Document:

<PAGE>   1

                                                                   EXHIBIT 4.1

                               AMENDMENT NO. 4 TO
                              AMENDED AND RESTATED
                                RIGHTS AGREEMENT

          This Amendment No. 4 to Amended and Restated Rights Agreement (this
"Amendment") is made effective as of the 19th day of May, 2000. This Amendment
is an amendment to the Amended and Restated Rights Agreement, dated as of March
17, 1989, as amended effective June 13, 1992, as amended and restated as of
December 12, 1997, as amended effective November 24, 1998, as amended effective
March 10, 1999, and as amended effective May 19, 1999 (the "Rights Agreement"),
between Ocean Energy, Inc., a Texas corporation (formerly known as Seagull
Energy Corporation and referred to herein as the "Company"), and Fleet National
Bank (f/k/a BankBoston, N.A.) (the "Rights Agent").

                                    RECITALS

          WHEREAS, pursuant to and in compliance with Section 26 of the Rights
Agreement, the Company and the Rights Agent wish to amend the Rights Agreement
as set forth herein;

          NOW THEREFORE, the parties hereto agree as follows:

          Section 1. Amendments. Section 7(a) of the Rights Agreement is amended
to provide that the term "Final Expiration Date" shall mean May 21, 2001.

         Section 2. Remainder of Agreement Not Affected. Except as set forth in
Section 1 hereof, the terms and provisions of the Rights Agreement remain in
full force and effect and are hereby ratified and confirmed.

          Section 3. Authority. Each party represents that such party has full
power and authority to enter into this Amendment, and that this Amendment
constitutes a legal, valid and binding obligation of such party, enforceable
against such party in accordance with its terms.

          Section 4. Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement.

<PAGE>   2

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and attested, all as of the day and year first above written.

                                       OCEAN ENERGY, INC.

                                       By: /s/ Stephen A. Thorington
                                              ---------------------------------
                                               Stephen A. Thorington
                                               Senior Vice President - Finance,
                                               Treasury & Corporate Development

                                       FLEET NATIONAL BANK

                                       By: /s/ MICHAEL J. CONNOR
                                          -------------------------------------
                                       Name:   Michael J. Connor
                                      Title:   Director-Client Administration

                                       2<PAGE>   1
                                                                     EXHIBIT 4.3

                        RULES OF THE COOPER (UK) EMPLOYEE

                               SHARE PURCHASE PLAN

                  ---------------------------------------------

                             (Adopted by the Company

                               on 9 February 2000

               and approved by the Inland Revenue on 16 May 2000

                          under Reference SRS2460/IA)

                 -----------------------------------------------

<PAGE>   2

                                    CONTENTS

<TABLE>
<S>                                                                             <C>
1.  INTRODUCTION..................................................................1

2.  NAME..........................................................................1

3.  DEFINITIONS..................................................................1

4.  INDIVIDUAL SAVINGS LIMITS....................................................6

5.  EXERCISE PRICE...............................................................6

6.  INVITATIONS AND APPLICATIONS FOR OPTIONS.....................................7

7.  GRANT OF OPTIONS AND SCALING-DOWN............................................8

8.  RESTRICTIONS ON TRANSFER OF OPTIONS.........................................10

9.  EXERCISE OF OPTIONS.........................................................11

10. MANNER OF EXERCISE OF OPTIONS...............................................13

11. MERGER, SALE, CHANGE OF CONTROL AND LIQUIDATION.............................14

12. VARIATION OF CAPITAL........................................................15

13. AVAILABILITY OF AUTHORISED CAPITAL..........................................15

14. VARIATION AND TERMINATION OF PLAN...........................................16

15. ADMINISTRATION..............................................................16

16. GENERAL.....................................................................17

17. GOVERNING LAW...............................................................19

18. HEADINGS....................................................................19
</TABLE>

<PAGE>   3

                        RULES OF THE COOPER (UK) EMPLOYEE

                               SHARE PURCHASE PLAN

1.   INTRODUCTION

     The Cooper (UK) Employee Stock Purchase Plan ("Plan") is designed to
     provide UK employees of Cooper Industries, Inc. ("Company") and its
     subsidiaries with the opportunity to acquire shares of common stock of the
     Company, by granting options to such employees on such dates not later than
     ten years following the Date of Approval (as defined below) as the Board
     (as defined below) may from time to time determine. The Plan is intended to
     constitute a "save as your earn" share option scheme within the provisions
     of Schedule 9 of the Income and Corporation Taxes Act 1988.

2.   NAME

     This Plan shall be known as the "Cooper (UK) Employee Share Purchase Plan".

