Document:

exv4w2

 

Exhibit 4.2

 

 

COOPER US, INC.,

as Issuer

COOPER INDUSTRIES, LTD.

COOPER B-LINE, INC.

COOPER BUSSMANN, INC.

COOPER CROUSE-HINDS, LLC

COOPER LIGHTING, INC.

COOPER POWER SYSTEMS, INC.

and

COOPER WIRING DEVICES, INC.,

as Guarantors

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Trustee

$300,000,000

6.10%
Senior Notes
Due 2017

FIRST

SUPPLEMENTAL

INDENTURE

_______________

Dated as of June 18, 2007

 

 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I

	 	ESTABLISHMENT OF NEW SERIES
	 	 	1	 
	 
	 	 	 	 	 	 
	     Section 1.01.

	 	     Establishment of New Series
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	2	 
	 
	 	 	 	 	 	 
	     Section 2.01.

	 	     Definitions
	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 	THE NOTES
	 	 	4	 
	 
	 	 	 	 	 	 
	     Section 3.01.

	 	     Form
	 	 	4	 
	 
	 	 	 	 	 	 
	     Section 3.02.

	 	     Issuance of Additional Notes
	 	 	4	 
	 
	 	 	 	 	 	 
	     Section 3.03.

	 	     Transfer of Securities
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 	REDEMPTION
	 	 	5	 
	 
	 	 	 	 	 	 
	     Section 4.01.

	 	     Optional Redemption
	 	 	5	 
	 
	 	 	 	 	 	 
	     Section 4.02.

	 	     Mandatory Redemption and Sinking Fund
	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 	COVENANT SUPPLEMENTS
	 	 	5	 
	 
	 	 	 	 	 	 
	     Section 5.01.

	 	     Covenants
	 	 	5	 
	 
	 	 	 	 	 	 
	     Section 5.02.

	 	     Supplement to Covenants
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 	CONCERNING THE TRUSTEE
	 	 	7	 
	 
	 	 	 	 	 	 
	     Section 6.01.

	 	     Compensation and Expenses of Trustee
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 	CONSOLIDATION, AMALGAMATION, MERGER, CONVEYANCE OR TRANSFER
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 	GUARANTEE
	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	 	SATISFACTION AND DISCHARGE OF INDENTURE OR CERTAIN COVENANTS
	 	 	11	 
	 
	 	 	 	 	 	 
	     Section 9.01.

	 	     Defeasance Upon Deposit of Money, U.S. Government Obligations or
Eligible Obligations
	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE X

	 	MISCELLANEOUS PROVISIONS
	 	 	12	 
	 
	 	 	 	 	 	 
	     Section 10.01.

	 	     Judgment Currency; Service of Process
	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	 	MISCELLANEOUS
	 	 	12	 
	 
	 	 	 	 	 	 
	     Section 11.01.

	 	     Integral Part
	 	 	12	 
	 
	 	 	 	 	 	 
	     Section 11.02.

	 	     Adoption, Ratification and Confirmation
	 	 	12	 
	 
	 	 	 	 	 	 
	     Section 11.03.

	 	     Counterparts
	 	 	12	 
	 
	 	 	 	 	 	 
	     Section 11.04.

	 	     Governing Law
	 	 	12	 
	 
	 	 	 	 	 	 
	     Section 11.05.

	 	     Trustee Makes No Representation
	 	 	12	 
	 
	 	 	 	 	 	 
	     Section 11.06.

	 	     USA Patriot Act Notice
	 	 	12	 

-i-

 

 

     FIRST SUPPLEMENTAL INDENTURE dated as of June 18, 2007 (this “Supplemental Indenture”),
between (i) Cooper US, Inc., a Delaware corporation (the “Issuer” or the “Company”), (ii)
Cooper Industries, Ltd., an exempted company incorporated with limited liability under the
laws of Bermuda (“Cooper Parent”), (iii) Cooper B-Line, Inc., a Delaware corporation
(“B-Line”), Cooper Bussmann, Inc., a Delaware corporation (“Bussmann”), Cooper
Crouse-Hinds, LLC, a Delaware limited liability company (“Crouse”), Cooper Lighting,
Inc., a Delaware corporation (“Lighting”), Cooper Power Systems, Inc., a Delaware
corporation (“Power Systems”), and Cooper Wiring Devices, Inc., a New York corporation
(“Wiring”), and (iv) Deutsche Bank Trust Company Americas, a New York banking corporation,
as trustee (the “Trustee”),

W I T N E S S E T H:

     WHEREAS, the Issuer has heretofore entered into an Indenture, dated as of June 18, 2007 (as
amended (in accordance with its applicable provisions) by supplements and amendments of general
application, the “Original Indenture”), with Deutsche Bank Trust Company Americas, as trustee;

     WHEREAS, the Original Indenture, as supplemented by this Supplemental Indenture, is herein
called the “Indenture”;

     WHEREAS, under the Original Indenture, the form and terms of a new series of Debt Securities
may at any time be established by a supplemental Indenture executed by the Issuer, the Guarantors,
as applicable, and the Trustee;

     WHEREAS, the Issuer proposes to create under the Indenture a new series of Debt Securities;

     WHEREAS, additional Debt Securities of other series hereafter established, except as may be
limited in the Original Indenture as at the time supplemented and modified, may be issued from time
to time pursuant to the Original Indenture as at the time supplemented and modified; and

     WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental
Indenture and to make it a valid and binding obligation of the Issuer have been done or performed.

     NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:

ARTICLE I

ESTABLISHMENT OF NEW SERIES

     Section 1.01. Establishment of New Series.

     (a) There is hereby established a new series of Debt Securities to be issued under
the Indenture, to be designated as the Issuer’s 6.10% Senior Notes due 2017 (the “Notes”).

 

 

     (b) There are to be authenticated and delivered $300,000,000 principal amount of
Notes on the Issue Date, and from time to time thereafter there may be authenticated and delivered
an unlimited principal amount of Additional Notes.

     (c) The Notes shall be issued initially in the form of one or more Global Debt
Securities in substantially the form set out in Exhibit A hereto. The Depositary with
respect to the Notes shall be The Depository Trust Company.

     (d) Each Note shall be dated the date of authentication thereof and shall bear
interest as provided in paragraph 1 of the form of Note in Exhibit A hereto. As provided
for in Article VII, the Notes shall be jointly and severally guaranteed by the Guarantors.

     (e) If and to the extent that the provisions of the Original Indenture are
duplicative of, or in contradiction with, the provisions of this Supplemental Indenture, the
provisions of this Supplemental Indenture, including provisions contained in the form of Note in
Exhibit A hereto, shall govern.

ARTICLE II

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 2.01. Definitions. All capitalized terms used and not otherwise defined
herein shall have the meanings assigned in the Original Indenture. The words “Article” and
“Section”, unless otherwise modified, refer to an Article and Section, respectively, of this
Supplemental Indenture. The following are additional definitions used in this Supplemental
Indenture:

     “Additional Notes” shall have the meaning assigned in Section 3.02.

     “Below Investment Grade Rating Event” means a decrease in the ratings of the Notes below
Investment Grade by both Rating Agencies on any date from the date of the public notice of an
arrangement that could result in a Change of Control until the end of the 60-day period following
the public notice of the occurrence of the Change of Control (which period shall be extended so
long as the rating of the Notes is under publicly announced consideration for possible downgrade by
either of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise
arising by virtue of a particular reduction in rating shall not be deemed to have occurred in
respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade
Rating Event for purposes of the definition of Change of Control Repurchase Event) if the Rating
Agencies making the reduction in rating to which this definition would otherwise apply do not
announce or publicly confirm or inform the Trustee in writing at the Issuer’s request that the
reduction was the result, in whole or in part, of any event or circumstance comprised of or arising
as a result of, or in respect of, the applicable Change of Control (whether or not the applicable
Change of Control shall have occurred at the time of the Below Investment Grade Rating Event).

