Document:

exv4wp

Life Insurance Company

Home Office: Cincinnati, Ohio

Variable Administrative Office: P.O. Box 5423, Cincinnati, Ohio 45201-5423

LOAN ENDORSEMENT

This Loan Endorsement is attached to an individual deferred variable annuity contract (the
“Contract”).
The Contract is changed as set out below to permit loans:

     Loan Amount and Conditions

Subject to the terms and conditions set out below, you may borrow an amount (the “new
loan”) using the Contract values as collateral. The amount of the new loan may not
exceed the contract value loan limit, the tax law loan limit, or the employer plan loan limit,
whichever is the smallest.

An application for a loan must be made by Written Request. We may delay granting the
loan for up to six (6) months after we receive your request for it. We may also limit the
frequency at which loans may be made and the minimum amount of a loan. No loan may
be made after the Annuity Commencement Date. We may restrict the availability of loans
if you have commenced distribution under a systematic payment program or guaranteed
benefit rider. We may deny your request for a new loan if you have had any loan treated
as a deemed distribution under Section 72(p) of the Internal Revenue Code, and that
loan has not been repaid in full.

     Contract Value Loan Limit

The net amount otherwise payable to you upon a full surrender of the Contract must be at
least one hundred ten percent (110%) of, and at least $500 more than, the sum of the
new loan and the current balance of all other loans, if any, under the Contract.

     Tax Law Loan Limit

Pursuant to Section 72(p) of the Internal Revenue Code:

	 	1)	 	the sum of the new loan plus the highest balance of all other loans, if any, under the
Contract and all other related retirement plans at any time during the one (1) year
period ending on the date of the new loan, cannot exceed $50,000; and
	 
	 	2)	 	the sum of the new loan plus the current balance of all other loans, if any, under the
Contract and all other related retirement plans cannot exceed the greater of (i)
$10,000, or (ii) one-half of the sum of the vested benefits under the Contact and all
other related retirement plans.

For this purpose, a related retirement plan is a Section 403(b) tax sheltered annuity, a
Section 401 pension, profit-sharing or 401(k) plan, a Section 403(a) annuity plan, or a
governmental plan, to which the same employer has contributed. We may require you to
provide information on such other plans and loans.

			
	 	 	 
	E1816008NW
	 	AILIC

-1-

 

     Employer Plan Loan Limit

The Contract holds contributions made under an employer retirement plan. No loan may
be made except to the extent it is permitted by that plan, and is subject to any additional
limits and conditions which apply under the plan. No loan may be made without the
approval of the plan administrator.

     Loan Term and Repayment

The principal and interest of each loan must be repaid to us within five (5) years of the
date such loan is made. This five (5) year limit will not apply to a loan used to acquire a
dwelling unit that is to be used as a principal residence by you. For a loan used to
acquire your principal residence, the principal and interest must be repaid to us within
thirty (30) years of the date such loan is made. Pursuant to Section 72(p) of the Internal
Revenue Code, regular substantially equal periodic payments must be made at least
quarterly over the term of a loan until fully paid, and a failure to make such payments may
result in a deemed distribution of the outstanding balance of the loan. We may limit the
minimum amount of the loan payments to be made to us.

     Interest

The interest rate on a loan will not be more than eight percent (8%) per year. Any unpaid
interest will be added to the loan; in effect, then, it will be compounded and will be part of
the loan. As required by federal tax law, we will continue to charge interest on a
defaulted loan until it is paid off in full even if the loan has been treated as a deemed
distribution for tax purposes.

     Security for Loan

A loan under the Contract is a first lien on the Contract. Your interest in the Contract will
be the sole security for the loan. You cannot surrender the Contract or annuitize it unless
all loans under it are paid in full. We may require that you pay all loans under it in full
before you begin payments under any other systematic payment program or guaranteed
benefit rider. You cannot take a withdrawal from the Contract if the current balance of all
loans under the Contract would then exceed the contract value loan limit. You cannot
take a withdrawal from the Contract from the amount that is held to secure a loan except
to pay off the loan.

We may require you to hold the amount needed to secure all loans in the Fixed Account
as described below. In lieu of that, we may require you to hold the amount needed to
secure all loans in a Sub-Account that we may designate from time to time. You may
transfer the amounts needed to secure loans from the Sub-Accounts. If you do not do
so, then we may make such transfers on a pro rata basis. You cannot transfer amounts
out of the Fixed Account or designated Sub-Account to the extent needed to secure a
loan.

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     Fixed Account

If we require an amount to be held in the Fixed Account as security for a loan, we will
transfer that amount from the Separate Account to the Company’s general account.

Amounts that we require to be held in the Fixed Account as security for a loan will be
credited daily with interest at an annual effective rate as declared from time to time by the
Company in its discretion. This annual effective rate will never be less than [three
percent (3%)]. We will stop crediting interest on an amount as of the date that it is
transferred back to the Separate Account, withdrawn, surrendered, used to pay off the
loan, or applied to charges or fees. While any amount is held in the Fixed Account as
security for a loan, such amount will be added to the value of your interest in all of the
Sub-Accounts in order to determine the Account Value of the Contract. Amounts that are
held in the Fixed Account will be subject to the same Early Withdrawal Charge, if any,
that applies to other Contract values. The Contract Maintenance Fee may be deducted
from amount held in the Fixed Account if there are insufficient assets to pay the fee in the
Separate Account. Once an amount that is held in the Fixed Account is no longer
required as security for a loan, we will transfer it back to those Sub-Accounts in which the
balance of your Account Value is held on a pro rata basis, subject to any restrictions
imposed from time to time on the availability of a Sub-Account on a nondiscriminatory
basis.

     Loan Offset

We may pay off the loan (by treating an amount equal to the balance of the loan as
surrendered, and applying it to pay off the loan) if there is a default in repayment. Such a
surrender to pay off the loan will be taken from the amount held as security for the loan to
the extent possible, and then from the balance of the Contract on a pro rata basis. Such
a surrender to pay off the loan will not occur at a time when the other provisions of the
Contract prohibit a distribution to you.

If your spouse becomes the Successor Owner of the Contract, he or she may continue a
loan that is not in default. In all other cases, the death benefit or Contract values will be
reduced to pay off any loan that is outstanding on the date that is or would be the Death
Benefit Valuation Date.

This Loan Endorsement is part of the Contract. It is not a separate contract. It changes the
Contract only
as and to the extent stated. In all cases of conflict with the other terms of the Contract, the
provisions of
this Loan Endorsement shall control.

     Signed for us at our office as of the date of issue.

	 	 	 
	/s/ Mark F. Muething

	 	/s/ Charles R. Scheper
	 

	 	 
	Mark F. Muething

	 	Charles R. Scheper
	SECRETARY

	 	PRESIDENT

-3-EX-4.1

Exhibit 4.1

EXECUTION VERSION

RPM INTERNATIONAL INC.

and

NATIONAL CITY BANK

RIGHTS AGREEMENT

Dated as of April 21, 2009

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	 
	 	 	 	 
	Section 1. Certain Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 2. Appointment of Rights Agent
	 	 	4	 
	 
	 	 	 	 
	Section 3. Issue of Right Certificates
	 	 	5	 
	 
	 	 	 	 
	Section 4. Form of Right Certificates
	 	 	6	 
	 
	 	 	 	 
	Section 5. Countersignature and Registration
	 	 	7	 
	 
	 	 	 	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates

	 	 	 7	 
	 
	 	 	 	 
	Section 7. Exercise of Rights; Purchase Price; Expiration Date of
Rights
	 	 	8	 
	 
	 	 	 	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	9	 
	 
	 	 	 	 
	Section 9. Reservation and Availability of Shares of Common Stock
	 	 	9	 
	 
	 	 	 	 
	Section 10. Common Stock Record Date
	 	 	11	 
	 
	 	 	 	 
	Section 11. Adjustment of Purchase Price, Number and Type of Shares or
Number of Rights
	 	 	11	 
	 
	 	 	 	 
	Section 12. Certificate of Adjusted Purchase Price or Number of
Shares
	 	 	19	 
	 
	 	 	 	 
	Section 13. Notice of Adjusted Purchase Price or Number or Type of
Shares to Holders of Rights 
	 	 	19	 
	 
	 	 	 	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	19	 
	 
	 	 	 	 
	Section 15. Rights of Action
	 	 	20	 
	 
	 	 	 	 
	Section 16. Agreement of Rights Holders
	 	 	20	 
	 
	 	 	 	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder
	 	 	21	 
	 
	 	 	 	 
	Section 18. Concerning the Rights Agent
	 	 	21	 
	 
	 	 	 	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	22	 
	 
	 	 	 	 
	Section 20. Duties of Rights Agent
	 	 	23	 

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	 	 	PAGE
	 
	 	 	 	 
	Section 21. Change of Rights Agent
	 	 	25	 
	 
	 	 	 	 
	Section 22. Issuance of New Right Certificates
	 	 	26	 
	 
	 	 	 	 
	Section 23. Redemption
	 	 	26	 
	 
	 	 	 	 
	Section 24. Notice of Certain Events
	 	 	27	 
	 
	 	 	 	 
	Section 25. Notices
	 	 	28	 
	 
	 	 	 	 
	Section 26. Supplements and Amendments
	 	 	28	 
	 
	 	 	 	 
	Section 27. Exchange
	 	 	29	 
	 
	 	 	 	 
	Section 28. Successors
	 	 	30	 
	 
	 	 	 	 
	Section 29. Benefits of this Agreement
	 	 	31	 
	 
	 	 	 	 
	Section 30. Determinations and Actions by Directors
	 	 	31	 
	 
	 	 	 	 
	Section 31. Severability
	 	 	31	 
	 
	 	 	 	 
	Section 32. Governing Law
	 	 	32	 
	 
	 	 	 	 
	Section 33. Counterparts
	 	 	32	 
	 
	 	 	 	 
	Section 34. Descriptive Headings
	 	 	32	 
	 
	 	 	 	 
	Section 35. Force Majeure
	 	 	32	 

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          Rights Agreement, dated as of April 21, 2009, (this “Agreement”), between RPM International
Inc., a Delaware corporation (the “Company”), and National City Bank, as rights agent (the “Rights
Agent”).

RECITALS

          On April 21, 2009, the Directors of the Company authorized and declared a dividend consisting
of one right (“Right”) for each share of common stock, par value $0.01 per share, of the Company
(the “Common Stock”) of the Company outstanding as of the Close of business on May 11, 2009 (the
“Record Date”), each Right initially representing the right to purchase one-tenth of one share of
Common Stock on the terms and subject to the conditions herein set forth, and have further
authorized and directed the issuance of one Right (subject to adjustment as provided herein) with
respect to each share of Common Stock issued or delivered by the Company (whether originally issued
or delivered from the Company’s treasury) after the Record Date but prior to the earlier of the
Distribution Date (in the case of shares of Common Stock issued upon conversion of the Company’s
convertible securities, prior to the tenth day after the Distribution Date), and the Expiration
Date (each as hereinafter defined), or as provided in Section 27.

          Accordingly, in consideration of the premises and the mutual agreements herein set forth, the
parties hereto hereby agree as follows:

          Section 1. Certain Definitions.

          For purposes of this Agreement, the following terms have the meanings indicated:

     (a) “Acquiring Person” shall mean any Person (other than the Company, any Subsidiary,
any employee benefit or stock ownership plan of the Company or of any Subsidiary, any entity
holding Common Stock for or pursuant to any such plan, or any Person who, prior to the
Company’s public announcement of the Directors’ approval of this Agreement, is the
Beneficial Owner of Common Stock equal to or in excess of 15% of the Common Stock then
outstanding (a “Current 15% Owner”); provided, however, that if following
such public announcement of the Directors’ approval of this Agreement, such Current 15%
Owner becomes the Beneficial Owner of any additional shares of Common Stock and is the
Beneficial Owner of Common Stock equal to or in excess of 15% of the Common Stock then
outstanding, then such Current 15% Owner shall be deemed an “Acquiring Person”) who or that,
together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of
15% or more of the Common Stock then outstanding, provided, however, that a
Person will not be deemed to have become an Acquiring Person solely as a result of a
reduction in the number of shares of Common Stock outstanding unless and until (i) such time
as such Person or any Affiliate or Associate of such Person shall thereafter become the
Beneficial Owner of any additional shares of Common Stock, other than as a result of a stock
dividend, stock split or similar transaction effected by the Company in which all holders of
Common Stock are treated equally, or (ii) any other Person who is the Beneficial Owner of
any Common Stock shall thereafter become an Affiliate or Associate of such Person.
Notwithstanding the foregoing, if the Directors of the Company determine in good faith that
a Person who

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would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing
provisions of this paragraph (a), has become such inadvertently, and such Person divests as
promptly as practicable a sufficient number of shares of Common Stock so that such Person
would no longer be an Acquiring Person as defined pursuant to the foregoing provisions of
this paragraph (a), then such Person shall not be deemed to be an “Acquiring Person” for any
purposes of this Agreement.

