Document:

Exhibit 10.1

 

Exhibit 10.1

AMENDMENT NO. 5

     This AMENDMENT NO. 5 (this “Amendment”) is made as of the 30th day of September, 2005, by and
among ERICO INTERNATIONAL CORPORATION, an Ohio corporation, ERICO PRODUCTS, INC., an Ohio
corporation, and ERICO EUROPE HOLDING B.V., formerly known as ERICO EUROPA B.V., a limited
liability company organized under the laws of the Netherlands (collectively, the “Borrowers” and,
individually, each a “Borrower”), the Banks, as defined in the Credit Agreement, as hereinafter
defined, LASALLE BANK NATIONAL ASSOCIATION, as lead arranger, issuing bank and administrative agent
for the Banks (the “Administrative Agent”), GENERAL ELECTRIC CAPITAL CORPORATION, as co-lead
arranger and co-documentation agent, NATIONAL CITY BANK, as syndication agent, and KEYBANK NATIONAL
ASSOCIATION, as documentation agent.

     WHEREAS, the Borrowers, the Administrative Agent and the Banks are parties to that certain
Second Amended and Restated Multicurrency Credit and Security Agreement, dated as of December 2,
2002, that provides, among other things, for loans and letters of credit aggregating Seventy-Five
Million Dollars ($75,000,000), all upon certain terms and conditions (as amended and as the same
may from time to time be further amended, restated or otherwise modified, the “Credit Agreement”);

     WHEREAS, the Borrowers, the Administrative Agent and the Banks desire to amend the Credit
Agreement to modify certain provisions thereof;

     WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not
otherwise defined herein, shall have the meaning given such term in the Credit Agreement;

     WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit Agreement
revised herein are amended effective as of the date of this Amendment; and

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained
and for other valuable considerations, the Borrowers, the Administrative Agent and the Banks hereby
agree as follows:

     1.     Amendment to Senior Subordinated Indebtedness. Subsection 6.3(l) of the Credit
Agreement is hereby amended to delete subparts (i) and (ii) therefrom and to insert in place
thereof, respectively, the following:

     (i) Payment. Notwithstanding anything in Section 6.3(d) to the contrary, International
may repay, redeem, retire, repurchase or exercise any right of legal defeasance, covenant
defeasance or a similar right with respect to any Senior Subordinated Indebtedness so long
as, (A) immediately after such repayment, redemption, retirement, repurchase or exercise of
defeasance or of a similar right, the calculation of (1) the aggregate of all Revolving
Credit Commitments of all of the Banks, minus (2) the aggregate outstanding
Revolving Credit Advances of all of the Banks, minus (3) the aggregate LC Exposure
of all of the Banks, shall be no less than Twenty-

 

 

Five Million Dollars ($25,000,000), and (B) no Potential Default or Event of Default
shall have occurred and be continuing or, immediately thereafter, would occur.

     (ii) [Reserved]

     2.     Legal Fees. The Borrowers shall pay all legal fees and expenses of the
Administrative Agent in connection with this Amendment promptly upon receipt of invoice.

     3.     Representations and Warranties. Each Borrower hereby represents and warrants to
the Administrative Agent and the Banks that (a) such Borrower has the legal power and authority to
execute and deliver this Amendment; (b) the officers executing this Amendment have been duly
authorized to execute and deliver the same and bind such Borrower with respect to the provisions
hereof; (c) the execution and delivery hereof by such Borrower and the performance and observance
by such Borrower of the provisions hereof do not violate or conflict with the organizational
agreements of such Borrower or any law applicable to such Borrower or result in a breach of any
provision of or constitute a default under any other agreement, instrument or document binding upon
or enforceable against such Borrower; (d) no Potential Default or Event of Default exists under the
Credit Agreement, nor will any occur immediately after the execution and delivery of this Amendment
or by the performance or observance of any provision hereof; (e) such Borrower is not aware of any
claim or offset against, or defense or counterclaim to, such Borrower’s obligations or liabilities
under the Credit Agreement or any other Loan Document; and (f) this Amendment constitutes a valid
and binding obligation of such Borrower in every respect, enforceable in accordance with its terms.

     4.     Waiver. Each Borrower, by signing below, hereby waives and releases the
Administrative Agent and the Banks and their respective directors, officers, employees, attorneys,
affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of which
such Borrower is aware, such waiver and release being with full knowledge and understanding of the
circumstances and effect thereof and after having consulted legal counsel with respect thereto.