3.   DEFINITIONS

     3.1  Except where inconsistent with the context the following words and
          expressions shall have the following meanings:-

          "ACTUAL CONVERTED AGGREGATE AMOUNT" means the Actual Sterling
          Aggregate Amount converted into United States dollars using the spot
          exchange rate of Barclays Bank Plc at noon GMT on the date of exercise
          of an Option;

          "ACTUAL STERLING AGGREGATE AMOUNT" means for each Eligible Employee
          the total amount in pounds sterling saved by that Eligible Employee
          under a Savings Contract together with any Bonus due under that
          Savings Contract;

          "ASSOCIATED COMPANY" shall, for the purposes of Rule 9.3.6 have the
          meaning given to that expression in paragraph 23 of Schedule 9 by
          virtue of Section 187(2) of the Taxes Act and, for any other part of
          these Rules, "Associated Company" shall have the meaning given to that
          expression in section 416 Taxes Act;

          "AUDITORS" means the auditors of the Company for the time being;

                                                                               1
<PAGE>   4

          "BOARD" means:

          1.   the board of directors of the Company for the time being; or

          2.   as appropriate a committee which has been duly authorised by the
               board of directors of the Company pursuant to Rule 15;

          "BONUS" means:

          1.   the First Bonus, or

          2.   the Standard Bonus, or

          3.   the Maximum Bonus as appropriate in relation to any particular
               savings contract;

          "BONUS DATE" means in relation to any Savings Contract the earliest
          date on which a Bonus is payable;

          "CESSATION OF EMPLOYMENT" means the date on which an Option Holder
          ceased to be employed within the Group and for this purpose "Group"
          shall include any Associated Company;

          "CONTROL" means control as defined in section 840 of the Taxes Act;

          "DATE OF APPROVAL" means the date on which the Plan is approved by the
          Inland Revenue pursuant to Schedule 9;

          "ELIGIBLE EMPLOYEE" means:

          1.   an employee of the Group, or

          2.   a director of the Company and/or of any Subsidiary who is
               contracted to work full-time (and in any event for not less than
               25 hours per week exclusive of meal breaks) for the Company
               and/or any of the Subsidiaries,

          who either has been such an employee or director continuously since 1
          January in the calendar year in which the Date of Grant falls, and is
          chargeable to tax in respect of his office or employment under Case 1
          of Schedule E (as set out in section 19 of the Taxes Act), or is any
          other employee of the Group who is permitted by the Board to

                                                                               2
<PAGE>   5

          participate in the Plan, and is not precluded from participating in
          the Plan by paragraph 8 of Schedule 9;

          "EMPLOYEE TRUST" means any one or more trusts established by the
          Company or any of its Subsidiaries under the terms of which any one or
          more Eligible Employees may obtain benefit;

          "ESTIMATED STERLING AGGREGATE AMOUNT" means for each Eligible Employee
          an estimate of the Actual Sterling Aggregate Amount, such estimate
          being based on the assumption that the Eligible Employee continues to
          contribute fully to his Savings Contract for the full term of the
          Savings Contract.

          "ESTIMATED CONVERTED AGGREGATE AMOUNT" means the Estimated Sterling
          Aggregate Amount converted into United States dollars using the spot
          exchange rate of Barclays Bank Plc at noon GMT on the Date of Grant;

          "EXERCISE PRICE" means the amount per Share payable on the exercise of
          an Option;

          "FIRST BONUS" means the bonus payable following the making of thirty
          six monthly (or the appropriate number of weekly) payments pursuant to
          a 3 year Savings Contract;

          "GMT" means Greenwich Mean Time;

          "GRANT" means a resolution by the Board (or an action by a person duly
          authorised by the Board) as a consequence of which the Board has
          granted Options over that number of Shares which is to be, and to
          those Eligible Employees which are to be, determined in accordance
          with Rules 6 and 7 and the "DATE OF GRANT" shall mean the date on
          which the resolution is passed or the action is taken as appropriate.

          "GROUP" means the Company and all its Subsidiaries for the time being
          or, where appropriate, any Jointly-Owned Company which has been
          approved by the board of Inland Revenue to participate in the Plan
          (and/or any Subsidiary for the time being of such Jointly-Owned
          Company) in each case whether incorporated in the United Kingdom or
          elsewhere and which is nominated by the Board to participate in the
          Plan;

                                                                               3
<PAGE>   6

          "INVITATION" means the invitation sent to all Eligible Employees
          pursuant to the provisions of Rule 6 which invites the addressee to
          participate in the Plan.