     (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to such
terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), as in effect on the date hereof.

     (c) A Person shall be deemed the “Beneficial Owner” of, and to “beneficially own,” any
securities:

     (i) the beneficial ownership of which such Person or any of such Person’s
Affiliates or Associates, directly or indirectly, has the right to acquire (whether
such right is exercisable immediately or only after the passage of time) pursuant to
any agreement, arrangement or understanding (whether or not in writing), or upon the
exercise of conversion rights, exchange rights, rights, warrants or options, or
otherwise (in each case, other than upon exercise or exchange of the Rights);
provided, however, that a Person shall not be deemed the Beneficial
Owner of, or to beneficially own, securities tendered pursuant to an offer to
purchase or a tender or exchange offer made by or on behalf of such Person or any of
such Person’s Affiliates or Associates until such tendered securities are accepted
for purchase or exchange; or

     (ii) which such Person or any of such Person’s Affiliates or Associates,
directly or indirectly, has or shares the right to vote or dispose of, including
pursuant to any agreement, arrangement or understanding (whether or not in writing);
or

     (iii) of which any other Person is the Beneficial Owner, if such Person or any
of such Person’s Affiliates or Associates has any agreement, arrangement or
understanding (whether or not in writing) with such other Person (or any of such
other Person’s Affiliates or Associates) with respect to acquiring, holding, voting
or disposing of any securities of the Company; or

     (iv) in respect of which such Person or any of such Person’s Affiliates or
Associates has a Synthetic Long Position;

provided, however, that a Person shall not be deemed the Beneficial Owner
of, or to beneficially own, any security (A) if such Person has the right to vote such
security pursuant to an agreement, arrangement or understanding (whether or not in writing)
which (1) arises solely from a revocable proxy given to such Person in response to a public
proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules
and regulations of the Exchange Act and (2) is not also then reportable on Schedule 13D
under the Exchange Act (or any comparable or successor report), or (B)

2

 

if such beneficial ownership arises solely as a result of such Person’s status as a
“clearing agency,” as defined in Section 3(a)(23) of the Exchange Act; and provided,
further, that nothing in this paragraph (c) shall cause a Person engaged in business as
an underwriter of securities to be the Beneficial Owner of, or to beneficially own, any
securities acquired through such Person’s participation in good faith in an underwriting
syndicate until the expiration of 40 calendar days after the date of such acquisition, or
such later date as the Directors of the Company may determine in any specific case.

     (d) “Business Day” shall mean any day other than a Saturday, Sunday, or a day on which
banking institutions in the States of Ohio, Delaware, or New York (or such other state in
which the principal office of the Rights Agent is located) are authorized or obligated by
law or executive order to close.

     (e) “Close of business” on any given date shall mean 5:00 p.m., Cleveland, Ohio time,
on such date; provided, however, that if such date is not a Business Day it
shall mean 5:00 p.m., Cleveland, Ohio time, on the next succeeding Business Day.

     (f) “Common Stock” when used with reference to the Company shall mean the shares of
Common Stock, par value $0.01 per share, of the Company; provided that, if the
Company is the continuing or surviving corporation in a transaction described in Section
11(d)(ii) hereof, “Common Stock” when used with reference to the Company shall mean the
capital stock with the greatest aggregate voting power of the Company, or, if the Company is
a subsidiary of another corporation or business trust, the corporation or business trust
that ultimately controls the Company. “Common Stock” when used with reference to any
corporation or business trust, other than the Company, shall mean the capital stock with the
greatest aggregate voting power of such corporation or business trust, or, if such
corporation or business trust is a subsidiary of another corporation or business trust, the
corporation or business trust which ultimately controls such first-mentioned corporation or
business trust.

     (g) “Distribution Date” shall mean the earlier of: (i) the close of business on the
tenth calendar day following the Share Acquisition Date, or (ii) the close of business on
the tenth Business Day (or, unless the Distribution Date shall have previously occurred,
such later date as may be specified by the Directors of the Company) after the date of the
commencement of a tender or exchange offer by any Person (other than the Company or any
Subsidiary or any employee benefit or stock ownership plan of the Company or of any
Subsidiary or any entity holding Common Stock for or pursuant to the terms of any such
plan), if upon the consummation thereof such Person would be the Beneficial Owner of 15% or
more of the then-outstanding Common Stock.

     (h) “Expiration Date” shall mean the earliest of (i) the close of business on the Final
Expiration Date, (ii) the time at which the Rights are redeemed as provided in Section 23
hereof, and (iii) the time at which all exercisable Rights are exchanged as provided in
Section 27 hereof.

     (i) “Final Expiration Date” shall mean the tenth anniversary of the Record Date.

3

 

     (j) “Flip-in Event” shall mean the event described in Section 11(a)(ii) hereof.

     (k) “Flip-over Event” shall mean any event described in clauses (i), (ii) or (iii) of
Section 11(d) hereof.

     (l) “Person” shall mean any individual, firm, corporation or other entity, and shall
include any successor (by merger or otherwise) of such entity.

     (m) “Share Acquisition Date” shall mean the first date of public announcement by the
Company (by press release, filing made with the Securities and Exchange Commission or
otherwise) that an Acquiring Person has become such.

     (n) “Subsidiary” shall mean any corporation or other entity of which a majority of the
voting power of the voting equity securities or equity interests is owned, directly or
indirectly, by the Company.

     (o) “Synthetic Long Position” shall mean, with respect to any security, any option,
warrant, convertible security, stock appreciation right or other contractual right, whether
or not presently exercisable, which has an exercise or conversion privilege or a settlement
payment or mechanism at a price related to such security or a value determined in whole or
part with reference to, or derived in whole or in part from, the market price or value of
such security (without regard to whether such instrument or right (i) conveys any voting
power to such Person or any Affiliate or Associate thereof, or (ii) is required to be, or
capable of being, settled through delivery of such securities) and which increases in value
as the value of such security increases or which provides to the holder of such instrument
or right an opportunity, directly or indirectly, to profit or share in any profit derived
from any increase in the value of such security, but shall not include interests in
broad-based index options, broad-based index futures, and broad-based publicly traded market
baskets of stocks approved for trading by the appropriate federal governmental authority.
The number of securities in respect of which a Person has a Synthetic Long Position shall be
the notional or other number of securities specified in the documentation evidencing the
Synthetic Long Position as being subject to be acquired upon the exercise or settlement of
the applicable right or as the basis upon which the value or settlement amount of such
right, or the opportunity of the holder of such right to profit or share in any profit, is
to be calculated in whole or in part or, if no such number of securities is specified in
such filing or documentation, as determined by the Directors of the Company in good faith to
be the number of securities to which the Synthetic Long Position relates.

     (p) “Triggering Event” shall mean any Flip-in Event or Flip-over Event.

          Section 2. Appointment of Rights Agent.

          The Company hereby appoints the Rights Agent to act as agent for the Company and the holders
of the Rights (who, in accordance with Section 3 hereof, shall also be, prior to the Distribution
Date, the holders of the Common Stock) in accordance with the terms and conditions hereof, and the
Rights Agent hereby accepts such appointment and hereby certifies that it complies with the
requirements of the New York Stock Exchange governing transfer

4

 

agents and registrars. The Company may from time to time act as Co-Rights Agent or appoint such
Co-Rights Agents as it may deem necessary or desirable. Any actions which may be taken by the
Rights Agent pursuant to the terms of this Agreement may be taken by any such Co-Rights Agent. To
the extent that any Co-Rights Agent takes any action pursuant to this Agreement, such Co-Rights
Agent shall be entitled to all of the rights and protections of, and subject to all of the
applicable duties and obligations imposed upon, the Rights Agent pursuant to the terms of this
Agreement.

          Section 3. Issue of Right Certificates.

          (a) Until the Distribution Date (i) the Rights will be evidenced (subject to the provisions of
paragraph (b) of this Section 3) by the certificates for Common Stock registered in the names of
the record holders thereof (which certificates for Common Stock shall also be deemed to be Right
Certificates) and not by separate Right Certificates, and (ii) the Rights will be transferable only
in connection with the transfer of the underlying Common Stock in the stock transfer books of the
Company maintained by the Company or its appointed transfer agent. As soon as practicable after the
Distribution Date, the Rights Agent will send, at the expense of the Company, by first-class,
insured, postage prepaid mail, to each record holder of shares of Common Stock as of the close of
business on the Distribution Date, at the address of such holder shown on the records of the
Company, a Right Certificate, in substantially the form of Exhibit A hereto, evidencing one Right
for each share of Common Stock so held, subject to adjustment, together with a notice setting forth
the Purchase Price (as defined in Section 4 hereof) as in effect on the Distribution Date. As of
the Distribution Date, the Rights will be evidenced solely by such Right Certificates.

          Any Right Certificate issued pursuant to this Section 3 that represents Rights beneficially
owned by an Acquiring Person or any Associate or Affiliate thereof and any Right Certificate issued
at any time upon the transfer of any Rights to an Acquiring Person or any Associate or Affiliate
thereof or to any nominee of such Acquiring Person, Associate or Affiliate, and any Right
Certificate issued pursuant to Sections 6 or 11 hereof upon transfer, exchange, replacement or
adjustment of any other Right Certificate referred to in this sentence, shall be subject to and
shall contain the following legend or such similar legend as the Company may deem appropriate and
as is not inconsistent with the provisions of this Agreement, or as may be required to comply with
any applicable law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange or transaction reporting system on which the Rights may from time
to time be listed or quoted, or to conform to usage:

The Rights represented by this Right Certificate are or were beneficially owned by a
Person who is or was an Acquiring Person or an Affiliate or an Associate of an
Acquiring Person (as such terms are defined in the Rights Agreement). This Right
Certificate and the Rights represented hereby may become null and void in the
circumstances specified in Section 11(a)(ii) or Section 11(d) of the Rights
Agreement.

          (b) On the Record Date or as soon as practicable thereafter, the Company will make available a
copy of a Summary of Rights to Purchase Shares of Common Stock, in substantially the form attached
hereto as Exhibit B (the “Summary of Rights”), to any holder of

5

 

Rights who may request it from time to time prior to the Final Expiration Date. With respect
to certificates for shares of Common Stock outstanding as of the Record Date, until the
Distribution Date, the Rights will be evidenced by such certificates for shares of Common Stock
registered in the names of the holders thereof. Until the earlier of the Distribution Date and the
Expiration Date, the surrender for transfer of any certificate for shares of Common Stock
outstanding on the Record Date shall also constitute the surrender for transfer of the Rights
associated with the Common Stock represented thereby.

          (c) Certificates for shares of Common Stock issued (including, without limitation, any
certificates for shares of Common Stock issued upon conversion of the Company’s convertible
securities or upon exercise of stock options) or surrendered for transfer or exchange after the
Record Date but prior to the earlier of the Distribution Date or the Expiration Date, shall have
stamped on, impressed on, printed on, written on or otherwise affixed to them the following legend
or such similar legend as the Company may deem appropriate and as is not inconsistent with the
provisions of this Agreement, or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or
transaction reporting system on which the Common Shares or the Rights may from time to time be
listed or quoted, or to conform to usage:

This Certificate also evidences and entitles the holder hereof to certain Rights as
set forth in a Rights Agreement between RPM International Inc. and National City
Bank, dated as of April 21, 2009 (the “Rights Agreement”), the terms of which are
hereby incorporated herein by reference and a copy of which is on file at the
principal executive offices of RPM International Inc. The Rights are not exercisable
prior to the occurrence of certain events specified in the Rights Agreement. Under
certain circumstances, as set forth in the Rights Agreement, such Rights may be
redeemed, may be exchanged, may expire, or may be evidenced by separate certificates
and will no longer be evidenced by this Certificate. RPM International Inc. will
mail to the holder of this Certificate a copy of the Rights Agreement without charge
promptly after receipt of a written request therefor. Under certain circumstances,
Rights that are or were beneficially owned by an Acquiring Person or any Affiliate
or Associate thereof (as such terms are defined in the Rights Agreement) and any
subsequent holder of such Rights may become null and void.

With respect to certificates containing the legend described above, until the Distribution Date,
the Rights associated with the Common Stock represented by such certificates shall be evidenced by
such certificates alone, and the surrender for transfer of any such certificate shall also
constitute the surrender for transfer of the Rights associated with the Common Stock represented
thereby.

          Section 4. Form of Right Certificates.

