Document:

exv10w4

Exhibit 10.4

COOPER INDUSTRIES PLC

AMENDED AND RESTATED

DIRECTORS’ RETAINER FEE STOCK PLAN

(As Amended and Restated as of September 8, 2009)

	1.	 	Purpose.  The purpose of the Amended and Restated Directors’ Retainer Fee Stock Plan
(the “Plan”) is to attract, motivate and retain experienced and knowledgeable persons to serve
as directors of Cooper Industries plc (the “Company”) and to promote identification of such
directors’ interests with those of the Company’s shareholders.
	 
	2.	 	Definitions.  As used in the Plan:

	 	2.1.	 	“Affiliate” shall mean all employers, present and future, with whom the Company
is considered a single employer under Sections 414(b) and 414(c) of the Code.
	 
	 	2.2.	 	“Annual Service Fee” means the annual cash retainer fee payable to a
Nonemployee Director for his or her services on the Board and committees; the annual
retainer fee, if any, payable to a Nonemployee Director for serving as a chairperson of
a committee of the Board or as the presiding non-management director; and any fees
payable to a Nonemployee Director for attendance at meetings of the Board or any of its
committees.
	 
	 	2.3.	 	“Board” means the Board of Directors of the Company.
	 
	 	2.4.	 	“Change in Control” shall mean a change in the ownership or effective control
of the Company, or in the ownership of a substantial portion of the assets of the
Company, within the meaning of Section 409A.
	 
	 	2.5.	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	2.6.	 	“Committee” means the Committee on Nominations and Corporate Governance of the Board.
	 
	 	2.7.	 	“Common Stock” means the ordinary shares, par value $0.01 a share, of the Company.
	 
	 	2.8.	 	“Deferral Election” shall have the meaning set forth in Section 7 hereof.
	 
	 	2.9.	 	“Deferred Shares” shall have the meaning set forth in Section 8 hereof.
	 
	 	2.10.	 	“Deferred Share Account” shall have the meaning set forth in Section 8 hereof.

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	 	2.11.	 	“Dividend Equivalents” shall have the meaning set forth in Section 8 hereof.
	 
	 	2.12.	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.
	 
	 	2.13.	 	“Fair Market Value” of a share of Common Stock, as of any date, means the closing sales price
of a share of Common Stock as reported on the Stock Exchange on the applicable date; provided
that if no sales of Common Stock were made on the Stock Exchange on that date, the closing
sales price as reported on the Stock Exchange for the preceding day on which sales of Common Stock
were made and provided further that, in the event of a Change in Control, Fair Market Value
shall be no less than the highest price per share actually paid for the Common Stock in connection
with such Change in Control.
	 
	 	2.14.	 	“Issue Dates” means the first business day of each calendar quarter.
	 
	 	2.15.	 	“Nonemployee Director” means a member of the Board who is not an employee of the Company or
any of its Affiliates.
	 
	 	2.16.	 	“Plan Year” means the 12-month period commencing each May 1 and ending on the following April
30.
	 
	 	2.17.	 	“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act (or any successor rule to
the same effect).
	 
	 	2.18	 	“Section 409A” shall mean Section 409A of the Code and the regulations and rulings promulgated
thereunder.
	 
	 	2.19.	 	“Separation from Service” shall mean the termination of service as a director, and the
termination of all employment (if any), of a Nonemployee Director with the Company and all
Affiliates for any reason other than death. Whether a Director has incurred a Separation from
Service shall be determined in accordance with Section 409A.
	 
	 	2.20.	 	“Stock Exchange” means the New York Stock Exchange, Inc. (“NYSE”) or, if the Common Stock is
no longer included on the NYSE, then such other market price reporting system on which the Common
Stock is traded or quoted.

	3.	 	Authorized Shares.  The total number of shares of the Company’s Common Stock
available for issuance under the Plan is 200,000, including Deferred Shares, subject to
adjustment pursuant to Section 14 hereof. Shares of Common Stock available for issuance under
the Plan may be authorized and unissued shares, treasury shares, or shares held by any of the
Company’s subsidiaries as the Company may determine from time to time.