          "JOINTLY-OWNED COMPANY" means any company which is jointly owned by
          the Company (whether directly or indirectly) and one other person
          (that is, controlled as to 50% by each of those two persons);

          "MARKET VALUE" means

          1.   on any day the market value of a Share determined in accordance
               with the provisions of Part VIII of the Taxation of Chargeable
               Gains Act 1992 and agreed in advance for the purposes of the Plan
               with the Inland Revenue Shares Valuation Division; or

          2.   on any day if at the relevant time shares of the same class as
               the Shares are listed on the New York Stock Exchange, the average
               of the high and low market quotation of shares of that class for
               the preceding trading day;

          "MAXIMUM BONUS" means the bonus payable pursuant to a 5 year Savings
          Contract two years after an entitlement to a Standard Bonus would
          accrue where the Eligible Employee has made the appropriate election
          for a Maximum Bonus;

          "OPTION" means a right to acquire Shares in the capital of the Company
          granted pursuant to the Plan;

          "OPTION CERTIFICATE" means a certificate evidencing the Option as
          referred to in Rule 7.8;

          "OPTION HOLDER" means a person who holds an Option or where the
          context so permits the legal personal representative of such person;

          "PLAN" means the Cooper UK Employee Share Purchase Plan established by
          these Rules subject to any amendments made in accordance with their
          terms;

          "RULES" means these rules as amended from time to time;

          "SAVINGS CONTRACT" means a contract under a certified contractual
          savings scheme (within the meaning of Section 326 Taxes Act) entered
          into with a bank or building

                                                                               4
<PAGE>   7

          society nominated by the Board and which has been approved for the
          purpose of Schedule 9 by the Inland Revenue;

          "SCHEDULE 9" means Schedule 9 to the Taxes Act;

          "SHARES" means shares of common stock (par value $5.00 per share) in
          the capital of the Company which comply with the requirements of
          paragraphs 10 to 14 inclusive of Schedule 9;

          "SPECIFIED AGE" means:

          1.   sixty five years, or

          2.   any other age determined by the Board from time to time provided
               that any other age determined by the Board shall not be less than
               sixty years and not more than seventy five years and any such
               determination shall not be effective until the amendment has been
               approved by the board of the Inland Revenue;

          "STANDARD BONUS" means the bonus payable following the making of sixty
          monthly or the appropriate number of weekly payments pursuant to a 5
          year Savings Contract;

          "SUBSIDIARY" means a company which is under the Control of the Company
          (or any Jointly-Owned Company, as the case may be) and is a subsidiary
          of it within the meaning of Section 736 of the Companies Act 1985;

          "SUBSISTING OPTION" means an Option which has neither lapsed nor been
          exercised;

          "TAXES ACT" means the Income and Corporation Taxes Act 1988;

          "TOTAL EXERCISE COST" means the total amount payable for Shares,
          expressed as an amount in United States dollars, which may be or are
          issued or transferred on the exercise of an Option;

          "TRUSTEES" means the trustees for the time being of the Employee Trust
          as approved by the Board.

     3.2  Words importing the singular shall include the plural and vice versa
          and words importing the masculine shall include the feminine.

                                                                               5
<PAGE>   8

     3.3  References to a statute or to any part or parts thereof shall include
          references to the same as from time to time amended or re-enacted.

     3.4  Except where inconsistent with the context and unless otherwise stated
          any words or expressions used herein shall have the same meanings as
          in Schedule 9.

4.   INDIVIDUAL SAVINGS LIMITS

     4.1  Following any particular invitation to participate in the Plan an
          Eligible Employee may apply for the grant of an Option provided that:-

          4.1.1  the minimum contributions payable under the Savings Contract to
                 be entered into in respect of such grant shall not be less than
                 (pound)5 per month nor greater than the amount per month
                 specified from time to time in paragraph 24(2)(b) of Schedule
                 9; and

          4.1.2  the contribution payable in any month by the Eligible Employee
                 under the Savings Contract to be entered into in respect of
                 such grant when added to the contributions payable under all
                 other subsisting Savings Contracts or savings contracts
                 approved or treated as approved by the Inland Revenue for
                 savings related share option schemes approved by the Inland
                 Revenue for the purposes of Schedule 9, shall not exceed the
                 greater of(pound)250 or the maximum amount permitted by
                 Schedule 9 or if less, such other maximum amount specified by
                 the Board or the Trustees in its/their absolute discretion by
                 reference to any particular invitation.

