Document:

Exhibit 10.26

 

Exhibit 10.26

RPM INTERNATIONAL INC.

RPM INTERNATIONAL INC. 2004 OMNIBUS EQUITY AND INCENTIVE PLAN

PERFORMANCE-EARNED RESTRICTED STOCK (PERS)

AND ESCROW AGREEMENT

     THIS PERFORMANCE-EARNED RESTRICTED STOCK AND ESCROW AGREEMENT (the “Agreement”), is entered
into as of this ___day of ___(the “Effective Date”), by and between RPM International
Inc., a Delaware corporation (the “Company”), and «NAME» (the “Grantee”).

WITNESSETH:

     WHEREAS, the Compensation Committee of the Board of Directors (the “Compensation Committee”)
administers the RPM International Inc. 2004 Omnibus Equity and Incentive Plan (the “Plan”); and

     WHEREAS, the Committee has determined that the Grantee has satisfied previously established
applicable performance measures for the fiscal year of the Company ending May 31, ___; and

     WHEREAS, as a result of the Grantee’s satisfaction of such performance measures, the
Compensation Committee has determined that the Grantee has earned a grant of Restricted Stock under
the Plan upon the terms and conditions set forth in this Agreement;

     NOW, THEREFORE, the Company and the Grantee agree as follows:

     1. Definitions. Unless otherwise specified in this Agreement, capitalized terms shall
have the meanings attributed to them under the Plan.

     2. Grant of Restricted Stock. As of the Effective Date, the Company grants to the
Grantee, upon the terms and conditions set forth in this Agreement and subject to the restrictions
in Section 3, «SHARES» shares of Common Stock, par value $.01 per share, of RPM International Inc.
(“Restricted Stock”). The Restricted Stock is granted in accordance with, and subject to, all the
terms, conditions and restrictions of the Plan, which is hereby incorporated by reference in its
entirety. The Grantee irrevocably agrees to, and accepts, the terms, conditions and restrictions
of the Plan and this Agreement on his own behalf and on behalf of any heirs, successors and
assigns.

     3. Restrictions on Stock. Except as otherwise provided in Sections 4 and 14, the
Grantee cannot sell, transfer, assign, hypothecate or otherwise dispose of the Restricted Stock or
pledge it as collateral for a loan. In addition, the Restricted Stock will be subject to such
other restrictions as the Compensation Committee deems necessary or appropriate.

 

 

     4. Lapse of Restrictions on Stock. The restrictions described in Section 3 shall
lapse and be of no further force or effect if and when the Compensation Committee determines in its
sole and exclusive discretion, pursuant to Section 8, that the Grantee’s Vested Interest equals
100%.

     5. Forfeiture. Except as otherwise provided in Sections 6 and 7, the Grantee will
forfeit any interests in the Restricted Stock if his or her employment with the Company, a
Subsidiary or Allied Enterprise terminates before his or her Vested Interest equals 100%.

     6. Termination of Employment.

     (a) Normal Retirement. If the Compensation Committee determines in its sole
and exclusive discretion that the Grantee’s employment with the Company, its Subsidiaries
and Allied Enterprises has terminated due to Normal Retirement prior to the third
anniversary of the date of this Agreement, the Grantee’s Vested Interest in the Restricted
Stock will immediately become 100% (if it is not already), the restrictions described in
Section 3 will immediately lapse and the shares of stock will become payable as soon as
practicable thereafter, subject to the requirements of Section 10. “Normal Retirement” is
the Grantee’s voluntary retirement (and not termination of employment by the Company, a
Subsidiary or Allied Enterprise, whether with or without cause) after attaining age
fifty-five (55) and completing at least five (5) consecutive years of service with the
Company, its Subsidiaries and/or Allied Enterprises.

     (b) Death or Total Disability. If the Grantee dies or becomes totally disabled
(within the meaning of the Company’s group long-term disability plan) while an employee of
the Company, its Subsidiaries or Allied Enterprises or within thirty (30) days of the
Grantee’s having ceased to be such an employee by reason of discharge and prior to the third
anniversary of the Effective Date, the Compensation Committee may provide in its sole and
exclusive discretion that the Grantee (or his or her Beneficiary or Beneficiaries) shall
have a Vested Interest in all or a portion of the Restricted Stock. The Compensation
Committee shall determine in its sole and exclusive discretion whether the Grantee’s
employment with the Company, its Subsidiaries and Allied Enterprises has terminated because
of his or her total disability (as defined in the Company’s group long-term disability
plan).

