to service
contracts and other contracts and agreements associated with such Receivable,

          (v) all Records related to such Receivable,

          (vi) all of the applicable Originator’s right, title and interest in each Lock-Box and
each Collection Account, and

          (vii) all proceeds of any of the foregoing.

          “Required Capital Amount” means, as of any date of determination, an amount equal to the
greater of (i) 3% of the aggregate Outstanding Balance of all Receivables as of such date and (ii)
$15,000,000.

          “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.

33

 

          “RPM” has the meaning set forth in the Preliminary Statements to the Agreement.

          “RPM-Delaware” has the meaning set forth in the Preliminary Statements to the Agreement.

          “SEC” means the United States Securities and Exchange Commission or any successor regulatory
body.

          “Senior Officer” means, as to each Originator, the chief executive officer, president, chief
financial officer, vice president, treasurer, or secretary.

          “Servicer” means the Person who from time to time is designated as the “Servicer” under and as
defined in the Purchase Agreement,

          “Subordinated Loan” has the meaning set forth in Section 1.3(b) of the Agreement.

          “Subordinated Note” means each promissory note in substantially the form of Exhibit VI hereto
as more fully described in Section 1.3 of the Agreement, as the same may be amended,
restated, supplemented or otherwise modified from time to time.

          “Termination Date” means, as to each Originator, the earliest to occur of (i) the Facility
Termination Date, (ii) the Business Day immediately prior to the occurrence of a Termination Event
set forth in Section 5.1(f) with respect to such Originator or Performance Guarantor, (iii)
the Business Day specified in a written notice from Buyer (or its assigns) to such Originator
following the occurrence of any other Termination Event with respect to such Originator , and (iv)
the date which is thirty (30) days after Buyer’s receipt of written notice from such Originator
that it wishes to terminate the facility evidenced by this Agreement.

          “Termination Event” has the meaning set forth in Section 5.1 of the Agreement.

          “Transaction Documents” means, collectively, this Agreement, each Collection Account
Agreement, the Subordinated Notes, the Performance Undertaking and all other instruments, documents
and agreements executed and delivered in connection herewith.

          “Transfer” means a sale or contribution of Receivables pursuant to the Agreement.

          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.

34exhibit10_1.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    As of
April 1, 2009

    

    Emerging
Vision, Inc.

    100
Quentin Roosevelt Boulevard

    Garden
City, New York  11530

    

    Attn:  Christopher
G. Payan, CEO

    

    
      	
               
      

            	
              Re:

            	
              M&T
      Bank with Emerging Vision, Inc. (the
"Borrower")

            

Limited
Waiver and Amendment to Revolving Line of Credit made available by M&TBank
to the Borrower (the "Line of Credit” or the “Loan")

    

    Dear Mr.
Payan:

    

    Manufacturers
and Traders Trust Company (the "Bank") agreed to make available to the Borrower
the Line of Credit pursuant to which the Borrower and the Bank entered into that
certain Revolving Line of Credit Note and Credit Agreement dated as of August 7,
2007 (the “Note”) as same was amended by a Waiver and Amendment Letter dated as
of November 14, 2008 (the "Amendment").

    

    You have
requested that the Bank waive the requirements under
Paragraph (h) (3) of the “AFFIRMATIVE COVENANTS” Section of the Note for the 4th quarter of
2008.

    

    You have
also asked that the Bank amend and extend the Maturity Date
of the Note as hereinafter set forth.

    

    The Bank
has agreed to the above requests provided, in conjunction therewith, (i) the
Interest Rate of the Note shall
be amended as set forth herein, (ii) Borrower shall pay a Waiver Fee, as
hereinafter defined, and (iii) Borrower shall pay a Renewal Fee, as hereinafter
defined.