5.   EXERCISE PRICE

     The Exercise Price for an Option shall be determined on the Date of Grant
     subject to the following:-

     5.1  In the case of an Option to acquire one or more Shares the Exercise
          Price shall be 85% of the Market Value of a Share (or such higher
          percentage as may from time to time be permitted by the Taxes Act);
          and

     5.2  In the case of an Option to subscribe for one or more Shares the
          Exercise Price shall be the greater of the nominal value and 85% of
          the Market Value of a Share (or such higher percentage as may from
          time to time be permitted by the Taxes Act).

                                                                               6
<PAGE>   9

     5.3  The Exercise Price for an Option shall be stated in United States
          dollars.

     5.4  Subject to Rule 7.5 Options must be granted no more than 30 days after
          the day on which the Market Value is determined.

6.   INVITATIONS AND APPLICATIONS FOR OPTIONS

     6.1  Subject to any requirements limits or restrictions contained elsewhere
          in the Rules the Board and/or the Trustees may in its/their absolute
          discretion issue Invitations to all persons who are Eligible
          Employees.

     6.2  The Board (or in circumstances where Options are to be granted by the
          Trustees, the Trustees in consultation with the Board);

          6.2.1  shall have determined the maximum number of Shares over which
                 Options have been granted on the Date of Grant; and

          6.2.2  may have at that time determined a higher number to which such
                 maximum may be increased if and only if the need for scaling
                 down under Rule 7.5 will be thereby avoided

          subject in all events to the limit on the aggregate number of Shares
          that may be issued under the Plan as set out in Rule 13.1.

     6.3  Invitations shall include an application form, (in a form determined
          by the Board or Trustees, as appropriate) together with instructions
          for the completion and return of the application in accordance with
          Rule 6.4.

     6.4  Invitations shall state whether the Savings Contracts to be entered
          into in relation to the particular grant shall include any one or more
          of:-

          6.4.1  the First Bonus;

          6.4.2  the Standard Bonus;

          6.4.3  the Maximum Bonus;

          and if appropriate must invite Eligible Employees to select which
          Savings Contract they wish to enter into and to indicate their
          selection on the application form.

                                                                               7
<PAGE>   10

     6.5  Not later than the date specified in the Invitation (being neither
          earlier than fourteen nor later than twenty-one days after the Date of
          Grant, unless on a particular occasion the Inland Revenue has agreed
          to a variation in the time allowed for the response to Invitations)
          each Eligible Employee to whom an Invitation has been issued may
          return the application form provided pursuant to Rule 6.3 to the Board
          or the Trustees (as the case may be) thereby indicating that he wishes
          to be granted an Option.

     6.6  Subject to Rule 7 below, applications shall be taken to be for an
          Option over Shares with a Total Exercise Cost as near as possible to
          but not exceeding the Estimated Converted Aggregate Amount.

7.   GRANT OF OPTIONS AND SCALING-DOWN

     7.1  Subject to this Rule 7 the Option shall be over the number of Shares
          for which application is made.

     7.2  Not later than the twenty-eighth day following the issue of
          Invitations the Board (on behalf of the Company) and/or the Trustees
          (as the case may be) shall confirm to each applicant who is still an
          Eligible Employee that an Option has been granted to that Eligible
          Employee and indicating the maximum number of Shares over which the
          Option has been granted.

     7.3  Where any Option has been granted by the Board and the terms specified
          in the Option provide for the satisfaction of the Option by the issue
          of Shares by the Company then the Board may in its absolute discretion
          determine that in substitution for the allotment and issue of Shares
          it shall procure that some or all of the Shares over which the Option
          subsists shall be satisfied, in accordance with Rule 13.2, by some
          other person or body. Such determination may be made at any time
          following the grant of any particular Option and prior to the
          resolution of the Board to satisfy the exercise of any Option by the
          issue of Share.

     7.4  Options may be granted pursuant to the Plan as follows:-

          7.4.1  By the Board where such Option will, subject to Rule 13.2
                 below, be satisfied on its exercise by the Company issuing
                 Shares to the relevant Option Holder;

                                                                               8
<PAGE>   11

          7.4.2  By the Board, where such Option will be satisfied on its
                 exercise by some other person or body (including, without
                 limitation, the Trustees);

          7.4.3  By the Trustees where such Option on its exercise will be
                 satisfied by the transfer of Shares from the Employee Trust.