     “B-Line” shall have the meaning assigned in the introductory paragraph hereof.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions located in the state where the Trustee is located are authorized or
obligated by law, executive order or regulation to close.

     “Bussmann” shall have the meaning assigned in the introductory paragraph hereof.

2

 

     “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the assets of Cooper Parent
and its Subsidiaries taken as a whole to any Person or group of Persons for purposes of Section
13(d) of the Exchange Act other than Cooper Parent or one of its Subsidiaries or a Person
controlled by Cooper Parent or one of its Subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of which is that any Person
becomes the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act), directly or
indirectly, of more than 50% of the then outstanding number of shares of Cooper Parent Voting
Stock; or (3) the first day on which a majority of the members of Cooper Parent’s Board of
Directors are not Continuing Directors.

     “Change of Control Offer” shall have the meaning assigned in Section 5.01.

     “Change of Control Payment” shall have the meaning assigned in Section 5.01.

     “Change of Control Payment Date” shall have the meaning assigned in Section 5.01.

     “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Company” shall have the meaning assigned in the introductory paragraph hereof.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of Cooper Parent who (1) was a member of such Board of Directors on the date of the
issuance of the Notes; or (2) was nominated for election or elected to such Board of Directors with
the approval of a majority of the Continuing Directors who were members of such Board of Directors
at the time of such nomination or election (either by a specific vote or by approval of Cooper
Parent’s proxy statement in which such member was named as a nominee for election as a director,
without objection to such nomination).

     “Crouse” shall have the meaning assigned in the introductory paragraph hereof.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute.

     “Guarantors” means, collectively, Cooper Parent and the Subsidiary Guarantors, and subject to
Article VI, their respective successors and assigns.

     “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s); a rating of BBB- or better by S&P (or its equivalent under
any successor rating categories of S&P); and the equivalent investment grade credit rating from any
additional Rating Agency or rating agencies selected by the Issuer.

     “Issue Date” means the date of the first issuance of the Notes under the Indenture.

     “Issuer” shall have the meaning assigned in the introductory paragraph hereof.

     “Lighting” shall have the meaning assigned in the introductory paragraph hereof.

3

 

     “Moody’s” means Moody’s Investors Service, Inc.

     “Notes” shall have the meaning assigned in Section 1.01(a).

     “Person”, as used in the definition of “Change of Control”, has the meaning assigned in the
Original indenture and includes a “person” as used in Section 13(d)(3) of the Exchange Act.

     “Power Systems” shall have the meaning assigned in the introductory paragraph hereof.

     “Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P ceases
to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of
the Issuer’s control, a “nationally recognized statistical rating organization” within the meaning
of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Issuer (as set forth in
Certified Resolutions) as a replacement agency for Moody’s or S&P, or both, as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc.

     “Subsidiary Guarantors” means, collectively, B-Line, Bussmann, Crouse, Lighting, Power Systems
and Wiring.

     “Voting Stock” of any specified “Person” (as that term is used in Section 13(d)(3) of the
Exchange Act) as of any date means the capital stock of such Person that is at the time entitled to
vote generally in the election of the board of directors of such Person.

     “Wiring” shall have the meaning assigned in the introductory paragraph hereof.

ARTICLE III

THE NOTES

     Section 3.01. Form. The Notes shall be issued initially in the form of one or more
Global Debt Securities, and the Notes and Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A hereto, the terms of which are incorporated in and
made a part of this Supplemental Indenture, and the Issuer and the Trustee, by their execution and
delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby.

     Section 3.02. Issuance of Additional Notes. The Issuer may, from time to time,
issue an unlimited amount of additional Notes (“Additional Notes”) under the Indenture, which shall
be issued in the same form as the Notes issued on the Issue Date and which shall have identical
terms as the Notes issued on the Issue Date other than with respect to the issue date, issue price
and date of first payment of interest. The Notes issued on the Issue Date shall be limited in
aggregate principal amount to $300,000,000. The Notes issued on the Issue Date and any Additional
Notes subsequently issued, shall be treated as a single series for purposes of giving of notices,
consents, waivers, amendments and taking any other action permitted under the Indenture and for
purposes of interest accrual and redemptions.

     Section 3.03. Transfer of Securities.

     (a) When Notes are presented to the Notes registrar with the request to register the
transfer of such Notes or exchange such Notes for an equal principal amount of Notes of other
authorized

4

 

denominations, such registrar shall register the transfer or make the exchange in accordance
with Article Two of the Original Indenture.

     (b) Each security certificate evidencing the Global Debt Securities shall bear a
legend substantially in the form set forth in Section 2.11 of the Original Indenture.

ARTICLE IV

REDEMPTION

     Section 4.01. Optional Redemption.

     (a) At its option, the Issuer may choose to redeem all or any portion of the Notes,
at once or from time to time.

     (b) To redeem the Notes, the Issuer must pay a redemption price in an amount
determined in accordance with the provisions of paragraph number 5 of the form of Note in
Exhibit A hereto, plus accrued and unpaid interest, if any, to the redemption date for such
Notes (subject to the right of Holders on the relevant record date to receive interest due on the
relevant interest payment date).

     (c) Any redemption pursuant to this Section 4.01 shall otherwise be made
pursuant to the provisions of Sections 4.01 through 4.03 of the Original Indenture. The actual
redemption price, calculated as provided in paragraph number 5 of the form of Note in Exhibit
A hereto, shall be certified in writing to the Issuer and the Trustee by the Quotation Agent
(as defined in such paragraph 5) no later than two Business Days prior to each redemption date for
such Notes.

     Section 4.02. Mandatory Redemption and Sinking Fund. The Issuer shall not be
required to make mandatory redemption or sinking fund payments with respect to the Notes. The
Issuer shall be obligated to offer to repurchase Notes as provided in Article V.

ARTICLE V

COVENANT SUPPLEMENTS

     Section 5.01. Covenants. Article Five of the Original Indenture is hereby
supplemented, but only in relation to the Notes, by the addition of the following new Section at
the end of said Article Five:

     “Section 5.10. Offer to Repurchase upon Change of Control and Repurchase Event.

     (a) If a Change of Control Repurchase Event occurs, unless the Company has exercised
its right to redeem the Notes as provided for in the Indenture, the Company shall make an offer to
each Holder of Notes to repurchase all or any part (in an integral multiple of $1,000) of such
Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”) at a
repurchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus
accrued and unpaid interest, if any, on the Notes repurchased, to the date of purchase (the “Change
of Control Payment”).

     Within 30 days following any Change of Control Repurchase Event or, at the Company’s option,
prior to any Change of Control, but after the public announcement of the Change of Control, the
Company will mail a notice to each Holder, with a copy to the Trustee, stating:

5

 

     (i) the description of the transaction or transactions that constitute or may
constitute the Change of Control Repurchase Event, that the Change of Control Offer is being
made pursuant to this Section 5.10, and that all Notes validly tendered and not
withdrawn will be accepted for payment;

     (ii) the purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the “Change of Control
Payment Date”);

     (iii) that any Note not tendered will continue to accrue interest;

     (iv) that, unless the Company defaults in the payment of the Change of Control Payment,
all Notes accepted for payment pursuant to the Change of Control Offer shall cease to accrue
interest after the Change of Control Payment Date;

     (v) that Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes properly endorsed, with the form entitled
“Option of Holder to Elect Purchase” on the reverse of the Notes properly completed,
together with other customary documents as the Company may reasonably request, to the paying
agent at the address specified in the notice prior to the close of business on the third
Business Day preceding the Change of Control Payment Date;

     (vi) that Holders will be entitled to withdraw their election if the paying agent
receives, not later than the close of business on the second Business Day preceding the
Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of Notes delivered for purchase, and a
statement that such Holder is withdrawing his election to have the Notes purchased; and

     (vii) that Holders whose Notes are being purchased only in part will be issued new
Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be in an integral multiple of $1,000.