     5.     References to Credit Agreement. Each reference that is made in the Credit
Agreement or any other Loan Document shall hereafter be construed as a reference to the Credit
Agreement as amended hereby. Except as herein otherwise specifically provided, all terms and
provisions of the Credit Agreement are confirmed and ratified and shall remain in full force and
effect and be unaffected hereby. This Amendment is a Loan Document.

     6.     Counterparts. This Amendment may be executed in any number of counterparts, by
different parties hereto in separate counterparts and by facsimile signature, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement.

     7.     Headings. The headings, captions and arrangements used in this Amendment are for
convenience only and shall not affect the interpretation of this Amendment.

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     8.     Severability. Any term or provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the term or provision so held to be invalid
or unenforceable.

     9.     Governing Law. The rights and obligations of all parties hereto shall be governed
by the laws of the State of Illinois, without regard to principles of conflict of laws.

[Remainder of page intentionally left blank.]

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     JURY TRIAL WAIVER. THE BORROWERS, THE ADMINISTRATIVE AGENT AND THE BANKS, TO THE
EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWERS, THE ADMINISTRATIVE
AGENT AND THE BANKS, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS
RELATED THERETO.

     IN WITNESS WHEREOF, the parties have executed and delivered this Amendment in Cleveland, Ohio
as of the date first set forth above.

	 	 	 	 	 
	 	ERICO INTERNATIONAL CORPORATION

 	 
	 	By:  	/s/
Jeffrey R. Steinhilber
	 	Name:  	Jeffrey
R. Steinhilber
	 	Title:  	Chief
Financial Officer
	 
	 	ERICO PRODUCTS, INC.

 	 
	 	By:  	/s/
Jeffrey R. Steinhilber
	 	Name:  	Jeffrey
R. Steinhilber
	 	Title:  	Chief
Financial Officer
	 
	 	ERICO EUROPE HOLDING B.V., formerly known

as ERICO EUROPA, B.V.

 	 
	 	By:  	/s/
William
H. Roj
	 	Name:  	William
H. Roj
	 	Title:  	Director
	 
	 	LASALLE BANK NATIONAL ASSOCIATION,

as the Administrative Agent, Lead Arranger

and as a Bank, and as Issuing Bank

 	 
	 	By:  	/s/
James
P. Bahleda
	 	Name:  	James
P. Bahleda
	 	Title:  	Vice
President

4

 

	 	 	 	 	 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL

CORPORATION,

as Co-Lead Arranger, Co-Documentation

Agent and as a Bank

 	 
	 	By:  	/s/ Christopher Cox	 
	 	Name:  	Christopher Cox 	 
	 	Title:  	Duly Authorized Signatory 	 
	 
	 	NATIONAL CITY BANK,

as Syndication Agent and as a Bank

 	 
	 	By:  	/s/ Ronald J. Majka	 
	 	Name:  	Ronald J. Majka 	 
	 	Title:  	Senior Vice President 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION,

as Documentation Agent and as a Bank

 	 
	 	By:  	/s/ Michael P. Shiplett	 
	 	Name:  	Michael P. Shiplett 	 
	 	Title:  	Senior Vice President 	 
	 

5<PAGE>

                                                                    EXHIBIT 10.1

                           PERFORMANCE SHARE AGREEMENT
                                    UNDER THE
                     PINNACLE WEST CAPITAL CORPORATION 2002
                            LONG-TERM INCENTIVE PLAN

      THIS AWARD AGREEMENT is made and entered into as of ___________, 200__
(the "Date of Grant"), by and between Pinnacle West Capital Corporation (the
"Company"), and <<Name>> ("Employee").

                                   BACKGROUND

      A.    The Board of Directors of the Company (the "Board of Directors") has
            adopted, and the Company's shareholders have approved, the Pinnacle
            West Capital Corporation 2002 Long-Term Incentive Plan (the "Plan"),
            pursuant to which performance share incentive awards may be granted
            to employees of the Company and its subsidiaries and certain other
            individuals.

      B.    The Company desires to grant to Employee a performance share award
            under the terms of the Plan.

      C.    Pursuant to the Plan, the Company and Employee agree as follows:

                                    AGREEMENT

            1.    GRANT OF AWARD. Pursuant to action of the Committee (as
                  defined herein) which was taken on the Date of Grant, the
                  Company grants to Employee <<Shares>> performance shares
                  ("Performance Shares") subject to the terms, conditions, and
                  adjustments set forth in this Award Agreement. The Performance
                  Shares granted under this Section 1 are referred to in this
                  Award Agreement as the "Base Grant."

