exv10w28






Exhibit 10.28




MANAGEMENT CONTINUITY AGREEMENT




     THIS AGREEMENT, dated as of November ___, 2009 is made by and between Cooper Industries plc,
an Ireland corporation (“Cooper”), Cooper US, Inc., a Delaware corporation (the “Company”), and
                                         (the “Executive”).



     WHEREAS, the Company is a significant subsidiary of Cooper and Executive is employed by the
Company in a key management position; and



     WHEREAS, Cooper considers it essential to the best interests of its shareholders to foster the
continued employment of key management personnel of the Company; and



     WHEREAS, the Board recognizes that, as is the case with many publicly held corporations, the
possibility of a Change in Control exists and that such possibility, and the uncertainty and
questions which it may raise among management, may result in the departure or distraction of
management personnel to the detriment of the Company and its shareholders; and



     WHEREAS, the Board has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of members of the Company’s management, including
the Executive, to their assigned duties without distraction in the face of potentially disturbing
circumstances arising from the possibility of a Change in Control; and



     WHEREAS, Cooper will derive substantial direct and indirect benefit from this Agreement as the
Company’s parent and desires to guaranty the Company’s obligations hereunder in order to induce the
Executive to enter into this Agreement;



     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
Cooper, the Company and the Executive hereby agree as follows:



     1. Defined Terms. The definitions of capitalized terms used in this Agreement are
provided in Section 17 hereof.



     2. Term of Agreement. The Term of this Agreement shall commence on the date hereof
and shall continue in effect through December 31, 2010; provided, however, that commencing on
January 1, 2011 and each January 1 thereafter, the Term shall automatically be extended for one
additional year unless, not later than September 30 of the preceding year, the Company or the
Executive shall have given notice not to extend the Term; and further provided, however, that if a
Change in Control shall have occurred during the Term, the Term shall expire no earlier than
twenty-four (24) months beyond the month in which such Change in Control occurred. Notwithstanding
any other provision hereof, (a) the Term shall expire upon any termination of the Executive’s
employment prior to a Potential Change in Control and (b) the Term shall expire (and for purposes
of the application of the provisions of the Agreement, shall be deemed to have expired) on the date
(or scheduled date, as the case may be) of the Executive’s Retirement.



     3. Company’s Covenants Summarized. In order to induce the Executive to remain in the
employ of the Company and in consideration of the Executive’s covenants set forth



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in Section 4 hereof, the Company agrees, under the conditions described herein, to pay the
Executive the Severance Payments and the other payments and benefits described herein. Except as
provided in Section 9.1 hereof, no Severance Payments shall be payable under this Agreement unless
there has been (or, under the terms of the second sentence of Section 6.1 hereof, there shall be
deemed to have been) a termination of the Executive’s employment with the Company following a
Change in Control and during the Term. This Agreement shall not be construed as creating an
express or implied contract of employment and, except as otherwise agreed in writing between the
Executive and the Company, the Executive shall not have any right to be retained in the employ of
the Company.




     4. The Executive’s Covenants. The Executive agrees that, subject to the terms and
conditions of this Agreement, in the event of a Potential Change in Control during the Term, the
Executive intends to remain in the employ of the Company until there occurs a Change in Control.



     5. Compensation Other Than Severance Payments.



     5.1 Following a Change in Control and during the Term, during any period that the Executive
fails to perform the Executive’s full-time duties with the Company as a result of incapacity due to
physical or mental illness, the Company shall pay the Executive’s full salary to the Executive at
the rate in effect at the commencement of any such period, together with all compensation and
benefits payable to the Executive under the terms of any compensation or benefit plan, program or
arrangement maintained by the Company during such period, until the Executive’s employment is
terminated by the Company for Disability.



     5.2 If the Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay the Executive’s full salary to the Executive
through the Date of Termination at the rate in effect immediately prior to the Date of Termination
(without giving effect to any reduction in base salary, which reduction constitutes an event of
Good Reason) or, if higher, the rate in effect immediately prior to the Change in Control, together
with all compensation and benefits payable to the Executive through the Date of Termination under
the terms of the Company’s compensation and benefit plans, programs or arrangements as in effect
immediately prior to the Date of Termination (without giving effect to any reduction in
compensation or benefits, which reduction constitutes an event of Good Reason) or, if more
favorable to the Executive, as in effect immediately prior to the Change in Control.



     5.3 If the Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay to the Executive the Executive’s normal
post-termination compensation and benefits as such payments become due. Such post-termination
compensation and benefits shall be determined under, and (except as otherwise provided herein) paid
in accordance with, the Company’s retirement, insurance, and other compensation or benefit plans,
programs and arrangements as in effect immediately prior to the Date of Termination (without giving
effect to any adverse change in such plans, program and arrangements, which adverse change
constitutes an event of Good Reason) or, if more favorable to the Executive, as in effect
immediately prior to the Change in Control. To the extent any such compensation or benefit is a
reimbursement or in-kind benefit plan described in Treasury Regulation 1.409A-3(i)(1)(iv), such
compensation or benefit may only be provided if (i) the plan