If any of the Notes subject to a Change of Control Offer are in the form of a Global Note, then the
Company shall modify such notice to the extent necessary to accord with the applicable procedures
of the Depositary applicable to repurchases. In addition, the Company shall comply with the
requirements of Rule 14e 1 under the Exchange Act and any other securities laws and regulations
under the Exchange Act to the extent such laws and regulations are applicable in connection with
the repurchase of Notes as a result of a Change of Control Repurchase Event. To the extent that
the provisions of any securities laws or regulations conflict with the provisions of this
Section 5.10 or the Notes, or any related definitions and other provisions of the
Indenture, the Company shall comply with the applicable securities laws and regulations and shall
not be deemed to have breached its obligations under this Section 5.10 or the Notes, or any
other provision of the Indenture, by virtue of such conflict.

     (b) On the Change of Control Payment Date, the Company will, to the extent lawful,
(i) accept for payment all Notes or portions thereof properly tendered pursuant to the Change of
Control Offer, (ii) deposit with the paying agent in immediately available funds an amount equal to
the Change of Control Payment in respect of all Notes or portions thereof so tendered pursuant to
the Change of Control Offer; and (iii) deliver or cause to be delivered to the Trustee the Notes
accepted for purchase, together

6

 

with an Officers’ Certificate stating the aggregate principal amount of Notes or portions
thereof being purchased by the Company . The paying agent will promptly mail to each Holder of
Notes so tendered pursuant to the Change of Control Offer, the Change of Control Payment for such
Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes
surrendered by the Holder; provided that each such new Note will be in an integral multiple of
$1,000. The Company will publicly announce the results of the Change of Control Offer on or as
soon as practicable after the Change of Control Payment Date

     (c) The Change of Control provisions described above will be applicable whether or
not any other provisions of the Indenture are applicable, except as set forth in Article
Thirteen of this Indenture.

     (d) The Company will not be required to make a Change of Control Offer upon a Change
of Control Repurchase Event if a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in this Indenture that are
applicable to a Change of Control Offer made by the Company and such third party purchases all
Notes properly tendered and not withdrawn under such Change of Control Offer. A Change of Control
Offer may be made in advance of a Change of Control Repurchase Event, and conditional upon the
occurrence of such Change of Control Repurchase Event, if a definitive agreement for the Change of
Control is in place at the time of making of the Change of Control Offer.”

     Section 5.02. Supplement to Covenants. Section 5.07 of the Original Indenture is
hereby supplemented, but only in relation to the Notes, by the addition of the phrase “or
5.10” immediately following the phrase “set forth in Section 5.05 or 5.06,
and immediately preceding the word “hereof” which otherwise followed such phrase.

ARTICLE VI

CONCERNING THE TRUSTEE

     Section 6.01. Compensation and Expenses of Trustee. Section 8.06 of the Original
Indenture is hereby supplemented, but only in relation to the Notes, by the substitution of the
phrase “The Company and the Guarantors” in lieu of the phrase “The Company and Cooper Parent” as
therein originally provided in the opening portion of the second sentence of said Section 8.06.

ARTICLE VII

CONSOLIDATION, AMALGAMATION, MERGER,

CONVEYANCE OR TRANSFER

     With respect to the Notes, but only in relation to the Notes, the provisions of this
Article shall preempt, and be substituted for, the provisions of Article Twelve of the
Original Indenture in their entirety.

     “Section 12.01 Company May Consolidate, Etc. Only on Certain Terms. The Company shall not
consolidate with or merge into any other Person or convey or transfer its properties and assets
substantially as an entirety to any Person, unless:

7

 

     (1) the Person formed by such consolidation or into which the Company is merged or the
Person which acquired by conveyance or transfer the properties and assets of the Company
substantially as an entirety shall be a corporation organized and existing under the laws of
the United States of America or any State or the District of Columbia, and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of, and premium,
if any, and interest, if any, on, all the Notes and the performance or observance of every
covenant of this Indenture on the part of the Company to be performed or observed;

     (2) immediately after giving effect to such transaction, no Event of Default, and no
event which, after notice or lapse of time, or both, would become an Event of Default, shall
have occurred and be continuing; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel each stating that such consolidation, merger, conveyance or transfer and such
supplemental indenture comply with this Article Twelve and that all conditions
precedent herein provided for which relate to such transaction have been complied with;
provided, however, the Opinion of Counsel shall not be required to include any opinion with
respect to the condition set forth in paragraph (2) of this Section 12.01

     Section 12.02. Successor Corporation Substituted. Upon any consolidation or merger, or any
conveyance or transfer of the properties and assets of the Company substantially as an entirety in
accordance with Section 12.01, the successor corporation formed by such consolidation or
into which the Company is merged or to which such conveyance or transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor corporation had been named as the Company herein; and in
the event of any such conveyance or transfer, the Company (which term shall for this purpose mean
the Person named as the “Company” in the first paragraph of this instrument or any successor
corporation which shall have theretofore become such in the manner prescribed in Section
12.01) shall be discharged from all liability under this Indenture and in respect of the Notes
and may be dissolved and liquidated.

     Section 12.03. Cooper Parent May Consolidate, Etc., Only on Certain Terms. Cooper Parent
shall not consolidate or amalgamate with or merge into any other Person or convey or transfer its
properties and assets substantially as an entirety to any Person, unless:

     (1) the Person formed by such consolidation or amalgamation or into which Cooper Parent
is merged or the Person which acquired by conveyance or transfer the properties and assets
of Cooper Parent substantially as an entirety shall be a corporation and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, Cooper Parent’s guarantee of the due and punctual payment of
the principal of, premium, if any, and interest, if any, on, all the Notes and the
performance or observance of every covenant of this Indenture on the part of Cooper Parent
to be performed or observed;

     (2) immediately after giving effect to such transaction, no Event of Default, and no
event which, after notice or lapse of time, or both, would become an Event of Default, shall
have occurred and be continuing; and

8

 

     (3) Cooper Parent has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel each stating that such consolidation, amalgamation, merger, conveyance or
transfer and such supplemental indenture comply with this Article Twelve and that
all conditions precedent herein provided for which relate to such transaction have been
complied with; provided, however, the Opinion of Counsel shall not be required to include
any opinion with respect to the condition set forth in paragraph (2) of this Section
12.03.

     Section 12.04. Successor Corporation Substituted. Upon any consolidation, amalgamation or
merger, or any conveyance or transfer of the properties and assets of Cooper Parent substantially
as an entirety in accordance with Section 12.03, the successor corporation formed by such
consolidation or amalgamation or into which Cooper Parent is merged or to which such conveyance or
transfer is made shall succeed to, and be substituted for, and may exercise every right and power
of, Cooper Parent under this Indenture with the same effect as if such successor corporation had
been named as Cooper Parent herein; and in the event of any such conveyance or transfer, Cooper
Parent (or any successor corporation which shall have theretofore become such in the manner
prescribed in Section 12.03), shall be discharged from all liability under this Indenture
and its Guarantee and in respect of the Notes and may be dissolved and liquidated.

Section 12.05. Consolidation, Merger, Etc. of Subsidiary Guarantors.

     (A) If any Subsidiary Guarantor consolidates with, merges into, or conveys or transfers its
assets substantially as an entirety to Cooper Parent or another Subsidiary:

     (1) the Person formed by such consolidation or into which such Subsidiary Guarantor is
merged or the Person which acquired by conveyance or transfer the properties and assets of
such Subsidiary Guarantor substantially as an entirety shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, such Person’s guarantee of the due and punctual payment of the principal of,
premium, if any, and interest, if any, on, all the Notes and the performance or observance
of every covenant of this Indenture on the part of such Subsidiary Guarantor to be performed
or observed; and

     (2) such Subsidiary Guarantor shall be discharged from all liability under this
Indenture and its Guarantee and in respect of the Notes and may be dissolved and liquidated.

     (b) If any Subsidiary Guarantor ceases to be a Subsidiary or merges into, consolidates with,
or transfers its properties and assets substantially as an entirety, to a Person other than Cooper
Parent or another Subsidiary, such Subsidiary Guarantor shall be discharged from all liability
under this Indenture and its Guarantee in accordance with Section 16.02(b).”