     (c) Reasons Other Than Normal Retirement, Death or Total Disability. If the
Compensation Committee determines in its sole and exclusive discretion that the Grantee’s
employment with the Company, its Subsidiaries and Allied Enterprises has terminated prior to
the third anniversary of the date of this Agreement for reasons other than those described
in subsections (a) or (b) above, the Grantee will forfeit and shall to return to the Company
or a third party designated by the Company all Restricted Stock subject to this Agreement.
The Grantee will have no further interests under this Agreement after such a termination of
employment.

     7. Change in Control. If a Change in Control as defined in the Plan has occurred or
an event has occurred that the Board of Directors, in the good faith exercise of its discretion,

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determines to be a Change in Control prior to the third anniversary of the date of this
Agreement, the Grantee’s Vested Interest in the Restricted Stock will immediately become 100% (if
it is not already), the restrictions described in Section 3 will immediately lapse and the shares
of stock will become payable as soon as practicable thereafter, subject to the requirements of
Section 10. Notwithstanding the foregoing, in the event of a Change in Control, the Compensation
Committee may provide for payment of the Grantee’s interests in the Plan in cash rather than shares
of stock.

     8. Vested Interest. If the Grantee continues to be an employee of the Company, its
Subsidiaries or Allied Enterprises from the Effective Date until the third anniversary of the
Effective Date, his or her Vested Interest will be 100%. Except as provided for in Sections 6 and
7 above, if the Grantee does not continue to be an employee of the Company, its Subsidiaries or
Allied Enterprises until the third anniversary of the Effective Date, his or her Vested Interest
will be 0% and he will immediately forfeit the Restricted Stock as provided in Section 5. So long
as the Grantee shall continue to be an employee of the Company, a Subsidiary or Allied Enterprise,
he or she shall not be considered to have experienced a break in continuous employment because of:
(a) any temporary leave of absence approved in writing by the Company, a Subsidiary or Allied
Enterprise; or (b) any change of duties or position (including transfer to or from a Subsidiary).

     9. Issuance of Stock. As soon as practicable after lapse of the restrictions, the
Company will deliver to the Grantee (or his or her Beneficiary or Beneficiaries) the shares of
stock to which the Grantee is entitled free and clear of any restrictions (except any applicable
securities law restrictions).

     10. Sale of Shares of Stock to Satisfy Tax Obligations. Prior to issuing shares of
stock pursuant to Section 9, the Compensation Committee will cause the Company to sell a portion of
the stock sufficient to satisfy the Grantee’s projected tax liability (as described in Section 14
of the Plan) resulting from the vesting of the Restricted Stock. The Grantee will provide such
irrevocable Stock Powers or additional information and documentation as the Company deems necessary
to complete such sale. The Compensation Committee will cause the Company to deliver the proceeds
of such sale to the appropriate taxing authorities in satisfaction of such tax liabilities. The
Compensation Committee may, in its sole and exclusive discretion, require that any distributions to
the Grantee’s Beneficiary or Beneficiaries be subject to this sale requirement.

     11. Escrow Agreement. During the term of this Agreement, the Restricted Stock will
remain in the possession of the Company to be held by it in escrow. Alternatively, the Company may
enter into an agreement with a third party whereby such third party will hold the Restricted Stock
in escrow, subject to the terms of the Plan and this Agreement. To facilitate the escrow of the
Restricted Stock and any reconveyance of the Restricted Stock to the Company or a third party upon
forfeiture, the Grantee will execute in blank such irrevocable Stock Powers with respect to the
Restricted Stock as the Company may require.

     12. Stockholder Rights While Restricted Stock is Held in Escrow. During the period
the Restricted Stock is held in escrow and this Agreement has not terminated, and subject to the

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Grantee’s execution of irrevocable Stock Powers in accordance with Section 11, the Grantee will be
entitled to vote the Restricted Stock and to receive dividends declared and paid by the Company on
such Restricted Stock.

