Document:

exv10wcc

Exhibit 10 (cc)

Eaton Corporation

2009 Annual Report on Form 10-K

Item 15 (b)

EATON CORPORATION

DEFERRED INCENTIVE COMPENSATION PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 
	 	 	 	Page
	I.
	Purpose

	 	 	1	 
	II.
	Concept

	 	 	1	 
	III. 
	Definitions

	 	 	1	 
	IV. 
	Election to Defer

	 	 	8	 
	V. 
	Periodic Compensation

	 	 	9	 
	VI. 
	Retirement Compensation

	 	 	9	 
	VII.
	Amendment and Termination

	 	 	13	 
	VIII.
	Administration

	 	 	14	 
	IX. 
	Payments to Participants

	 	 	15	 
	X.
	Miscellaneous

	 	 	16	 

 

 

EATON CORPORATION

DEFERRED INCENTIVE COMPENSATION PLAN

	I.	 	PURPOSE
	 
	 	 	The purpose of the Deferred Incentive Compensation Plan is to promote the greater success
of Eaton Corporation and its subsidiaries by providing a means to defer Incentive
Compensation for key employees whose level and nature of position enable them to affect
significantly the profitability, competitiveness and growth of Eaton.
	 
	II.	 	CONCEPT
	 
	 	 	The Plan is based on the concept that the deferral of Incentive Compensation for later
payment to a Participant, including the later payment during Retirement, will provide a
benefit to each Participant and an incentive to improve the profitability,
competitiveness and growth of Eaton.
	 
	III.	 	DEFINITIONS
	 
	 	 	Unless otherwise required by the context, the terms used herein shall have the meanings
as set forth below:
	 
	 	 	ACCOUNT: The account established by Eaton for each Participant to which may be credited
his or her Deferred Incentive Compensation, Dividend Equivalents, Treasury Bill Interest
Equivalents and Fixed Rate Interest Equivalents.
	 
	 	 	BENEFICIARY: The person or entity (including a trust or the estate of the Participant)
designated in a written document executed by the Participant and delivered to the
Committee. If at the time when any unpaid balance of Deferred Incentive Compensation
shall be or become due at or after the death of a Participant, there shall not be any
living person or any entity in existence so designated, the term “Beneficiary” shall mean
the Participant’s estate.
	 
	 	 	BOARD: The Board of Directors of Eaton.
	 
	 	 	CAUSE: For the purposes of this Plan, Eaton shall have “Cause” to terminate the
Participant’s employment hereunder upon (i) the willful and continued failure by the
Participant to substantially perform the Participant’s duties with Eaton (other than any
such failure resulting from the Participant’s incapacity due to physical or mental
illness), after a demand for substantial performance is delivered to the Participant by
the Board which specifically identifies the manner in which the Board believes that the
Participant has not substantially performed the Participant’s duties, or (ii) the willful
engaging by the

 

 

	 	 	Participant in gross misconduct materially and demonstrably injurious to Eaton. For
purposes of this definition, no act, or failure to act, on the Participant’s part shall
be considered “willful” unless done, or omitted to be done, by the Participant not in
good faith and without reasonable belief that the Participant’s action or omission was in
the best interest of Eaton. Notwithstanding the foregoing, the Participant’s employment
shall not be deemed to have been terminated for Cause unless and until there shall have
been delivered to the Participant a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters of the entire membership of the Board at a meeting
of the Board called and held for such purpose (after reasonable notice to the Participant
and an opportunity for the Participant, together with the Participant’s counsel, to be
heard before the Board), finding that in the good faith opinion of the Board the
Participant was guilty of conduct set forth above in clauses (i) or (ii) of this
definition and specifying the particulars thereof in detail.
	 
	 	 	CHANGE IN CONTROL OF EATON: For purposes of this Plan, a “Change in Control of Eaton”
shall be deemed to have occurred if (i) a tender offer shall be made and consummated for
the ownership of securities of Eaton representing 25% or more of the combined voting
power of Eaton’s then outstanding voting securities, (ii) Eaton shall be merged or
consolidated with another corporation and as a result of such merger or consolidation
less than 75% of the outstanding voting securities of the surviving or resulting
corporation shall be owned in the aggregate by the former shareholders of Eaton, other
than affiliates (within the meaning of the Securities Exchange Act of 1934 (the “Exchange
Act”)) of any party to such merger or consolidation, as the same shall have existed
immediately prior to such merger or consolidation, (iii) Eaton shall sell substantially
all of its assets to another corporation which is not a wholly owned subsidiary of Eaton,
(iv) any “person” (as such term is used in Sections 3(a)(9) and 13(d)(3) of the Exchange
Act) is or becomes the beneficial owner, directly or indirectly, of securities of Eaton
representing 25% or more of the combined voting power of Eaton’s then outstanding
securities; or (v) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board cease for any reason to constitute at least
a majority thereof unless the election, or the nomination for election by Eaton’s
shareholders, of each new director was approved by a vote of at least two-thirds of the
directors then still in office who were Directors at the beginning of the period. For
purposes of this Plan, ownership of voting securities shall take into account and include
ownership as determined by applying the provisions of Rule 13d-3(d)(1)(i) of the Exchange
Act (as then in effect).
	 
	 	 	COMMITTEE: The Corporate Compensation Committee of Management of Eaton.
	 
	 	 	BOARD COMMITTEE : The Compensation and Organization Committee of the Board of Directors
of Eaton.
	 
	 	 	CONTINGENT SHARE UNITS: Units credited to a Participant’s Account which are equivalent
in value to the market value of Eaton Common Shares.

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	 	 	DEFERRAL PLANS: Shall mean the Incentive Compensation Deferral Plan, the Strategic
Incentive and Option Plan and this Plan.
	 
	 	 	DEFERRED INCENTIVE COMPENSATION: That portion of Incentive Compensation which has been
deferred pursuant to the Plan and any Dividend Equivalents, Treasury Bill Interest
Equivalents, Fixed Rate Interest Equivalents and Contingent Share Units which are
attributable thereto.
	 
	 	 	DEFERRED INCENTIVE COMPENSATION AGREEMENT: The written agreement between Eaton and a
Participant pursuant to which Incentive Compensation is deferred under the Plan.
	 
	 	 	DISABILITY: If, as a result of the Participant’s incapacity due to physical or mental
illness, the Participant shall have been absent from the Participant’s duties with Eaton
on a full-time basis for 180 consecutive business days and within thirty (30) days after
written Notice of Termination the Participant shall not have returned to the full-time
performance of the Participant’s duties, any termination of the Participant’s employment
by Eaton shall be for “Disability.”
	 
	 	 	DIVIDEND EQUIVALENT: An amount equal to the per share dividends paid on Eaton Common
Shares.
	 