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	4.	 	Administration of the Plan.  The Plan shall be administered by the Committee. The
Committee shall, subject to the provisions of the Plan, adopt such
rules as it may deem appropriate in order to carry out the purpose of the Plan.
All questions of interpretation, administration, and application of the Plan shall be determined by a majority of the members
of the Committee, except that the Committee may authorize any one or more of its members, or
any officer or employee of the Company, to execute and deliver documents on behalf of the
Committee. The determination of such majority shall be final and binding in all matters
relating to the Plan. No member of the Committee shall be liable for any act done or
omitted to be done by such member or by any other member of the Committee in connection with
the Plan, except for such member’s own willful misconduct or as expressly provided by
statute. All costs and expenses involved in administration of the Plan shall be borne by
the Company.
	 
	5.	 	Participation.  Each Nonemployee Director shall be eligible to participate in the
Plan.
	 
	6.	 	Election to Receive Common Stock in Lieu of Annual Service Fee.  Prior to the
December 31st preceding the first day of each Plan Year, each Nonemployee Director
may make an election to receive all or a portion of his or her Annual Service Fee for such
Plan Year in Common Stock (a “Stock Election”) in lieu of cash. Such shares of Common Stock
shall be transferred in accordance with Section 10 hereof, except to the extent that a
Deferral Election shall be in effect with respect to such shares or to the extent that Section
13 hereof applies. Any Stock Election shall be in writing, shall specify the percentage of
the Annual Service Fee to be paid in Common Stock, and shall be irrevocable for the Plan Year
for which the Stock Election is made. Notwithstanding the foregoing, any Nonemployee Director
who is newly elected or appointed to the Board after the first day of a Plan Year may make the
election under this Section 6 within thirty (30) days of the date of his or her election or
appointment to the Board with respect to the percentage of the Annual Service Fee that is
payable for the remainder of that Plan Year. Any Stock Election made by a Nonemployee
Director shall remain in effect for future Plan Years unless changed by such Nonemployee
Director prior to the expiration of the time for making such Stock Election.
	 
	7.	 	Deferral Election.  Prior to the December 31st preceding the first day of
each Plan Year, each Nonemployee Director may make an election to defer the receipt (a
“Deferral Election”) of all or any percentage of the shares of Common Stock otherwise payable
to such Nonemployee Director pursuant to Section 6 hereof. Any Deferral Election shall be in
writing on a Company-approved form, shall specify the percentage of shares to be deferred, and
shall be irrevocable for the Plan Year for which the Deferral Election is made, subject to the
provisions below in this Section 7. Notwithstanding the foregoing, any Nonemployee Director
who is newly elected or appointed to the Board after the first day of a Plan Year may make the
election under this Section 7, within thirty (30) days of election or appointment to the
Board, with respect to the percentage of the Stock Election that is to be deferred for the
remainder of that Plan Year; provided that the Nonemployee Director has not previously
been eligible to participate in the Plan or in any other nonqualified account balance plan of
the Company or of any Affiliate that is required to

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	 	 	be aggregated with the Plan under Section
409A. All Deferral Elections are subject to Section 13 of this Plan. Any Deferral Election
made by a Nonemployee Director shall remain in effect for future Plan Years unless changed by
such Nonemployee Director prior to the expiration of the time for making such Deferral
Election. Notwithstanding
any other provision of this Plan, no Deferral Election may be made
with respect to any shares of Common Stock that would otherwise be payable to such Director after January 2,
2009, in the absence of such Deferral Election.
	 
	 	 	At the time of making a Deferral Election, a Nonemployee Director shall elect the time and
form of payment. The date for the payment, or commencement of payment, shall be a specified
calendar year. Subject to any limitations imposed by the Committee and/or Section 409A, the
specified calendar year may be during the Nonemployee Director’s service as a director; the
earlier or later of the calendar year in which a Nonemployee Director incurs a Separation
from Service or attains a specified age; or the earliest of the Nonemployee Director’s
death, Separation from Service, a specified calendar year, or a Change in Control. The form
of the payment shall be either a lump sum or a series of substantially equal annual
installments over a period not to exceed ten (10) years.
	 