     7.5  If the Board and/or the Trustees receive completed application forms
          which indicate that the maximum number of Shares over which Options
          have been granted on the Date of Grant is insufficient after taking
          into account any higher number of Shares over which Options have been
          granted pursuant to Rule 6.2 then reference to the fortieth day shall
          be substituted for reference to the twenty-eighth day in Rule 7.2 and
          the following steps shall be carried out successively to the extent
          necessary to eliminate the excess:-

          7.5.1  each election for the Maximum Bonus to be included in the
                 repayment under the Savings Contract shall be deemed to be an
                 election for only the Standard Bonus to be so included;

          7.5.2  each election for the Standard Bonus or the First Bonus to be
                 included in the repayment under the Savings Contract shall be
                 deemed to be an election for no bonus to be so included;

          7.5.3  the excess over the minimum monthly savings contribution chosen
                 by each applicant in relation to that particular grant shall be
                 reduced pro rata to the extent necessary;

          7.5.4  each election for a 5 year Savings Contract shall be deemed to
                 be an election for only a 3 year Savings Contract;

          7.5.5  subject to Rule 7.6, applications will be selected by lot each
                 based on a monthly savings contribution of (pound)5 and the
                 inclusion of no bonus in the repayment under the Savings
                 Contract.

          Each application shall be deemed to have been modified or withdrawn in
          accordance with the application of the foregoing provisions and the
          Board shall amend each Savings Contract proposal form to reflect any
          reduction in monthly savings contributions resulting from such
          application.

                                                                               9
<PAGE>   12

     7.6  As an alternative to selecting applications by lot, the Board and/or
          the Trustees may determine in its/their absolute discretion that no
          Options shall be granted.

     7.7  For the avoidance of doubt, the grant of an Option to an Eligible
          Employee shall be conditional upon the Eligible Employee having
          entered into a Savings Contract such that the Estimated Converted
          Aggregate Amount will be not less than the Total Exercise Cost of the
          Shares over which the Option is granted.

     7.8  The grant of an Option shall be evidenced by the issue of a
          certificate under the authority of the Board or the Trustees as
          appropriate in such form as the Board and/or the Trustees may
          determine and which shall specify:-

          7.8.1  the Exercise Price;

          7.8.2  the maximum number of Shares over which the Option is granted
                 based on the Barclays Bank plc dollar/sterling spot exchange
                 rate at noon on the Date of Grant;

          7.8.3  the Date of Grant; and

          7.8.4  a statement to the effect that the actual number of Shares over
                 which the Eligible Employee shall be able to exercise an Option
                 shall be determined on the date of exercise of the Option (or
                 as soon after that date as is practicable) according to the
                 dollar/sterling spot exchange rate of Barclays Bank plc at noon
                 GMT on the date of exercise of the Option.

     7.9  If any certificate shall be destroyed, lost, defaced or worn out, it
          may be renewed on such evidence being provided and on such terms as
          the Board or Trustees may require.

     7.10 No Option may be granted later than 10 years after the Date of
          Approval.

8.   RESTRICTIONS ON TRANSFER OF OPTIONS

     An Option shall be personal to the Option Holder (or, where appropriate,
     his legal personal representatives) and shall not be assignable. Any
     purported assignment transfer, charge, disposal or dealing with the rights
     and interests of the Option Holder shall render the Option void.

                                                                              10
<PAGE>   13

9.   EXERCISE OF OPTIONS

     9.1  Subject to any provision in these Rules to the contrary an Option
          shall:-

          9.1.1  become exercisable on the Bonus Date; and

          9.1.2  lapse six months after the Bonus Date.

     9.2  The maximum number of Shares over which an Option shall be exercisable
          shall be determined using the Exercise Price and the Actual Converted
          Aggregate Amount.

     9.3  No Option shall be exercisable over a number of Shares to the extent
          that the Total Exercise Cost exceeds the Actual Converted Aggregate
          Amount and, for the purposes of this Rule, the Actual Converted
          Aggregate Amount excludes the repayment of any contribution the due
          date for payment of which falls more than one month after the date on
          which repayment under the Savings Contract is made.

     9.4  An Option may be exercised by an Option Holder in the circumstances
          and within the periods specified below and (except as set out in Rule
          9.4.4 below) shall thereafter lapse:-

          9.4.1  if the Option Holder dies before the Bonus Date, the period of
                 twelve months after his death;

          9.4.2  if the Option Holder dies in the six months following the Bonus
                 Date the period of twelve months after the Bonus Date;

          9.4.3  unless the Option Holder has died, and subject to Rules 9.3 and
                 9.4.1, the period of six months following Cessation of
                 Employment by reason of injury disability redundancy within the
                 meaning of the Employment Protection (Consolidation) Act 1978
                 or retirement on reaching an age not less than either the age
                 at which he is bound to retire in accordance with the terms of
                 his contract of employment or the Specified Age;