     13. Section 83(b) Elections. The Grantee will not make an election under Section
83(b) of the Internal Revenue Code to recognize taxable ordinary income in the year the Restricted
Stock is granted. The Grantee understands that by not making such an election, he or she will
recognize taxable ordinary income at the time the restrictions lapse in an amount equal to the fair
market value of the stock at that time.

     14. Designation of Beneficiary. By properly executing and delivering a Designation of
Beneficiary Form to the Designated Representative at the address listed in Section 17(j), the
Grantee may designate an individual or individuals as his or her Beneficiary or Beneficiaries under
the Plan. In the event that the Grantee fails to properly designate a Beneficiary, his or her
interests under the Plan will pass to the person or persons in the first of the following classes
in which there are any survivors: (i) spouse at the time of death; (ii) issue, per stirpes; (iii)
parents; and (iv) the executor or administrator of estate. Except as the Compensation Committee
may determine in its sole and exclusive discretion, a properly completed Designation of Beneficiary
Form shall be deemed to revoke all prior designations upon its receipt and approval by the
Designated Representative.

     15. Non-Transferability and Legends. The Restricted Stock has not been registered
under the Securities Act of 1933, as amended (the “Act”), and may not be sold, transferred or
otherwise disposed of unless a registration statement under the Act with respect to the Restricted
Stock has become effective or unless the Grantee establishes to the satisfaction of the Company
that an exemption from such registration is available. The Restricted Stock will bear a legend
stating the substance of such restrictions, as well as any other restrictions the Compensation
Committee deems necessary or appropriate.

     16. Termination of Agreement. This Agreement will terminate on the earliest of: (1)
the date of the Grantee’s termination of employment with the Company, its Subsidiaries and Allied
Enterprises prior to the third anniversary of the date of this Agreement; (3) the date the
restrictions described in Section 3 lapse in accordance with Section 4; or (4) such date as may be
designated by the Company’s Board of Directors or Compensation Committee. Any terms or conditions
of this Agreement that the Company determines are reasonably necessary to effectuate its purposes
will survive the termination of this Agreement.

     17. Miscellaneous Provisions.

	 	a.	 	Effect of Corporate Reorganization or Other Changes
Affecting Number or Kind of Restricted Stock. The provisions of this
Agreement will be applicable to the Restricted Stock and to any Restricted
Stock or other securities which may be acquired by the Grantee as a result of a
liquidation, recapitalization, reorganization, redesignation or
reclassification, split-up, reverse split, merger, consolidation, stock
dividend, combination or exchange of Restricted Stock, exchange for

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	 	 	 	other securities, a sale of all or substantially all assets or the like.
The Committee may appropriately adjust the number and kind of shares of
Restricted Stock under this Agreement to reflect such a change. As used in
this Agreement, the term “Restricted Stock” will be deemed to include any
such Restricted Stock or other securities.
	 
	 	b.	 	Successors and Legal Representatives. This Agreement
will bind and inure to the benefit of the Company and the Grantee, and their
respective successors, assigns and legal representatives.
	 
	 	c.	 	Integration. This Agreement, together with the Plan,
constitutes the entire agreement between the Grantee and the Company with
respect to the subject matter hereof, and may not be modified, amended, renewed
or terminated, nor may any term, condition or breach of any term or condition
be waived, except pursuant to the terms of the Plan or by a writing signed by
the person or persons sought to be bound by such modification, amendment,
renewal, termination or waiver. Any waiver of any term, condition or breach
thereof will not be a waiver of any other term or condition or of the same term
or condition for the future, or of any subsequent breach.
	 
	 	d.	 	Stockholder Approval. All benefits hereunder will be
canceled and all terms of this Agreement will be null and void ab initio if the
Plan is not approved by the Company’s stockholders, as provided in the Plan.
	 
	 	e.	 	Notice. Any notice relating to this grant must be in
writing.
	 
	 	f.	 	No Employment Right Created. Nothing in this Agreement
will be construed to confer upon the Grantee the right to continue in the
employment or service of the Company, its Subsidiaries or Allied Enterprises,
or to be employed or serve in any particular position therewith, or affect any
right which the Company, its Subsidiaries or an Allied Enterprise may have to
terminate the Grantee’s employment or service with or without cause.
	 