	 	 	EATON: Eaton Corporation, an Ohio corporation, and its subsidiaries and successors and
assigns.
	 
	 	 	EATON COMMON SHARES: The common shares of Eaton.
	 
	 	 	EXECUTIVE INCENTIVE COMPENSATION PLAN: An incentive compensation plan approved (a) by
the Board of Directors of Eaton for participation in this Plan and whose participants are
designated by the Committee on an annual basis or (b) by the Management Compensation
Committee (comprised solely of officers of the Company) and whose participants do not
include any officers of the Company.
	 
	 	 	FAILURE TO PAY: Shall mean that the circumstances described in either (i) or (ii) have
occurred:

	 	(i)	 	Any Participant shall have notified Eaton and the Trustee in writing that
Eaton shall have failed to pay to the Participant, when due, either directly or by
direction to the trustee of any trust holding assets for the payment of benefits
pursuant to the Plan, at least 75% of any and all amounts which the Participant was
entitled to receive at any time in accordance with the terms of the Plan, and that
such amounts remain unpaid. Such notice must set forth the amount, if any, which
was paid to the Participant, and the amount which the Participant believes he or she
was
entitled to receive under the Plan. The failure to make such payment shall have
continued for a period of 30 days after receipt of such notice by Eaton, and during

3

 

	 	 	 	such 30-day period Eaton shall have failed to prove, by clear and convincing
evidence as determined by the Trustee in its sole and absolute discretion, that
such amount was in fact paid or was not due and payable; or
	 
	 	(ii)	 	More than two Plan Participants shall have notified Eaton and the Trustee
in writing that they have not been paid when due, either directly or by direction to
the Trustee, amounts to which they are entitled under the Plan and that such amounts
remain unpaid. Each such notice must set forth the amount, if any, which was paid
to the Participant, and the amount which the Participant believes he or she was
entitled to receive under the Plan. Within 15 days after receipt of each such
notice, the Trustee shall determine, on a preliminary basis, whether any failure to
pay such Participants has resulted in a failure to pay when due, directly or by
direction, at least 75% of the aggregate amount due to all Participants under all
the Deferral Plans in any two-year period, and that such amounts remain unpaid. If
the Trustee determines that such a failure has occurred, then it shall so notify
Eaton and the Participants in writing within the same 15 day period. Within a
period of 20 days after receipt of such notice from the Trustee, Eaton shall have
failed to prove by clear and convincing evidence, in the sole and absolute
discretion of the Trustee, that such amount was paid or was not due and payable.

	 	 	FIXED RATE INTEREST EQUIVALENT: With respect to any Participant, the rate of interest as
specified in the Deferred Incentive Compensation Agreement between such Participant and
Eaton.
	 
	 	 	FUNDED AMOUNT: With respect to the Account of any Participant, the value of any assets
which have been placed in a grantor trust established by the Company to pay benefits with
respect to that Plan Account, as determined at the time initial payments are to be made
pursuant to the selections made by the Participants in accordance with Section 9.03.
	 
	 	 	GOOD REASON: For purposes of this Plan, any Termination of Employment by a Participant
under the following circumstances shall be for “Good Reason”:

	 	(i)	 	without the Participant’s express written consent, the assignment to the
Participant of any duties inconsistent with the Participant’s positions, duties,
responsibilities and status with Eaton immediately prior to a Change in Control of
Eaton, or a change in the Participant’s reporting responsibilities, titles or
offices as in effect immediately prior to a Change in Control of Eaton, or any
removal of the Participant from or any failure to re-elect the Participant to any of
such positions, except in connection with the termination of the Participant’s
employment for Cause, Disability or as a result of the Participant’s death;
	 
	 	(ii)	 	a reduction by Eaton in the Participant’s base salary as in effect
immediately prior to the Change in Control of Eaton or as the same may be increased
from time to time; or the failure by Eaton to increase such base salary each year
after a Change

4

 

	 	 	 	in Control of Eaton by an amount which at least equals, on a
percentage basis, the average annual percentage merit increase in the Participant’s
base salary during the five (5) full calendar years immediately preceding a Change
in Control of Eaton;
	 
	 	(iii)	 	a failure by Eaton to continue the Participant’s participation in
Eaton’s Executive Incentive Compensation Plan (the “I.C. Plan”), Deferred Incentive
Compensation Plan (the “Deferred I.C. Plan”), Limited Eaton Service Supplemental
Retirement Income Plan (the “Limited Service Plan”), the Executive Strategic
Incentive Plan (the “ESIP Plan”) and the Supplemental Benefit Plan established by
the Board as a result of the limitations on pension benefits imposed by Section 415
of the Internal Revenue Code (the “Supplemental Plan”), as each plan may be modified
from time to time but substantially in the form presently in effect, on at least the
basis as in effect immediately prior to the Change in Control of Eaton or to pay the
Participant any amounts earned under such plans in accordance with the terms of such
plans.
	 
	 	(iv)	 	the relocation of Eaton’s principal executive offices to a location
outside Cuyahoga County, Ohio or any county adjoining Cuyahoga County, Ohio, or
Eaton’s requiring the Participant to be based anywhere other than Eaton’s principal
executive offices or the location where the Participant is based immediately prior
to the Change in Control of Eaton except for required travel on Eaton’s business to
an extent substantially consistent with the Participant’s business travel
obligations in effect immediately prior to the Change in Control of Eaton, or, in
the event the Participant consents to any such relocation of Eaton’s principal
executive offices, the failure by Eaton to pay (or reimburse the Participant for)
all reasonable moving expenses incurred by the Participant relating to a change of
the Participant’s principal residence in connection with such relocation and to
indemnify the Participant against any loss (defined as the difference between the
actual sale price of such residence and the higher of (a) the Participant’s
aggregate investment in such residence or (b) the fair market value of such
residence as determined by any real estate appraiser designated by the Participant
and reasonably satisfactory to Eaton) realized in the sale of the Participant’s
principal residence in connection with any such change of residence;
	 
	 	(v)	 	the failure by Eaton to continue to effect any benefit or compensation
plan (including but not limited to the plans described under paragraph (p)(iii)
above), pension plan, life insurance plan, health and accident plan or disability
plan in which the Participant is participating at the time of a Change in Control of
Eaton (or plans providing the Participant with substantially similar benefits), the
taking of any action by Eaton which would adversely affect the Participant’s
participation in or materially reduce the Participant’s benefits under any of such
plans or deprive the Participant of any material fringe or personal benefit enjoyed
by the Participant
at the time of the Change in Control of Eaton, or the failure by Eaton to provide
the Participant with the number of paid vacation days to which the Participant is
then entitled on the basis of years of service with Eaton in accordance with
Eaton’s

5

 

	 	 	 	normal vacation policy in effect immediately prior to the Change in Control
of Eaton;
	 
	 	(vi)	 	the failure of Eaton to obtain the assumption of this Plan by any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the assets of Eaton, by agreement in form
and substance satisfactory to the Participant, to expressly assume this Plan and the
obligations of Eaton hereunder; or
	 
	 	(vii)	 	any purported termination of the Participant’s employment which is not
effected pursuant to a Notice of Termination satisfying the requirements of a Notice
of Termination as herein defined (and, if applicable, the definition of “Cause” as
herein defined); and for purposes of this Plan, no such purported termination shall
be effective.