    

    LIMITED
WAIVER:

    

    Paragraph
(h) (3) of the “AFFIRMATIVE COVENANTS” Section of the Note reads as
follows:

    

    (3)           Maximum
Funded Debt to EBITDA* as follows:

    4.0 as of 9/30/07 and
12/31/07;

    3.75 as of 3/31/08, 6/30/08 and
9/30/08;

    3.5 as of 12/31/08 and all
quarters thereafter, to be tested quarterly on a trailing 12 month
basis.

    

    *Note:  EBITDA
shall add back any non-cash expense associated

    with
compensation and/or stock awards.  Funded Debt shall
include

    outstanding
balances under the M&T Revolving Line of Credit plus

    related party debt including the
Combine seller note.

    

    

    Pursuant
to your request, the Bank hereby agrees to waive the Maximum Funded Debt to
EBITDA requirement under Paragraph (h) (3) of the
“AFFIRMATIVE COVENANTS” Section of the Note but only
for the 4th quarter of 2008.  In
consideration for the Bank’s agreeing to grant this waiver to Borrower, Borrower
shall remit a waiver fee of $3,500.00 (the “Waiver Fee”) to the Bank
contemporaneously with its execution and delivery hereof.

    

    AMENDMENT:

    

    Pursuant
to your request, the Bank hereby agrees to amend and extend the Revolving Line
Maturity Date set forth in the Note from August 1, 2009 to April 1,
2010.  In addition, the Interest Rate in the Note is hereafter amended
and shall be three hundred (300) basis points in excess of the AEffective
LIBOR Rate@.

    

    In
consideration for the Bank’s agreeing to grant this extension/renewal of the
Line of Credit to Borrower, Borrower shall remit an extension/renewal fee of .5%
($30,000) (the “Renewal Fee”) to the Bank contemporaneously with its execution
and delivery hereof. In addition, the Borrower shall execute the accompanying
“Allonge to Note” and
deliver same to the Bank contemporaneously herewith.

    

    ADDITIONAL
TERMS/CLARIFICATION:

    

    All other
terms, conditions, definitions and provisions of the Note remain unchanged and
in full force and effect.

    

    Contemporaneous
with the execution of this Limited Waiver and Amendment Borrower shall remit the
Waiver Fee and Renewal Fee to the Bank.

    

    For purposes of clarification,
as set forth in the Amendment (the Waiver and Amendment Letter dated as of
November   , 2008), the outstanding balances under the M&T
Revolving Line of Credit are not included in
Current Portion (Maturities) of Long Term Debt for the Debt Service Coverage
Covenant set forth in Paragraph (h) (2) of the “Affirmative Covenants” Section
of the Note.

    

    Please be
aware that this Limited Waiver
and Amendment pertains only to the matters and fiscal periods
specifically set forth herein and it pertains only to the Note and is not
effective for any other loan document.  All other
terms,  conditions, definitions and provisions of the Note not
specifically and expressly amended hereby and all terms, conditions, definitions
and provisions of all other loan documents executed and delivered in connection
with the Loan remain in full force and effect during the term of this waiver and
thereafter.

    

    MANUFACTURERS AND TRADERS TRUST
COMPANY, a New York banking institution

     

    By:           /s/Tamra
Postiglione

    Tamra Postiglione, Vice
President

    

    ACKNOWLEDGED
AND AGREED TO BY:

    “BORROWER”

    

    EMERGING
VISION, INC.

    

    By:           /s/Christopher G.
Payan

    Christopher G. Payan, CEO

    

    

    AGREED,
CONSENTED TO AND RATIFIED BY:

    "GUARANTORS"

    

    OG
ACQUISITION, INC.

    

    By:           /s/Christopher G.
Payan

    Christopher G. Payan, CEO

    

    

    

    COMBINE
BUYING GROUP, INC.

    

    By:           /s/Brian
Alessi

    Brian Alessi, CFO

    

    

    

    1725758
ONTARIO INC. D/B/A THE OPTICAL GROUP

    

    By:           /s/Christopher G.
Payan

    Christopher G. Payan, CEO

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