	 	g.	 	Separability. In the event of the invalidity of any
part or provision of this Agreement, such invalidity will not affect the
enforceability of any other part or provision of this Agreement.
	 
	 	h.	 	Section Headings. The section headings of this
Agreement are for convenience and reference only and are not intended to
define, extend or limit the contents of the sections.
	 
	 	i.	 	Amendment, Waiver and Revocation of Terms. The
Compensation Committee may waive any term or condition in this Agreement that
could have been excluded on the date of grant. No such waiver will be deemed

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	 	 	 	to be a waiver of similar terms under other agreements. The Compensation
Committee may amend this Agreement to include or exclude any provision which
could have been included in, or excluded from, this Agreement on the date of
grant, but only with the Grantee’s written consent. Similarly, the
Compensation Committee may revoke this Agreement at any time except that,
after execution of the Agreement and its delivery to the Designated
Representative, revocation may only be accomplished with the Grantee’s
written consent.
	 
	 	j.	 	Plan Administration. The Plan is administered by the
Compensation Committee, which has sole and exclusive power and discretion to
interpret, administer, implement and construe the Plan and this Agreement. All
elections, notices and correspondence relating to the Plan should be directed
to the Designated Representative at:

RPM International Inc.

P.O. Box 777

2628 Pearl Road

Medina, OH 44258

Attn: Director of Human Resources and Administration

	 	k.	 	Governing Law. Except as may otherwise be provided in
the Plan, this Agreement will be governed by, construed and enforced in
accordance with the internal laws of the State of Delaware, without giving
effect to its principles of conflict of laws.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer, and the Grantee has hereunto set his hand, all as of the day and year
first above written.

	 	 	 	 	 
	Grantee	 	RPM INTERNATIONAL INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	«NAME»

	 	 	 	Frank C. Sullivan
	 

	 	Its
	 	Chief Executive Officer and President

6Exhibit 10.1

 

Exhibit 10.1

VIA FEDERAL EXPRESS

David Riggs

277 West Wayne Place

Wheeling, Illinois 60090

     Re:Separation Agreement

Dear Mr. Riggs:

This letter, upon your signature, will constitute the Separation Agreement between you and
eXegenics, Inc. (the “Company”) on the terms of your separation from employment with the Company.

     1. Your employment has been terminated effective June 30, 2005.

     2. You acknowledge that you have been paid your earned salary through the date your employment
terminated. You acknowledge that you have submitted outstanding business expenses incurred but not
paid to you in the amount of $638.54. You acknowledge that you have two weeks of accrued, but
unused vacation payable to you. Information about your rights under COBRA to continue your health
insurance coverage period will be sent to you under separate cover.

     3. You have returned or will immediately return to the Company any office keys, security
passes, or other access or identification cards, as well as any computers, phones, PDA’s, other
equipment, credit cards, and any other Company property in your possession. You have returned or
will immediately return to the Company any documents or materials you have about its clients,
accounts, practices, procedures, trade secrets, customer lists, merger candidates, or product
marketing.

     4. You acknowledge that the termination of your employment is not due to a disagreement with
the Company, known to an executive officer or member of the Board of Directors of the Company, on
any matter relating to the Company’s operations, policies or practices.

     5. In consideration of your acceptance of this Separation Agreement, the Company will provide
you with severance in an amount equal to six months of salary, less customary payroll deductions,
payable in a single, lump sum payment within 10 business days after the “effective date” of this
Agreement as defined in paragraph 9 below. The total amount of the severance payment shall be
$117,500.00 (less customary payroll deductions).

     6. You acknowledge: (a) that the Company Stock Options to purchase 225,000 shares of Company
Common Stock granted under the Nonqualified Stock Option Agreement dated March 10, 2003 shall
terminate on September 30, 2005, and (b) that the Company Stock Options to purchase 75,000 shares
of Company Common Stock granted under the Nonqualified Stock Option Agreement dated March 29, 2004
shall terminate on June 30, 2007.