	 	 	INCENTIVE COMPENSATION: The full amount of the annual Incentive Compensation awarded to
a Participant under the Executive Incentive Compensation Plan.
	 
	 	 	INCENTIVE YEAR: An incentive year as defined under the provisions of the Executive
Incentive Compensation Plan.
	 
	 	 	LUMP SUM PAYMENT: Means an amount (payable in cash or Eaton Common Shares, or a
combination thereof) equal to the total of the following amounts calculated as of the
date of the payment:

	 	(i)	 	The amount, if any, of the Participant’s Periodic Compensation then
credited to his Account and accrued and unpaid Treasury Bill Interest Equivalents
thereon; plus
	 
	 	(ii)	 	The amount, if any, of the Participant’s unpaid Type A Retirement
Compensation calculated in accordance with Section 6.04 of the Plan and assuming for
purposes of the conversion calculation that a Change in Control of Eaton has
occurred within the relevant time period so that Section 6.04(b) is applicable; plus
	 
	 	(iii)	 	The amount, if any, payable as a lump sum in relation to Type B
Retirement Compensation, calculated in accordance with Section 6.10(a)(ii) of the
Plan, assuming that the Type B Retirement Compensation would be credited with Fixed
Rate Interest Equivalents from the date of the Lump Sum Payment until paid over the
fifteen-year period following the date of such Lump Sum Payment.

	 	 	In the event that a Participant or a Participant’s Designated Beneficiary has begun to
receive benefit installment payments under the Plan prior to the date of the Lump Sum
Payment, the amount of such Lump Sum shall be equal to the present value of the remaining
annual payments which otherwise would have been made calculated as described in this
Section.

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	 	 	MEAN PRICE: The mean between the highest and lowest quoted selling price of an Eaton
Common Share on the New York Stock Exchange List of Composite Transactions.
	 
	 	 	NORMAL RETIREMENT DATE: The date a Participant attains age sixty-five (65).
	 
	 	 	NOTICE OF TERMINATION: Any termination of the Participant’s employment by Eaton for
Cause or Disability or by the Participant for Good Reason shall be communicated by
written Notice of Termination to the Participant or Eaton, respectively. For purposes of
this Plan, a “Notice of Termination” shall mean a notice which shall indicate the
specific termination provision in this Plan relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of the
Participant’s employment under the provision so indicated.
	 
	 	 	PARTICIPANT: An employee of Eaton in a key position receiving benefits under the
Executive Incentive Compensation Plan and participating under the Plan.
	 
	 	 	PERIODIC COMPENSATION: That portion of a Participant’s Incentive Compensation which is
deferred under the Plan for payment over a period of five (5) years.
	 
	 	 	PERIODIC INSTALLMENTS: Equal monthly, quarterly, semiannual or annual payments, over a
period not to exceed 15 years, as determined by the Committee in its sole discretion.
	 
	 	 	PLAN: The Deferred Incentive Compensation Plan pursuant to which all or a portion of
Incentive Compensation may be deferred for later payment to a participant, as amended and
restated as of January 1, 1989, and as subsequently amended on March 31, 2000 to provide
that distributions of Type A Retirement Compensation first commencing after March 31,
2000 shall be made in Eaton Common Shares (except as otherwise provided in Section 6.04),
and as further amended on November 1, 2007 to provide that Type A Retirement
compensation will no longer be credited with the greater of appreciation or earnings on
Eaton Common Shares or Treasury Bill Interest Equivalent, but instead will only be
credited with appreciation and earnings on Eaton Common Shares.
	 
	 	 	RETIREMENT: The Termination of Employment of a Participant who is age fifty-five (55) or
older and who has at least ten (10) years of service with Eaton or who is age sixty-five
(65) or older or under circumstances making him eligible to receive pension
payments under a pension plan sponsored by Eaton commencing within sixty (60) days of the
date of such Termination of Employment.
	 
	 	 	RETIREMENT COMPENSATION: That portion of Incentive Compensation deferred under the Plan
for payment to a Participant upon his or her Retirement which either shall be Type A
Retirement Compensation or Type B Retirement Compensation as selected by the Participant
in accordance with Section 4.01.

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	 	 	TERMINATION AND CHANGE IN CONTROL: Shall mean the termination of the employment of a
Participant for any reason whatsoever prior to a Change in Control, upon a subsequent
Change in Control or termination of the employment of a Participant for any reason
whatsoever during the three-year period immediately following a Change in Control.
	 
	 	 	TERMINATION OF EMPLOYMENT: The time when a Participant shall no longer be employed by
Eaton whether by reason of Retirement, death, voluntary resignation (with or without Good
Reason), divestiture or closing of a business unit, plant or facility, discharge (with or
without Cause), or such disability that, under the then current employment practices of
Eaton, the employment of the Participant is deemed to have been terminated.
	 
	 	 	TREASURY BILL INTEREST EQUIVALENT: A rate of interest equal to the quarterly average
yield of 13-week U.S. Government Treasury Bills.
	 
	 	 	TRUSTEE: Shall mean the trustee of any trust which holds assets for the payment of the
benefits provided by the Plan.
	 
	 	 	TYPE A RETIREMENT COMPENSATION: As defined in Section 6.01.
	 
	 	 	TYPE B RETIREMENT COMPENSATION: As defined in Section 6.01.
	 
	IV.	 	ELECTION TO DEFER
	 
	 	 	Section 4.01. With respect to Incentive Compensation for each Incentive Year
commencing in or after 1986, the Participant shall be given the opportunity to elect, by
signing and delivering to the Committee a Deferred Incentive Compensation Agreement, the
manner and extent to which the Participant’s Incentive Compensation awarded in respect to
such Incentive Year shall be deferred under the Plan, the allocation between Periodic
Compensation and Retirement Compensation and, with respect to the latter, the allocation
between Type A Retirement Compensation and Type B Retirement Compensation.
	 
	 	 	Section 4.02. Not less than 10% of Incentive Compensation awarded for any
Incentive Year may be deferred under the Plan.
	 