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under which such compensation or benefit is provided sets forth an objectively determinable
nondiscretionary definition of the expenses eligible for reimbursement or of the in-kind benefit to
be provided, (ii) the plan provides for the reimbursement of expenses incurred or the provision of
the in-kind benefit during an objectively and specifically prescribed period (which may include the
lifetime of the Executive), (iii) the plan provides that the amount of expenses eligible for
reimbursement, or in-kind benefits provided, during a particular calendar year may not affect the
expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year,
(iv) the reimbursement of any eligible expense is made on or before the last day of the calendar
year following the calendar year in which the expense was incurred, and (v) the right to
reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
To the extent any compensation or benefit provided hereunder is not a reimbursement or in-kind
benefit, it shall only be provided to the extent, and at the times, permitted under Section 409A of
the Code. Company and Executive agree that (i) the provision of the disability, accident, and
health insurance benefits set forth in section 6.1(B) of this Agreement for the period ending
eighteen (18) months after the Executive’s Separation from Service and (ii) the provision of the
life insurance benefits set forth in Section 6.1(B) of this Agreement, to the extent the cost of
such life insurance does not exceed the applicable dollar amount set forth in Section 402(g)(1)(B)
of the Code, do not constitute a deferral of compensation under Section 409A pursuant to Treasury
Regulation section 1.409A-1(b)(9)(v)(B) and accordingly may be provided during the six-month period
following the Executive’s Separation from Service. However, with respect to (i) the cost of any
life insurance benefit that exceeds the applicable dollar amount set forth in Section 402(g)(1)(B)
of the Code or (ii) any other benefit that constitutes a deferral of compensation for purposes of
Section 409A, (A) such benefits will only be provided if the Executive has incurred a Separation
from Service, (B) such benefits will not be provided during the six-month period following the
Executive’s Separation from Service, and (C) to the extent such benefits are not provided pursuant
to clause (B) hereof, the benefits not provided during such six-month period shall be provided to
the Executive on the first day of the seventh month following such Separation from Service.




     6. Severance Payments.



     6.1 Subject to Section 6.2 hereof, if (i) the Executive’s employment is terminated following
a Change in Control and during the Term, other than (A) by the Company for Cause, (B) by reason of
death, Disability or Retirement, or (C) by the Executive without Good Reason, then the Company
shall pay the Executive the amounts, and provide the Executive the benefits, described in this
Section 6.1 (“Severance Payments”) and Section 6.2, in addition to any payments and benefits to
which the Executive is entitled under Section 5 hereof. For purposes of this Agreement, the
Executive’s employment shall be deemed to have been terminated following a Change in Control by the
Company without Cause or by the Executive with Good Reason, if (i) the Executive’s employment is
terminated by the Company without Cause after the occurrence of a Potential Change in Control and
prior to a Change in Control (whether or not a Change in Control ever occurs) and such termination
was at the request or direction of a Person who has entered into an agreement with the Company the
consummation of which would constitute a Change in Control or (ii) the Executive terminates his
employment for Good Reason after the occurrence of a Potential Change in Control and prior to a
Change in Control (whether or not a Change in Control ever occurs) and the circumstance or event
which constitutes Good Reason occurs at the request or direction of such Person.



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     (A) In lieu of any further salary payments to the Executive for periods subsequent to the
Date of Termination and in lieu of any severance benefit otherwise payable to the Executive, the
Company shall pay to the Executive a lump sum severance payment, in cash, equal to two (2) (or, if
less, the number of full and partial years between the Date of Termination and the Executive’s
scheduled date of Retirement) times the sum of (i) the Executive’s base annual salary as in effect
immediately prior to the Date of Termination (without giving effect to any reduction in base annual
salary, which reduction constitutes an event of Good Reason) or, if higher, in effect immediately
prior to the Change in Control, and (ii) the higher of (A) the average annual bonus earned by the
Executive pursuant to the annual bonus or incentive plan maintained by the Company in respect of
the three fiscal years ending immediately prior to the fiscal year in which occurs the Date of
Termination (without giving effect to any reduction in bonus caused by an adverse change in the
Executive’s bonus plan participation, which adverse constitutes an event of Good Reason) or, if
higher, immediately prior to the fiscal year in which occurs the Change in Control or (B) the
Executive’s target annual bonus for the fiscal year in which occurs the Date of Termination
(without giving effect to any reduction in bonus caused by an adverse change in the Executive’s
bonus plan participation, which adverse change constitutes an event of Good Reason) or, if higher,
the fiscal year in which occurs the Change in Control.



     (B) For the twenty-four (24) month period (or, if less, the number of months between the Date
of Termination and the Executive’s scheduled date of Retirement) immediately following the Date of
Termination, the Company shall arrange to provide the Executive and his dependents with life,
disability, accident and health insurance benefits substantially similar to those provided to the
Executive and his dependents immediately prior to the Date of Termination (without giving effect to
any reduction in benefits, which reduction constitutes an event of Good Reason) or, if more
favorable to the Executive, those provided to the Executive and his dependents immediately prior to
the Change in Control, at no greater cost to the Executive than the cost to the Executive
immediately prior to such date; provided, however, that, unless the Executive consents to a
different method (after taking into account the effect of such method on the calculation of
“parachute payments” pursuant to Section 6.2 hereof), such health insurance benefits shall be
provided through a third-party insurer. Benefits otherwise receivable by the Executive pursuant to
this Section 6.1 (B) shall be reduced to the extent benefits of the same type are received by or
made available to the Executive during the twenty-four (24) (or, if less, the number of months
between the Date of Termination and the Executive’s scheduled date of Retirement) month period
following the Executive’s termination of employment (and any such benefits received by or made
available to the Executive shall be reported to the Company by the Executive); provided, however,
that the Company shall reimburse the Executive for the excess, if any, of the cost of such benefits
to the Executive over such cost immediately prior to the Date of Termination or, if more favorable
to the Executive, the date on which the Change in Control occurs. If the Severance Payments shall
be decreased pursuant to Section 6.2 hereof, and the Section 6.1(B) benefits which remain payable
after the application of Section 6.2 hereof are thereafter reduced pursuant to the immediately
preceding sentence, the Company shall, no later than five (5) business days following such
reduction, pay to the Executive the least of (a) the amount of the decrease made in the Severance
Payments pursuant to Section 6.2 hereof, (b) the amount of the subsequent reduction in these
Section 6.1(B) benefits, or (c) the maximum amount which can be paid to the Executive without
being, or causing any other payment to be, nondeductible by reason of section 280G of the Code.