	 	 	A Nonemployee Director may change an initial election in order to delay payment or to change
the form of payment if the following conditions are met: (i) such election shall not take
effect until at least twelve (12) months after the date on which the election is made; (ii)
the payment with respect to which such election is made is deferred for a period of not less
than five (5) years from the date such payment would otherwise be made; and (iii) any
election for a “specified time (or pursuant to a fixed schedule),” within the meaning of
Section 409A, may not be made less than twelve (12) months prior to the date of the first
scheduled payment. To the extent permitted under Section 409A, payments previously elected
as installments shall be treated as a single payment.
	 
	 	 	On or before December 31, 2008, a Nonemployee Director may make an election to change the
time and form of payment of that portion of his Deferred Share Account credited for shares
that were deferred for calendar years 2005, 2006, 2007, and 2008; provided that:

     (i) The requirements for transition relief under Section 409A are met, including the
requirements that no shares subject to the election shall otherwise be payable in 2008 and
that the election shall not cause any shares to be paid in 2008 that would not otherwise be
payable in such year; and

     (ii) The special election shall be subject to the provisions of this Section 7 of the
Plan.

	8.	 	Deferred Share Account.  The Company shall credit to an account (a “Deferred Share
Account”) maintained on behalf of a Nonemployee Director, as of the date on which the shares
would otherwise be transferred hereunder, notional shares for the shares of Common Stock
deferred (“Deferred Shares”). Deferred Shares shall be credited with an

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		 	 amount equal to the
dividends that would have been paid on an equal number of outstanding shares of Common Stock
(“Dividend Equivalents”). Dividend Equivalents shall be credited (i) as of the payment date
of such dividends, and (ii) only with respect to Deferred Shares credited to such Nonemployee
Director prior to the record date of the dividend. When credited, Dividend Equivalents shall
be converted into an additional
number of Deferred Shares as of the payment date of the dividend, based on the Fair Market
Value on such payment date. Such Deferred Shares shall thereafter be treated in the same
manner as any other Deferred Shares under the Plan.
	 
	9.	 	Payment of Deferred Shares. Deferred Shares will be distributed in whole shares of
Common Stock and cash in lieu of fractional shares. Unless otherwise provided in the
Nonemployee Director’s Deferral Election, payments shall be made or begin on March 1 of the
calendar year specified by the Nonemployee Director in his deferral election, and if
installments are elected and effective, the second installment and any other subsequent
installments shall be paid on each subsequent March 1 for the period certain. If the Deferred
Shares are payable in installments, the amount of each installment shall be equal to a
fraction of the amount of the Deferred Shares remaining to be paid with respect to the
applicable Deferral Election, the numerator of which is one and the denominator of which is
the number of installments remaining to be paid.
	 
	 	 	Except as provided in Sections 9 and 13 and as permitted under Section 409A, no acceleration
of the time or form of payment of a Deferred Share Account, or any portion thereof, shall be
permitted.
	 
	 	 	In the event of the death of a Nonemployee Director, the undistributed balance of his
Deferred Share Account shall be distributed upon his death to his beneficiary in one lump
sum within ninety (90) days of his death provided that, if such ninety-day period begins in
one taxable year and ends in another taxable year, neither the estate nor any beneficiary of
the Nonemployee Director may choose in which taxable year such lump sum will be paid. The
beneficiary or beneficiaries shall be designated in writing by the Nonemployee Director in
the form and manner specified by the Committee; if no designation has been made, the estate
of the Nonemployee Director shall be his beneficiary.
	 
	10.	 	Transfer of Shares.  Shares of Common Stock issuable to a Nonemployee Director under
Section 6 hereof shall be transferred to such Nonemployee Director on the Issue Dates. The
total number of shares of Common Stock to be transferred shall be determined by the following
formula:

% of Stock Election x Quarterly Service Fee Payable

Fair Market Value of a Share of Common Stock on Issue Date

	 	 	The Company will instruct its registrar to make an entry on the Company’s shareholder
records evidencing that the shares (including any fractional shares) of Common Stock have
been issued as of the Issue Dates.

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	 	 	Notwithstanding anything to the contrary herein, if on any Issue Date the number of shares
of Common Stock otherwise issuable to the Nonemployee Directors shall exceed the number of
authorized shares of Common Stock remaining available under the Plan, the available shares
shall be allocated among the Nonemployee Directors in proportion
to the number of shares they would otherwise be entitled to receive and the remainder of the
Nonemployee Directors’ Annual Service Fee shall be payable in cash.
	 