          9.4.4  subject to Rules 9.3 and 9.1.2 the period of six months after
                 the Option Holder reaches the Specified Age if he continues to
                 be employed within the Group after reaching such Specified Age;

                                                                              11
<PAGE>   14

          9.4.5  unless the Option Holder had died, and subject to Rules 9.3 and
                 9.1.2, the period of six months following Cessation of
                 Employment (other than for reasons of dismissal for misconduct,
                 by reason of early retirement or voluntary redundancy) in
                 circumstances in which Rules 9.4.1, 9.4.2 and 9.4.3 do not
                 apply provided that on such Cessation of Employment at least
                 three years have elapsed since the Date of Grant;

          9.4.6  subject to Rules 9.3 and 9.1.2 the period of six months
                 following Cessation of Employment by reason of the Company by
                 which he is employed ceasing to be a member of the Group or by
                 reason of the sale of the undertaking in which he is employed
                 to a transferee which is neither a member of the Group nor an
                 Associated Company; and

          9.4.7  the events specified in Rule 11.

     9.5  Subject to Rule 9.1.2 an Option shall lapse if:

          9.5.1  the Option Holder ceases to be employed within the Group for
                 any reason other than as set out in Rule 9.4 hereof provided
                 that an Option Holder who ceased to be an Eligible Employee by
                 reason of pregnancy or confinement and who exercises her right
                 to return to work under Section 45 of the Employment Protection
                 (Consolidation) Act 1978 before exercising an Option under the
                 Plan will be treated for these purposes as not having ceased to
                 be an Eligible Employee; or

          9.5.2  the whole or part of an Option Holder's contributions under the
                 related Savings Contract are repaid to the Option Holder before
                 the earliest date on which the Option may be exercised in
                 accordance with this Plan; or

          9.5.3  the Option Holder is adjudicated bankrupt.

     9.6  No Option may be exercised when:

          9.6.1  the Option Holder is; or

          9.6.2  the personal representative(s) of an Option Holder who at the
                 date of his death is or are,

                                                                              12
<PAGE>   15

          precluded from participating in the Plan by paragraph 8 of the
          Schedule 9. In addition and (subject to Rules 9.4.1, 9.4.2, 9.4.3,
          9.4.5 and 9.4.6) no Option may be exercised by an Option Holder when
          he is not an Eligible Employee.

10.  MANNER OF EXERCISE OF OPTIONS

     10.1 In order to exercise an Option the Option Holder or his legal personal
          representative shall terminate the related Savings Contract and
          deliver to the Secretary of the Company (or his designee) or the
          Trustees as appropriate his Option Certificate together with a written
          notice signed by or on behalf of the Option Holder and specifying the
          number of Shares in respect of which the Option is being exercised and
          payment in full of the Exercise Price in United States dollars for
          those Shares.

     10.2 An Option may be exercised on one occasion only in respect of all or
          any of the Shares over which it is granted.

     10.3 If the Actual Converted Aggregate Amount exceeds the Total Exercise
          Cost, the Option Holder shall receive a cash refund to the extent that
          the Actual Converted Aggregate Amount exceeds the Total Exercise Cost.

     10.4 If the Actual Converted Aggregate Amount is less than the Total
          Exercise Cost, the number of Shares that the Option Holder may
          purchase upon exercise of the Option shall be limited to the number of
          Shares that can be purchased at the Exercise Price using the Actual
          Converted Aggregate Amount.

     10.5 All allotments, issues and transfers of Shares shall be made on such
          day or days as the Board or the Trustees may determine and shall be
          made to the Option Holder (or at the absolute discretion of the Board
          or the Trustees (as appropriate), to one or more nominee or nominees
          including, for the avoidance of doubt, to the administrators of any
          tax efficient equity ownership plan nominated by the Option Holder)
          within 30 days of the exercise of the relevant Option subject however
          to any necessary consents under any relevant enactments or regulations
          for the time being in force having been obtained (and it shall be the
          responsibility of the Option Holder to comply with any requirements to
          be fulfilled in order to obtain or obviate the necessity for any such
          consent).