     7. In consideration for payment to you under this Separation Agreement, you expressly waive
and release any and all claims that you have or might have against the Company and its current,
past and future officers, directors, agents, attorneys, employees, successors or assigns, arising
from or related to your employment with the Company and/or the termination of your

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employment with the Company. These claims include, but are not limited to, claims arising under
federal, state and local statutory or common law, such as the Age Discrimination in Employment Act,
Title VII of the Civil Rights Act of 1964, the New York State and City Human Rights laws, wage and
hour laws, and the law of contract and tort. These claims also include, but are not limited to,
any claims for breach of your employment contract dated March 10, 2003, as amended, and any claims
for any wages, bonuses, finder’s fees, and commissions. This waiver and release is intended to
cover claims, whether known or unknown, arising any time prior to the date you sign this Separation
Agreement; you are not waiving claims arising after the date you sign this Separation Agreement.
You further agree that you have not and will not bring any claims, proceedings, suits or
arbitrations relating to any claims waived or released under this Separation Agreement, including
any claims regarding your employment with the Company and/or the cessation of your employment with
the Company, except that nothing herein is intended to affect your right to challenge the validity
of this Separation Agreement under the Older Workers Benefit Protection Act.

     8. You will not, unless required or otherwise permitted by law, disclose to others any
information regarding the following:

          a. Any information regarding the Company’s clients, accounts, practices, procedures, trade
secrets, customer lists, merger/acquisition plans, merger or takeover candidates, business plans or
product marketing.

          b. The terms of this Separation Agreement, the benefit being paid under it or the fact of its
payment, are confidential except that you may disclose this information to your attorney,
accountant or other professional advisor to whom you must make the disclosure in order for them to
render professional services to you. You will instruct them, however, to maintain the
confidentiality of this information just as you must.

     9. In the event that you breach any of your obligations under this Separation Agreement, the
Company will be entitled to obtain all relief authorized by law.

     10. The following is required by the Older Workers Benefit Protection Act:

     You have up to 21 days from the date you receive a copy of this letter to accept the terms of
this Separation Agreement, although you may accept it at any time within those 21 days. You are
advised to consult an attorney of your choice about this Separation Agreement.

     To accept this Separation Agreement, please date and sign this letter and return it to me. (An
extra copy for your files is enclosed). Once you do so, you will still have an additional 7
calendar days in which to revoke your acceptance. To revoke, you must send me a written statement
of revocation by registered mail, return receipt requested, within the 7 day revocation period. If
you do not revoke, the eighth day after the date of your acceptance will be the “effective date” of
the Separation Agreement.

     11. The parties agree that should any inquiries be made from prospective employers concerning
your employment with the Company, the Company will answer such inquiries by providing only your
dates of employment and position held.

     12. You agree not to make, write, publish, produce or in any way participate in placing into
the public domain any statement, opinion or information which reflects adversely upon, disparages,
or could reasonably impair the reputation or best interests of the Company or its officers, agents,
Board members, or employees.

     13. Upon the Company’s request, you agree to cooperate to the extent necessary to protect the
interests of the Company, including but not limited to providing information you have about the
Company’s business and operations and/or providing truthful testimony as a witness or declarant
with respect any future litigation or audit or investigation.

     14. The parties agree that any dispute arising from the interpretation or alleged breach of
this Separation Agreement shall be subject to the exclusive jurisdiction of the courts in the State
of New York and that this agreement shall be governed by and construed in accordance with the laws
of the State of New York, without regard to rules relating to conflict of laws. The parties
consent to personal jurisdiction within the State of New York.

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     15. Except as set forth under this Separation Agreement, there are no representations or
agreements between you and the Company about or pertaining to the termination of your employment
with the Company or the Company’s obligations to you with respect to your employment or any other
matter mentioned in this Separation Agreement. In the event any portion of this Separation
Agreement is determined to be unenforceable, the remaining provisions shall remain in effect.

          Best of luck in your future endeavors.

	 	 	 
	 

	 	Sincerely,
	 
	 	 
	 

	 	John Paganelli
	 

	 	Chairman of the Board of Directors

     By signing this letter, I acknowledge that I have had the opportunity to review this
Separation Agreement carefully with an attorney of my choice; that I have read this Agreement and
understand the terms of this Agreement; and that I knowingly and voluntarily agree to them.

	 	 	 	 	 	 	 
	 

	 	Dated: July 26, 2005.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

David Riggs
	 	 

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