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     In the event the Executive receives health insurance benefits during the twenty-four (24)
month period following the Date of Termination pursuant to the foregoing provisions of this Section
6.1(B), the Executive and his or her dependents shall continue to be eligible for health insurance
benefits for up to an additional sixty (60) months, provided however, that no benefits will be
provided (i) if health insurance benefits are available to the Executive through another employer
during such period, or (ii) after the insured individual reaches age 65. Such health insurance
benefits shall be substantially similar to, and have no greater cost to the Executive than those in
effect for the twenty-four (24) month period following the Date of Termination.



     Any benefits provided pursuant to this Section 6.1(B) in any one taxable year will not affect
the amount of benefits to be provided in any other taxable year and no such benefits may be
liquidated or exchanged for any other benefit. In the event any such benefits constitute
reimbursement for expenses, such reimbursement must be made before the end of the calendar year
following the calendar year in which the expense was incurred. In the event any such benefits
constitute a deferral of compensation under Section 409A of the Code, such benefits will only be
provided if the Executive has incurred a Separation from Service.



     (C) Notwithstanding any provision of any annual incentive plan to the contrary, the Company
shall pay to the Executive a lump sum amount, in cash, equal to the product of (i) the target bonus
to which the Executive would have been entitled under the Company’s annual incentive plan in
respect of the year in which the Date of Termination occurs and (ii) a fraction, the numerator of
which shall be the number of months (including fractions thereof) from the first day of the fiscal
year during which the Date of Termination occurs to the Date of Termination, and the denominator of
which shall be twelve (12); provided, however, that if the Date of Termination occurs during the
same year as the Change in Control, the payment under this Section 6.1(C) shall be offset by any
payments received under the Company’s annual incentive plan in connection with such Change in
Control.



     (D) In addition to the retirement benefits to which the Executive is entitled under each
Pension Plan or any successor plan thereto, the Company shall pay the Executive a lump sum amount,
in cash, equal to the sum of (i) the contributions that would have been made by the Company to the
Executive’s account in the Cooper Retirement Savings and Stock Ownership Plan; and (ii) the
pay-related credits that would have been made to the Executive’s account in the Cooper Supplemental
Executive Retirement Plan (the plans referred to in subsections (i) and (ii) hereof, “The Plans”),
in each case, during the twenty-four (24) month (or, if less, the number of months between the Date
of Termination and the Executive’s scheduled date of Retirement) period immediately following the
Executive’s Date of Termination based upon: (1) the terms and provisions of The Plans as in effect
immediately prior to the Change in Control; (2) the lump sum payment set forth in Section 6.1(A)
hereof, which lump sum shall be deemed to have been earned ratably over such period; and (3) the
assumption that the Executive was making the maximum allowable pre-tax contributions under The
Plans during such period.



     (E) The Company shall provide the Executive with outplacement services suitable to the
Executive’s position for a period of one year or, if earlier, until the first acceptance by the
Executive of an offer of employment.



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     (F) Cooper shall continue to maintain officers’ indemnification insurance for the Executive
for a period of five years following the Date of Termination, the terms and conditions of which
shall be no less favorable than the terms and conditions of the officers’ indemnification insurance
maintained by Cooper for the Executive immediately prior to the date on which the Change in Control
occurs.



     (G) No payment will be made pursuant to this Section 6.1 unless Executive has incurred a
Separation from Service, and the aggregate amount of payments payable pursuant to this Section 6.1
constituting a deferral of compensation (for purposes of Section 409A of the Code) that are
provided in the six-month period following such Separation from Service shall not exceed the amount
set forth in Treasury Regulation §1.409A-1(b)(9)(iii)(A). To the extent the aggregate amount of
such payments would exceed such amount, such excess shall be deferred until the first day of the
seventh month following such Separation from Service. If any payments (or portion thereof) are
required to be deferred pursuant to the preceding sentence, the order of deferred payments shall be
the payments specified in paragraphs (E), (D), (C), and (A) respectively.



     6.2 (A) Whether or not the Executive becomes entitled to the Severance Payments, if any
payment or benefit received or to be received by the Executive in connection with a Change in
Control or the termination of the Executive’s employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company, any Person whose actions
result in a Change in Control or any Person affiliated with the Company or such Person) (all such
payments and benefits, including the Severance Payments, being hereinafter called “Total Payments”)
will be subject (in whole or part) to the Excise Tax, then, subject to the provisions of subsection
(B) of this Section 6.2, the Company shall pay to the Executive an additional amount (the “Gross-Up
Payment”) such that the net amount retained by the Executive, after deduction of any Excise Tax on
the Total Payments and any federal, state and local income and employment taxes and Excise Tax upon
the Gross-Up Payment, shall be equal to the Total Payments. For purposes of determining the amount
of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest
marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to
be made and state and local income taxes at the highest marginal rate of taxation in the state and
locality of the Executive’s residence on the Date of Termination (or if there is no Date of
Termination, then the date on which the Gross-Up Payment is calculated for purposes of this Section
6.2), net of the maximum reduction in federal income tax which could be obtained from deduction of
such state and local taxes.