	 	 	Any shares issued pursuant to the Plan will be paid up in consideration of the receipt by
the Company prior to, or simultaneously with, the issue of the shares of cash at least equal
to the nominal value of such shares and, when shares are issued under the Plan without the
payment of cash consideration by the Participant or permitted successors and assigns, then
such shares shall be paid up by the Company or one of its subsidiaries.
	 
	11.	 	Rights as a Shareholder.  Except as otherwise expressly provided herein with respect
to Dividend Equivalents, a Nonemployee Director shall have no rights as a shareholder of the
Company with respect to any Common Stock to be issued under the Plan until he or she becomes
the holder of record of such shares.
	 
	12.	 	Vesting.  A Nonemployee Director shall be 100% vested in his or her Deferred Share
Account at all times.
	 
	13.	 	Change in Control.  Upon a Change in Control, all Deferred Shares, to the extent
credited prior to the Change in Control, shall be issued immediately or, if the Common Stock
is no longer trading on the Stock Exchange, shall be paid immediately in cash, based on the
Fair Market Value of such Deferred Shares.
	 
	14.	 	Effect of Certain Changes in Capitalization.  In the event of any recapitalization,
stock split, reverse stock split, stock dividend, reorganization, merger, consolidation,
spin-off, combination, repurchase, or share exchange, or other similar corporate transaction
or event affecting the Common Stock, the maximum number or class of shares available under the
Plan, and the number or class of shares of Common Stock to be delivered hereunder shall be
adjusted by the Committee to reflect any such change in the number or class of issued shares
of Common Stock.
	 
	15.	 	Term of Plan.  The Plan shall become effective on April 30, 1998. Unless terminated
earlier pursuant to Section 16, the term of the Plan shall expire on April 30, 2016.
Notwithstanding the foregoing, any Deferral Elections made prior to the termination of the
Plan shall continue in accordance with the terms thereof.
	 
	16.	 	Amendment; Termination.  The Board may at any time and from time to time alter,
amend, or terminate the Plan in whole or in part; provided, however, that no such
action shall, without the consent of a Nonemployee Director, affect the rights of such
Nonemployee Director in any Common Stock issued to or deferred by such Nonemployee Director
under the Plan, and provided, further that no amendment shall be effective prior to
approval by the Company’s shareholders to the extent such approval is then required

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	 	 	by
law, rule, or regulation or pursuant to Rule 16b-3 in order to preserve the exemption provided
by Rule 16b-3.
	 
	17.	 	Rights of Directors.  Nothing contained in the Plan shall confer upon any Nonemployee
Director any right to continue in the service of the Company as a director.
	 
	18.	 	Government and Other Regulations.  The obligations of the Company to deliver shares
under the Plan shall be subject to all applicable laws, rules, and regulations and such
approvals by any government agency as may be required, including, without limitation,
compliance with the Securities Act of 1933, as amended.
	 
	19.	 	Nontransferability.  The rights and benefits under the Plan shall not be transferable
by a Nonemployee Director other than by the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined in the Code, Title I of the Employee Retirement
Income Security Act of 1974, as amended, or the rules thereunder.
	 
	20.	 	Withholding.  To the extent required by applicable federal, state, local, or foreign
law, a Nonemployee Director shall make arrangements satisfactory to the Company for the
payment of any withholding tax obligations that arise in connection with the Plan. The Company
shall not be required to issue any Common Stock under the Plan until such obligations are
satisfied. A Nonemployee Director may satisfy any such withholding obligation by (i) having
the Company retain the number of shares of Common Stock or (ii) tendering the number of shares
of Common Stock, in either case, whose Fair Market Value equals the amount required to be
withheld.
	 
	21.	 	Interpretation. The Plan as applicable is designed and intended to comply with
Section 409A, and all provisions hereof shall be construed in a manner to so comply.
Notwithstanding any other provision of the Plan, although the Board, the Committee, and any
designee of the Board or Committee shall use their best efforts to avoid the imposition of
taxation, penalties, and interest under Section 409A, the tax treatment of Nonemployee
Director deferrals under the Plan shall not be, and is not, warranted or guaranteed. If the
Plan fails to meet the requirements of Section 409A with respect to a Nonemployee Director,
the Company shall distribute the amount required to be included in such Nonemployee Director’s
gross income as a result of such failure. Neither the Company, the Board, the Committee, nor
any of their designees shall be held liable for any taxes, penalties, or other monetary
amounts owed by a Nonemployee Director, Beneficiary, or other person as a result of any
deferral or payment under the Plan.
	 