          The Right Certificates (and the forms of (a) election to purchase shares, (b) assignment and
(c) certificate of exchange to be printed on the reverse thereof) shall be substantially the same
as Exhibit A hereto with such changes, marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may

6

 

deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any applicable law or with any rule or regulation made pursuant thereto or
with any exchange on which the Rights may from time to time be listed, or to conform to usage.
Subject to the provisions of Section 11 and 22 hereof, the Right Certificates, whenever issued,
shall be dated as of the Record Date, and on their face shall entitle the holders thereof to
purchase such number of shares of Common Stock as shall be set forth therein at the price per whole
share set forth therein (the “Purchase Price”), but the Purchase Price and the number and kind of
securities issuable upon exercise of each Right and the number of Rights outstanding shall be
subject to adjustment as provided herein.

          Section 5. Countersignature and Registration.

          The Right Certificates shall be executed on behalf of the Company by its Chairman of the
Board, President or any Vice President, either manually or by facsimile signature, and have affixed
thereto the Company’s seal or a facsimile thereof which shall be attested by the Secretary or an
Assistant Secretary of the Company, either manually or by facsimile signature. The Right
Certificates shall be manually countersigned by the Rights Agent and shall not be valid for any
purpose unless so countersigned. In case any officer of the Company who shall have signed any of
the Right Certificates shall cease to be such officer of the Company before countersignature by the
Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may
be countersigned by the Rights Agent, and issued and delivered by the Company with the same force
and effect as though the person who signed such Right Certificates had not ceased to be such
officer of the Company; and any Right Certificate may be signed on behalf of the Company by any
person who, at the actual date of the execution of such Right Certificate, shall be a proper
officer of the company to sign such Right Certificate, although at the date of the execution of
this Rights Agreement any such person was not such an officer.

          Following the Distribution Date, the Rights Agent will keep or cause to be kept, at the
principal office of the Rights Agent designated for such purpose and at such other offices as may
be required to comply with any applicable law or with any rule or regulations made pursuant thereto
or with any rule or regulation of any stock exchange or transaction reporting system on which the
Rights may be listed, books for registration and transfer of the Right Certificates issued
hereunder. Such books shall show the names and addresses of the respective holders of the Right
Certificates, the number of Rights evidenced on its face by each of the Right Certificates and the
date of each of the Right Certificates.

          Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates.

          Subject to the provisions of Sections 7(e) and 14 hereof, at any time after the close of
business on the Distribution Date, and at or prior to the close of business on the Expiration Date,
any Right Certificate or Certificates representing exercisable rights may be transferred, split up,
combined or exchanged for another Right Certificate or Right Certificates, entitling the registered
holder to purchase a like number of shares of Common Stock (or other securities, as the case may
be) as the Right Certificate or Right Certificates surrendered then entitled such holder (or former
holder in the case of a transfer) to purchase. Any registered

7

 

holder desiring to transfer, split up, combine or exchange any Right Certificate, shall make such
request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or
Right Certificates to be transferred, split up, combined or exchanged at the principal office of
the Rights Agent designated for such purpose. Thereupon or as promptly as practicable thereafter,
subject to the provisions of Section 11 and Section 14 hereof, the Company will prepare, execute
and deliver to the Rights Agent, and the Rights Agent will countersign and deliver, a Right
Certificate or Rights Certificates, as the case may be, as so requested. The Company may require
payment of a sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Right Certificates.

          Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them
of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to them, and, if requested by the
Company, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental
thereto, and upon surrender to the Rights Agent, and cancellation of the Right Certificate if
mutilated, the Company will prepare, execute and deliver a new Right Certificate of like tenor to
the Rights Agent and the Rights Agent shall countersign and deliver such new Right Certificate to
the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

          Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights.

          (a) The registered holder of any Right Certificate may exercise the Rights evidenced thereby
(except as otherwise provided herein) in whole or in part at any time after the Distribution Date
and prior to the Expiration Date, upon surrender of the Right Certificate, with the form of
election to purchase on the reverse side thereof duly executed, to the Rights Agent at the
principal office or offices of the Rights Agent designated for such purpose, together with payment
in cash, in lawful money of the United States of America by certified check or bank draft payable
to the order of the Company, equal to the sum of (i) the exercise price for the total number of
securities as to which such surrendered Rights are exercised and (ii) an amount equal to any
applicable transfer tax required to be paid by the holder of such Right Certificate in accordance
with the provisions of Section 9 hereof.

          (b) The Purchase Price shall initially be $70.00 (equivalent to $7.00 for each one-tenth of a
share of Common Stock), and shall be subject to adjustment from time to time as provided in Section
11 hereof and shall be payable in lawful money of the United States of America in accordance with
paragraph (c) below.

          (c) Upon receipt of a Right Certificate representing exercisable Rights, with the form of
election to purchase duly executed, accompanied by payment of the Purchase Price for the shares to
be purchased and an amount equal to any applicable transfer tax in cash, or by certified check or
bank draft payable to the order of the Company, the Rights Agent shall thereupon promptly (i)
requisition from any transfer agent of the Common Stock (or make available, if the Rights Agent is
the transfer agent) certificates for the number of whole shares of Common Stock to be purchased and
the Company hereby irrevocably authorizes and directs its transfer agent to comply with all such
requests, (ii) when appropriate, requisition from the Company the amount of cash to be paid or
depositary receipts to be issued in lieu of the issuance

8

 

of fractional shares in accordance with Section 14 hereof or the amount of cash to be paid in
lieu of the issuance of Common Stock in accordance with Sections 11(a)(iii) or 11(d) hereof, (iii)
promptly after receipt of such certificates (or depositary receipts, when appropriate), cause the
same to be delivered to or upon the order of the registered holder of such Right Certificate,
registered in such name or names as may be designated by such holder and (iv) when appropriate,
after receipt promptly deliver such cash to or upon the order of the registered holder of such
Right Certificate.

          (d) In case the registered holder of any Right Certificate shall exercise less than all the
Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights
remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right
Certificate or to his duly authorized assigns, subject to the provisions of Section 14 hereof.

          (e) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor
the Company shall be obligated to undertake any action with respect to any purported transfer,
split up, combination or exchange of any Right Certificate pursuant to Section 6 hereof or the
exercise of a Right Certificate as set forth in this Section 7 unless the registered holder of such
Right Certificate shall have (i) completed and signed the certificate following the form of
assignment or form of election to purchase, as applicable, set forth on the reverse side of the
Right Certificate surrendered for such transfer, split up, combination, exchange or exercise, and
(ii) provided such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall have reasonably
requested.

          Section 8. Cancellation and Destruction of Right Certificates.

          All Right Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its stock transfer
agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered
to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall
deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel
and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon
the exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates to the
Company, or shall, at the written request of the Company, destroy such cancelled Right
Certificates, and in such case shall deliver a certificate of destruction thereof to the Company.

          Section 9. Reservation and Availability of Shares of Common Stock.

          The Company covenants and agrees that it will cause to be reserved and kept available out of
its authorized and unissued Common Stock or any authorized and issued Common Stock held in its
treasury, the number of shares of Common Stock that will be sufficient to permit the exercise
pursuant to Section 7 hereof of all outstanding Rights; such number of shares of Common Stock
reserved and kept available shall be adjusted from time to time, if and to the extent required,
upon the occurrence of any of the events described in Section 11 hereof.

9

 

          So long as the Company’s shares of Common Stock are listed on a national securities exchange
or quoted on the Nasdaq National Market, the Company shall endeavor to cause, from and after such
time as the Rights become exercisable, all shares of Common Stock reserved for issuance upon
exercise of the Rights to be listed on such exchange or included in the Nasdaq National Market, as
the case may be, upon official notice of issuance.

          The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all shares of Common Stock delivered upon exercise of Rights shall be, at the time of
delivery of the certificates for such shares (subject to payment of the Purchase Price), duly and
validly authorized and issued, fully paid, nonassessable and freely tradeable shares, free and
clear of any liens, encumbrances and other adverse claims and not subject to any rights of call or
first refusal.

          The Company further covenants and agrees that it will pay when due and payable any and all
federal and state transfer taxes and charges which may be payable in respect of the issuance or
delivery of the Right Certificates or of any shares of Common Stock upon the exercise of Rights.
The Company shall not, however, be required to pay any transfer tax which may be payable in respect
of any transfer or delivery of Right Certificates to a person other than, or the issuance or
delivery of certificates for the shares of Common Stock in a name other than that of, the
registered holder of the Right Certificates evidencing Rights surrendered for exercise, or to issue
or deliver any certificates for shares of Common Stock upon the exercise of any Rights until any
such tax shall have been paid (any such tax being payable by the holder of such Right Certificate
at the time of surrender) or until it has been established to the Company’s satisfaction that no
such tax is due.

          The Company also shall use its best efforts (i) to file on an appropriate form, as soon as
practicable following the Distribution Date, a registration statement under the Securities Act of
1933, as amended (the “Securities Act”), with respect to the securities issuable upon exercise of
the Rights, (ii) to cause such registration statement to become effective as soon as practicable
after such filing, and (iii) to cause such registration statement to remain effective (with a
prospectus at all times meeting the requirements of the Securities Act) until the earlier of (A)
the date as of which the Rights are no longer exercisable for such securities and (B) the
Expiration Date. The Company shall also take such action as may be appropriate under, or to ensure
compliance with, the securities or “blue sky” laws of the various states in connection with the
exercisability of the Rights. The Company may temporarily suspend, for a period of time after the
date set forth in clause (i) of the first sentence of this paragraph, the exercisability of the
Rights in order to prepare and file such registration statement and to permit it to become
effective. Upon any such suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended, as well as a public announcement at
such time as the suspension is no longer in effect. In addition, if the Company shall determine
that a registration statement should be filed under the Securities Act or any state securities laws
following the Distribution Date, the Company may temporarily suspend the exercisability of the
Rights in each relevant jurisdiction until such time as a registration statement has been declared
effective and, upon any such suspension, the Company shall issue a public announcement stating that
the exercisability of the Rights has been temporarily suspended, as well as a public announcement
at such time as the suspension is no longer in effect. Notwithstanding anything in this Agreement
to the contrary, the Rights shall not be

10

 

exercisable in any jurisdiction if the requisite registration or qualification in such jurisdiction
shall not have been effected or the exercise of the Rights shall not be permitted under applicable
law.

          Notwithstanding anything in this Agreement to the contrary, after the Distribution Date, the
Company shall not, except as permitted by Section 23 or Section 26 hereof, take (or permit any
Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable
that such action will eliminate or otherwise diminish the benefits intended to be afforded by the
Rights.

          In the event that the Company is obligated to pay cash pursuant to Sections 11 or 14 hereof,
it shall make all arrangements necessary so that such cash is available for distribution by the
Rights Agent, if and when appropriate.

          Section 10. Common Stock Record Date.

          Each person in whose name any certificate for shares of Common Stock is issued upon the
exercise of Rights shall for all purposes be deemed to have become the holder of record of the
shares of Common Stock represented thereby on, and such certificate shall be dated, the date upon
which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase
Price (and any applicable transfer taxes) was made; provided, however, that if the
date of such surrender and payment is a date upon which the Common Stock transfer books of the
Company are closed, such person shall be deemed to have become the record holder of such shares on,
and such certificate shall be dated, the next succeeding Business Day on which the Common Stock
transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, the
holder of a Right Certificate shall not be entitled to any rights of a stockholder of the Company
with respect to shares for which the Rights shall be exercisable, including, without limitation,
the right to vote, to receive dividends or other distributions or to exercise any preemptive
rights, and shall not be entitled to receive any notice of any proceedings of the Company, except
as provided herein.

          Section 11. Adjustment of Purchase Price, Number and Type of Shares or Number of
Rights.

          The Purchase Price, the number and type of shares covered by each Right and the number of
Rights outstanding are subject to adjustment from time to time as provided in this Section 11.

          (a) (i) In the event that the Company shall at any time after the date of this Agreement (A)
declare a dividend on the Common Stock payable in shares of Common Stock, (B) subdivide the
outstanding shares of Common Stock, (C) combine the outstanding shares of Common Stock into a
smaller number of shares or (D) issue any shares of its capital stock in a reclassification of the
Common Stock (including any such reclassification in connection with a consolidation or merger in
which the Company is the continuing or surviving corporation), except as otherwise provided in this
Section 11(a) or in Section 11(d) hereof, the Purchase Price in effect at the time of the record
date for such dividend or of the effective date of such subdivision, combination or
reclassification, and the number and type of shares of capital

11

 

stock issuable on such date, shall be proportionately adjusted so that the holder of any Right
exercised after such time shall be entitled to receive the aggregate number and kind of shares of
capital stock which, if such Right had been exercised immediately prior to such date and at a time
when the Common Stock transfer books of the Company were open, such holder would have owned upon
such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or
reclassification. If an event occurs which would require an adjustment under both this Section
11(a)(i) and Section 11(a)(ii) hereof or Section 11(d) hereof, the adjustment provided for in this
Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required
pursuant to Section 11(a)(ii) or Section 11(d) hereof.