ARTICLE VIII

GUARANTEE

     With respect to the Notes, but only in relation to the Notes, the provisions of this
Article shall preempt, and be substituted for, the provisions of Article Sixteen of the
Original Indenture in their entirety.

     “Section 16.01. Guarantee. Except as otherwise provided herein, the Guarantors hereby
jointly and severally and fully and unconditionally guarantee to each Holder of a Note
authenticated and

9

 

delivered by the Trustee, and to the Trustee on behalf of such Holder, the due and punctual
payment of the principal of, premium, if any, and interest, if any, on, the Notes and all other
obligations of the Company under this Indenture, including all obligations hereunder of the Company
to the Trustee, when and as the same shall become due and payable, whether at the stated maturity,
by acceleration, call for redemption, upon a repurchase date or otherwise, in accordance with the
terms of the Notes and of this Indenture. In case of the failure of the Company punctually to make
any such payment, the Guarantors hereby agree to cause such payment to be made punctually when and
as the same shall become due and payable, whether at the stated maturity or by acceleration, call
for redemption, upon a repurchase date or otherwise, and as if such payment were made by the
Company. The Guarantors agree that its obligations hereunder shall be absolute and unconditional,
irrespective of, and shall be unaffected by, the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same or any release (other than
by operation of Article Thirteen), amendment, waiver or indulgence granted to the Company or the
Guarantors or any consent to departure from any requirement of any other guarantee of all or any of
the Notes or any other circumstances which might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor. The Guarantors hereby waive the benefits of
diligence, presentment, demand for payment, any requirement that the Trustee or any of the Holders
protect, secure, perfect or insure any security interest in or other lien on any property subject
thereto or exhaust any right or take any action against the Company or any other Person or any
collateral, filing of claims with a court in the event of insolvency or bankruptcy of the Company,
any right to require a proceeding first against the Company, protest or notice with respect to the
Notes or the Indebtedness evidenced thereby and all demands whatsoever, and covenant that this
Guarantee will not be discharged in respect of the Notes except by complete performance of the
obligations contained in the Notes and in such Guarantee or the operation, as applicable, of
Article Thirteen. The Guarantors agree that if, after the occurrence and during the continuance of
an Event of Default, the Trustee or any of the Holders are prevented by applicable law from
exercising their respective rights to accelerate the maturity of the Notes, to collect any
principal of, or, interest or premium, if any, on, the Notes, or to enforce or exercise any other
right or remedy with respect to the Notes, the Guarantors agree to pay to the Trustee for the
account of the Holders, upon demand therefor, the amount that would otherwise have been due and
payable had such rights and remedies been permitted to be exercised by the Trustee or any of the
Holders.

     The Guarantors shall be subrogated to all rights of the Holders of the Notes upon which its
Guarantee is endorsed against the Company in respect of any amounts paid by the Guarantors on
account of the Notes pursuant to the provisions of its Guarantee or this Indenture; provided,
however, that the Guarantors shall not be entitled to enforce or to receive any payment arising out
of, or based upon, such right of subrogation until the principal of, and premium, if any, and
interest, if any, on, all Notes issued hereunder shall have been paid in full.

     This Guarantee shall remain in full force and effect and continue to be effective should any
petition be filed by or against the Company for liquidation or reorganization, should the Company
become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee
be appointed for all or any part of the Company’s assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Notes, is, pursuant to applicable law, rescinded or reduced in
amount, or must otherwise be restored or returned by any holder of the Notes, whether as a
“voidable preference,” “fraudulent transfer,” or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part thereof, is rescinded,
reduced, restored or returned, the Notes shall, to the fullest extent permitted by law, be
reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or
returned.

10

 

     Any term or provision of this Guarantee to the contrary notwithstanding, the aggregate amount
of the obligations guaranteed hereunder shall be reduced to the extent necessary to prevent this
Guarantee from violating or becoming voidable under applicable law relating to fraudulent
conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally.

     Section 16.02 Release of Guarantee.

     (a) Notwithstanding anything in this Article Sixteen to the contrary, concurrently
with the payment in full of (i) the principal of, premium, if any, and interest, if any, on the
Notes and (ii) all other obligations of the Company under this Indenture, each of the Guarantors
shall be released from and relieved of its obligations under this Article Sixteen. Upon
the delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel to
the effect that the transaction giving rise to the release of this Guarantee was made by the
Company in accordance with the provisions of this Indenture and the Notes, the Trustee shall
execute any documents reasonably required in order to evidence the release of each of the
Guarantors from its obligations under this Guarantee. If any of the obligations to pay the
principal of, premium, if any, and interest, if any, on the Notes and all other obligations of the
Company are revived and reinstated after the termination of this Guarantee, then all of the
obligations of the Guarantors under this Guarantee shall be revived and reinstated as if this
Guarantee had not been terminated until such time as the principal of, premium, if any, and
interest, if any, on the Notes and all other obligations of the Company under the Indenture are
paid in full, and the Guarantors shall enter into an amendment to this Guarantee, reasonably
satisfactory to the Trustee, evidencing such revival and reinstatement.

     (b) Notwithstanding anything in this Article Sixteen to the contrary, concurrently
with the time that any Subsidiary Guarantor ceases to be a Subsidiary (other than by such
Guarantor’s consolidation with, or merger into, Cooper Parent or another Subsidiary) or such
Subsidiary Guarantor conveys or transfers its properties and assets substantially as an entirety to
a Person other than Cooper Parent or another Subsidiary, then such Subsidiary Guarantor shall be
released from and relieved of its obligations under this Article Sixteen. Upon the
delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the
effect that the transaction giving rise to the release of this Guarantee was made in accordance
with the provisions of this Section 16.02(b), the Trustee shall execute any documents
reasonably required in order to evidence the release of the such Subsidiary Guarantor from its
obligations under this Guarantee.”

ARTICLE IX

SATISFACTION AND DISCHARGE OF

INDENTURE OR CERTAIN COVENANTS

     Section 9.01. Defeasance Upon Deposit of Money, U.S. Government Obligations or
Eligible Obligations. Section 13.02 of the Original Indenture is hereby supplemented, but only in
relation to the Notes, by the substitution of the phrase “Sections 5.05, 5.06, 5.10 and
12.01” in lieu of the phrase “Sections 5.05, 5.06 and 12.01” as therein
originally provided.

11

 

ARTICLE X

MISCELLANEOUS PROVISIONS

     Section 10.01. Judgment Currency; Service of Process. Section 15.11 of the Original
Indenture is hereby supplemented, but only in relation to the Notes, by the addition of paragraph
(c) thereto as follows:

     “(c) Each Subsidiary Guarantor irrevocably designates and appoints the Company, 600 Travis,
Houston, Texas 77002, authorized agent with respect to any suit, action or proceeding based on or
arising out of or in relation to this Indenture or any Notes or its Guarantee, it being understood
that the designation and appointment of the Company as such authorized agent shall become effective
immediately without any further action on the part of any Subsidiary Guarantor. Each Subsidiary
Guarantor further agrees that service of process upon the Company and written notice of said
service to such Subsidiary Guarantor mailed by prepaid registered first class mail or delivered to
the Company at its principal office, shall be deemed in every respect effective service of process
on each Subsidiary Guarantor, as applicable, in any such suit, action or proceeding.”

ARTICLE XI

MISCELLANEOUS

     Section 11.01. Integral Part. This Supplemental Indenture constitutes an integral
part of the Indenture.

     Section 11.02. Adoption, Ratification and Confirmation. The Original Indenture, as
supplemented and amended by this Supplemental Indenture, is in all respects hereby adopted,
ratified and confirmed.

     Section 11.03. Counterparts. This Supplemental Indenture may be executed in any
number of counterparts, and by each party hereto on separate counterparts, each of which when so
executed shall be deemed an original; and all such counterparts shall together constitute but one
and the same instrument.