            2.    AWARD SUBJECT TO PLAN. This award is granted under and is
                  expressly subject to, all of the terms and provisions of the
                  Plan, which terms are incorporated herein by reference, and
                  this Award Agreement. The Committee described in Section 4 of
                  the Plan (the "Committee") has been appointed by the Board of
                  Directors, and designated by it, as the Committee to make
                  awards.

            3.    PERFORMANCE PERIOD. The performance period for this award
                  begins _________ __, 20___, and ends _____________ __, 20___
                  (the "Performance Period").

            4.    PAYMENT.

                  (a)   PERFORMANCE SHARES PAYABLE IN COMMON STOCK. Subject to
                        early termination of this Award Agreement pursuant to
                        Section 7 below, as soon as practicable following the
                        end of the Performance Period and the determination of
                        the Company's Earnings Per Share Growth Rate (as defined
                        herein) as compared to the Earnings Per Share Growth
                        Rate of the Index set forth on Attachment A (the
                        "Index") over such Performance Period but in no event
                        later than December 31, 20___, the Company will deliver
                        to Employee one (1) share of the Company's Common Stock
                        for each then-outstanding Performance Share under this
                        Award Agreement. If the Employee terminates employment
                        after the end of the Performance

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Page 2
Performance Share Agreement

                        Period but before distribution of any shares pursuant to
                        this Award Agreement, the distribution of the shares
                        will not be made until six (6) months following the
                        Employee's termination of employment if required by
                        Section 409A of the Code.

                  (b)   DIVIDEND EQUIVALENTS. At the time of the Company's
                        delivery of Common Stock to Employee pursuant to
                        Subsection 4(a) above, the Company will also deliver to
                        Employee a cash payment equal to the amount of dividends
                        that Employee would have received if Employee had
                        directly owned all of such Common Stock during the
                        Performance Period, plus interest on such amount at the
                        rate of _____ percent, compounded quarterly.

                  (c)   MAXIMUM AWARD. Employee may not receive more than
                        120,000 shares of Common Stock under this Award
                        Agreement.

            5.    PERFORMANCE CRITERIA AND ADJUSTMENTS.

                  ADJUSTMENT OF BASE GRANT. The Base Grant will increase or
                  decrease based upon the Company's "Earnings Per Share Growth
                  Rate" as compared to the Earnings Per Share Growth Rate of the
                  Index during the Performance Period, as follows:

<TABLE>
<CAPTION>
IF THE COMPANY'S EARNINGS PER SHARE COMPOUND GROWTH RATE              THE NUMBER OF
  OVER THE PERFORMANCE PERIOD AS COMPARED TO THE INDEX IS:       PERFORMANCE SHARES WILL BE:
----------------------------------------------------------       ---------------------------
<S>                                                            <C>
              ___th Percentile or Greater                           ___ X Base Grant
                    ___th Percentile                                ___ X Base Grant
                    ___th Percentile                                   Base Grant
                    ___th Percentile                                ___ X Base Grant
               Less than ___th Percentile                       [None / ___X Base Grant]
</TABLE>

                        If intermediate percentiles are achieved, the number of
                  Performance Shares awarded will be prorated (partial shares
                  will be rounded down to the nearest whole share when
                  applicable). For example, if the Company's Earnings Per Share
                  Growth Rate during the Performance Period places the Company's
                  performance in the ___th percentile, then the number of
                  Performance Shares would be increased to ______ multiplied by
                  the Base Grant. In no event will Employee be entitled to
                  receive a number of Performance Shares greater than ___ times
                  the Base Grant, even if the Company's Earnings Per Share
                  Growth Rate during the Performance Period places the Company's
                  performance higher than the ____th percentile. Attachment B
                  provides a generic example of the operation of an award
                  granted under this Award Agreement.

            6.    EARNINGS PER SHARE GROWTH RATE. "Earnings Per Share Growth
                  Rate" for the Performance Period is the compounded
                  annual-growth rate (CAGR) of a company's earnings per share
                  from continuing operations, on a fully diluted basis, during
                  the Performance Period provided, however, that for purposes
                  of calculating the Company's Earnings Per Share Growth Rate,
                  SunCor Development Company's earnings from discontinued
                  operations will be considered earnings from continuing
                  operations for each fiscal year during the Performance
                  Period. Only those companies which were in the Index at both
                  the beginning and the ending of the Performance Period will be
                  considered. The

<PAGE>

Page 3
Performance Share Agreement

                  Earnings Per Share Growth Rate of the companies in the Index
                  will be determined using an independent third party data
                  system. If the Index is discontinued, the Committee shall
                  select the most comparable index then in use for the sector
                  comparison. In addition, if the sector comparison is no longer
                  representative of the Company's industry or business, the
                  Committee shall replace the index with the most representative
                  index then in use. Once the CAGR of the Company and all
                  relevant companies in the Index have been determined, the
                  member companies will be ranked from greatest to least CAGR.
                  Percentiles will be calculated based on a company's relative
                  ranking. For example, company 1 out of 26 companies is given a
                  percentile of 96.2% (1.0 - 1/26). Percentiles will be carried
                  out to one (1) decimal place. If the Company is not in the
                  Index, then its percentile will be interpolated between the
                  companies listed in the relative ranking. These calculations
                  will be verified by the Company's internal auditors.