	22.	 	Governing Law.  To the extent that federal laws do not otherwise control, the Plan
and all rights hereunder shall be construed in accordance with and governed by the laws of the
State of Texas.
	 
	23.	 	Headings.  The headings of sections herein are included solely for convenience of
reference and shall not affect the meaning of any of the provisions of the Plan.

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Exhibit 10.5

COOPER INDUSTRIES

AMENDED AND RESTATED

MANAGEMENT ANNUAL INCENTIVE PLAN

(As Amended and Restated for Non-Deferral Terms as of February 13, 2006)

(As Amended and Restated in connection with Section 409A, Effective January 1, 2005)

BACKGROUND

     The Cooper Industries Amended and Restated Management Annual Incentive Plan (“Plan”) is a
bonus plan for senior executives designed to link executive compensation to achievement of
short-term business objectives. The Plan was last approved by shareholders on April 25, 2006, when
the maximum annual Award was increased from $2.5 million to $3 million and the Plan was extended
until March 11, 2011. The Plan was also amended to require proportionate adjustments to Shares
upon certain corporate transactions.

     Plan Awards are subject to unilateral reduction or elimination by the Committee after the
Performance Period and are paid in the calendar year in which Participants obtain a “legally
binding right” to Awards. Thus, Awards paid in the normal course (i.e., in the absence of
voluntary deferral elections by Participants) should not constitute “deferred compensation” within
the meaning of Section 409A. Similarly, Plan amendments that apply solely to annual bonus
opportunity paid in the normal course should not result in “material modifications” that subject
pre-2004 deferrals under the Plan to Section 409A.

     Awards paid in Shares have historically been deferred under the terms of this Plan, rather than
under the Cooper Industries Management Incentive Compensation Deferral Plan. Plan terms applicable
to Share deferrals have not been amended since October 3, 2004, and those Plan terms (the “Pre-409A
Employee Share Deferral Terms”) have been frozen and shall not be modified except as permitted
under Section 409A, so as to preserve the grandfathered status of pre-2004 Share deferrals and
related earnings thereunder. Deferrals retained and administered under the Pre-409A Employee Share
Deferral Terms are those employee Share deferrals that were earned and vested as of December 31,
2004, and income attributable to such grandfathered deferrals. The terms of the Plan applicable to
Share deferrals are being deleted effective January 1, 2005 and no such deferrals are permitted
after such date.

I. Purpose of the Plan

     The Cooper Industries Amended and Restated Management Annual Incentive Plan is intended to
provide Cooper Industries, Ltd. (“the Company”) a means by which it can engender and sustain a
sense of personal commitment on the part of its Senior Executive Officers in the continued growth,
development, and financial success of the Company and encourage them to remain with and devote
their best efforts to the business of the Company, thereby advancing the interests of the Company
and its shareholders. Accordingly, the Company may award to Senior

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Executive Officers annual incentive compensation on the terms and conditions established
herein.

II. Definitions

     2.1 “Affiliates” shall have the meaning set forth in Rule 12b-2 under Section 12 of the
Exchange Act.

     2.2 “Annual Incentive Award” or “Award” means the compensation payable in cash or Shares
granted under the Plan to a Participant by the Committee pursuant to such terms, conditions,
restrictions, and limitations established by the Committee and the Plan.

     2.3 “Board” means the Board of Directors of the Company.

     2.4 “Change in Control” shall mean a change in control in the ownership or effective control
of the Company, or in the ownership of a substantial portion of the assets of the Company, within
the meaning of Section 409A.

     2.5 “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     2.6 “Committee” means the Management Development and Compensation Committee of the Board, or
such other committee designated by the Board to administer the Plan; provided that the
Committee shall consist of three or more persons each of whom is an “outside director” within the
meaning of Section 162(m) and a “disinterested person” within the meaning of Rule 16b-3 under the
Exchange Act.

     2.7 “Exchange Act” means the Securities Exchange Act of l934, as amended from time to time.

     2.8 “Participant” means a Senior Executive Officer of the Company who is selected by the
Committee to participate in the Plan.