     Section 11.04. Governing Law. THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     Section 11.05. Trustee Makes No Representation. The Trustee makes no representation
as to the validity or sufficiency of this Supplemental Indenture.

     Section 11.06. USA Patriot Act Notice. The Trustee hereby notifies each of the
Company and the Guarantors that pursuant to the requirement of the USA PATRIOT Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain,
verify and record information that identifies each of the Company and the Guarantors, which
information includes the name and address of each of the Company and the Guarantors and other
information that will allow the Trustee to identify each of the Company and the Guarantors in
accordance with the Patriot Act.

[Remainder of Page Intentionally Left Blank; Signatures Commence in Following Page]

12

 

     IN WITNESS WHEREOF, the parties hereby have caused this Supplemental Indenture to be duly
executed and delivered by their duly authorized representatives as of the day and year first
written above.

SIGNATURES

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	ISSUER:
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER US, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 1

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	GUARANTORS:
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER INDUSTRIES, LTD.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 2

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER B-LINE, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 3

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER BUSSMANN, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 4

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER CROUSE-HINDS, LLC
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 5

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER LIGHTING, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 6

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER POWER SYSTEMS, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 7

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER WIRING DEVICES, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 8

 

 

	 	 	 	 	 
	 
	 	 	 	 
	 	 	TRUSTEE:
	 
	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Trustee
	 
	 	 	 	 
	 

	 	     By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	     By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

Supplemental Indenture

Signature Page — Page 9

 

 

EXHIBIT A

(Form of Face of Note)

			
	No.                     
	 	$                    
	ISIN                     
	 	CUSIP No.                     

COOPER US, INC.

6.10% Senior Notes due 2017

     Cooper US, Inc., a Delaware corporation, promises to pay to ___, or
registered assigns, the principal sum of ___Dollars [or such greater or lesser amount
as may be endorsed on the Schedule attached hereto]1 on July 1, 2017 (the “Stated
Maturity”).

     Interest Payment Dates: January 1 and July 1, commencing January 1, 2008

Record Dates: December 15 and June 15

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER US, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This Note is one of the series of Debt Securities referred to in the within-mentioned
Indenture.

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

     Dated                                                             

 

			
	1	 	To be included only if the Note is issued in global form.

A-1

 

(Form of Back of Note)

6.10% Senior Notes due 2017

     THIS DEBT SECURITY IS A GLOBAL DEBT SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR NOMINEE THEREOF. THIS GLOBAL DEBT
SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF
THIS GLOBAL DEBT SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER
THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.

     Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     1. Interest. Cooper US, Inc., a Delaware corporation (the “Company” or the “Issuer”),
promises to pay interest on the principal amount of this Note at 6.10% per annum from ___, 2007
until maturity. The Issuer shall pay interest semi-annually on January 1 and July 1 of each such
year, or if any such day is not a Business Day, on the next succeeding Business Day (each an
“Interest Payment Date”). Interest on the Notes shall accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of issuance; provided that
if there is no existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding Interest Payment Date,
interest shall accrue from such next succeeding Interest Payment Date; provided, further, that the
first Interest Payment Date shall be January 1, 2008. The Issuer shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at the same rate, and it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest (without regard to any applicable grace periods) from time to time on demand at the same
rate to the extent lawful; and each type of interest referred to in this sentence shall hereinafter
be referred to as “Defaulted Interest”. Interest shall be computed on the basis of a 360-day year
of twelve 30-day months.

     2. Method of Payment. (a) The Issuer shall pay interest on the Notes (except
Defaulted Interest) to the Persons who are registered Holders of Notes at the close of business on
the December 15 and June 15 immediately preceding the Interest Payment Date, even if such Notes are
canceled after such record date and on or before such Interest Payment Date, except as provided in
Paragraph 2(b) of this Note with respect to Defaulted Interest, and the Issuer shall pay
principal (and premium, if any) of the Notes upon surrender thereof to the Trustee or a paying
agent on or after the Stated Maturity thereof. The Notes shall be payable as to principal,
premium, if any, and interest at the office or agency of the Trustee maintained for such purpose
(which initially is c/o Deutsche Bank Trust Company Americas, 60 Wall Street, 27th
Floor, New York, New York 10005), or, at the option of the Issuer, payment of interest may be made
by check mailed to the Holders at their addresses set forth in the register of Holders, and
provided that payment by wire transfer of immediately available funds shall be required with
respect to principal of, and interest and premium, if any, on, (1) each Global Debt Security and
(2) all other Notes aggregating at least $1,000,000 in principal amount the Holder of which shall
have provided wire transfer instructions to the Issuer or the paying agent on or prior to the
applicable record date. Such payment shall

A-2

 

be in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

     (b) Any Defaulted Interest on any Note shall forthwith cease to be payable to the
Holder thereof on the relevant record date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Issuer, at its election in each case, as provided in
clause (i) or (ii) below.

     (i) The Issuer may elect to make payment of any Defaulted Interest to the
Persons whose names are registered at the close of business on a special record date
for the payment of such Defaulted Interest, which shall be fixed in the following
manner: The Issuer shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each such Note and the date of the proposed payment,
and at the same time the Issuer shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such deposit
prior to the date of the proposed payment, such money when deposited to be held in
trust for the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Issuer of such special record date and, in the name and at
the expense of the Issuer, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first class
postage prepaid, to each Holder thereof at its address as it appears in the Note
register, not less than 10 days prior to such special record date. Notice of the
proposed payment of such Defaulted Interest and the special record date therefor
having been so mailed, such Defaulted Interest shall be paid to the Persons in whose
names the Notes are registered at the close of business on such special record date.

     (ii) The Issuer may make payment of any Defaulted Interest on the Notes in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which the Registered Securities of such series may be listed, and upon
such notice as may be required by such exchange, if, after notice given by the
Issuer to the Trustee of the proposed payment pursuant to this clause, such manner
of payment shall be deemed practicable by the Trustee.

     3. Paying Agent and Registrar. Initially, Deutsche Bank Trust Company Americas, the
Trustee under the Indenture, shall act as paying agent and Registrar. The Issuer may change any
paying agent or Registrar without notice to any Holder. The Issuer may act in any such capacity.

     4. Indenture. The Issuer issued the Notes under an Indenture dated as of June 18,
2007 (as amended (in accordance with its applicable provisions) by supplements and amendments of
general application thereto, the “Original Indenture”), as supplemented by the First Supplemental
Indenture dated as of June 18, 2007 (the “Supplemental Indenture”, and together with the Original
Indenture, the “Indenture”), between the Issuer, Cooper Parent, the Subsidiary Guarantors and the
Trustee. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§
77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture
and such Act for a statement of such terms. To the

A-3

 

extent any provision of this Note conflicts with the provisions of the Indenture, the
provisions of this Note shall govern and be controlling. The Notes are the obligation of the
Issuer, initially in aggregate principal amount of $300.0 million. The Issuer may issue an
unlimited aggregate principal amount of Additional Notes under the Indenture. Any such Additional
Notes that are actually issued shall be treated as issued and outstanding Notes (and as the same
series (with identical terms other than with respect to the issue date, issue price and first
payment of interest) as the initial Note for the purposes indicated in Section 3.02 of the
Supplemental Indenture). Initially, the Notes are guaranteed by Cooper Parent and the Subsidiary
Guarantors named in the Supplemental Indenture.

     5. Optional Redemption. (a) At its option, the Issuer may choose to redeem all or any
portion of the Notes, at once or from time to time.

     (b) To redeem the Notes, the Issuer must pay a redemption price equal to the greater of
(i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the present
values of the remaining scheduled payments of principal and interest on the Notes to be
redeemed (excluding interest accrued to the redemption date of such Notes) discounted to
such redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate (as defined below) plus 15.0 basis points, plus, in each
case, accrued and unpaid interest, if any, to the redemption date of such Notes (subject to
the right of Holders on the relevant record date to receive interest due on the relevant
Interest Payment Date).