            7.    TERMINATION OF AWARD. This Award Agreement will terminate and
                  be of no further force or effect on the date that Employee is
                  no longer actively employed by the Company or any of its
                  subsidiaries, whether due to voluntary or involuntary
                  termination, death, retirement, disability, or otherwise.
                  Subject to Section 4, Employee will, however, be entitled to
                  receive any Common Stock and dividend equivalents payable
                  under Section 4 of this Award Agreement if Employee's
                  employment terminates after the Performance Period but before
                  Employee's receipt of such Common Stock and dividend
                  equivalents. For avoidance of doubt, no acceleration of
                  Performance Shares or the Performance Period will occur on a
                  change of control of the Company.

            8.    TAX WITHHOLDING. Employee must pay, or make arrangements
                  acceptable to the Company for the payment of any and all
                  federal, state, and local income and payroll tax withholding
                  that in the opinion of the Company is required by law. Unless
                  Employee satisfies any such tax withholding obligation by
                  paying the amount in cash or by check, the Company will
                  withhold shares of Common Stock having a Fair Market Value on
                  the date of withholding sufficient to cover the withholding
                  obligation.

            9.    NON-TRANSFERABILITY. Neither this award nor any rights under
                  this Award Agreement may be assigned, transferred, or in any
                  manner encumbered except by will or the laws of descent and
                  distribution, and any attempted assignment, transfer,
                  mortgage, pledge or encumbrance except as herein authorized,
                  will be void and of no effect.

            10.   DEFINITIONS: COPY OF PLAN AND PLAN PROSPECTUS. To the extent
                  not specifically defined in this Award Agreement, all
                  capitalized terms used in this Award Agreement will have the
                  same meanings ascribed to them in the Plan. By signing this
                  Award Agreement, Employee acknowledges receipt of a copy of
                  the Plan and the related Plan Prospectus.

            11.   CHOICE OF LAW. This Agreement will be governed by the laws of
                  the State of Arizona, excluding any conflicts or choice of law
                  rule or principle that might otherwise refer construction or
                  interpretation of this Agreement to another jurisdiction.

      An authorized representative of the Company has signed this Award
Agreement, and Employee has signed this Award Agreement to evidence Employee's
acceptance of the award on the terms specified in this Award Agreement, all as
of the Date of Grant.

<PAGE>

Page 4
Performance Share Agreement

                                PINNACLE WEST CAPITAL CORPORATION

                                By: ____________________________________________

                                Its: Vice President and Treasurer

                                ________________________________________________
                                Employee

<PAGE>

Page 5
Performance Share Agreement

                                  ATTACHMENT A

The Index will be the S&P 1500 Super Composite Electric Utility Index

<PAGE>

Page 6
Performance Share Agreement

                                  ATTACHMENT B

                                 GENERIC EXAMPLE
                            (PERFORMANCE SHARE AWARD)

ASSUMPTIONS:

      -     Employee is granted 500 Performance Shares, which constitutes
            Employee's "Base Grant".

      -     During the Performance Period, the Company's Earnings Per Share
            Growth Rate is in the 88.3 percentile compared to the Index.

CALCULATION OF EMPLOYEE'S COMMON STOCK PAYMENT:

-     Based on the Company's achievement of the 88.3 Percentile during the
      Performance Period, in April of the fiscal year immediately following the
      end of the Performance Period, Employee will receive ____ shares of Common
      Stock, calculated as follows:

      -     ___ shares of Common Stock as a result of the Company's Earnings Per
            Share Growth Rate meeting at least the ___th Percentile (____ X Base
            Grant) plus

      -     ___ shares of Common Stock as a result of the Company's Earnings Per
            Share Growth Rate achieving ________ of the Percentile increase
            between the ___th and ___th Percentiles (________ X _______ shares,
            with the ___ shares representing the Common Stock opportunity
            between the ___th and ___th Percentiles). (Note: __________ X
            _________ shares = ______ shares and must be rounded down to ____
            shares.)

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