                                                                              13
<PAGE>   16

     10.6 If a dividend or other distribution is to be or is proposed to be paid
          to holders of the Shares on the register on a date prior to the date
          of exercise of an Option the Shares to be issued or transferred upon
          such exercise will not rank for such dividend or other distribution.
          Subject to the foregoing Shares allotted or transferred upon the
          exercise of an Option shall rank pari passu in all respects with the
          Shares in issue on the date of such exercise

11.  MERGER, SALE, CHANGE OF CONTROL AND LIQUIDATION

     11.1 If any person obtains Control of the Company as a result of making:-

          11.1.1 a general offer to acquire the whole of the issued share
                 capital of the Company which is made on a condition such that
                 if it is satisfied the person making the offer will have
                 Control of the Company; or

          11.1.2 a general offer to acquire all of the shares in the Company
                 which are of the same class as the Shares;

          any Subsisting Option held by an Option Holder may be exercised
          (subject to Rule 12.1 below and to Rules 9.3 and 9.1.2 above) within
          six months of the time when the person making the offer has obtained
          Control of the Company and any condition subject to which the offer is
          made has been satisfied (unless the Inland Revenue has agreed to a
          reduction in the time allowed for the exercise of Subsisting Options)
          and if not so exercised shall then lapse. For the purposes of this
          paragraph a person shall be deemed to have obtained control of the
          Company if he and others acting in concert with him have together
          obtained Control of it.

     11.2 If as a result of the events specified in Rules 11.1 a person has
          obtained Control of the Company and, in accordance with the provisions
          of that Rule, the Option Holder has exercised any Subsisting Option
          the Company shall use its reasonable endeavours to procure that
          following the transfer or allotment (as the case may be) of Shares to
          the Option Holder, inasmuch as such Shares were not previously
          included in the general offer, the relevant party shall offer to
          acquire such Shares from the Option Holder upon the same terms as
          those upon which the Shares were originally acquired under the general
          offer.

                                                                              14
<PAGE>   17

     11.3 If notice is duly given of a resolution for the voluntary winding-up
          of the Company (other than for the purpose of reconstruction or
          amalgamation) an Option Holder may (subject to Rules 9.3 and 9.1.2)
          during the six months thereafter exercise all or any of his Subsisting
          Options (but so that such exercise shall be conditional upon the
          passing of such resolution before the expiry of six months after the
          Bonus Date) which shall then lapse.

12.  VARIATION OF CAPITAL

     12.1 The aggregate number of Shares which may be issued under the Plan may
          be increased to reflect a change in capitalisation of the Company,
          such as a stock dividend or stock split.

     12.2 If, prior to the expiration of an Option, the Company shall effect a
          subdivision or consolidation of its Shares or the payment of a stock
          dividend on its Shares without receipt of consideration by the
          Company, the number of Shares thereafter subject to such Option (i) in
          the event of an increase in the number of outstanding shares shall be
          proportionately increased, and the Exercise Price shall be
          proportionately reduced, and (ii) in the event of a reduction in the
          number of outstanding shares shall be proportionately reduced, and the
          Exercise Price shall be proportionately increased.

     12.3 No adjustments shall be made without specific prior approval of the
          Inland Revenue.

     12.4 Notice of any such adjustments shall be given to the Option Holders
          who if required shall return their Option Certificates for endorsement
          or replacement

13.  AVAILABILITY OF AUTHORISED CAPITAL

     13.1 The aggregate number of Shares that may be issued under the Plan is
          500,000 which Shares may be authorised but unissued shares or treasury
          shares, or both.

     13.2 The Company shall make application to the New York Stock Exchange in
          respect of the maximum number of Shares issuable under the Plan and
          thereafter submit such returns or reports as may be required by the
          Exchange concerning the number of Shares actually allotted under the
          Plan.

     13.3 The Company shall keep available sufficient authorised but unissued
          Shares or treasury shares to satisfy in full all outstanding Options
          granted by the Company to

                                                                              15
<PAGE>   18

          subscribe for Shares and ensure that there are sufficient Shares in
          issue or treasury shares available to satisfy any Subsisting Option to
          acquire Shares.

     13.4 At any time following the grant of an Option by the Company the
          Company may elect to satisfy its obligation to issue Shares arising
          from such exercise by procuring the transfer by the Trustees or any
          other existing shareholder or shareholders to the Option Holder of the
          number of issued Shares equal to the number of Shares in respect of
          which the Option is exercised and at a price equal to the Exercise
          Price and otherwise on terms no less favourable (mutatis mutandis) to
          the Option Holder than those which would have applied had the Company
          not made such election.

14.  VARIATION AND TERMINATION OF PLAN

     14.1 These Rules may be altered by resolution of the Board in any manner
          and at any time subject to the following provisions:

          14.1.1 in making such alteration, the Board shall have regard to the
                 fact that, if such an alteration is made at a time when the
                 Plan is approved by the Inland Revenue under Schedule 9, the
                 approval shall not have effect until approved by the Inland
                 Revenue and approval shall therefore be sought from the Inland
                 Revenue as soon as possible following the making of any
                 alteration; and

          14.1.2 no alteration may materially affect an Option Holder as regards
                 an Option granted prior to the alteration being made save that
                 this shall not prevent the issue of Options after the date of
                 the alteration on terms more favourable than those Options
                 granted prior to that date.