     For purposes of determining the redemption price, the following definitions shall apply:

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate notes of comparable maturity to the remaining term of
the Notes to be redeemed.

     “Comparable Treasury Price” means, with respect to any redemption date for the Notes, (i) the
average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer
than six such Reference Treasury Dealer Quotations, the average of all such quotations, or (iii) if
only one Reference Treasury Dealer Quotation is received, such quotation.

     “Quotation Agent” means the Reference Treasury Dealer appointed by the Issuer.

     “Reference Treasury Dealer” means (i) Banc of America Securities LLC (or its affiliates that
are Primary Treasury Dealers) and its (and their) successors; provided, however, that if the
foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a
“Primary Treasury Dealer”), the Issuer will substitute therefor another Primary Treasury Dealer,
and (ii) any other Primary Treasury Dealer selected by the Issuer.

     “Reference Treasury Dealer Quotations” means, for each Reference Treasury Dealer and any
redemption date of the Notes, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such Redemption Date.

A-4

 

     “Treasury Rate” means, with respect to any redemption date of the Notes, the rate per annum
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a
price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the Comparable Treasury Price for such redemption date.

     6. Mandatory Redemption and Sinking Fund; Repurchases. The Issuer shall not be
required to make mandatory redemption or sinking fund payments with respect to the Notes. The
Issuer shall be required to make an offer to repurchase Notes as provided in Section 5.01
of the Supplemental Indenture.

     7. Notice of Redemption. Notice of redemption shall be mailed at least 30 days but
not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at
its registered address. Notes in denominations larger than $1,000 may be redeemed in part but only
in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the Redemption Date interest shall cease to accrue on Notes or portions thereof called for
redemption and with respect to which the redemption price has been paid.

     8. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents, and the Issuer may require a Holder to pay any taxes or other governmental charges
imposed in relation thereto.

     9. Persons Deemed Owners. The registered Holder of a Note shall be treated as its
owner for all purposes.

     10. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture
may be amended or supplemented with the consent of the Holders of not less than a majority in
aggregate principal amount of the then Outstanding Notes, and any existing default or compliance
with any provision of the Indenture relating to the Notes may be waived with the consent of the
Holders of not less than a majority in aggregate principal amount of the then Outstanding Notes.
Without the consent of any Holder of a Note, the Indenture may be amended or supplemented for any
of the purposes set forth in Section 11.01 of the Indenture, including to cure any ambiguity,
defect or inconsistency, to provide for the assumption of the Issuer’s obligations to Holders of
the Notes in case of a merger or consolidation of the Issuer or sale of all or substantially all of
the Issuer’s assets, to add or release Guarantors pursuant to the terms of the Indenture, to make
any change that does not adversely affect the rights under the Indenture of any Holder of the
Notes, to comply with the requirements of the SEC to permit the qualification of the Indenture
under the Trust Indenture Act of 1939, to evidence or provide for the acceptance of appointment
under the Indenture of a successor or separate Trustee, to add to the covenants of the Issuer or
any Guarantor or to establish the form or terms of any other series of Debt Securities.

     11. Defaults and Remedies. Events of Default with respect to the Notes include: (i)
default for 30 days in the payment when due of interest on the Notes; (ii) default in payment when
due of principal of or premium, if any, on the Notes when due at Stated Maturity, upon redemption,
by declaration or otherwise; (iii) default for 30 days in the making of any payment when due for a
sinking, purchase or similar fund provided for in respect to the Notes; (iv) failure by the Company
or any Guarantor for 90 days after notice to comply with any of its other covenants or agreements
in the

A-5

 

Indenture relating to the Notes; (v) except as permitted by the Indenture, the Guarantee of
Cooper Parent ceasing to be in full force and effect or Cooper Parent denies or disaffirms its
obligations under the Indenture or its Guarantee; and (vi) certain events of bankruptcy, insolvency
or reorganization with respect to the Issuer or Cooper Parent. If any Event of Default occurs and
is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then
Outstanding Notes may declare all the Notes to be due and payable. Notwithstanding the foregoing,
in the case of an Event of Default arising from certain events of bankruptcy or insolvency, all
Outstanding Notes shall become due and payable without further action or notice. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of not less than a majority in aggregate principal amount of the then
Outstanding Notes may direct the Trustee in its exercise of any trust or power. If and so long as
the Trustee in good faith so determines that withholding notice is in the interests of the Holders,
the Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of
Default (except a Default or Event of Default relating to the payment of principal, premium, if
any, or interest). The Holders of not less than a majority in aggregate principal amount of the
Notes then Outstanding by written notice to the Trustee may on behalf of the Holders of all of the
Notes waive any existing Default or Event of Default and its consequences under the Indenture
except a continuing Default or Event of Default in the payment of interest on, the principal of, or
premium, if any, on, the Notes. The Company is required to deliver to the Trustee annually a
statement regarding compliance with the Indenture.

     12. Trustee Dealings with Issuer. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Issuer or its
affiliates, and may otherwise deal with the Issuer or its affiliates, as if it were not the
Trustee.

     13. No Recourse Against Others. The directors, officers, , incorporators,
stockholders and other equity-interest owners, as such, past, present or future, of the Company or
any Guarantor or any successor Person, either directly or indirectly through the Company or a
Guarantor or any successor Person, whether by virtue of any constitution, statue or rule of law, or
by the enforcement of any assessment or penalty or otherwise, shall have no liability for any
obligations of the Issuer or any Guarantors under the Notes, the Indenture or the Guarantees or for
any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Notes by accepting a Note expressly waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Notes.

     14. Authentication. This Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

     15. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     16. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Issuer has caused CUSIP and, if applicable,
corresponding ISIN numbers to be printed on the Notes, and the Trustee may use CUSIP and, if
applicable, corresponding ISIN numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained

A-6

 

in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

     The Issuer shall furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

Cooper US, Inc.

600 Travis

Houston, Texas 77002

Attention:                                                                                 

A-7

 

GUARANTEE NOTATION

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in, and
subject to the provisions of, the Indenture dated as of June 18, 2007 (as amended or supplemented
(in general application) and in effect, including by means of the First Supplemental Indenture
thereto dated as of June 18, 2007, the “Indenture”) among Cooper US, Inc., a Delaware corporation
(“Issuer”), the Guarantors party thereto and Deutsche Bank Trust Company Americas, a New York
banking corporation, as trustee (the “Trustee”), that (i) the principal of, premium, if any, and
interest on the Notes will be promptly paid in full when due, whether at maturity, by acceleration,
redemption, declaration or otherwise, and interest on the overdue principal of, premium, if any,
and interest on the Notes, if lawful (subject in all cases to any applicable grace period provided
herein), and all other payment obligations of the Issuer to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full, all in accordance with the terms hereof and thereof; and
(ii) in case of any extension of time of payment or renewal of any Notes or any of such other
obligations, the same will be promptly paid in full when due in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration, redemption, declaration or
otherwise. Failing payment when due of any amount so guaranteed for whatever reason, the Guarantors
shall be jointly and severally obligated to pay the same immediately. The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the Indenture are set forth in
the Indenture, and reference is hereby made to the Indenture for the precise terms of the
Guarantee. Each Holder of a Note, by accepting the same, agrees to and shall be bound by such
provisions.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER INDUSTRIES, LTD.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

A-8

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER B-LINE, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

A-9

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER BUSSMANN, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

A-10

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER CROUSE-HINDS, LLC
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

A-11

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER LIGHTING, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

A-12

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER POWER SYSTEMS, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

A-13

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	COOPER WIRING DEVICES, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	     By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

A-14

 

Assignment Form

To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint                                                                               
                                                                                  

agent to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

Date:                                         

Your Signature:

                                                                           
                                             

(Sign exactly as your name appears on the face of this Note.)