	 	 	Section 4.03. If a Participant elects to allocate a portion of Incentive
Compensation to both Periodic Compensation and Retirement Compensation, the amount
allocated to each form of Compensation shall be not less than 10% of the Incentive
Compensation awarded for any Incentive Year.
	 
	 	 	Section 4.04. To be in effect for an Incentive Year, a Participant’s election
pursuant to Section 4.01 must be completed on or before June 15 of such Incentive Year;
provided,

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	 	 	however, that in order to select Type B Retirement Compensation
such election must be completed on or before December 2 of the immediately preceding
Incentive Year. Only Participants who have elected to allocate Deferred Incentive
Compensation to Retirement Compensation for the Incentive Year commencing in 1985 (under
the Plan as in effect prior to the October 23, 1985 amendment and restatement thereof)
shall be entitled to allocate all or part of such Deferred Incentive Compensation to Type
B Retirement Compensation.
	 
	 	 	Section 4.05. Once a Participant has made an effective election under Section
4.01 with respect to the deferral and allocation of his or her Incentive Compensation, he
or she may not thereafter change that election or change the allocation between Periodic
Compensation and Retirement Compensation or between Type A Retirement Compensation and
Type B Retirement Compensation.
	 
	V.	 	PERIODIC COMPENSATION
	 
	 	 	Section 5.01. There shall be computed and credited quarterly to the
Participant’s Account Treasury Bill Interest Equivalents on all unpaid Periodic
Compensation.
	 
	 	 	Section 5.02. Commencing in January of the second year following the Incentive
Year for which the Periodic Compensation was credited to the Participant, the Periodic
Compensation shall be paid to the Participant in five (5) equal annual installments; and,
with each such installment, there shall be paid to the Participant all Treasury Bill
Interest Equivalents credited to the Participant and then unpaid.
	 
	 	 	Section 5.03. Upon Termination of Employment, any unpaid Periodic Compensation
and any unpaid Treasury Bill Interest Equivalents credited thereon shall be paid to the
Participant, or his or her Beneficiary, as the case may be, pursuant to the schedule for
payment described in Section 5.02.
	 
	VI.	 	RETIREMENT COMPENSATION

	 	A.	 	General.

	 	 	Section 6.01. The amount of Deferred Incentive Compensation allocated to
Retirement Compensation shall correspond with the portion of the Incentive Compensation
award
elected by the Participant pursuant to Section 4.01. Such amount may be allocated between
Type A Retirement Compensation and, subject to Sections 6.08 and 6.09, Type B Retirement
Compensation. Amounts allocated as Type A Retirement Compensation shall be converted
into a number of Contingent Share Units on such date or dates as shall correspond with
the determination and transfer of Incentive Compensation (it being understood that such
transfer may be the payment date of such Incentive Compensation). The amounts allocated
as Type A Retirement Compensation shall be converted into a number of Contingent Share
Units based upon the average of the Mean Prices for Eaton Common Shares for the twenty
trading days of the New York

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	 	 	Stock Exchange during which Eaton Common Shares were traded
immediately following the end of the Incentive Year in which the Incentive Compensation
so allocated was earned. Amounts allocated as Type B Retirement Compensation shall not
be converted into Contingent Share Units, but instead shall be credited with Fixed Rate
Interest Equivalents, compounded annually, until paid.
	 
	 	 	Retirement Compensation which the Participant elects to have converted into Contingent
Share Units is referred to herein as “Type A Retirement Compensation” and Retirement
Compensation to be credited with Fixed Rate Interest Equivalents is referred to herein as
“Type B Retirement Compensation.”

	 	B.	 	Provisions Regarding Type A Retirement Compensation.

	 	 	Section 6.02. On each dividend payment date for Eaton Common Shares, Dividend
Equivalents shall be credited to the Participant’s Account with respect to all Contingent
Share Units then credited to such Account and shall be converted into an appropriate
number of Contingent Share Units utilizing the procedures set forth in Section 6.01 but
at the Mean Price on said dividend payment date.
	 
	 	 	Section 6.03. In determining the number of Contingent Share Units to be credited
to a Participant, whether by reason of the conversion of Retirement Compensation to
Contingent Share Units or by reason of the conversion of Dividend Equivalents to
Contingent Share Units, such number may be expressed in fractions of a Contingent Share
Unit computed to the nearest tenth. The number of Contingent Share Units credited to a
Participant shall be appropriately adjusted to reflect any change in the capitalization
of Eaton resulting from a stock dividend, stock split, reorganization, merger,
consolidation, recapitalization, combination, exchange of shares or any other similar
events.
	 
	 	 	Section 6.04. Upon Retirement or other Termination of Employment of the
Participant or upon any other distribution of Type A Retirement Compensation, (x) all
Contingent Share Units standing to his or her credit shall be converted to an equal
number of Eaton Common Shares and (y) his or her account shall be credited with an
additional amount equal to the amount, if any, by which the amount determined under
Subsection 6.04(a) exceeds the amount determined under Subsection 6.04(b):

	 	(a)	 	the product of the average of the Mean Prices for an Eaton Common Share
for the twenty (20) trading days of the New York Stock Exchange during which Eaton
Common Shares were traded immediately preceding the date of Retirement or other
Termination of Employment or distribution multiplied by the number of Contingent
Share Units then credited to the Participant’s Account.
	 
	 	(b)	 	if a Change in Control of Eaton shall have occurred at any time within
the period of thirty-six (36) months immediately preceding the Participant’s
Retirement or other Termination of Employment, the product of the highest of the
following:

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	 	(i)	 	the highest price paid for an Eaton Common Share in any tender
offer in connection with the Change in Control;
	 
	 	(ii)	 	the price received for an Eaton Common Share in any merger,
consolidation or similar event in connection with the Change in Control; or
	 
	 	(iii)	 	the highest price paid for an Eaton Common Share as reported in
any Schedule 13D within the sixty (60) day period immediately preceding the
Change in Control;

	 	 	 	multiplied by the number of Contingent Share Units credited to the Participant’s
Account at the time of his or her Retirement or other Termination of Employment or
distribution.

	 	 	The additional amount, if any, so determined shall be converted to Eaton Common
Shares based on the average of the Mean Prices for Eaton Common Shares on the date of
such determination which shall be credited to the Participant’s Account and held for
later distribution as set forth in Section 6.05.
	 