          14.1.3 The Company may by ordinary resolution of the Board at any time
                 resolve to terminate the Plan in which case no further Options
                 shall be granted but the Subsisting Options shall not be
                 affected by such termination.

15.  ADMINISTRATION

     15.1 The Plan shall be administered by the Plan Administration Committee
          established by the Board, which committee shall be authorised to
          approve offerings under the Plan and to interpret the Plan and from
          time to time to adopt such rules and regulations, consistent with the
          provisions of the Plan, as may be deemed advisable to carry out

                                                                              16
<PAGE>   19

          the Plan. The decision of such committee shall be final and binding
          for all purposes with respect to any question arising under the Plan.

     15.2 The committee is authorised to amend the Plan to benefit the
          administration of the Plan and make amendments to bring the Plan
          within the terms of Schedule 9 and/or to obtain or maintain Inland
          Revenue approval under the provisions of Schedule 9 or any other
          enactment and/or to take advantage of or to comply with any changes in
          existing or proposed legislation or to obtain or maintain favourable
          taxation, exchange control or regulatory treatment of the Company, any
          Subsidiary or Option Holder.

16.  GENERAL

     16.1 In the event of any dispute or question concerning the construction or
          effect of the Plan the decision of the Board shall be final and
          conclusive subject to the concurrence of the Auditors wherever
          required under these Rules.

     16.2 In any matter in which they are required to act under the Plan the
          Auditors shall be deemed to be acting as experts and not as
          arbitrators and the Arbitration Acts 1950 to 1996 shall not apply
          hereto.

     16.3 Notwithstanding any provisions of any other of these Rules the Plan
          shall not form part of any contract of employment of any Eligible
          Employee and shall not confer any legal or equitable rights (other
          than those constituting the Options themselves) against the Company or
          any Subsidiary nor shall the benefits to Eligible Employees under the
          Plan form any part of their remuneration for pension or other
          purposes.

     16.4 If an Option Holder shall cease for any reason to be an Eligible
          Employee his rights and benefits under the Plan or in connection
          therewith (actual or prospective) or any loss thereof shall not
          entitle him to any claim for compensation against the Company or any
          Subsidiary.

     16.5 If a person shall cease to be an Eligible Employee for whatever reason
          he shall not be entitled to compensation for any loss of any rights or
          benefits (actual or prospective) under the Plan which he might
          otherwise have enjoyed whether such compensation is claimed by way of
          damages for unfair dismissal, wrongful dismissal or other breach of
          contract or by way of compensation for loss of office or otherwise.

                                                                              17
<PAGE>   20

     16.6 The Board may from time to time make and vary such regulations (not
          being inconsistent with the Plan) for the implementation and
          administration of the Plan as it thinks fit.

     16.7 Option Holders shall not be entitled to copies of notices and
          documents sent to ordinary shareholders prior to the exercise of an
          Option.

     16.8 It shall be the duty of the Board or the Trustees (as appropriate) to
          provide returns of any Options granted or exercised and to make
          available such further information as may be requested from time to
          time by the board of the Inland Revenue.

     16.9 Any notice or other communication under or in connection with the Plan
          may be given by personal delivery or by sending the same by post, in
          the case of a company to its registered office and in the case of an
          individual to his last known address, or, where he is a director or
          employee of a Group company either to his last known address or to the
          address of the place of business at which he performs the whole or
          substantially the whole of the duties of his office or employment, and
          where a notice or other communication is given by first-class post, it
          shall be deemed to have been received 48 hours after it was put into
          the post properly addressed and stamped.

     16.10 The costs of introducing and administering the Plan shall be borne by
          the Company.

                                                                              18
<PAGE>   21

17.  GOVERNING LAW

     The Rules and the Plan shall in all respects be governed by the laws of
     England and the English Courts shall have non exclusive jurisdiction to
     hear and determine any disputes which arise or may arise in connection with
     the Plan.

18.  HEADINGS

     The headings contained herein are for convenience only and shall not affect
     the construction of the Rules.

ON BEHALF OF THE COMPANY I HEREBY DECLARE THAT THE BOARD HAS APPROVED AND
ADOPTED THESE RULES.

SIGNED: /s/ David R. Sheil
        -----------------------------
            David R. Sheil

CAPACITY: Senior Vice President, Human Resources, Cooper Industries, Inc.

DATE: 19 May 2000

                                       19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]