     (B) In the event that the amount of the Total Payments does not exceed 110% of the largest
amount that would result in no portion of the Total Payments being subject to the Excise Tax (the
“Safe Harbor”), then subsection (A) of this Section 6.2 shall not apply and the noncash Severance
Payments shall first be reduced (if necessary, to zero), and the cash Severance Benefits shall
thereafter be reduced (if necessary, to zero) so that the amount of the Total Payments is equal to
the Safe Harbor.



     (C) For purposes of determining whether any of the Total Payments will be subject to the
Excise Tax and the amount of such Excise Tax, (i) all of the Total Payments shall



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be treated as “parachute payments” within the meaning of section 280G(b)(2) of the Code,
unless in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and
selected by the accounting firm which was, immediately prior to the Change in Control, Cooper’s
independent auditor (the “Auditor”), such other payments or benefits (in whole or in part) do not
constitute parachute payments, including by reason of section 280G(b)(4)(A) of the Code, (ii) all
“excess parachute payments” within the meaning of section 280G(b)(l) of the Code shall be treated
as subject to the Excise Tax unless, in the opinion of Tax Counsel, such excess parachute payments
(in whole or in part) represent reasonable compensation for services actually rendered, within the
meaning of section 280G(b)(4)(B) of the Code, in excess of the Base Amount allocable to such
reasonable compensation, or are otherwise not subject to the Excise Tax, and (iii) the value of any
noncash benefits or any deferred payment or benefit shall be determined by the Auditor in
accordance with the principles of sections 280G(d)(3) and (4) of the Code. Prior to the payment
date set forth in Section 6.3 hereof, the Company shall provide the Executive with its calculation
of the amounts referred to in this Section 6.2(C) and such supporting materials as are reasonably
necessary for the Executive to evaluate the Company’s calculations. If the Executive disputes the
Company’s calculations (in whole or in part), the reasonable opinion of Tax Counsel with respect to
the matter in dispute shall prevail.




     (D) In the event that (i) amounts are paid to the Executive pursuant to subsection (A) of
this Section 6.2, (ii) the Excise Tax is finally determined to be less than the amount taken into
account hereunder in calculating the Gross-Up Payment, and (iii) after giving effect to such
redetermination, the Severance Payments are to be reduced pursuant to subsection (B) of this
Section 6.2, the Executive shall repay to the Company, within five (5) business days following the
time that the amount of such reduction in Excise Tax is finally determined, the portion of the
Gross-Up Payment attributable to such reduction (plus that portion of the Gross-Up Payment
attributable to the Excise Tax and federal, state and local income and employment taxes imposed on
the Gross-Up Payment being repaid by the Executive), to the extent that such repayment results in
(i) no portion of the Total Payments being subject to the Excise Tax and (ii) a dollar-for-dollar
reduction in the Executive’s taxable income and wages for purposes of federal, state and local
income and employment taxes) plus interest on the amount of such repayment at the rate provided in
section 1274(b)(2)(B) of the Code. In the event that (x) the Excise Tax is determined to exceed
the amount taken into account hereunder at the time of the termination of the Executive’s
employment (including by reason of any payment the existence or amount of which cannot be
determined at the time of the Gross-Up Payment) and (y) after giving effect to such
redetermination, the Severance Payments should not have been reduced pursuant to subsection (B) of
this Section 6.2, the Company shall make an additional Gross-Up Payment in respect of such excess
and in respect of any portion of the Excise Tax with respect to which the Company had not
previously made a Gross-Up Payment (plus any interest, penalties or additions payable by the
Executive with respect to such excess and such portion) within five (5) business days following the
time that the amount of such excess is finally determined.



     6.3 Except as provided in Section 6.1(G) to the contrary, the payments provided in
subsections (A), (C) and (D) of Section 6.1 hereof and in Section 6.2 hereof shall be made not
later than the fifth day following the Date of Termination; provided, however, that if the amounts
of such payments, and the limitations on such payments set forth in Section 6.2 hereof, cannot be
finally determined on or before such day, the Company shall pay to the Executive on such day an
estimate, as determined in good faith by the Executive or, in the case of payments under Section



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6.2 hereof, in accordance with Section 6.2 hereof, of the minimum amount of such payments to which
the Executive is clearly entitled and shall pay the remainder of such payments (together with
interest on the unpaid remainder [or on all such payments to the extent the Company fails to make
such payments when due] at the rate provided in section 1274(b)(2)(B) of the Code) as soon as the
amount thereof can be determined but in no event later than the thirtieth (30th) day after the Date
of Termination. In the event that the amount of the estimated payments exceeds the amount
subsequently determined to have been due, such excess shall be payable by the Executive on the
fifth (5th) business day after demand by the Company (together with interest at the rate provided
in section 1274(b)(2)(B) of the Code). At the time that payments are made under this Agreement,
the Company shall provide the Executive with a written statement setting forth the manner in which
such payments were calculated and the basis for such calculations including, without limitation,
any opinions or other advice the Company has received from Tax Counsel, the Auditor or other
advisors or consultants (and any such opinions or advice which are in writing shall be attached to
the statement).