	 	 	Section 6.05. Upon Retirement or other Termination of Employment of a
Participant or upon any other distribution of Type A Retirement Compensation, and after
the conversion of Contingent Share Units to Eaton Common Shares and the calculation of
the additional amount, if any, to be credited to the Participant’s Account as set forth
in Section 6.04, the Committee shall determine in its sole discretion the method of
distribution of such Eaton Common Shares and the additional amount, if any, whether in a
lump sum, to be paid within one year after Retirement or other Termination of Employment
or upon the date of any of other distribution of such Compensation, or Periodic
Installments; provided, however, that in making such determination the
Committee may consider the wishes and needs of the Participant or his or her Beneficiary,
as the case may be, with respect to the payment of Type A Retirement Compensation.
	 
	 	 	Section 6.06. There shall be computed on a quarterly basis and credited to the
Participant’s Account Dividend Equivalents on the unpaid amount of Type A Retirement
Compensation determined pursuant to Section 6.04 until such Compensation is paid by
Eaton. All credited Dividend Equivalents shall be converted to Eaton Common Shares using
the method set forth in Section 6.04 but based on a date which is as near to the
distribution date as is administratively practical.
	 
	 	 	Section 6.07. Commencing at such time as the Committee shall determine, but not
later than one (1) year following Retirement or other Termination of Employment, the
Eaton Common Shares credited to the Participant’s Account in accordance with Section 6.04
shall be distributed to the Participant or his Beneficiary, as the case may be, in
accordance with the schedule for distribution determined under Section 6.05 and, with

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	 	 	each Periodic Installment, there shall be paid all Dividend Equivalents credited to the
Participant and then unpaid.

	 	C.	 	Provisions Regarding Type B Retirement Compensation.

	 	 	Section 6.08. A Participant may defer as Type B Retirement Compensation all or
any portion of his or her future Incentive Compensation which is earned during a period
of four (4) consecutive Incentive Years or for the period to his or her Normal Retirement
Date, if earlier; provided, however, that with respect to any Incentive
Year, the amount of Incentive Compensation a Participant may defer as Type B Retirement
Compensation must be at least $5,000 and no greater than the maximum amount for such
Incentive Year specified in such Participant’s Deferred Incentive Compensation Agreement;
provided, further, that any Incentive Compensation in excess of such
annual maximum limitation may be deferred as either Periodic Compensation or Type A
Retirement Compensation.
	 
	 	 	Section 6.09. Notwithstanding anything herein to the contrary, Eaton shall be
entitled to deny Participants the opportunity to elect to defer future Incentive
Compensation as Type B Retirement Compensation for any reason if such Incentive
Compensation is not then subject to an effective deferral election; provided,
however, that any such denial by Eaton of the opportunity to elect deferrals
shall apply to all Participants equally.
	 
	 	 	Section 6.10.

	 	(a)	 	Following Retirement, all Type B Retirement Compensation then credited to
a Participant’s Account, together with Fixed Rate Interest Equivalents earned during
the period of deferral, shall be paid to the Participant or his or her Beneficiary
in fifteen (15) equal annual installments commencing on the first day of February
following the year in which the Participant attains age 65; provided,
however, that after consideration of the wishes and needs of the Participant
or his or her Beneficiary, the Committee may determine in its sole discretion (i) to
commence payment of the installments to any Participant at an earlier date following
Retirement; (ii) to pay to any Participant the Type B Retirement Compensation in a
lump sum within one year following Retirement; or (iii) to pay Type B Retirement
Compensation in a lump sum upon any Termination of Employment by reason of
divestiture or closing of a business unit, subsidiary, plant or facility or to
provide that such Type B Retirement Compensation shall be paid commencing on a date
which is subsequent to such Termination of Employment but not later than the
Participant’s Normal Retirement Date. For purposes of the payments under the
foregoing clauses (ii) and (iii), the amount of such lump sum shall be equal to the
then present value of the fifteen (15) annual payments which otherwise would have
been made as calculated using an interest rate equal to “Moody’s Corporate Bond
Yield Average — Monthly (Average Corporates)” most recently published by Moody’s
Investor Services, Inc. (or any successor thereto) at the time of the calculation.

12

 

	 	(b)	 	The rate of each Participant’s Fixed Rate Interest Equivalent, as set
forth in his or her Deferred Incentive Compensation Agreement, is based on the
assumption that the Participant will defer a specified amount of Incentive
Compensation for four (4) consecutive years or to his or her Retirement, if earlier.
Notwithstanding any provisions hereof to the contrary, upon a Participant’s
Termination of Employment, other than for Retirement and except as provided in
Section 6.10(c), all Type B Retirement Compensation then credited to his or her
Account shall be credited only with Treasury Bill Interest Equivalents, compounded
quarterly, for the actual period of deferral until paid in lieu of the Fixed Rate
Interest Equivalents otherwise credited to Type B Retirement Compensation;
provided, however, that the Committee may determine in its sole
discretion that all Type B Retirement Compensation credited to a Participant’s
Account shall continue to be credited with Fixed Rate Interest Equivalents until
paid. Upon such Termination of Employment, payment of the amounts credited to a
Participant’s Account shall be made as determined by the Committee (i) in Periodic
Installments commencing within one year following such Termination of Employment or
at such other date not later than first February following the Participant’s Normal
Retirement Date as determined by the Committee, or (ii) in a lump sum within one
year following such Termination of Employment or at such other date not later than
the first February following the Participant’s Normal Retirement Date as determined
by the Committee.
	 
	 	(c)	 	Notwithstanding anything in Section 6.10(b) to the contrary, (i) if a
Participant’s Termination of Employment occurs within five (5) years after a Change
in Control of Eaton and such Termination of Employment is by Eaton without Cause or
by the Participant for Good Reason or for Retirement, all Type B Retirement
Compensation then credited to the Participant’s Account shall be credited with the
Fixed Rate Interest Equivalents and held under the Plan as elected by the
Participant in his or her Deferred Incentive Compensation Agreement; (ii) if within
five (5) years after a Change in Control of Eaton a Participant is not permitted to
complete the deferral of Incentive Compensation until the Participant’s Retirement
because of any amendment or termination of the Plan, all Type B Retirement
Compensation then credited to the Participant’s Account shall be credited with the
Fixed Rate Interest Equivalents and held under the Plan as elected by the
Participant in his or her Deferred Incentive Compensation Agreement; or (iii) if a
Participant’s Termination of Employment is caused by any divestiture or closing of
a business unit, subsidiary, plant or facility, the Board Committee may determine
in its sole discretion that all Type B Retirement Compensation then credited to the
Participant’s Account shall be credited with the Fixed Rate Interest Equivalents
until paid as provided under Section 6.10(a).