	 	 	 
	 
	 	 
	Signature Guarantee:

	 	 
 

(Signature must be guaranteed by a financial
institution that is a member of the Securities
Transfer Agent Medallion Program (“STAMP”), the
Stock Exchange Medallion Program (“SEMP”), the New
York Stock Exchange, Inc. Medallion Signature
Program (“MSP”) or such other signature guarantee
program as may be determined by the Registrar in
addition to, or in substitution for, STAMP, SEMP or
MSP, all in accordance with the Securities Exchange
Act of 1934, as amended.)

A-15

 

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE2

     The original principal amount of this Global Note is $___. The following increases or
decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 
	Date
of Exchange

	 	Amount of decrease in
Principal Amount of this
Global Note

	 	Amount of increase in
Principal Amount of this
Global Note

	 	Principal Amount of this
Global Note following
such
decrease (or increase)

	 	Signature of authorized
signatory of Trustee or
Note Custodian

	

	 	 	 	 	 	 	 	 

 

			
	2	 	To be included only if the Note is issued in global form.

A-16exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

DATED AS OF JUNE 11, 2007

BETWEEN NIRMAL TRIPATHY AND THE TJX COMPANIES, INC.

 

 

INDEX

	 	 	 	 	 
	 	 	PAGE	 
	1. EFFECTIVE DATE, TERM OF AGREEMENT
	 	 	1	 
	 
	 	 	 	 
	2. SCOPE OF EMPLOYMENT
	 	 	1	 
	 
	 	 	 	 
	3. COMPENSATION AND BENEFITS
	 	 	2	 
	 
	 	 	 	 
	4. TERMINATION OF EMPLOYMENT; IN GENERAL
	 	 	4	 
	 
	 	 	 	 
	5. BENEFITS UPON NON-VOLUNTARY TERMINATION OF EMPLOYMENT OR UPON EXPIRATION OF THE AGREEMENT
	 	 	4	 
	 
	 	 	 	 
	6. OTHER TERMINATION
	 	 	6	 
	 
	 	 	 	 
	7. BENEFITS UPON CHANGE IN CONTROL
	 	 	7	 
	 
	 	 	 	 
	8. AGREEMENT NOT TO SOLICIT OR COMPETE
	 	 	7	 
	 
	 	 	 	 
	9. REPRESENTATION BY EXECUTIVE
	 	 	10	 
	 
	 	 	 	 
	10. ASSIGNMENT
	 	 	10	 
	 
	 	 	 	 
	11. NOTICES
	 	 	11	 
	 
	 	 	 	 
	12. WITHHOLDING; CERTAIN TAX MATTERS
	 	 	11	 
	 
	 	 	 	 
	13. GOVERNING LAW
	 	 	11	 
	 
	 	 	 	 
	14. ABRITATION
	 	 	11	 
	 
	 	 	 	 
	15. ENTIRE AGREEMENT
	 	 	11	 
	 
	 	 	 	 
	EXHIBIT A Certain Definitions
	 	 	A-1	 
	 
	 	 	 	 
	EXHIBIT B Definition of “Change of Control”
	 	 	B-1	 
	 
	 	 	 	 
	EXHIBIT C Change of Control Benefits
	 	 	C-1	 
	 
	 	 	 	 
	SCHEDULE I Competitive Businesses
	 	 	D-1	 

-i-

 

 

NIRMAL TRIPATHY

EMPLOYMENT AGREEMENT

     AGREEMENT dated as of June 11, 2007 between Nirmal Tripathy (“Executive”) and The TJX
Companies, Inc., a Delaware corporation whose principal office is in Framingham, Massachusetts
01701(the “Company”).

RECITALS

     The Company and Executive intend that Executive shall be employed by the Company on the terms
set forth below and, to that end, deem it desirable and appropriate to enter into this Agreement.

AGREEMENT

     The parties hereto, in consideration of the mutual agreements hereinafter contained, agree as
follows:

     1. EFFECTIVE DATE; TERM OF AGREEMENT. Executive’s employment with the Company shall commence
effective as of June 11, 2007 (the “Effective Date”). Executive’s employment hereunder shall
continue on the terms provided herein until June 11, 2010 (the “End Date”), subject to earlier
termination as provided herein. The period of Executive’s employment by the Company from and after
the Effective Date, whether under this Agreement or otherwise, is referred to in this Agreement as
the “Employment Period,” it being understood that nothing in this Agreement shall be construed as
entitling Executive to continuation of his employment beyond the End Date and that any such
continuation shall be subject to the agreement of the parties.

     2. SCOPE OF EMPLOYMENT.

     (a) Nature of Services. Executive shall diligently perform such duties and assume
such responsibilities as shall from time to time be specified by the Company.

     (b) Extent of Services. Except for illnesses and vacation periods, Executive shall
devote substantially all his working time and attention and his best efforts to the performance of
his duties and responsibilities under this Agreement. However, Executive may (i) make any passive
investments where he is not obligated or required to, and shall not in fact, devote any managerial
efforts, (ii) subject to approval by the Company (which approval shall not be unreasonably withheld
or withdrawn), participate in charitable or community activities or in trade or professional
organizations, or (iii) subject to approval by the Company (which approval shall not be
unreasonably withheld or withdrawn), hold directorships in public companies, except only that the
Company shall have the right to limit such services as a director or such participation in
charitable or community activities or in trade or professional organizations whenever the

 

 

Company shall believe that the time spent on such activities infringes in any material respect
upon the time required by Executive for the performance of his duties under this Agreement or is
otherwise incompatible with those duties.

     3. COMPENSATION AND BENEFITS.

     (a) Base Salary. Executive shall be paid a base salary at the rate hereinafter
specified, such Base Salary to be paid in the same manner and at the same times as the Company
shall pay base salary to other executive employees. The rate at which Executive’s Base Salary
shall be paid shall be $625,000 per year or such other rate (not less than $625,000 per year) as
the Committee may determine after Committee review not less frequently than annually.

     (b) Sign-On Bonus. Within thirty (30) days of the Effective Date, if Executive is
then still employed by the Company, the Company shall pay to Executive a sign-on cash bonus of
$100,000. Executive hereby agrees to repay the aforesaid sign-on bonus to the Company in full if,
within the one-year period following the Effective Date, either Executive terminates his employment
with the Company or the Company terminates Executive’s employment for Cause.

     (c) New Stock Awards. Consistent with the terms of the Company’s Stock Incentive Plan
(including any successor, the “Stock Incentive Plan”), during the Employment Period, Executive will
be entitled to stock-based awards under the Stock Incentive Plan at levels commensurate with his
position and responsibilities and subject to such terms as shall be established by the Committee.
Without limiting the generality of the foregoing:

     (i) Effective as of Executive’s commencement of employment on the Effective Date, the
Committee has awarded to Executive two grants of performance-based restricted stock under
the Stock Incentive Plan, as follows: (A) an award of 12,000 shares of Stock, or such
greater or lesser number of shares as is determined by applying the Company’s standard
indexing methodology to 12,000 based on the fair market value of the Stock on the Effective
Date, such shares to vest in full on September 6, 2010 if Executive is then still employed
by the Company and if the Company has previously certified achievement of a performance
level in respect of the performance targets established under the Company Long Range
Performance Incentive Plan (“LRPIP”) for the FYE ‘08-FYE ‘10 cycle at a level of at least
67% of target, with prorated vesting for performance below the 67% level but at or above the
level at which some LRPIP award would be payable and no vesting if performance is below that
level; and (B) an award of 25,000 shares of Stock to vest as follows: (I) 8,333 shares to
vest on the date in calendar 2008 on which the Committee certifies achievement of
performance in respect of the performance target established under the Company’s Management
Incentive Plan (“MIP”) for corporate officers for FYE ‘08, if Executive is then still
employed by the Company and if the Company has achieved at least 67% of target performance
for such year, with prorated vesting for performance below the 67% level but at or above the
level at which some MIP award would be payable and no vesting if performance is below that
level; and (II) 16,667 shares to vest on the date in calendar 2009 on which the Committee
certifies achievement of performance in respect of the performance target established under
MIP for corporate officers for FYE ‘09, if Executive is then still employed by the Company
and if the Company has achieved at least 67% of target performance for such year, with

-2-

 

prorated vesting for performance below the 67% level but at or above the level at which
some MIP award would be payable and no vesting if performance is below that level.