          (ii) In the event that any Person becomes an Acquiring Person, provision shall be made
so that from and after the Distribution Date each holder of a Right, except as provided
below, shall thereafter have a right to receive, upon exercise thereof in accordance with
the terms of this Agreement at an exercise price per Right equal to the product of ten (10)
times the then-current Purchase Price multiplied by the number of shares of Common Stock for
which a Right is then exercisable, such number of shares of Common Stock as shall equal the
result obtained by (x) multiplying the product of ten (10) times the then-current Purchase
Price by the number of shares of Common Stock for which a Right was exercisable immediately
prior to the first occurrence of a Triggering Event, and dividing that product by (y) 50% of
the current per share market price of the Common Stock (determined pursuant to Section 11(e)
hereof) on the date of the occurrence of such event. Notwithstanding anything in this
Agreement to the contrary, from and after the occurrence of such event (1) any Rights that
are or were acquired or beneficially owned by any Acquiring Person (or any Affiliate or
Associate of such Acquiring Person) shall be void and any holder of such Rights shall
thereafter have no right to exercise such Rights under any provision of this Agreement, (2)
no Right Certificate shall be issued pursuant to this Agreement that represents Rights
beneficially owned by an Acquiring Person or any Affiliate or Associate thereof, (3) no
Right Certificate shall be issued at any time upon the transfer of any Rights to an
Acquiring Person or any Affiliate or Associate thereof or to any nominee of such Acquiring
Person or Affiliate thereof, and (4) any Right Certificate delivered to the Rights Agent for
transfer to an Acquiring Person or any Affiliate or Associate thereof shall be cancelled.

          (iii) Upon the occurrence of a Flip-in Event, if there shall not be sufficient
authorized but unissued shares of Common Stock or authorized and issued shares of Common
Stock held in treasury to permit the exercise in full of the Rights in accordance with the
foregoing subparagraph (ii), the Directors of the Company shall use their best efforts
promptly to authorize additional shares of Common Stock for issuance upon exercise of the
Rights; provided, however, that if at any time after 90 calendar days after
the first occurrence of a Flip-in Event, there shall not be sufficient shares of Common
Stock available for issuance upon the exercise of a Right, then the Company shall deliver,
upon the surrender of such Right and without requiring payment of the Purchase Price, shares
of Common Stock (to the extent available), and then cash (to the extent permitted by
applicable law and any agreements or instruments to which the Company is a party in effect
immediately prior to the first occurrence of any Flip-in Event), which shares of Common
Stock and cash shall have an aggregate value equal to

12

 

the excess of (1) the aggregate current per share market price of all the shares of
Common Stock (determined pursuant to Section 11(e) hereof) issuable in accordance with
subsection (ii) of this Section 11(a) upon the exercise of a Right over (2) the product of
ten (10) times the then-current Purchase Price multiplied by the number of shares of Common
Stock for which a Right was exercisable immediately prior to the first occurrence of a
Triggering Event. To the extent that any legal or contractual restrictions prevent the
Company from paying the full amount of cash payable in accordance with the foregoing
sentence, the Company shall pay to holders of the Rights as to which such payments are being
made all amounts which are not then restricted on a pro rata basis. The Company shall
continue to make payments on a pro rata basis as funds become available until such payments
have been paid in full.

          (b) In the event that the Company shall fix a record date for the issuance of rights, options
or warrants to all holders of Common Stock entitling them (for a period expiring within 45 calendar
days after such record date) to subscribe for or purchase shares of Common Stock (or shares having
the same rights, privileges and preferences as the Common Stock (“equivalent common stock”)) or
securities convertible into Common Stock or equivalent common stock at a price per share of Common
Stock or equivalent common stock (or having a conversion price per share, if a security convertible
into Common Stock or equivalent common stock) less than the current per share market price of the
shares of Common Stock (as determined pursuant to Section 11(e) hereof) on such record date, the
Purchase Price to be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction, the numerator of
which shall be the number of shares of Common Stock outstanding on such record date plus the number
of shares of Common Stock which the aggregate offering price of the total number of shares of
Common Stock and/or equivalent common stock so to be offered (and/or the aggregate initial
conversion price of the convertible securities so to be offered) would purchase at such current
market price and the denominator of which shall be the number of shares of Common Stock outstanding
on such record date plus the number of additional shares of Common Stock and/or equivalent common
stock to be offered for subscription or purchase (or into which the convertible securities so to be
offered are initially convertible). In case such subscription price may be paid in a consideration
part or all of which shall be in a form other than cash, the value of such consideration shall be
as determined in good faith by the Directors of the Company, whose determination shall be described
in a statement filed with the Rights Agent and shall be conclusive for all purposes. Shares of
Common Stock owned by or held for the account of the Company shall not be deemed outstanding for
the purpose of any such computation. Such adjustment shall be made successively whenever such a
record date is fixed; and in the event that such rights, options or warrants are not so issued, the
Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such
record date had not been fixed.

          (c) In the event that the Company shall fix a record date for the making of a distribution to
all holders of Common Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation) of
evidences of indebtedness, cash (other than a regular periodic cash dividend at a rate not in
excess of 125% of the rate of the last cash dividend theretofore paid), assets, stock (other than a
dividend payable in shares of Common Stock) or subscription rights, options or warrants (excluding
those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such

13

 

record date shall be determined by multiplying the Purchase Price in effect immediately prior
to such record date by a fraction, the numerator of which shall be the current per share market
price of the shares of Common Stock (as determined pursuant to Section 11(e) hereof) on such record
date, less the fair market value (as determined in good faith by the Directors of the Company,
whose determination shall be described in a statement filed with the Rights Agent and shall be
conclusive for all purposes) of the portion of the cash, assets, stock or evidences of indebtedness
so to be distributed (in the case of regular periodic cash dividends at a rate in excess of 125% of
the rate of the last cash dividend theretofore paid, only that portion in excess of 125% of such
rate) or of such subscription rights, options or warrants applicable to one share of Common Stock,
and the denominator of which shall be such current per share market price of the shares of Common
Stock. Such adjustments shall be made successively whenever such a record date is fixed; and in the
event that such distribution is not so made, the Purchase Price shall again be adjusted to be the
Purchase Price which would then be in effect if such record date had not been fixed.

          (d) In the event that, following the Share Acquisition Date, directly or indirectly:

          (i) the Company shall consolidate with, or merge with or into, any other Person and the
Company shall not be the continuing or surviving corporation of such consolidation or
merger; or

          (ii) any Person shall consolidate with the Company, or merge with or into the Company
and the Company shall be the continuing or surviving corporation of such merger or
consolidation and, in connection with such merger or consolidation, all or part of the
Common Stock shall be changed into or exchanged for stock or other securities of any other
Person or cash or any other property; or

          (iii) the Company shall sell or otherwise transfer (or one or more Subsidiaries shall
sell or otherwise transfer), in one or more transactions, assets or earning power
(including, without limitation, securities creating any obligation on the part of the
Company and/or any Subsidiaries) representing in the aggregate more than 50% of the assets
or earning power of the Company and the Subsidiaries (taken as a whole) to any Person or
Persons,

then, and in each such case, proper provision shall be made so that (A) except as provided below,
each holder of a Right shall thereafter have the right to receive, upon the exercise thereof in
accordance with the terms of this Agreement at an exercise price per Right equal to the product of
ten (10) times the then-current Purchase Price multiplied by the number of shares of Common Stock
for which a Right was exercisable immediately prior to the first occurrence of a Triggering Event,
such number of validly authorized and issued, fully paid, nonassessable and freely tradeable shares
of Common Stock of such surviving, resulting or acquiring Person (including the Company as the
continuing or surviving corporation of a transaction described in clause (ii) above), as the case
may be, free and clear of any liens, encumbrances and other adverse claims and not subject to any
rights of call or first refusal, as shall be equal to the result obtained by (x) multiplying the
product of ten (10) times the then-current Purchase Price by the number of shares of Common Stock
for which a Right was exercisable immediately prior to the first occurrence of

14

 

a Triggering Event and dividing that product by (y) 50% of the current per share market price of
the Common Stock of such Person (determined pursuant to Section 11(e) hereof) on the date of
consummation of such Flip-over Event; (B) the issuer of such Common Stock shall thereafter be
liable for, and shall assume, by virtue of the consummation of such Flip-over Event, all the
obligations and duties of the Company pursuant to this Agreement; (C) the term “Company” shall
thereafter be deemed to refer to such issuer; and (D) such issuer shall take such steps (including,
but not limited to, the reservation of a sufficient number of its shares of Common Stock in
accordance with Section 9 hereof) in connection with such consummation as may be necessary to
assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be
possible, in relation to its shares of Common Stock thereafter deliverable upon the exercise of the
Rights. Notwithstanding the foregoing, if the surviving, resulting or acquiring Person in any
Flip-over Event, is not a corporation or business trust, then, and in each such case, if such
surviving, resulting or acquiring Person is directly or indirectly wholly owned by a corporation or
business trust, then all references to shares of Common Stock of such surviving, resulting or
acquiring Person in this Section 11(d) shall be deemed to be references to the shares of Common
Stock of the corporation or business trust which ultimately controls such Person, and if there is
no such corporation or business trust, (Y) proper provision shall be made so that such surviving,
resulting or acquiring Person shall create or otherwise make available for purposes of the exercise
of the Rights in accordance with the terms of this Agreement, a type or types of security or
securities having a fair market value at least equal to the economic value of the shares of Common
Stock which each holder of a Right would have been entitled to receive if such surviving, resulting
or acquiring Person had been a corporation or a business trust; and (Z) all other provisions of
this Section 11(d) shall apply to the issuer of such securities as if such securities were shares
of Common Stock. The Company shall not consummate any Flip-over Event, unless the issuer of the
shares of Common Stock or other securities, as the case may be, shall have a sufficient number of
authorized shares of Common Stock or other securities which have not been issued or reserved for
issuance to permit the exercise in full of the Rights in accordance with this Section 11(d) and
unless prior to such consummation the Company and such issuer shall have executed and delivered to
the Rights Agent a supplemental agreement providing for the terms set forth in this Section 11 and
further providing that as promptly as practicable after the consummation of any Flip-over Event,
the issuer shall:

     (I) prepare and file a registration statement under the Securities Act, with respect to
the Rights and the securities issuable upon exercise of the Rights on an appropriate form,
and shall use its best efforts to cause such registration statement to (A) become effective
as soon as practicable after such filing and (B) remain effective (with a prospectus at all
times meeting the requirements of the Securities Act) until the Expiration Date;

     (II) take all such action as may be appropriate under, or to ensure compliance with,
the securities or “blue sky” laws of the various states in connection with the
exercisability of the Rights; and

     (III) deliver to holders of the Rights historical financial statements for such issuer
and each of its Affiliates which comply in all respects with the requirements for
registration on Form 10 under the Exchange Act.

15

 

Notwithstanding the foregoing, upon the occurrence of any Flip-over Event, any Rights that are or
were at any time beneficially owned by any Acquiring Person or any Associate or Affiliate of such
Acquiring Person (which Acquiring Person, Associate or Affiliate is, directly or indirectly,
causing such Flip-over Event to occur) after the date upon which such Acquiring Person became such
shall become void and any holder of such Rights shall thereafter have no right to exercise such
Rights under any provision of this Agreement. The provisions of this Section 11(d) shall similarly
apply to successive mergers or consolidations or sales or other transfers. In the event that a
Flip-over Event occurs at any time after the occurrence of a Flip-in Event, the Rights which have
not therefore been exercised shall thereafter become exercisable in the manner described in this
Section 11(d).

          (e) For the purpose of any computation hereunder, the “current per share market price” of
Common Stock on any date shall be deemed to be the average of the daily closing prices per share of
such Common Stock for the 30 consecutive Trading Days (as such term is hereinafter defined)
immediately prior to such date; provided, however, that in the event that the
current per share market price of the Common Stock is determined during a period following the
announcement by the issuer of such Common Stock (i) of a dividend or distribution on such Common
Stock payable in shares of such Common Stock or securities convertible into such Common Stock or
(ii) any subdivision, combination or reclassification of such shares of Common Stock, and prior to
the expiration of 30 Trading Days after the ex-dividend date for such dividend or distribution or
the record date for such subdivision, combination or reclassification, then, and in each such case,
the “current market price” shall be appropriately adjusted to take into account ex-dividend trading
or to reflect the current market price per share of Common Stock equivalent. The closing price for
each day shall be the last sale price, regular way, or, in case no such sale takes place on such
day, the average of the closing bid and asked prices, regular way, in either case as reported in
the principal consolidated transaction reporting system with respect to securities listed or
admitted to trading on the New York Stock Exchange or, if the shares of Common Stock are not listed
or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities
exchange on which the shares of Common Stock are listed or admitted to trading or, if the shares of
Common Stock are not listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by the National Association of Securities Dealers, Inc.
Automated Quotation System (“Nasdaq”) or such other system then in use, or, if on any such date the
shares of Common Stock are not quoted by any such organization, the average of the closing bid and
asked prices as furnished by a professional market maker making a market in the shares of Common
Stock selected by the Directors of the Company. The term “Trading Day” shall mean any day on which
the principal national securities exchange on which the shares of Common Stock are listed or
admitted to trading is open for the transaction of business or, if the shares of Common Stock are
not listed or admitted to trading on any national securities exchange, a Monday, Tuesday,
Wednesday, Thursday or Friday on which banking institutions in the State of New York are not
authorized or obligated by law or executive order to close. If the shares of Common Stock are not
publicly held or not so listed or traded, or not the subject of available bid and asked quotes,
“current per share market price” shall mean the fair value per share as determined in good faith by
the Directors of the Company, whose determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes.