	VII.	 	AMENDMENT AND TERMINATION
	 
	 	 	Section 7.01. Eaton fully expects to continue the Plan but it reserves the
right, except as otherwise provided herein, at any time or from time to time, by action
of the Board

13

 

	 	 	Committee, to modify or amend the Plan, in whole or in part, or to terminate
the Plan, in whole or in part, at any time and for any reason, including, but not limited
to, adverse changes in the federal tax laws; provided, however, that no
amendment may be made to the provisions of the Plan which comply with Rule
l6b-3(c)(2)(ii)(A) of the Securities Exchange Act of 1934, as amended, more than once
every six months, other than to comport with changes in the Internal Revenue Code, the
Employee Retirement Income Security Act, or the rules thereunder.
	 
	 	 	Section 7.02. In the event of any termination of the Plan which results in the
Participants being unable to have any future Incentive Compensation allocated as Type B
Retirement Compensation, the amount of all Type B Retirement Compensation credited to a
Participant’s Account at the date of such Plan termination shall be converted to Type A
Retirement Compensation, effective retroactively to the date such Retirement Compensation
was allocated pursuant to Section 6.01, and either shall be paid to the Participant or
continue to be held under the Plan as elected by the Participant in his or her Deferred
Incentive Compensation Agreement, except for 1985 Incentive Compensation, if any,
deferred as Type B Retirement Compensation which shall continue to be held under the
Plan. Notwithstanding the foregoing, in the event of a termination of the Plan within
five (5) years after a Change in Control of Eaton, all Type B Retirement Compensation
then credited to a Participant’s Account together with Fixed Rate Interest Equivalents
earned during the period of deferral shall not be converted to Type A Retirement
Compensation but shall be held under the Plan as elected by the Participant in his or her
Deferred Incentive Compensation Agreement. No amendment to, or termination of, the Plan
after a Change in Control of Eaton shall modify this provision or any provision hereof
relating to a Change in Control of Eaton or the rights of a Participant in effect under
the Plan immediately prior to such Change in Control of Eaton. Notwithstanding anything
herein to the contrary, no amendment, modification or termination of the Plan shall,
without the consent of the Participant, alter or impair this provision or any of the
Participant’s rights under the Plan with respect to benefits accrued prior to such
amendment, modification or termination.
	 
	VIII.	 	ADMINISTRATION
	 
	 	 	Section 8.01. The Plan shall be administered by the Committee in accordance with
rules of general application for the administration of the Plan as the Committee may,
from time to time, adopt. The Committee shall interpret the provisions of the Plan where
necessary and may adopt procedures for the administration of the Plan which are
consistent with the provisions of the Plan and the rules adopted by the Committee.
	 
	 	 	Section 8.02. Each Participant or Beneficiary must claim any benefit to which he
or she may be entitled under the Plan by a written notification to the Committee. If a
claim is denied, it must be denied within a reasonable period of time in a written notice
stating the specific reasons for the denial.

14

 

	 	 	The claimant may have a review of the denial by the Committee by filing a written notice
with the Committee within sixty (60) days after the notice of the denial of his or her
claim.
	 
	 	 	The written decision by the Committee with respect to the review must be given within one
hundred and twenty (120) days after receipt of the written request.
	 
	IX.	 	PAYMENTS TO PARTICIPANTS
	 
	 	 	Section 9.01.
	 
	 	 	Notwithstanding anything herein to the contrary, upon the occurrence of a Termination and
Change in Control, the Participants shall be entitled to receive from the Company the
payments as provided in Section 9.03 .
	 
	 	 	Section 9.02.
	 
	 	 	Notwithstanding anything herein to the contrary, upon the occurrence of a Failure to Pay,
each Participant covered by the situation described in clause (i) of the definition of
Failure to Pay, or each of the Participants in the event of a situation described in
clause (ii) of that definition, as the case may be, shall be entitled to receive from the
Company the payments as provided in Section 9.03.
	 
	 	 	Section 9.03.
	 
	 	 	No later than the first to occur of (i) one year following the date hereof for any
current Participant, (ii) a Termination and Change in Control or a Failure to Pay for any
current Participant or (iii) the date upon which any person who is not a current
Participant upon the date hereof becomes a Participant, each Participant shall select one
of the payment alternatives set forth below with respect to that portion of the
Participant’s Plan Account equal to the full amount of the Account minus the Funded
Amount, and with respect to
that portion of the Account equal to the Funded Amount. The payment alternatives
selected with respect to the two portions of the Account need not be the same. The
payment alternatives are as follows:

	 	(a)	 	a lump sum payment within 30 days following the Termination and Change in
Control or Failure to Pay, as the case may be;
	 
	 	(b)	 	payment in monthly, quarterly, semiannual or annual payments, over a
period not to exceed fifteen years, as selected by the Participant at the time
provided in the first paragraph of this Section 9.03, commencing within 30 days
following the Termination and Change in Control or Failure to Pay, as the case may
be, which are substantially equal in amount or in the number of share units being
valued and paid, except that earnings attributable to periods following Termination
and Change in Control or Failure to Pay shall be included with each payment.

15

 

	 	 	Payment shall be made to each such Participant in accordance with his or her selected
alternative as provided in Sections 9.01 and 9.02.
	 
	X.	 	MISCELLANEOUS
	 
	 	 	Section 10.01. Each Participant shall have the right, by written instruction to
the Committee, on a form supplied by the Committee, to designate one or more primary and
contingent beneficiaries (and the proportion to be paid to each, if more than one is
designated) to receive his or her Deferred Incentive Compensation upon his or her death.
Any such designation shall be revocable by the Participant.
	 
	 	 	Section 10.02. The Committee may, in its sole discretion, change the amount of
the Periodic Installments or the number of years over which the Periodic Installments are
to be paid or permit the payment of any Deferred Incentive Compensation at any date or
dates which may be earlier than the payment date or dates provided under the Plan. The
Committee may consider the needs and desires of the participant or beneficiary in making
this decision. The determination of the Committee shall be final and conclusive upon
Eaton, the Participant and the Beneficiary. Any Type B Retirement Compensation paid
pursuant to this Section 10.02 to a Participant who would then be eligible to terminate
his or her employment for Retirement shall be credited with the Fixed Rate Interest
Equivalent on the amount so paid. Any Type B Retirement Compensation paid to a
Participant who is not then eligible to terminate his or her employment for Retirement
shall be credited only with the Treasury Bill Interest Equivalent.
	 
	 	 	Section 10.03. All payments under the Plan shall be subject to such taxes
(federal, state or local) as may be due thereon and the determination by the Committee as
to withholding with respect thereto shall be binding upon the Participant and his or her
Beneficiary.
	 
	 	 	Section 10.04. If any Participant under the Plan is a member of the Committee,
he or she shall not participate as a member of the Committee in any determination under
the Plan relating to his or her Deferred Incentive Compensation.
	 