     6.4 The Company also shall pay to the Executive all legal fees and expenses incurred by the
Executive in disputing in good faith any issue hereunder relating to the termination of the
Executive’s employment, in seeking in good faith to obtain or enforce any benefit or right provided
by this Agreement or in connection with any tax audit or proceeding to the extent attributable to
the application of section 4999 of the Code to any payment or benefit provided hereunder. Such
payments shall be made within five (5) business days after delivery of the Executive’s written
request(s) for payment accompanied with such evidence of fees and expenses incurred as the Company
reasonably may require, provided, however that (i) the amount of such expenses eligible for
reimbursement in any taxable year shall not affect the expenses eligible for reimbursement in
another taxable year and (ii) any reimbursements of such expenses shall be made no later than the
end of the calendar year following the calendar year in which the related expenses were incurred.



     7. Termination Procedures and Compensation During Dispute.



     7.1 Notice of Termination. After a Change in Control and during the Term, any
purported termination of the Executive’s employment (other than by reason of death) shall be
communicated by written Notice of Termination from the Company to the Executive (or in the case of
a termination for Good Reason, from the Executive to the Company) in accordance with Section 10
hereof. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall
indicate the specific termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated. Further, a Notice of Termination for
Cause is required to include a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters (3/4) of the entire membership of the Board at a meeting of the Board
which was called and held for the purpose of considering such termination (after reasonable notice
to the Executive and an opportunity for the Executive, together with the Executive’s counsel, to be
heard before the Board) finding that, in the good faith opinion of the Board, the Executive was
guilty of conduct set forth in clause (i) or (ii) of the definition of Cause herein, and specifying
the particulars thereof in detail.



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     7.2 Date of Termination. “Date of Termination,” with respect to any purported
termination of the Executive’s employment after a Change in Control and during the Term, shall mean
(i) if the Executive’s employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have returned to the full-time
performance of the Executive’s duties during such thirty (30) day period), and (ii) if the
Executive’s employment is terminated for any other reason, the date specified in the Notice of
Termination (which, in the case of a termination by the Company, shall not be less than thirty (30)
days (except in the case of a termination for Cause) and, in the case of a termination by the
Executive, shall not be less than fifteen (15) days nor more than sixty (60) days, respectively,
from the date such Notice of Termination is given).



     7.3 Dispute Concerning Termination. If within fifteen (15) days after any Notice of
Termination is given, or, if later, prior to the Date of Termination (as determined without regard
to this Section 7.3), the party receiving such Notice of Termination notifies the other party that
a dispute exists concerning the termination, the Date of Termination shall be extended until the
earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally
resolved, either by mutual written agreement of the parties or by a final judgment, order or decree
of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to
which the time for appeal therefrom has expired and no appeal has been perfected); provided, that
the Date of Termination shall be extended by a notice of dispute given by the Executive only if
such notice is given in good faith and the Executive pursues the resolution of such dispute with
reasonable diligence.



     7.4 Compensation During Dispute. If a purported termination occurs following a
Change in Control and during the Term and the Date of Termination is extended in accordance with
Section 7.3 hereof, the Company shall continue to pay the Executive the full compensation in effect
when the notice giving rise to the dispute was given (including, but not limited to, salary) and
continue the Executive as a participant in all compensation, benefit and insurance plans in which
the Executive was participating when the notice giving rise to the dispute was given, until the
Date of Termination, as determined in accordance with Section 7.3 hereof. Amounts paid under this
Section 7.4 are in addition to all other amounts due under this Agreement (other than those due
under Section 5.2 hereof) and shall not be offset against or reduce any other amounts due under
this Agreement.



     8. No Mitigation. The Company agrees that, if the Executive’s employment with the
Company terminates during the Term, the Executive is not required to seek other employment or to
attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to
Section 6 hereof or Section 7.4 hereof. Further, the amount of any payment or benefit provided for
in this Agreement (other than Section 6.1(B) hereof) shall not be reduced by any compensation
earned by the Executive as the result of employment by another employer, by retirement benefits, by
offset against any amount claimed to be owed by the Executive to the Company, or otherwise.



     9. Successors; Binding Agreement.



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     9.1 In addition to any obligations imposed by law upon any successor to Cooper or the
Company, Cooper or the Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
Cooper or the Company, as the case may be, to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that Cooper or the Company would be required to perform
it if no such succession had taken place. Failure of Cooper or the Company to obtain such
assumption and agreement prior to the effectiveness of any such succession shall be a breach of
this Agreement and shall entitle the Executive to compensation from the Company in the same amount
and on the same terms as the Executive would be entitled to hereunder if the Executive were to
terminate the Executive’s employment for Good Reason after a Change in Control, except that, for
purposes of implementing the foregoing, the date on which any such succession becomes effective
shall be deemed the Date of Termination.



     9.2 This Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive shall die while any amount would still be payable to the
Executive hereunder (other than amounts which, by their terms, terminate upon the death of the
Executive) if the Executive had continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the executors, personal
representatives or administrators of the Executive’s estate.



     10. Notices. For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
addressed, if to the Executive, to the address inserted below the Executive’s signature on the
final page hereof and, if to Cooper or the Company, to the address set forth below, or to such
other address as either party may have furnished to the other in writing in accordance herewith,
except that notice of change of address shall be effective only upon actual receipt:



To the Company:

Cooper US, Inc.