16

 

          (f) Except as set forth below, no adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least 1% in such price;
provided, however, that any adjustments which by reason of this Section 11(f) are
not required to be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the
nearest ten-thousandth of a share as the case may be. Notwithstanding the first sentence of this
Section 11(f), any adjustment required by this Section 11 shall be made no later than the earlier
of (i) three years from the date of the transaction which requires such adjustment and (ii) the
Expiration Date.

          (g) If as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any
Right thereafter exercised shall become entitled to receive any shares of capital stock of the
Company other than shares of Common Stock, thereafter the number of such other shares so receivable
upon exercise of any Right shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the shares contained in
this Section 11 and the provisions of Sections 7, 9, 10 and 14 hereof with respect to the shares of
Common Stock shall apply on like terms to any such other shares.

          (h) All Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the
number of shares of Common Stock purchasable from time to time hereunder upon exercise of the
Rights, all subject to further adjustment as provided herein.

          (i) Unless the Company shall have exercised its election as provided in Section 11(j) hereof,
upon each adjustment of the Purchase Price as a result of the calculations made in Sections 11(b)
and (c) hereof, each Right outstanding immediately prior to the making of such adjustment shall
thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of shares
(calculated to the nearest ten-thousandth) obtained by (i) multiplying (x) the number of shares
covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

          (j) The Company may elect, on or after the date of any adjustment of the Purchase Price, to
adjust the number of Rights in substitution for any adjustment in the number of shares of Common
Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after such
adjustment of the number of Rights shall be exercisable for the number of shares of Common Stock
for which a Right was exercisable immediately prior to such adjustment. Each Right held of record
prior to such adjustment of the number of Rights shall become that number of Rights (calculated to
the nearest ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior to
adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of
the Purchase Price. The Company shall make a public announcement of its election to adjust the
number of Rights, indicating the record date for the adjustment, and, if known at the time, the
amount of the adjustment to be made. This record date may be the date on which the Purchase Price
is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at
least 10 calendar days later than the date of the public announcement. If Right Certificates have
been issued, upon each adjustment of the

17

 

number of Rights pursuant to this Section 11(j), the Company shall, as promptly as
practicable, cause to be distributed to holders of record of Right Certificates on such record date
Right Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such
holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall
cause to be distributed to such holders of record in substitution and replacement for the Right
Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if
required by the Company, new Right Certificates evidencing all the Rights to which such holders
shall be entitled after such adjustment. Right Certificates so to be distributed shall be issued,
executed and countersigned in the manner provided for herein (and may bear, at the option of the
Company, the adjusted Purchase Price) and shall be registered in the names of the holders of record
of Right Certificates on the record date specified in the public announcement.

          (k) Irrespective of any adjustment or change in the Purchase Price or the number or type of
shares issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter
issued may continue to express the Purchase Price per share and the number of shares which were
expressed in the initial Right Certificate issued hereunder.

          (l) Before taking any action that would cause an adjustment reducing the Purchase Price below
the then par value, if any, of the shares of Common Stock issuable upon exercise of the Rights, the
Company shall take any corporate action which may, in the opinion of its counsel, be necessary in
order that the Company may validly and legally issue fully paid and nonassessable shares of Common
Stock at such adjusted Purchase Price.

          (m) In any case in which this Section 11 shall require that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the Company may elect to defer
until the occurrence of such event the issuing to the holder of any Right exercised after such
record date the shares of Common Stock and other capital stock or securities of the Company, if
any, issuable upon such exercise over and above the shares of Common Stock and other capital stock
or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase
Price in effect prior to such adjustment; provided, however, that the Company shall
deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to
receive such additional shares upon the occurrence of the event requiring such adjustment.

          (n) Anything in Sections 11 (a) through (m), inclusive, hereof to the contrary
notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to the extent that it
in its sole discretion shall determine to be advisable in order that any consolidation or
subdivision of the shares of Common Stock, issuance wholly for cash of any of the shares of Common
Stock at less than the current market price, issuance wholly for cash of shares of Common Stock or
securities which by their terms are convertible into or exchangeable for shares of Common Stock,
stock dividends or issuance of rights, options or warrants referred to hereinabove in this Section
11, hereafter made by the Company to holders of its Common Stock shall not be taxable to such
stockholders.

          (o) Notwithstanding any other provision of this Agreement, no adjustment to the Purchase
Price, the number of shares of Common Stock (or fractions of a share) for which a

18

 

Right is exercisable or the number or Rights outstanding shall be made or be effective if such
adjustment would have the effect of reducing or limiting the benefits the holders of the Rights
would have had absent such adjustment, including, without limitation, the benefits under Sections
11(a)(ii) and 11(d) hereof, unless the terms of this Agreement are amended so as to preserve such
benefits.

          Section 12. Certificate of Adjusted Purchase Price or Number of Shares.

          Whenever an adjustment is made as provided in Section 11 hereof, the Company shall promptly
prepare a certificate setting forth such adjustment, (including a description of any Rights which
have become void as a result thereof), and a brief statement of the facts accounting for such
adjustment and promptly file with the Rights Agent and with each transfer agent for the shares of
Common Stock a copy of such certificate. The Rights Agent shall be fully protected in relying on
any such certificate and on any adjustment therein contained and shall not be obligated or
responsible for calculating any adjustment nor shall it be deemed to have knowledge of such
adjustment unless and until it shall have received such certificate.

          Section 13. Notice of Adjusted Purchase Price or Number or Type of Shares to Holders of
Rights.

          Whenever an adjustment is made as provided in Section 11 hereof after the Distribution Date,
the Company shall mail a brief summary of such adjustment to each holder of a Right Certificate in
accordance with Section 25 hereof.

          Section 14. Fractional Rights and Fractional Shares.

          (a) The Company shall not be required to issue fractions of Rights or to distribute Right
Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be
paid as promptly as practicable to the registered holders of the Right Certificates with regard to
which such fractional Rights would otherwise be issuable, an amount in cash equal to the same
fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the
current market value of a whole Right shall be the closing price of the Rights for the Trading Day
immediately prior to the date on which such fractional Rights would have been otherwise issuable.
The closing price for any day shall be the last sale price, regular way, or, in case no such sale
takes place on such day, the average of the closing bid and asked prices, regular way, in either
case as reported in the principal consolidated transaction reporting system with respect to
securities listed or admitted to trading on the New York Stock Exchange or, if the Rights are not
listed or admitted to trading on the New York Stock Exchange, as reported in the principal
consolidated transaction reporting system with respect to securities listed on the principal
national securities exchange on which the Rights are listed or admitted to trading or, if the
Rights are not listed or admitted to trading on any national securities exchange, the last quoted
price or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by Nasdaq or such other system then in use or, if on any such
date the Rights are not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the Rights selected by the
Directors of the Company. If on any such date no such market maker is making a market in the

19

 

Rights the fair value of the Rights on such date as determined in good faith by the Directors
of the Company shall be used and shall be conclusive for all purposes.

          (b) The Company shall not be required to issue fractions of shares upon exercise of the Rights
or to distribute certificates which evidence fractional shares. Fractions of shares of Common Stock
may, at the election of the Company, be evidenced by depositary receipts, pursuant to an
appropriate agreement between the Company and a depositary selected by it, provided that such
agreement shall provide that the holders of such depositary receipts shall have all the rights,
privileges and preferences to which they are entitled as beneficial owners of shares of Common
Stock. In lieu of fractional shares, the Company may pay to the registered holders of Right
Certificates at the time such Rights are exercised as herein provided an amount in cash equal to
the same fraction of the current market value of one share of Common Stock. For purposes of this
Section 14(b), the current market value of a share of Common Stock shall be the closing price of a
share of Common Stock (as determined pursuant to the second sentence of Section 11(e) hereof) for
the Trading Day immediately prior to the date of such exercise or exchange.

          (c) The holder of a Right by the acceptance of the Rights expressly waives his right to
receive any fractional Rights or any fractional shares upon exercise or exchange of a Right.

          Section 15. Rights of Action.

          All rights of action in respect of this Agreement, excepting the rights of action given to the
Rights Agent under Section 18, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of shares of Common
Stock); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of
shares of Common Stock), without the consent of the Rights Agent or of the holder of any other
Rights Certificate (or, prior to the Distribution Date, of shares of Common Stock), may, in his own
behalf and for his own benefit, enforce, and may institute and maintain any suit, action or
proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise
the Rights evidenced by such Right Certificate in the manner provided in such Right Certificate and
in this Agreement. Without limiting the foregoing or any remedies available to the holders of
Rights, it is specifically acknowledged that the holders of Rights would not have an adequate
remedy at law for any breach of this Agreement and will be entitled to specific performance of the
obligations under this Agreement, and injunctive relief against actual or threatened violations of
the obligations of any Person subject to this Agreement.

          Section 16. Agreement of Rights Holders.

          Every holder of a Right by accepting the same consents and agrees with the Company and the
Rights Agent and with every other holder of a Right that:

          (a) prior to the Distribution Date, the Rights will be transferable only in connection with
the transfer of shares of Common Stock;

20

 

          (b) after the Distribution Date, the Right Certificates are transferable only on the registry
books of the Rights Agent if surrendered at the principal office of the Rights Agent designated for
such purpose, duly endorsed or accompanied by a proper instrument of transfer;

          (c) the Company and the Rights Agent may deem and treat the person in whose name the Right
Certificate (or, prior to the Distribution Date, the associated Common Stock certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any
notations of ownership or writing on the Right Certificate or the associated Common Stock
certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever,
and neither the Company nor the Rights Agent shall be affected by any notice to the contrary;

          (d) Such holder expressly waives any right to receive fractional Rights and any fractional
securities upon exercise or exchange of a Right, except as otherwise provided in Section 14; and

          (e) Notwithstanding anything in this Agreement to the contrary, neither the Company nor the
Rights Agent shall have any liability to any holder of a Right or other Person as a result of its
inability to perform any of its obligations under this Agreement by reason of any preliminary or
permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction
or by a governmental, regulatory or administrative agency or commission, or any statute, rule,
regulation or executive order promulgated or enacted by any governmental authority, prohibiting or
otherwise restraining performance of such obligation; provided, however, that the
Company shall use its best efforts to have any such order, decree or ruling lifted or otherwise
overturned as soon as possible.

          Section 17. Right Certificate Holder Not Deemed a Stockholder.

          No holder, as such, of any Right Certificate shall be entitled to vote, receive dividends or
be deemed for any purpose the holder of shares of Common Stock or any other securities of the
Company which may at any time be issuable on the exercise of the Rights represented thereby, nor
shall anything contained herein or in any Right Certificate be construed to confer upon the holder
of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right
to vote for the election of directors or upon any matter submitted to stockholders at any meeting
thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting stockholders (except as provided in Section 24 hereof), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Right
Certificate shall have been exercised in accordance with the provisions hereof or exchanged
pursuant to the provisions of Section 27 hereof.

          Section 18. Concerning the Rights Agent.

          The Company agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the administration and execution of
this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to
indemnify the Rights Agent for, and to hold it harmless against, any

21

 

loss, liability, suit, action, proceeding or expense, incurred without negligence, bad faith or
willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights
Agent in connection with the acceptance and administration of this Agreement, including the costs
and expenses of defending against any claim of liability. The costs and expenses of enforcing this
right of indemnification shall also be paid by the Company. The indemnification provided for
hereunder shall survive the expiration of the Rights and the termination of this Agreement. The
Rights Agent may conclusively rely upon and shall be protected and shall incur no liability for or
in respect of any action taken, suffered or omitted by it in connection with its administration of
this Agreement in reliance upon any Right Certificate or certificate for shares of Common Stock or
for other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper
or document believed by it to be genuine and to be signed, executed and, where necessary, verified
or acknowledged, by the proper Person or Persons. Notwithstanding anything in this Agreement to
the contrary, in no event shall the Rights Agent be liable for special, indirect or consequential
loss or damage of any kind whatsoever (including but not limited to lost profits), even if the
Rights Agent has been advised of the likelihood of such loss or damage and regardless of the form
of the action.