     2.9 “Performance Goals” shall be defined as the performance criterion or criteria established
by the Committee, pursuant to Section V hereof, for the purpose of determining Awards under the
Plan.

     2.10 “Performance Period” means the consecutive 12 month period that constitutes the Company’s
fiscal year.

     2.11 “Plan” means the Cooper Industries Amended and Restated Management Annual Incentive Plan
(as amended and restated February 13, 2006, and as further amended, effective January 1, 2005, for
compliance with Section 409A).

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     2.12 “Pre-409A Employee Share Deferral Terms” shall mean the terms of the Cooper Industries
Amended and Restated Management Annual Incentive Plan that relate to deferral of Share Awards, as
in effect on October 3, 2004.

     2.13 “Section 162(m)” means Section 162(m) of the Code and the regulations promulgated
thereunder.

     2.14 “Section 409A” means Section 409A of the Code and the regulations and rulings promulgated
thereunder.

     2.15 “Senior Executive Officer” means the Chairman; Chief Executive Officer; President; Chief
Operating Officer; any Executive Vice President; any Senior Vice President; or any other senior
officer reporting directly to the Chief Executive Officer who is designated as a Participant in the
Plan.

III. Administration

     3.1 The overall administration of the Plan, including the final determination of Awards to
each Participant, is vested in the Committee.

     3.2 Determinations of the Committee in administering the Plan shall be final and binding upon
all Participants.

IV. Eligibility

     Participation in the Plan shall be limited to Senior Executive Officers. Participants will be
selected for participation annually by the Committee not later than 90 days after the commencement
of the Performance Period. The Committee may withdraw its approval for participation in the Plan
for a Participant at any time. In the event of such withdrawal, such Participant shall cease to be
a Participant as of the date designated by the Committee and the individual shall be notified of
such withdrawal as soon as practicable following such action. Further, such individual shall cease
to have any right to an Award for the Performance Period in which such withdrawal is effective;
provided, however, that the Committee may, in its sole discretion, authorize a prorated
award based on the number of full months of participation prior to the effective date of such
withdrawal and the Company’s performance during such period.

V. Performance Goals and Measures

     5.1 Performance Goals shall be established by the Committee not later than 90 days after
commencement of the Performance Period relating to a specific Award. The Performance Goals may be
identical for all Participants or, at the discretion of the Committee, may be different to reflect
more appropriate measures of individual performance. The criterion or criteria used in
establishing Performance Goals may, at the discretion of the Committee, include one or any
combination of the following: (i) the Company’s return on equity, assets, capital or investment;
(ii) pre-tax or after-tax profit levels expressed in absolute dollars or earnings per Share of the
Company; or (iii) cash flow or similar measure. The Performance Goals established

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by the Committee shall include a threshold level of performance below which no Award will be
payable and a maximum Award opportunity for each Senior Executive Officer. The determination of
attainment of the Performance Goals shall be determined in accordance with generally accepted
accounting principles and certified in writing by the Committee.

     5.2 The Committee shall be authorized to make adjustments in the method of calculating
attainment of Performance Goals in recognition of: (i) extraordinary or non-recurring items, (ii)
changes in tax laws, (iii) changes in generally accepted accounting principles or changes in
accounting policies, (iv) charges related to restructured or discontinued operations, (v)
restatement of prior period financial results, and (vi) any other unusual, non-recurring gain or
loss that is separately identified and quantified in the Company’s financial statements.
Notwithstanding the foregoing, the Committee may, at its sole discretion, modify the performance
results upon which Awards are based under the Plan, to offset any unintended result(s) arising from
events not anticipated when the Performance Goals were established, provided that such
adjustment is permitted by Section 162(m).