P.O. Box 4446

Houston, Texas 77210-4446

Attention: Senior Vice President, Human Resources




To Cooper:

Cooper Industries plc

P.O. Box 4446

Houston, Texas 77210-4446

Attention: General Counsel




     11. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by the
Executive and authorized officers of Cooper and the Company. No waiver by any party hereto at any
time of any breach by another party hereto of, or of any lack of compliance with, any condition or
provision of this Agreement to be performed by any party shall be deemed a



10









 




waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. This Agreement supersedes any other agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof which have been made by
either party; provided, however, that this Agreement shall supersede any agreement setting forth
the terms and conditions of the Executive’s employment with the Company only in the event that the
Executive’s employment with the Company is terminated on or following a Change in Control by the
Company other than for Cause or by the Executive for Good Reason. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of the State of Texas.
All references to sections of the Exchange Act or the Code shall be deemed also to refer to any
successor provisions to such sections. Any payments provided for hereunder shall be reduced to the
extent necessary so that the Company may satisfy any applicable withholding required under federal,
state or local law and any additional withholding to which the Executive has agreed. The
obligations of Cooper, the Company and the Executive under this Agreement which by their nature may
require either partial or total performance after the expiration of the Term (including, without
limitation, those under Sections 6 and 7 hereof) shall survive such expiration.




     12. Validity. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.



     13. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.



     14. Settlement of Disputes; Arbitration.



     14.1 All claims by the Executive for benefits under this Agreement shall be directed to and
determined by the Board and shall be in writing. Any denial by the Board of a claim for benefits
under this Agreement shall be delivered to the Executive in writing and shall set forth the
specific reasons for the denial and the specific provisions of this Agreement relied upon. The
Board shall afford a reasonable opportunity to the Executive for a review of the decision denying a
claim and shall further allow the Executive to appeal to the Board a decision of the Board within
sixty (60) days after notification by the Board that the Executive’s claim has been denied.



     14.2 Any further dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration in Houston, Texas in accordance with the rules of the
American Arbitration Association then in effect; provided, however, that the evidentiary standards
set forth in this Agreement shall apply. Judgment may be entered on the arbitrator’s award in any
court having jurisdiction. Notwithstanding any provision of this Agreement to the contrary, the
Executive shall be entitled to seek specific performance of the Executive’s right to be paid until
the Date of Termination during the pendency of any dispute or controversy arising under or in
connection with this Agreement.



     14.3 The Company shall pay to the Executive all legal fees and expenses incurred by the
Executive in disputing in good faith any issue hereunder relating to the termination of



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Executive’s employment, or in seeking in good faith to obtain or enforce any benefit or right
provided by this Agreement. Such payment shall be made within five (5) business days after
delivery of the Executive’s written request for payment, accompanied by such evidence or fees and
expenses incurred as the Company reasonably may require.




     15. Termination of Prior Management Continuity Agreement. This Agreement supercedes
any Management Continuity Agreement previously executed by Cooper Industries, Ltd., the Company and
the Executive and any such previous agreement is terminated effective as of the date hereof.



     16. Guarantee by Cooper. Cooper, as direct obligor and not merely as a surety,
absolutely and unconditionally guarantees the punctual payment, performance and observance of each
and every covenant, agreement, duty or any other obligation of the Company under or arising out of
this Agreement (collectively, the “Guaranteed Obligations”). This is an irrevocable and continuing
guarantee of payment and performance and not merely a guarantee of collection and shall remain in
full force and effect until the Guaranteed Obligations have been satisfied, paid and performed in
full. Cooper waives any right to require that an Executive proceed against any other person or
entity or asset liable on or securing the Guaranteed Obligations or pursue or exhaust any other
remedy whatsoever. To the fullest extent permitted by applicable law, Cooper further waives any
legal or equitable defense to the enforceability of its obligations hereunder, and agrees that its
obligations shall be absolute and unconditional and shall not be affected or discharged by any
circumstance, act or event whatsoever (including without limitation the insolvency, voluntary or
involuntary bankruptcy, liquidation, dissolution, winding up, merger, consolidation or
reorganization of the Company), except payment and performance in full of the Guaranteed
Obligations.



     17. Definitions. For purposes of this Agreement, the following terms shall have the
meanings indicated below:



     (A) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12
of the Exchange Act.



     (B) “Auditor” shall have the meaning set forth in Section 6.2 hereof.



     (C) “Base Amount” shall have the meaning set forth in section 280G(b)(3) of the Code.



     (D) “Beneficial Owner” shall have the meaning set forth in Rule 13d3 under the Exchange Act.



     (E) “Board” shall mean the Board of Directors of Cooper.



     (F) “Cause” for termination by the Company of the Executive’s employment shall mean (i) the
willful and continued failure by the Executive to substantially perform the Executive’s duties with
the Company (other than any such failure resulting from the Executive’s incapacity due to physical
or mental illness or any such actual or anticipated failure after the issuance of a Notice of
Termination for Good Reason by the Executive pursuant to Section 7.1



12









 




hereof) after a written demand for substantial performance is delivered to the Executive by
the Board, which demand specifically identifies the manner in which the Board believes that the
Executive has not substantially performed the Executive’s duties, or (ii) the willful engaging by
the Executive in conduct which is demonstrably and materially injurious to the Company or its
subsidiaries, monetarily or otherwise. For purposes of clauses (i) and (ii) of this definition,
(x) no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or
omitted to be done, by the Executive not in good faith and without reasonable belief that the
Executive’s act, or failure to act, was in the best interest of the Company and (y) in the event of
a dispute concerning the application of this provision, no claim by the Company that Cause exists
shall be given effect unless the Company establishes to the Board by clear and convincing evidence
that Cause exists.