          Section 19. Merger or Consolidation or Change of Name of Rights Agent.

          Any corporation into which the Rights Agent or any successor Rights Agent may be merged or
with which it may be consolidated, or any corporation resulting from any merger or consolidation to
which the Rights Agent or any successor Rights Agent shall be a party, or any corporation
succeeding to the corporate trust business of the Rights Agent or any successor Rights Agent, shall
be the successor to the Rights Agent under this Agreement without the execution or filing of any
paper or any further act on the part of any of the parties hereto, provided that such corporation
would be eligible for appointment as a successor Rights Agent under the provisions of Section 21
hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this
Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver
such Right Certificates so countersigned; and in case at that time any of the Rights Certificates
shall not have been countersigned, any successor Rights Agent may countersign such Right
Certificates either in the name of the predecessor Rights Agent or in the name of the successor
Rights Agent; and in all such cases such Right Certificates shall have the full force provided in
the Right Certificates and in this Agreement.

          In case at any time the name of the Rights Agent shall be changed and at such time any of the
Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Right Certificates so countersigned; and in case
at that time any of the Right Certificates shall not have been countersigned, the Rights Agent may
countersign such Right Certificates either in its prior name or in its changed name; and in all
such cases such Right Certificates shall have the full force provided in the Right Certificates and
in this Agreement.

22

 

          Section 20. Duties of Rights Agent.

          The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the
following terms and conditions, and no implied duties or obligations shall be read into this
Agreement against the Rights Agent, by all of which the Company and the holders of Right
Certificates, by their acceptance thereof, shall be bound:

          (a) Before the Rights Agent acts or refrains from acting, the Rights Agent may consult with
legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent as to any action taken or
omitted by it in good faith and in accordance with such opinion.

          (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem
it necessary or desirable that any fact or matter be proved or established by the Company prior to
taking or suffering any action hereunder, such fact or matter (unless other evidence in respect
thereof be herein specifically prescribed) may be deemed to be conclusively proved and established
by a certificate signed by any one of the Chairman of the Board, the President, any Vice President,
the Treasurer or the Secretary of the Company and delivered to the Rights Agent; and such
certificate shall be full authorization to the Rights Agent for any action taken or suffered in
good faith by it under the provisions of this Agreement in reliance upon such certificate.

          (c) The Rights Agent shall be liable hereunder only for its own negligence, bad faith or
willful misconduct.

          (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Right Certificates (except its countersignature
thereof) or be required to verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Company only.

          (e) The Rights Agent shall not be under any responsibility in respect of the validity of this
Agreement or the execution and delivery hereof (except the due execution and delivery hereof by the
Rights Agent) or in respect of the validity or execution of any Right Certificate (except its
countersignature hereof); nor shall it be responsible for any breach by the Company of any covenant
or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible
for any adjustment required under the provisions of Section 11 hereof (including any adjustment
which results in Rights becoming void) or responsible for the manner, method or amount of any such
adjustment or the ascertaining of the existence of facts that would require any such adjustment
(except with respect to the exercise of Rights evidenced by Right Certificates after actual notice
of any such adjustment or voidance); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares of Common Stock to
be issued pursuant to this Agreement or any Right Certificate or as to whether any shares of Common
Stock will, when issued, be validly authorized and issued, fully paid and nonassessable.

          (f) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and

23

 

other acts, instruments and assurances as may reasonably be required by the Rights Agent for
the carrying out or performing by the Rights Agent of the provisions of this Agreement.

          (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from any one of the Chairman of the Board, the President,
any Vice President, the Secretary or the Treasurer of the Company, and to apply to such officers
for advice or instructions in connection with its duties, and it shall not be liable for any action
taken or suffered to be taken by it in good faith in accordance with instructions of any such
officer or for any delay in acting while waiting for those instructions. Any application by the
Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set
forth in writing any action proposed to be taken or omitted by the Rights Agent under this
Agreement and the date on or after which such action shall be taken or such omission shall be
effective. The Rights Agent shall not be liable for any action taken by, or omission of, the
Rights Agent in accordance with a proposal included in any such application on or after the date
specified in such application (which date shall not be less than ten Business Days after the date
any officer of the Company actually receives such application, unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking any such action (or the effective
date in the case of an omission), the Rights Agent shall have received written instructions in
response to such application subject to the proposed action or omission and/or specifying the
action to be taken or omitted.

          (h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily
interested in any transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not Rights Agent under
this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity
for the Company or for any other legal entity.

          (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself or by or through its attorneys or agents, and the
Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of
any such attorneys or agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, provided reasonable care was exercised in the selection and continued
employment thereof. The Rights Agent shall not be under any duty or responsibility to ensure
compliance with any applicable federal or state securities laws in connection with the issuance,
transfer or exchange of Right Certificates.

          (j) The Rights Agent shall promptly remit to the Company any funds paid to it upon exercise of
the Rights pursuant to Section 7 hereof.

          (k) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise,
transfer, split up, combination or exchange, either (i) the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has either not been completed or
indicates an affirmative response to clause 1 or 2 thereof, or (ii) any other actual or suspected
irregularity exists, the Rights Agent shall not take any further action with respect to such
requested exercise, transfer, split up, combination or exchange, without first consulting with

24

 

the Company, and will thereafter take further action with respect thereto only in accordance
with the Company’s written instructions.

          (l) No provision of this Agreement shall require the Rights Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder
or in the exercise of its rights if there shall be reasonable grounds for believing that repayment
of such funds or adequate indemnification against such risk or liability is not reasonably assured
to it.

          (m) The Rights Agent shall not be required to take notice or be deemed to have notice of any
fact, event or determination (including, without limitation, any dates or events defined in this
Agreement or the designation of any Person as an Acquiring Person, Affiliate or Associate) under
this Agreement unless and until the Rights Agent shall be specifically notified in writing by the
Company of such fact, event or determination.

          Section 21. Change of Rights Agent.

          The Rights Agent or any successor Rights Agent may resign and be discharged from its duties
under this Agreement upon 30 days’ notice in writing mailed to the Company and to each transfer
agent of the shares of Common Stock by registered or certified mail, and, at the expense of the
Company, to the holders of the Right Certificates by first-class mail. The Company may remove the
Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights
Agent or successor Rights Agent, as the case may be, and to each transfer agent of the shares of
Common Stock by registered or certified mail, and to the holders of the Right Certificates by
first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company
shall fail to make such appointment within a period of 30 days after giving notice of such removal
or after it has been notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice,
submit his Right Certificate for inspection by the Company), then the registered holder of any
Right Certificate may apply to any court of competent jurisdiction for the appointment of a new
Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court,
shall be a corporation or other legal entity organized and doing business under the laws of the
United States (or of any state of the United States so long as such corporation is authorized to do
business as a banking institution in such state), in good standing, which is authorized under such
laws to exercise corporate trust powers or stock transfer powers and is subject to supervision or
examination by federal or state authority and which has at the time of its appointment as Rights
Agent a combined capital and surplus of at least $50 million and which shall otherwise meet any
requirements imposed by the New York Stock Exchange on transfer agents and registrars. After
appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without further act or deed;
but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective date of any such
appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and
each transfer agent of the shares of Common Stock, and mail a notice thereof in writing to the
registered holders of the Right Certificates. Failure to give any

25

 

notice provided for in this Section 21, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the appointment of the
successor Rights Agent, as the case may be.

          Section 22. Issuance of New Right Certificates.

          Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be
approved by its Directors to reflect any adjustment or change in the Purchase Price and the number
or kind or class of shares or other securities or property purchasable under the Right Certificates
made in accordance with the provisions of this Agreement. In addition, in connection with the
issuance or sale by the Company of shares of Common Stock following the Distribution Date and prior
to the Expiration Date, the Company (a) shall, with respect to shares of Common Stock so issued or
sold pursuant to the exercise, exchange or conversion of securities (other than Rights) issued
prior to the Distribution Date which are exercisable for or exchangeable for, or convertible into,
shares of Common Stock, and (b) may, in any other case, if deemed necessary, appropriate or
desirable by the Directors of the Company, issue Right Certificates representing an equivalent
number of Rights as would have been issued in respect of such shares of Common Stock if they had
been issued or sold prior to the Distribution Date, as appropriately adjusted as provided herein as
if they had been so issued or sold; provided, however, that (i) no such Right
Certificate shall be issued if, and to the extent that, in its good faith judgment the Directors of
the Company shall have determined that the issuance of such Right Certificate could have a material
adverse tax consequence to the Company or to the Person to whom or which such Right Certificate
otherwise would be issued, and (ii) no such Right Certificate shall be issued if, and to the extent
that, appropriate adjustment otherwise shall have been made in lieu of the issuance thereof.

          Section 23. Redemption.

          (a) Prior to the Expiration Date, the Directors of the Company may, at their option, redeem
all but not less than all of the then-outstanding Rights at a redemption price of $.001 per Right,
appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring
after the date hereof (the “Redemption Price”), at any time prior to the close of business on the
Distribution Date.

          (b) Immediately upon the effective date of the action of the Directors of the Company ordering
the redemption of the Rights, and without any further action and without any notice, the right to
exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be
to receive the Redemption Price, without interest thereon. Promptly after the effectiveness of the
redemption of the Rights, the Company shall publicly announce such action and, within ten calendar
days thereafter, will give notice of such redemption to the holders of the then-outstanding Rights
by mailing such notice to all such holders at their last addresses as they appear upon the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer
agent for the shares of Common Stock; provided, however, that the failure to give,
or any defect in, any such notice shall not affect the validity of the redemption of the Rights.
Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of redemption will state the

26

 

method by which the payment of the Redemption Price will be made. The Company may, at its
option, pay the Redemption Price in cash, shares of Common Stock (based upon the current per share
market price of the Common Stock (determined pursuant to Section 11(e) hereof) at the time of
redemption) or any other form of consideration deemed appropriate by the Directors of the Company
(based upon the fair market value of such other consideration, determined by the Directors of the
Company in good faith) or any combination thereof. The Company may, at its option, combine the
payment of the Redemption Price with any other payment being made concurrently to holders of shares
of Common Stock and, to the extent that any such other payment is discretionary, may reduce the
amount thereof on account of the concurrent payment of the Redemption Price. If legal or
contractual restrictions prevent the Company from paying the Redemption Price (in the form of
consideration deemed appropriate by the Directors) at the time of redemption, the Company shall pay
the Redemption Price, without interest, promptly after such time as the Company ceases to be so
prevented from paying the Redemption Price.

          (c) At any time, the Directors of the Company may relinquish their rights to redeem the Rights
under paragraphs (a) or (b) above, or both, by duly adopting a resolution to that effect.
Immediately upon adoption of such resolution, the rights of the Directors under the portions of
this Section 23 specified in such resolution shall terminate without further action and without any
notice.

          (d) Notwithstanding the foregoing, it is understood that no later than five years from the
date of this Agreement (or sooner than that if any Person shall have made a proposal to the
Company, or taken any such other action, that, if effective, could cause such Person to become an
Acquiring Person hereunder), the Board of Directors of the Company shall review and evaluate this
Agreement in order to consider whether the maintenance of this Agreement continues to be in the
interests of the Company, its stockholders and any other relevant constituencies of the Company.

          Section 24. Notice of Certain Events.

          In case, after the Distribution Date, the Company shall propose (a) to pay any dividend
payable in stock of any class to the holders of shares of Common Stock or to make any other
distribution to the holders of shares of Common Stock (other than a regular periodic cash dividend
at a rate not in excess of 125% of the rate of the last cash dividend theretofore paid) or (b) to
offer to the holders of shares of Common Stock rights, options or warrants to subscribe for or to
purchase any additional shares of Common Stock or shares of stock of any class or any other
securities, rights or options, or (c) to effect any reclassification of its shares of Common Stock
(other than a reclassification involving only the subdivision of outstanding shares of Common
Stock), or (d) to effect any consolidation or merger into or with, or to effect any sale or other
transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in
one or more transactions, of more than 50% of the assets or earning power of the Company and its
Subsidiaries, taken as a whole, to any other Person or Persons, or (e) to effect the liquidation,
dissolution or winding up of the Company, then, in each such case, the Company shall give to each
holder of a Right Certificate, in accordance with Section 25 hereof, a notice of such proposed
action, which shall specify the record date for the purposes of such stock dividend, distribution
or offering of rights, options or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution or winding up is to take place and

27

 

the date of participation therein by the holders of the shares of Common Stock, if any such date is
to be fixed, and such notice shall be so given, in the case of any action covered by clause (a) or
(b) above, at least 20 calendar days prior to the record date for determining holders of the shares
of Common Stock for purposes of such action, and, in the case of any such other action, at least 20
calendar days prior to the date of the taking of such proposed action or the date of participation
therein by the holders of the shares of Common Stock, whichever shall be the earlier.