VI. Awards

     6.1 Awards under the Plan shall be paid in cash.

     6.2 At the first meeting of the Committee after the expiration of the Performance Period, the
Committee shall review the prior year’s performance in relation to the Performance Goals and
determine the level of achievement of the Performance Goals. Payment of Annual Incentive Awards to
Participants under the Plan shall occur only after the Committee has certified in writing that the
Performance Goals have been achieved for the relevant Performance Period; provided that
payment shall occur on or before March 15 of the calendar year immediately following the Performance
Period. Notwithstanding the attainment of Performance Goals for the Company as a whole, Awards for
individual Participants under the Plan may be denied or adjusted by the Committee, in its sole
judgment, based on its assessment of the Participant’s performance. However, no upward adjustment
may be made to an Award for a Participant if Section 162(m) would limit the deduction the Company
may claim for that Participant’s compensation. Further, the total Award, as adjusted, shall not
exceed the maximum Award opportunity. The maximum Annual Incentive Award that may be granted to a
Senior Executive Officer under the Plan for any Performance Period shall be $3.0 million.

VII. Deferrals and Settlements

     The Committee may permit Participants to elect to defer receipt of all or a portion of the
Annual Incentive Award pursuant to the terms of the Company’s Management Incentive Compensation
Deferral Plan.

VIII. Withholding Taxes

     The Company shall have the right to deduct from any payment to be made pursuant to the Plan
the amount of any taxes required by law.

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IX. No Right to Continued Employment or Awards

     No person shall have any claim or right to be granted an Award, and the granting of an Award
shall not be construed as giving a Participant the right to be retained in the employ of the
Company or any of its subsidiaries. Further, the Company and its subsidiaries expressly reserve
the right at any time to terminate the employment of any Participant free from any liability under
the Plan; except that a Participant, who meets or exceeds the Performance Goals for the Performance
Period and was actively employed for the full term of the Performance Period, will be eligible for
an Award even though the Participant is not an active employee of the Company at the time the
Committee grants Awards under the Plan.

X. Change in Control

     10.1 Vesting. Immediately upon a Change in Control, all outstanding Awards shall be
deemed earned at the Target Performance Goal level with respect to the portion of such Award equal
to the amount of such Target Performance Goal level Award for the Participant multiplied by a
fraction, the numerator of which is the number of months elapsed in the year of the Change in
Control (with any partial month counted as a full month for such purpose) and the denominator of
which is 12 (such Award to be called the “Earned Pro Rata Award”).

     10.2 Payment. In the absence of a valid deferral of an Award pursuant to the Pre-409A
Employee Share Deferral Terms or the Cooper Industries Management Incentive Compensation Deferral
Plan, the Company shall, within ten (10) days after the occurrence of a Change in Control, make, or
cause to be made, a lump sum cash payment to the Participant equal to the Earned Pro Rata Award.

XI. Amendment, Modification, Suspension or Termination

     The Board may amend, modify, suspend or terminate (individually or in the aggregate, a
“Change”) this Plan for any purpose except that: (i) no Change shall be effective prior to approval
by the Company’s shareholders to the extent that such approval is then required pursuant to Section
162(m) or otherwise required as a matter of law; and (ii) no Change to the Plan shall be effective
that would (a) increase the maximum amount that can be paid to a Participant under the Plan, (b)
change the performance criterion or criteria set forth in Section V hereof for the payment of
Awards or (c) modify the eligibility requirements for Participants in the Plan unless first
approved by the Company’s shareholders.

XII. Governing Law

     The validity, construction and effect of the Plan and any actions taken or relating to the
Plan shall be determined in accordance with the laws of the State of Texas and applicable Federal
law.

XIII. Other Benefit and Compensation Programs

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     Unless otherwise specifically provided to the contrary in the relevant plan, program, or
practice, Awards received by Participants under the Plan shall not be deemed a part of a
Participant’s regular, recurring compensation for purposes of calculating payments or benefits
under any other Company benefit plan, program, or practice or any severance policy of the Company.
Further, the Company may adopt other compensation programs, plans, or arrangements for employees
below the level of Senior Executive Officer as it deems necessary and appropriate.

XIV. Successors and Assigns

     The Plan shall be binding on all successors and assigns of a Participant, including, without
limitation, the estate of such Participant and the executor, administrator, or trustee of such
estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.

XV. Effective Date and Term

     The shareholders of the Company approved the extension of the term of the Plan until March 1,
2011. After termination of the Plan, no future Awards may be granted but previously outstanding
Awards shall remain outstanding in accordance with their applicable terms and conditions and the
terms and conditions of the Plan.

XVI. Interpretation

     The Plan is designed to comply with Section 162(m) and, to the extent applicable, Section
409A, and all provisions hereof shall be construed in a manner consistent with that intent.

6

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