     (G) A “Change in Control” shall be deemed to have occurred if the event set forth in any one
of the following paragraphs shall have occurred:




     (I) any Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of Cooper (not including in the securities beneficially owned by such
Person any securities acquired directly from Cooper or its Affiliates) representing
25% or more of the combined voting power of Cooper’s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in connection with a
transaction described in clause (i) of paragraph (III) below; or




     (II) the following individuals cease for any reason to constitute a majority of
the number of directors then serving on the Board: individuals who, on the date
hereof, constitute the Board and any new director (other than a director whose
initial assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of Cooper) whose appointment or election by the Board or
nomination for election by Cooper’s shareholders was approved or recommended by a
vote of at least two-thirds (2/3) of the directors then still in office who either
were directors on the date hereof or whose appointment, election or nomination for
election was previously so approved or recommended; or




     (III) there is consummated a merger or consolidation of Cooper or any direct
or indirect subsidiary of Cooper with any other corporation, other than (i) a merger
or consolidation which results in the directors of Cooper immediately prior to such
merger or consolidation continuing to constitute at least a majority of the board of
directors of Cooper, the surviving entity or any parent thereof, or (ii) a merger or
consolidation effected to implement a recapitalization of Cooper (or similar
transaction) in which no Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of Cooper (not including in the securities Beneficially
Owned by such Person any securities acquired directly from Cooper or its Affiliates)
representing 25% or more of the combined voting power of Cooper’s then outstanding
securities; or



13









 






     (IV) the shareholders of Cooper approve a plan of complete liquidation or
dissolution of Cooper or there is consummated an agreement for the sale or
disposition by Cooper of all or substantially all of Cooper’s assets, other than a
sale or disposition by Cooper of all or substantially all of Cooper’s assets to an
entity, at least 60% of the combined voting power of the voting securities of which
are owned by shareholders of Cooper in substantially the same proportions as their
ownership of Cooper immediately prior to such sale.



     (H) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.



     (I) “Company” shall mean Cooper US, Inc. and, shall include any successor to its business
and/or assets which assumes and agrees to perform this Agreement by operation of law or otherwise.



     (J) “Cooper” shall mean Cooper Industries plc, an Ireland corporation and, except in
determining under Section 17(G) hereof whether any Change in Control has occurred, shall include
any successor to its business and/or assets which assumes and agrees to perform this Agreement by
operation of law or otherwise.



     (K) “Date of Termination” shall have the meaning set forth in Section 7.2 hereof.



     (L) “Disability” shall be deemed the reason for the termination by the Company of the
Executive’s employment, if, as a result of the Executive’s incapacity due to physical or mental
illness, the Executive shall have been absent from the full-time performance of the Executive’s
duties with the Company for a period of six (6) consecutive months, the Company shall have given
the Executive a Notice of Termination for Disability, and, within thirty (30) days after such
Notice of Termination is given, the Executive shall not have returned to the full-time performance
of the Executive’s duties.



     (M) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.



     (N) “Excise Tax” shall mean any excise tax imposed under section 4999 of the Code.



     (O) “Executive” shall mean the individual named in the first paragraph of this Agreement.



     (P) “Good Reason” for termination by the Executive of the Executive’s employment shall mean
the occurrence (without the Executive’s express written consent) after any Change in Control, or
prior to a Change in Control under the circumstances described in clauses (ii) and (iii) of the
second sentence of Section 6.1 hereof (treating all references in paragraphs (I) through (VII)
below to a “Change in Control” as references to a “Potential Change in Control”), of any one of the
following acts by Cooper or the Company, or failures by the Company to act, unless, in the case of
any act or failure to act described in paragraph (I), (V),



14









 




(VI) or (VII) below, such act or failure to act is corrected prior to the Date of Termination
specified in the Notice of Termination given in respect thereof:





     (I) the assignment to the Executive of any duties inconsistent with the
Executive’s status as a senior executive officer of the Company or a substantial
adverse alteration in the nature or status of the Executive’s responsibilities or
reporting relationship from those in effect immediately prior to the Change in
Control;




     (II) a material reduction by the Company in the Executive’s annual base salary
as in effect on the date hereof or as the same may be increased from time to time;




     (III) the relocation of the Executive’s principal place of employment to a
location which increases the Executive’s one-way commuting distance by more than 50
miles or the Company requiring the Executive to be based anywhere other than the
Executive’s principal place of employment immediately prior to the Change in Control
(or permitted relocation thereof) except for required travel on the Company’s
business to an extent substantially consistent with the Executive’s business travel
obligations immediately prior to the Change in Control;




     (IV) the failure by the Company to pay to the Executive any portion of the
Executive’s current compensation, or to pay to the Executive any portion of an
installment of deferred compensation under any deferred compensation program of the
Company, within seven (7) days of the date such compensation is due, unless paid by
Cooper pursuant to Section 16 of this Agreement;