          In case any Triggering Event shall occur, then, in any such case, the Company shall as soon as
practicable thereafter give to the Rights Agent and each holder of a Right Certificate, in
accordance with Section 25 hereof, a notice of the occurrence of such event, which shall specify
the event and the consequences of the event to holders of Rights.

          Section 25. Notices.

          Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by
the holder of any Right Certificate to or on the Company shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is filed in writing
with the Rights Agent) as follows:

RPM, Inc.

2628 Pearl Road

P.O. Box 777

Medina, Ohio 44258

Attention: Secretary

          Subject to the provisions of Section 21 hereof, any notice or demand authorized by this
Agreement to be given or made by the Company or by the holder of any Right Certificate to or on the
Rights Agent shall be sufficiently given or made if sent by registered or certified mail and shall
be deemed given upon receipt, addressed (until another address is filed in writing with the
Company) as follows:

National City Bank

Suite 635 — LOC 01-3116

629 Euclid Avenue

Cleveland, Ohio 44114

Attention: Shareholder Services Administration

          Notices or demands authorized by this Agreement to be given or made by the Company or the
Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown
on the registry books of the Rights Agent.

          Section 26. Supplements and Amendments.

          Prior to the Distribution Date and subject to Section 11 and the last sentence of this Section
26, if the Company so directs, the Company and the Rights Agent shall, at the

28

 

expense of the Company, supplement or amend any provision of this Agreement without the approval of
any holders of certificates representing shares of Common Stock. From and after the Distribution
Date and subject to the last sentence of this Section 26, if the Company so directs, the Company
and the Rights Agent shall supplement or amend this Agreement without the approval of any holders
of Right Certificates in order (i) to cure any ambiguity, (ii) to correct or supplement any
provision contained herein which may be defective or inconsistent with any other provisions herein,
(iii) to shorten or lengthen any time period hereunder, or (iv) to supplement or amend the
provisions hereunder in any manner which the Company may deem desirable, including, without
limitation, the addition of other events requiring adjustment to the Rights under Sections
11(a)(ii) or 11(d) hereof or procedures relating to the redemption of the Rights, which supplement
or amendment shall not, in the good faith determination of the Directors of the Company, adversely
affect the interests of the holders of Right Certificates (other than an Acquiring Person or an
Affiliate or Associate of an Acquiring Person). Upon the delivery of a certificate from an officer
of the Company which states that the proposed supplement or amendment is in compliance with the
terms of this Section 26, the Rights Agent shall execute such supplement or amendment;
provided, however, that the failure or refusal of the Rights Agent to execute such
supplement or amendment shall not affect the validity of any supplement or amendment adopted by the
Company, any of which shall be effective in accordance with the terms thereof, provided,
however, that notwithstanding anything in this Agreement to the contrary, no supplement or
amendment that changes the rights and duties of the Rights Agent under this Agreement will be
effective against the Rights Agent without the execution of such supplement or amendment by the
Rights Agent. Notwithstanding anything in this Agreement to the contrary, no supplement or
amendment shall be made which (x) changes the stated Redemption Price, (y) reduces the number of
shares of Common Stock for which a Right is then exercisable, or (z) modifies a time period
relating to when the Rights may be redeemed at such time as the Rights are not then redeemable.

          Section 27. Exchange.

          (a) The Directors of the Company may, at their option, at any time after the Distribution
Date, exchange all or part of the then-outstanding and exercisable Rights (which shall not include
Rights that have become void pursuant to the provisions of Section 11(a)(ii) hereof) for shares of
Common Stock at an exchange ratio of one share of Common Stock (or a lesser ratio as determined by
the Board of Directors, if the Company does not have sufficient authorized and unreserved shares of
Common Stock) per Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred
to as the “Exchange Ratio”). Notwithstanding the foregoing, the Directors shall not be empowered to
effect such exchange at any time after any Person (other than the Company, any Subsidiary, any
employee benefit plan of the Company or any Subsidiary, or any entity holding Common Stock for or
pursuant to the terms of any such plan), who or which, together with all Affiliates and Associates
of such Person, becomes the Beneficial Owner of 50% or more of the shares of Common Stock
outstanding.

          (b) Immediately upon the effective date of the action of the Directors of the Company ordering
the exchange of any Rights pursuant to Section 27(a) hereof, and without any further action and
without any notice, the right to exercise such Rights shall terminate and the only right with
respect to such Rights thereafter of the holder of such Rights shall be to receive

29

 

that number of shares of Common Stock equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio. Promptly after the action of the Directors of the Company
ordering the exchange of any Rights pursuant to Section 27(a) hereof, the Company shall publicly
announce such action, and within 10 calendar days thereafter shall give notice of any such exchange
to all of the holders of such Rights at their last addresses as they appear upon the registry books
of the Rights Agent; provided, however, that the failure to give, or any defect in,
such notice shall not affect the validity of such exchange. Any notice which is mailed in the
manner herein provided shall be deemed given, whether or not the holder receives the notice. Each
such notice of exchange shall state the method by which the exchange of the shares of Common Stock
for Rights will be effected and, in the event of any partial exchange, the number of Rights which
will be exchanged. Each such notice shall be accompanied by a certificate of exchange to be
completed by each holder of Rights pursuant to Section 27(d) hereof. Any partial exchange shall be
effected pro rata based on the number of Rights (other than Rights which have become void pursuant
to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights.

          (c) In any exchange pursuant to this Section 27, the Company, at its option, may substitute
for any share of Common Stock exchangeable for a Right, (i) cash, (ii) debt securities of the
company, (iii) other assets, or (iv) any combination of the foregoing, in any event having an
aggregate value which the Directors of the Company shall have determined in good faith to be equal
to the current market value of one share of Common Stock (determined pursuant to Section 11(e)
hereof) on the Trading Day immediately preceding the date of exchange pursuant to this Section 27.

          (d) Notwithstanding anything to the contrary in the foregoing, no holder of Rights shall be
entitled to receive shares of Common Stock (or any substitute therefor pursuant to the provisions
of Section 27(c) hereof) in exchange for such holder’s Rights pursuant to this Section 27 unless
and until such holder submits a certificate of exchange (substantially in the form of the
Certificate of Exchange included in Exhibit A hereto) certifying that such holder is not or after
due inquiry and to the best of such holder’s knowledge did not receive such holder’s Rights from a
Person who is or was, an “Acquiring Person” as set forth in this Agreement.

          (e) As soon as reasonably practicable after the Distribution Date and until all Rights have
been exchanged as set forth in this Section 27, the Company shall make provision for a number of
shares of Common Stock in an amount equal to at least three percent of the number of shares of
Common Stock for which Rights may be exchanged pursuant to this Section 27 to be held in trust by a
third party (the identity of such party to be mutually agreed upon by the Company and the Rights
Agent) for the benefit of eligible holders of Rights who are not “Acquiring Persons” as set forth
in this Agreement and who, or whose brokers, did not provide the certification required by this
Section 27 by a date (such date to be mutually agreed upon by the Company and the Rights Agent)
following the Distribution Date.

          Section 28. Successors.

          All the covenants and provisions of this Agreement by or for the benefit of the Company or the
Rights Agent shall bind and inure to the benefit of their respective successors and assigns
hereunder.

30

 

          Section 29. Benefits of this Agreement.

          Nothing in this Agreement shall be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution
Date, the shares of Common Stock) any legal or equitable right, remedy or claim under this
Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the
Rights Agent and the registered holders of the Right Certificates (or prior to the Distribution
Date, the shares of Common Stock).

          Section 30. Determinations and Actions by Directors.

          For all purposes of this Agreement, any calculation of the number of shares of Common Stock of
the Company outstanding at any particular time, including for purposes of determining a particular
percentage of such outstanding shares of Common Stock of the Company of which any Person is the
Beneficial Owner, will be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the
General Rules and Regulations under the Exchange Act. The Directors of the Company will have the
exclusive power and authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Directors of the Company or to the Company, or as may be necessary or
advisable in the administration of this Agreement, including without limitation the right and power
to (i) interpret the provisions of this Agreement (including without limitation Section 26, this
Section 30 and other provisions hereof relating to powers or authority hereunder) and (ii) make all
determinations deemed necessary or advisable for the administration of this Agreement (including
without limitation any determination contemplated by Section 1(a) or any determination as to
whether particular Rights shall have become void). All such actions, calculations, interpretations
and determinations (including, for purposes of clause (y) below, any omission with respect to any
of the foregoing) which are done or made by the Directors of the Company in good faith will be (x)
final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all
other parties and (y) not subject the Directors of the Company to any liability to any Person,
including without limitation the Rights Agent and the holders of the Rights.

          Whenever any action hereunder or in connection with the Rights is required or permitted to be
taken by the Directors of the Company, such action may be taken by the Executive Committee of the
Directors or by any other duly authorized committee thereof.

          Section 31. Severability.

          If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated; provided, however,
that nothing contained in this Section 31 shall affect the ability of the Company under the
provisions of Section 26 to supplement or amend this Agreement to replace such invalid, void or
unenforceable term, provision, covenant or restriction with a legal, valid and enforceable term,
provision, covenant or restriction.

31

 

          Section 32. Governing Law.

          This Agreement and each Right Certificate issued hereunder shall be deemed to be a contract
made under the laws of the State of Delaware and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contracts to be made and
performed entirely within such State.

          Section 33. Counterparts.

          This Agreement may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together
constitute but one and the same instrument.

          Section 34. Descriptive Headings.

          Descriptive headings of the several Sections of this Agreement are inserted for convenience
only and shall not control or affect the meaning or construction of any of the provisions hereof.

          Section 35. Force Majeure.

          Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be
liable for any delays or failures in performance resulting from acts beyond its reasonable control
including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or
malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power
failures or mechanical difficulties with information storage or retrieval systems, labor
difficulties, war, or civil unrest.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
their respective corporate seals to be hereunto affixed and attested, effective as of the 21st day
of April, 2009.

	 	 	 	 	 
	 	RPM INTERNATIONAL INC.

 	 
	 	By:  	/s/ Edward W. Moore
 	 
	 	 	Name:  	Edward W. Moore 	 
	 	 	Title:  	Vice President, General Counsel and Secretary 	 
	 
	 	NATIONAL CITY BANK, as Rights Agent

 	 
	 	By:  	/s/ Pamela Fisher
 	 
	 	 	Name:  	Pamela Fisher 	 
	 	 	Title:  	Vice President—Shareholder Services
Administration 	 
	 

32

 

Exhibit A

FORM OF RIGHT CERTIFICATE

	 	 	 
	Certificate No. R-

	 	___________ Rights

NOT EXERCISABLE AFTER MAY 11, 2019 OR EARLIER IF REDEEMED OR EXCHANGED. THE RIGHTS
ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.001 PER RIGHT ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT. [THE RIGHTS REPRESENTED BY THIS CERTIFICATE
ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO IS OR WAS AN ACQUIRING PERSON OR AN
AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT). THIS RIGHT CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY
BECOME VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 11(a)(ii) OR SECTION 11(d) OF
THE RIGHTS AGREEMENT.*]

Right Certificate

RPM INTERNATIONAL INC.

     This certifies that
_______________________, or registered assigns, is the registered owner
of the number of Rights set forth above, each of which entitles the owner thereof, subject to the
terms, provisions and conditions of the Rights Agreement, dated as of April 21, 2009, (the “Rights
Agreement”), between RPM International Inc., a Delaware corporation (the “Company”), and National
City Bank (the “Rights Agent”), to purchase from the Company at any time after the Distribution
Date (as such term is defined in the Agreement) and prior to 5:00 P.M. (Cleveland, Ohio time) on
May 11, 2019 at the principal office of the Rights Agent, or its successors as Rights Agent, at its
principal executive offices designated for such purpose, one-tenth of one fully paid nonassessable
share of Common Stock, par value $0.01 per share (“Common Stock”) of the Company, at a purchase
price of $70.00 per whole share of Common Stock (the “Purchase Price”), upon representation and
surrender of this Right Certificate with the Form of Election to purchase and related Certificate
duly executed. The number of Rights evidenced by this Right Certificate (and the number of shares
which may be purchased upon exercise thereof) set forth above, and the Purchase Price set forth
above, are the number and Purchase Price as of the Record Date, based on the shares of Common Stock
as constituted at such date.

     As provided in the Rights Agreement, the Purchase Price and the number of shares of Common
Stock which may be purchased upon the exercise of the Rights evidenced by this Right Certificate
are subject to modification and adjustment upon the happening of certain events.