	 	 	Section 10.05. All action of the Committee hereunder may be taken with or
without a meeting. If taken without a meeting, the action shall be in writing and signed
by a majority of the members of the Committee and if taken with a meeting, a majority of
the Committee shall constitute a quorum for any such action.
	 
	 	 	Section 10.06. Subject to any federal statute to the contrary, no right or
benefit under the Plan shall be subject to anticipation, alienation, sale, assignment,
pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber, or charge any right or benefit under the Plan shall be void. No right
or benefit hereunder shall in any manner be liable for or subject to the debts,
contracts, liabilities, or torts of the person entitled to such benefits. If the
Participant or Beneficiary shall become

16

 

	 	 	bankrupt, or attempt to anticipate, alienate,
sell, assign, pledge, encumber, or charge any right hereunder, then such right or benefit
shall, in the discretion of the Company, cease and terminate, and in such event, the
Company may hold or apply the same or any part thereof for the benefit of the Participant
or his or her spouse, children, or other dependents, or any of them, in such manner and
in such amounts and proportions as the Company may deem proper.
	 
	 	 	Section 10.07. The obligations of Eaton to make payments hereunder shall
constitute a liability of Eaton to the Participant. Eaton may, but shall not be required
to, establish or maintain any special or separate fund, or purchase or acquire life
insurance on a Participant’s life, or otherwise to segregate assets to assure that such
payments shall be made.
	 
	 	 	Section 10.08. The Plan shall not be deemed to constitute a contract of
employment between Eaton and a Participant. Neither shall the execution of this Plan nor
any action taken by Eaton pursuant to this Plan be held or construed to confer on a
Participant any legal right to be continued as an employee of Eaton, in an executive
position or in any other capacity with Eaton whatsoever.
	 
	 	 	Section 10.09. Obligations incurred by Eaton pursuant to this Plan shall be
binding upon and inure to the benefit of Eaton, its successors and assigns, and the
Participant or his or her Beneficiary.
	 
	 	 	Section 10.10. This Plan shall be construed and governed in accordance with the
law of the State of Ohio.
	 
	 	 	Section 10.11. The masculine gender, where appearing in the Plan, shall be
deemed to include the feminine gender, and the singular may include the plural, unless
the context clearly indicates to the contrary.
	 
	 	 	Section 10.12. All headings used in the Plan are for convenience of reference
only and are not part of the substance of the Plan.

17

 

APPROVAL AND ADOPTION

The Eaton Corporation Deferred Incentive Compensation Plan, as amended and restated effective
November 1, 2007, is hereby approved.

	 	 	 	 	 
	 

	 	 	 	Date:                                          , 2010
	 

Name

	 	 	 	 
	 
	 	 	 	 
	 

Title

	 	 	 	 
	 
	 	 	 	 
	 

Name

	 	 	 	 
	 
	 	 	 	 
	 

Title

	 	 	 	 

18Exhibit 10.1

Exhibit 10.1

THIRD AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

This THIRD AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), dated as of February 23, 2010, by and among THERMADYNE INDUSTRIES, INC., a
Delaware corporation (“Industries”), THERMAL DYNAMICS CORPORATION, a Delaware corporation
(“Dynamics”), VICTOR EQUIPMENT COMPANY, a Delaware corporation (“Victor”), C & G
MERGER CO., an Illinois corporation (“C & G”), STOODY COMPANY, a Delaware corporation
(“Stoody”), THERMADYNE INTERNATIONAL CORP., a Delaware corporation
(“International”, and collectively with Stoody, C & G, Victor, Dynamics and Industries, the
“Borrowers”), the other persons designated as Credit Parties on the signature pages hereof,
GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“Agent”) and the Persons
signatory hereto as Lenders. Unless otherwise specified herein, capitalized terms used in this
Amendment shall have the meanings ascribed to them in Annex A to the Credit Agreement (as
hereinafter defined).

RECITALS

WHEREAS, the Borrowers, the other Credit Parties, Agent and Lenders have entered into that
certain Third Amended and Restated Credit Agreement dated as of June 29, 2007 (as further amended,
supplemented, restated or otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, the Borrowers and the other Credit Parties have requested that Agent and Lenders
amend certain provisions of the Credit Agreement; and

WHEREAS, the Agent and Lenders have agreed to amend the Credit Agreement as set forth herein.

NOW THEREFORE, in consideration of the mutual execution hereof and other good and valuable
consideration, the parties hereto agree as follows:

1. Amendments to Credit Agreement. Subject to the satisfaction of the conditions precedent
set forth in Section 3 hereof, the parties hereto hereby agree to amend the Credit Agreement as
follows:

(a) Subsection 6.2(i) of the Credit Agreement is hereby amended and restated to
read in its entirety as follows:

“(i) any Borrower may (x) make investments in, or create, any wholly-owned
Foreign Subsidiary and (y) make investments in other foreign Persons; provided that:

(1) the aggregate amount of such foreign investments funded after the Third
Amendment Effective Date permitted by clause (x) and clause
(y) of
this subsection 6.2(i) outstanding from time to time, exclusive of
investments permitted by subsection 6.2(k), (the “Outstanding Foreign
Investment Amount”) shall not exceed $10,000,000; provided that when calculating the Outstanding
Foreign Investment Amount at any point in time, the amount of such investments shall
be reduced by the total of the amounts repatriated on and after the after the Third
Amendment Effective Date to any Borrower on account of such investments made in
wholly-owned Foreign Subsidiaries, even if such reduction reduces the Outstanding
Foreign Investment Amount to less than $0;

 

 

 

(2) the aggregate amount of such foreign investments permitted by clause
(y) of this subsection 6.2(i) funded after the Third Amendment Effective
Date shall not exceed $3,000,000;

(3) if, at the time of any such proposed investment, (A) an Event of Default
has occurred and is continuing or Borrowing Availability is less than $10,000,000
and (B) the Outstanding Foreign Investment Amount exceeds $5,000,000 or would exceed
$5,000,000 after giving effect to such proposed investment, such proposed investment
shall be subject to the prior approval of Agent acting in its sole discretion;

(4) 65% of the stock of any such direct Foreign Subsidiary (except in that in
the case of the Australian Collateral Party, 100% of such stock) shall be pledged to
secure the Obligations; and

(5) Borrowers shall, concurrently with the delivery of financial statements
for each Fiscal Month, deliver to Agent a summary of foreign investments in Foreign
Subsidiaries and other Persons, net of repatriations;”

(b) Annex A to the Credit Agreement is hereby amended by inserting the following
definitions or, if contained therein, amending and restating such definitions to read in
their entirety as follows:

““Capital Expenditures” means, with respect to any Person, all
expenditures (by the expenditure of cash or the incurrence of Indebtedness) by such
Person during any measuring period for any fixed assets or improvements or for
replacements, substitutions or additions thereto that have a useful life of more
than one year and that are required to be capitalized under GAAP.”