     (V) the failure by the Company to continue in effect any compensation plan in
which the Executive participates immediately prior to the Change in Control which is
material to the Executive’s total compensation, including but not limited to the
Stock Incentive Plan, the Management Annual Incentive Plan, the Supplemental
Executive Retirement Plan, the Base Salary Deferral Plan and the Management
Incentive Compensation Deferral Plan or any substitute plans adopted prior to the
Change in Control, unless an equitable arrangement (embodied in an ongoing
substitute or alternative plan) has been made with respect to such plan, or the
failure by the Company to continue the Executive’s participation therein (or in such
substitute or alternative plan) on a basis not materially less favorable, both in
terms of the amount or timing of payment of benefits provided and the level of the
Executive’s participation relative to other participants, as existed immediately
prior to the Change in Control;




     (VI) the failure by the Company to continue to provide the Executive with
benefits substantially similar to those enjoyed by the Executive under any of the
Company’s pension, savings, life insurance, medical, health and



15









 







accident, or disability plans in which the Executive was participating
immediately prior to the Change in Control, the taking of any other action by the
Company which would directly or indirectly materially reduce any of such benefits or
deprive the Executive of any material fringe benefit enjoyed by the Executive at the
time of the Change in Control, or the failure by the Company to provide the
Executive with the number of paid vacation days to which the Executive is entitled
on the basis of years of service with the Company in accordance with the Company’s
normal vacation policy in effect at the time of the Change in Control;




     (VII) any purported termination of the Executive’s employment which is not
effected pursuant to a Notice of Termination satisfying the requirements of Section
7.1 hereof; for purposes of this Agreement, no such purported termination shall be
effective. The Executive’s right to terminate the Executive’s employment for Good
Reason shall not be affected by the Executive’s incapacity due to physical or mental
illness. The Executive’s continued employment shall not constitute consent to, or a
waiver of rights with respect to, any act or failure to act constituting Good Reason
hereunder; or




     (VIII) any failure of Cooper or the Company to obtain assumption of this
Agreements, as set forth in Section 9.1 hereof.




For purposes of any determination regarding the existence of Good Reason, any claim
by the Executive that Good Reason exists shall be presumed to be correct unless the
Company establishes to the Board by clear and convincing evidence that Good Reason
does not exist. Notwithstanding anything to the contrary stated above, the
Executive will only be treated as having Good Reason to terminate his employment if
(i) Executive has notified Company of the existence of such Good Reason within
ninety (90) days of the occurrence of one of the conditions set forth above in
clauses (I) through (VIII) and (ii) the Company has been given a period of at least
thirty (30) days during which it can remedy any such condition and, during such
period, the Company fails to remedy such condition



     (Q) “Gross-Up Payment” shall have the meaning set forth in Section 6.2 hereof.



     (R) “Notice of Termination” shall have the meaning set forth in Section 7.1 hereof.



     (S) “Pension Plan” shall mean any tax-qualified, supplemental or excess benefit pension plan
maintained by the Company and any other plan or agreement entered into between the Executive and
the Company which is designed to provide the Executive with supplemental retirement benefits.


     (T) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof, except that such term shall not






16









 







include (i) Cooper or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation
owned, directly or indirectly, by the shareholders of Cooper in substantially the same proportions
as their ownership of Cooper stock or (v) any individual, entity or group whose ownership of Cooper
securities is reported on Schedule 13G pursuant to Rule 13d-1 promulgated under the Exchange Act
(but only for so long as such ownership is so reported).




     (U) “Potential Change in Control” shall be deemed to have occurred if the event set forth in
any one of the following paragraphs shall have occurred:




     (I) Cooper enters into an agreement, the consummation of which would result in
the occurrence of a Change in Control;




     (II) Cooper or any Person publicly announces an intention to take or to
consider taking actions which, if consummated, would constitute a Change in Control;




     (III) any Person becomes the Beneficial Owner, directly or indirectly,
of securities of Cooper representing 15% or more of either the then outstanding
Common Shares of Cooper or the combined voting power of Cooper’s then outstanding
securities (not including in the securities beneficially owned by such Person any
securities acquired directly from Cooper or its Affiliates); or




     (IV) the Board adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change in Control has occurred.



     (V) “Retirement” shall mean the termination of the Executive’s employment in accordance with
the Company’s mandatory retirement policy as in effect immediately prior to the Change in Control.



     (W) “Separation from Service” shall mean a separation from service as such term is defined for
purposes of Section 409A(a)(2)(A)(i) of the Code and the regulations and rulings thereunder.



     (X) “Severance Payments” shall have the meaning set forth in Section 6.1 hereof.



     (Y) “Tax Counsel” shall have the meaning set forth in Section 6.2 hereof.



     (Z) “Term” shall mean the period of time described in Section 2 hereof (including any
extension, continuation or termination described therein).



     (AA) “Total Payments” shall mean those payments so described in Section 6.2 hereof.



17









 





	 	 	 	 	 	 	 	 	 
	COOPER INDUSTRIES PLC	 	COOPER US, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	Name:

	 	 

Kirk S. Hachigian
	 	Name:
	 	 

James P. Williams
	 	 
	Title:

	 	Chairman, President and Chief
	 	Title:
	 	Senior Vice President,	 	 
	 

	 	Executive Officer
	 	 	 	Human Resources	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	Name:

	 	 

James P. Williams
	 	 	 	 

EXECUTIVE
	 	 
	Title:

	 	Senior Vice President,	 	 	 	 	 	 
	 

	 	Human Resources	 	 	 	 	 	 







18