     This Right Certificate is subject to all of the terms, provisions and conditions of the Rights
Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and
made a part hereof and to which Rights Agreement reference is hereby made for a

 

			
	*	 	The portion of the legend in brackets shall be inserted
only if applicable.

A-1

 

full description of the rights, limitations of rights, obligations, duties and immunities
hereunder of the Rights Agent, the Company and the holders of the Right Certificates. Copies of the
Rights Agreement are on file at the above-mentioned office of the Rights Agent.

     Pursuant to the Rights Agreement, from and after the time that any Person becomes an Acquiring
Person (as such terms are defined in the Rights Agreement), (i) any Rights that are or were
beneficially owned by any Acquiring Person (or any Affiliate or Associate of such Acquiring Person)
shall be void and any holder of such Rights shall thereafter have no right to exercise such Rights
under any provision of the Rights Agreement, (ii) no Right Certificate shall be issued pursuant to
the Rights Agreement that represents Rights beneficially owned by an Acquiring Person or any
Affiliate or Associate thereof, (iii) no Right Certificate shall be issued at any time upon the
transfer of any Rights to an Acquiring Person or any Affiliate or Associate thereof, and (iv) any
Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person or any
Affiliate or Associate thereof shall be cancelled.

     This Right Certificate, with or without other Right Certificates, upon surrender at the
principal office of the Rights Agent designated for such purpose, may be exchanged for another
Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the
holder to purchase a like aggregate number of shares of Common Stock as the Rights evidenced by the
Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If
this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon
surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not
exercised.

     Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
may be redeemed by the Company at its option at a redemption price of $.001 per Right.

     Subject to the provisions of the Rights Agreement, the Directors of the Company may exchange
the Rights (other than any Rights which have become void), in whole or in part, at an exchange
ratio of one share of Common Stock per Right (subject to adjustment).

     No fractional shares of Common Stock will be issued upon the exercise of any Right or Rights
evidenced hereby (other than fractions which may, at the election of the Company, be evidenced by
depositary receipts), but in lieu thereof a cash payment will be made, as provided in the Rights
Agreement.

     No holder of this Right Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of the shares of Common Stock or of any other securities of the
Company which may at any time be issuable on the exercise hereof, nor shall anything contained in
the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or upon
any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or, to receive notice of meetings or other actions affecting stockholders (except
as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided
in the Rights Agreement.

A-2

 

     This Right Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by the Rights Agent.

     WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.
Dated as of _________, _____.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	RPM INTERNATIONAL INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	Secretary	 	 	 	 	Name:	 	 	 	 
	 
	 	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Countersigned:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	Authorized Signature	 	 	 	 	 	 	 	 	 	 

A-3

 

Form of Reverse Side of Right Certificate

FORM OF ASSIGNMENT

 

(To be executed by the registered holder if such

holder desires to transfer the Right Certificate)

          FOR VALUE RECEIVED,
______________________ hereby sells, assigns and transfers unto
________________________

 
(Please print name and address of transferee)

 

this Right Certificate, together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint _______________ Attorney, to transfer the within Right
Certificate on the books of the within-named Company, with full power of substitution.

Dated: ___________________, ____

	 	 	 	 	 
	 	 	 
	 	Signature
 	 
	 	 	 
	 	 	 
	 

Signature Guaranteed:

A-4

 

CERTIFICATE

 

          The undersigned hereby certifies by checking the appropriate boxes that:

          (1) the Rights evidenced by this Right Certificate [   ] are [   ] are not being sold, assigned,
transferred, split up, combined or exchanged by or on behalf of a Person who is or was an Acquiring
Person or an Affiliate or Associate of any such Person (as such terms are defined in the Rights
Agreement);

          (2) after due inquiry and to the best knowledge of the undersigned, it [   ] did [   ] did not
acquire the Rights evidenced by this Right Certificate from any Person who is, was or became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person.

Dated: ___________________, ____

	 	 	 	 	 
	 	 	 
	 	Signature
 	 
	 	 	 
	 	 	 

A-5

 

	 	 	 	 	 

FORM OF ELECTION TO PURCHASE

 

(To be executed if holder desires to

exercise the Right Certificate)

To RPM International Inc.:

          The undersigned hereby irrevocably elects to exercise _____________ Rights represented by this
Right Certificate to purchase the one-tenth of a share of Common Stock or other securities issuable
upon the exercise of such Rights and requests that certificates for such securities be issued in
the name of:

Please insert social security

or other identifying number:______________________________

 
(Please print name and address)

 

If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new
Right Certificate for the balance remaining of such Rights shall be registered in the name of and
delivered to:

Please insert social security

or other identifying number:______________________________

 
(Please print name and address)

 

Dated: ___________________, ____

	 	 	 	 	 
	 	 	 
	 	Signature
 	 
	 	 	 
	 	 	 
	 

Signature Guaranteed:

A-6

 

CERTIFICATE

 

          The undersigned hereby certifies by checking the appropriate boxes that:

          (1) the Rights evidenced by this Right Certificate [   ] are [   ] are not being exercised by or
on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such
Person (as such terms are defined pursuant to the Rights Agreement);

          (2) after due inquiry and to the best knowledge of the undersigned, it [   ] did [   ] did not
acquire the Rights evidenced by this Right Certificate from any Person who is, was or became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person.

Dated: ___________________, ____

	 	 	 	 	 
	 	 	 
	 	Signature
 	 
	 	 	 
	 	 	 

A-7

 

	 	 	 	 	 

FORM OF CERTIFICATE OF EXCHANGE

 

          The undersigned hereby certifies by checking the appropriate boxes that:

          (1) the Rights evidenced by this Right Certificate [   ] are [   ] are not being exchanged by or
on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such
Person (as such terms are defined pursuant to the Rights Agreement);

          (2) after due inquiry and to the best knowledge of the undersigned, it [   ] did [   ] did not
acquire the Rights evidenced by this Right Certificate from any Person who is, was or became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person.

Dated: ___________________, ____

	 	 	 	 	 
	 	 	 
	 	Signature
 	 
	 	 	 
	 	 	 
	 

NOTICE

 

          Signatures on the foregoing Form of Assignment and Form of Election to Purchase and in the
related Certificates and the Form of Certificate of Exchange must correspond to the name as written
upon the face of this Right Certificate in every particular, without alteration or enlargement or
any change whatsoever.

          Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved medallion signature
program) pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended.

A-8

 

Exhibit B

SUMMARY OF RIGHTS TO PURCHASE

SHARES OF COMMON STOCK

          On April 21, 2009, the Directors of RPM International Inc. (the “Company”) declared a dividend
distribution of one right (a “Right”) for each outstanding share of Common Stock, par value $0.01
per share (the “Common Stock”), of the Company. The distribution was payable on May 11, 2009 (the
“Record Date”) to the stockholders of record as of the close of business on the Record Date. Each
Right entitles the registered holder to purchase from the Company one-tenth of a share of Common
Stock at a price of $70.00 per whole share, subject to adjustment (the “Purchase Price”). The
description and terms of the Rights are set forth in a Rights Agreement dated as of April 21, 2009,
(the “Rights Agreement”), between the Company and National City Bank, as Rights Agent (the “Rights
Agent”).

          Until the earliest to occur of (i) the close of business on the tenth business day following a
public announcement that a person or group of affiliated or associated persons has acquired, or
obtained the right to acquire, beneficial ownership of 15% or more of the outstanding Common Stock
(an “Acquiring Person”), or (ii) the close of business on the tenth business day (or such later
date as may be specified by the Directors) following the commencement of a tender offer or exchange
offer by a person or group of affiliated or associated persons, the consummation of which would
result in beneficial ownership by such person or group of 15% or more of the outstanding Common
Stock (the earliest of such dates being hereinafter called the “Distribution Date”), the Rights
will be evidenced, with respect to any of the Common Stock certificates outstanding as of the
Record Date, by such Common Stock certificates.

          The Rights Agreement provides that, until the Distribution Date, the Rights will be
transferred with and only with the shares of Common Stock. Until the Distribution Date (or earlier
redemption, exchange or expiration of the Rights) or, in the case of shares of Common Stock issued
upon conversion of the Company’s convertible securities, until the tenth day after the Distribution
Date, new Common Stock certificates issued after the Record Date upon transfer or new issuance of
shares of Common Stock will contain a notation incorporating the Rights Agreement by reference.
Until the Distribution Date (or earlier redemption, exchange or expiration of the Rights), the
surrender for transfer of any certificates for shares of Common Stock in respect of which Rights
have been issued will also constitute the transfer of the Rights associated with the shares of
Common Stock represented by such certificate. As soon as practicable following the Distribution
Date, separate certificates evidencing the Rights (the “Right Certificates”) will be mailed to
holders of record of the shares of Common Stock as of the close of business on the Distribution
Date and such separate Right Certificates alone will evidence the Rights.

          The Rights are not exercisable until the Distribution Date. The Rights will expire on May 11,
2019 (the “Final Expiration Date”), unless earlier redeemed or exchanged by the Company as
described below.

B-1

 

          The Purchase Price payable, and the number of shares of Common Stock or other property
issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent
dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification
of the Common Stock; (ii) upon the grant to holders of the Common Stock of certain rights, options
or warrants to subscribe for shares of Common Stock or convertible securities at less than the
current market price of the shares of Common Stock; or (iii) upon the distribution to holders of
shares of Common Stock of evidences of indebtedness, cash (excluding regular periodic cash
dividends at a rate not in excess of 125% of the rate of the last cash dividend theretofore paid),
assets, stock (other than dividends payable in Common Stock) or of subscription rights, options or
warrants (other than those referred to above).

          In the event (a “Flip-in Event”), that any person or group or affiliate or associated persons
becomes an Acquiring Person, proper provision shall be made so that each holder of a Right, other
than Rights that are or were owned beneficially by the Acquiring Person (which, from and after the
date of the earliest of any such event, will be void), will thereafter have the right to receive,
upon exercise thereof at the then current Purchase Price, that number of shares of Common Stock
having a market value of two times the Purchase Price.

          With certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least 1% in such Purchase Price. No fractional shares will
be issued (other than fractions which may, at the election of the Company, be evidenced by
depositary receipts), and in lieu thereof, a payment in cash will be made based on the market price
of the Common Stock on the last trading day prior to the date of exercise.

          In the event (a “Flip-over Event”) that, following the first date of public announcement that
a person has become an Acquiring Person, (i) the Company merges with or into any person and the
Company is not the surviving corporation, (ii) any person merges with or into the Company and the
Company is the surviving corporation, but its shares of Common Stock are changed or exchanged, or
(iii) 50% or more of the Company’s assets or earning power, including without limitation securities
creating obligations of the Company, are sold, proper provision shall be made so that each holder
of a Right, other than Rights that are or were beneficially owned by the Acquiring Person after the
date upon which the Acquiring Person became such (which will thereafter be void), shall thereafter
have the right to receive, upon the exercise thereof at the then current Purchase Price of the
Right, that number of shares of Common Stock (or, under certain circumstances, an economically
equivalent security or securities) of such other person which at the time of such transaction would
have a market value of two times the Purchase Price of the Right.

          At any time after the Distribution Date, the Directors of the Company may exchange the Rights
(other than any Rights which have become void), in whole or in part, at an exchange ratio of one
share of Common Stock (or a lesser ratio as determined by the Board of Directors if the Company
does not have sufficient authorized and unreserved shares of Common Stock) per Right (subject to
adjustment).

          The Company may redeem the Rights in whole, but not in part, at a price of $0.001 per Right
(the “Redemption Price”), at any time prior to the close of business on the Distribution Date.
Immediately upon the effective date of action of the Directors electing to

B-2

 

redeem the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to
receive the Redemption Price. The Company will give notice of such redemption to the holders of the
then outstanding Rights by mailing such notice to all such holders at their last addresses as they
appear on the registry books of the Rights Agent.

          Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Company, including, without limitation, the right to vote or to receive dividends.

          The Rights Agreement may be amended by the Company without the approval of any holders of
Rights, including amendments which add other events requiring adjustment to the Purchase Price
payable and the number of shares of Common Stock or other securities issuable upon the exercise of
the Rights or which modify procedures relating to the redemption of the Rights, provided that no
amendment may be made which (i) changes the stated Redemption Price, (ii) reduces the number of
shares of Common Stock for which a Right is then exercisable, or (iii) modifies a time period
relating to when the Rights may be redeemed at such time as the Rights are not then redeemable.

          A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as
an Exhibit to a Form 8-A dated May ___, 2009. A copy of the Rights Agreement is available free of
charge from the Company. This summary description of the Rights does not purport to be complete and
is qualified in its entirety by reference to the Rights Agreement, which is hereby incorporated
herein by reference.

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