““Fixed Charges” means, with respect to any Person for any fiscal
period:

(a) the aggregate of all Interest Expense paid or accrued (without duplication)
during such period (less any interest income received in cash during such period),
plus

(b) scheduled payments of principal with respect to Indebtedness during such
period, including amortization of the ABL Borrowing Base in the amount of the
Amortization Amount per calendar quarter in accordance with clause (i) of the
definition of Borrowing Base, plus

 

2

 

(c) Capital Expenditures during such period (other than that portion of such
Capital Expenditures:

(i) financed by lenders other than the Lenders hereunder; and

(ii) equal to the lesser of

(x) the amount of Capital Expenditures from the Third Amendment
Effective Date through the first anniversary thereof (the
“Measuring Period”) and

(y) the sum of (1) additional principal of Second Lien
Obligations which were incurred in August 2009 and spent on Capital
Expenditures during the Measuring Period, up to $11,000,000 and (2)
an amount equal to the proceeds of the Revolving Loans derived from
the Incremental M&E Availability during the period of January 1, 2010
through March 31, 2010), plus

(d) income taxes paid or currently payable in cash with respect to such fiscal
period, which shall not be less than zero.”

““Outstanding Foreign Investment Amount” has the meaning ascribed to it
in subsection 6.2(i) of the Credit Agreement.”

““Third
Amendment” means that certain Third Amendment to Third Amended
and Restated Credit Agreement entered into as of February 23, 2010 among the
Borrowers, the other Credit Parties, the Agent and the Lenders signatory thereto.”

““Third Amendment Effective Date” means the date on which the Third
Amendment becomes effective.”

(c) Annex G to the Credit Agreement is hereby amended by amending and restating
subsection (a) (ii) contained therein in its entirety to read as follows:

“(ii) Minimum Fixed Charge Coverage Ratio. Holdings and its
Subsidiaries shall have on a consolidated basis at the end of the Fiscal Quarters
ending (A) on December 31, 2009, a Fixed Charge Coverage Ratio for the 3-month
period then ended of not less than 1.00, (B) on March 31, 2010, a Fixed Charge
Coverage Ratio for the 6-month period then ended of not less than 1.10; (C) on June
30, 2010, a Fixed Charge Coverage Ratio for the 9-month period then ended of not
less than 1.10; and (D) each Fiscal Quarter thereafter, a Fixed Charge Coverage
Ratio for the 12-month period then ended of not less than 1.10.”

 

3

 

2. Representations and Warranties of Credit Parties. The Credit Parties represent and
warrant that:

(a) the execution, delivery and performance by the Credit Parties of this Amendment have
been duly authorized by all necessary corporate action required on its part and this
Amendment is a legal, valid and binding obligation of the Credit Parties enforceable against
the Credit Parties in accordance with its terms except as the enforcement thereof may be
subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and (ii) general principles
of equity (regardless of whether enforcement is sought in a proceeding in equity or at law);
and

(b) after giving effect to this Amendment, each of the representations and warranties
contained in the Credit Agreement is true and correct in all material respects on and as of
the date hereof as if made on the date hereof, except to the extent that such
representations and warranties expressly relate to an earlier date.

3. Conditions To Effectiveness. This Amendment shall be effective upon the following (all
in form and substance satisfactory to Agent):

(a) execution and delivery of this Amendment by Agent, Requisite Lenders and Credit
Parties;

(b) execution and delivery of an amendment to the Second Lien Credit Agreement by each
of the parties thereto; and

(c) payment in full of all fees, costs and expenses, including the reasonable fees,
costs and expenses of counsel or other advisors for advice, assistance, or other
representation in connection with this Amendment, as provided in Section 11.3(a) of
the Credit Agreement.

4. Reference To And Effect Upon The Credit Agreement.

(a) The Credit Agreement and the other Loan Documents shall remain in full force and
effect, as amended hereby, and are hereby ratified and confirmed.

(b) The execution, delivery and effectiveness of this Amendment shall not (i) operate
as a waiver or otherwise prejudice any right, power or remedy that the Agent or the Lenders
may now have or may have in the future under or in connection with the Credit Agreement or
any other Loan Document or (ii) constitute a waiver of any provision of the Credit Agreement
or any Loan Document, except as specifically set forth herein. Upon the effectiveness of
this Amendment, each reference in the Credit Agreement to “this Agreement”, “herein”,
“hereof” and words of like import and each reference in the Credit Agreement and the Loan
Documents to the Credit Agreement shall mean the Credit Agreement as amended hereby. This
Amendment shall be construed in connection with and as part of the Credit Agreement.

 

4

 

5. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF NEW YORK.

6. Headings. Section headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other purposes.

7. Counterparts. This Amendment may be executed in any number of counterparts, each of
which when so executed shall be deemed an original, but all such counterparts shall constitute one
and the same instrument.

8. Reaffirmation of Guaranties. The Credit Parties signatory hereto hereby reaffirm their
Guaranties of the Obligations, taking into account the provisions of this Amendment.

[signature pages follow]

 

5

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the
date first written above.

	 	 	 	 	 
	 	LENDER:

GENERAL ELECTRIC CAPITAL

CORPORATION,

as Agent and Lender

 	 
	 	By:  	/s/ Jack Morrone
 	 
	 	 	Duly Authorized Signatory 	 

[Signature Page to Third Amendment to Third Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	CREDIT PARTIES:

THERMADYNE INDUSTRIES, INC.

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 
	 
	 	THERMAL DYNAMICS CORPORATION

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 
	 
	 	VICTOR EQUIPMENT COMPANY

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 
	 
	 	C & G MERGER CO.

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 
	 
	 	STOODY COMPANY

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 
	 
	 	THERMADYNE INTERNATIONAL CORP.

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 

[Signature Page to Third Amendment to Third Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	THERMADYNE HOLDINGS CORPORATION

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 
	 
	 	C&G SYSTEMS HOLDING, INC.

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 
	 
	 	THERMADYNE AUSTRALIA PTY LTD.

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	Director 	 
	 
	 	CIGWELD PTY LTD.

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	Director 	 
	 
	 	THERMADYNE WELDING PRODUCTS CANADA LIMITED

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 
	 
	 	THERMADYNE INDUSTRIES LIMITED

 	 
	 	By:  	/s/ Steven A. Schumm
 	 
	 	 	Name:  	Steven A. Schumm 	 
	 	 	Title:  	EVP  CFO & CAO 	 

[Signature Page to Third Amendment to Third Amended and Restated Credit Agreement]

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