     (ii) At the same time in calendar 2007 as the Company makes stock options grants to
other officers and employees, it shall be recommended to the Committee that it award
Executive a stock option covering 37,500 shares of Stock, or such greater or lesser number
of shares as is determined by applying the Company’s standard indexing methodology to 37,500
based on the fair market value of the Stock on the date of grant and with an exercise price
equal to the fair market value of the Stock on the date of grant.

     (d) LRPIP. During the Employment Period, starting with the FYE ‘09-FYE ‘11 award
cycle, Executive will be eligible to participate in awards under LRPIP at a level commensurate with
his position and responsibilities and subject to such terms as shall be established by the
Committee. For the FYE ‘08-FYE ‘10 cycle, contingent upon Executive’s commencement of employment
hereunder, the Committee has awarded Executive an LRPIP opportunity with a target award opportunity
equal to $300,000 and a maximum award opportunity of $450,000. In addition, contingent upon
Executive’s commencement of employment hereunder, the Committee has awarded Executive a special
one-time LRPIP opportunity for the two-year cycle FYE ‘08-FYE ‘09. Executive’s target opportunity
for this special, one-time LRPIP award is $300,000 and his maximum opportunity is $450,000.

     (e) MIP. During the Employment Period, starting with FYE ‘09, Executive will be
eligible to participate in awards under the Company’s Management Incentive Plan (“MIP”) at a level
commensurate with his position and responsibilities and subject to such terms as shall be
established by the Committee. For FYE ‘08, contingent upon Executive’s commencement of employment
hereunder, the Committee has awarded Executive (i) a MIP with a target opportunity of 45% of actual
Base Salary; provided, that if Executive remains employed through the last day of FYE ‘08 he shall
receive in respect of such MIP award not less than $281,250; and (ii) a one-time supplemental MIP
with a target opportunity of $300,000; provided, that if Executive remains employed through the
last day of FYE ‘08 he shall receive in respect of such supplemental MIP award not less than
$300,000.

     (f) Qualified Plans; Other Deferred Compensation Plans. Executive shall be entitled
during the Employment Period to participate in the Company’s tax-qualified retirement and
profit-sharing plans, and in the GDCP and ESP, in each case in accordance with the terms of the
applicable plan (including, for the avoidance of doubt and without limitation, the amendment and
termination provisions thereof).

     (g) Policies and Fringe Benefits. Executive shall be subject to Company policies
applicable to its executives generally and shall be entitled to receive all such fringe benefits as
the Company shall from time to time make available to other executives generally (subject to the
terms of any applicable fringe benefit plan). Without limiting the generality of the foregoing,
Executive shall be entitled to relocation benefits consistent with the Company’s customary
practices.

     (h) Other. The Company is entitled to terminate Executive’s employment
notwithstanding the fact that Executive may lose entitlement to benefits under the arrangements

-3-

 

described above. Upon termination of his employment, Executive shall have no claim against
the Company or Parent for loss arising out of ineligibility to exercise any stock options granted
to him or otherwise in relation to any of the stock options or other stock-based awards granted to
Executive, and the rights of Executive shall be determined solely by the rules of the relevant
award document and plan.

     4. TERMINATION OF EMPLOYMENT; IN GENERAL.

     (a) The Company shall have the right to end Executive’s employment at any time and for any
reason, with or without Cause.

     (b) To the extent consistent with applicable law, Executive’s employment shall terminate when
Executive becomes Disabled. In addition, if by reason of Incapacity Executive is unable to perform
his duties for at least six continuous months, upon written notice by the Company to Executive, and
to the extent consistent with applicable law, the Employment Period will be terminated for
Incapacity.

     (c) Whenever his employment shall terminate, Executive shall resign all offices or other
positions he shall hold with the Company and any affiliated corporations. For the avoidance of
doubt, the Employment Period shall terminate upon termination of Executive’s employment for any
reason.

     5. BENEFITS UPON NON-VOLUNTARY TERMINATION OF EMPLOYMENT OR UPON EXPIRATION OF THE AGREEMENT.

     (a) Certain Terminations Prior to the End Date. If the Employment Period shall have
terminated prior to the End Date by reason of (i) death, Disability or Incapacity of Executive,
(ii) termination by the Company for any reason other than Cause or (iii) termination by Executive
in the event that Executive is relocated more than forty (40) miles from the current corporate
headquarters of the Company without his prior written consent (a “Constructive Termination”), then
all compensation and benefits for Executive shall be as follows:

     (i) For a period of twelve (12) months after the Date of Termination (the “termination
period”), the Company will pay to Executive or his legal representative, without reduction
for compensation earned from other employment or self employment, continued Base Salary at
the rate in effect at termination of employment; provided, that if Executive is eligible for
long-term disability compensation benefits under the Company’s long-term disability plan,
the amount payable under this clause shall be paid at a rate equal to the excess of (a) the
rate of Base Salary in effect at termination of employment, over (b) the long-term
disability compensation benefits for which Executive is approved under such plan.

     (ii) If Executive elects so-called “COBRA” continuation of group health plan coverage
provided pursuant to Part 6 of Subtitle B of Title I of the Employee Retirement Income
Security Act of 1974, as amended, there shall be added to the amounts otherwise payable
under Section 5(a)(i) above, during the continuation of such coverage, an amount (grossed up
for federal and state income taxes) equal to the participant cost of such coverage, except
to the extent that Executive shall obtain no less favorable coverage from

-4-

 

another employer or from self-employment in which case such additional payments shall
cease immediately.

     (iii) The Company will pay to Executive or his legal representative, without offset for
compensation earned from other employment or self-employment, (A) any unpaid amounts to
which Executive is entitled under MIP for the fiscal year of the Company ended immediately
prior to Executive’s termination of employment, plus (B) any unpaid amounts owing with
respect to LRPIP cycles in which Executive participated and which were completed prior to
termination. These amounts will be paid at the same time as other awards for such prior
year or cycle are paid.

     (iv) The Company will pay to Executive or his legal representative, without offset for
compensation earned from other employment or self-employment, an amount equal to the sum of
(A) Executive’s MIP Target Award, if any, for the year of termination, multiplied by a
fraction, the numerator of which is three hundred and sixty-five (365) plus the number of
days during such year prior to termination, and the denominator of which is seven hundred
and thirty (730) (provided, however, that if the Employment Period shall have terminated by
reason of Executive’s death, Disability or Incapacity, this clause (A) shall not apply and
Executive instead shall be entitled to the MIP benefit described in Section 5(a)(vii)
below), plus (B) with respect to each LRPIP cycle in which Executive participated and which
had not ended prior to termination of employment, an amount equal to Executive’s LRPIP
Target Award for such cycle multiplied by a fraction, the numerator of which is the number
of full months in such cycle completed prior to termination of employment and the
denominator of which is the number of full months in such cycle. The amount described in
Section 5(a)(iv)(A) above, if any, will be paid not later than MIP awards for the year of
termination are paid. The amount described in Section 5(a)(iv)(B) above, to the extent
measured by the LRPIP Target Award for any cycle, will be paid not later than the date on
which LRPIP awards for such cycle are paid or would have been paid.

     (v) In addition, Executive or his legal representative shall be entitled to the Stock
Incentive Plan benefits described in Section 3(b) (Existing Awards) and Section 3(c) (New
Stock Awards), in each case in accordance with and subject to the terms of the applicable
arrangement, and to payment of his vested benefits, if any, under the plans described in
Section 3(f) (Qualified Plans; Other Deferred Compensation Plans).

     (vi) If termination occurs by reason of Incapacity or Disability, Executive shall also
be entitled to such compensation, if any, as is payable pursuant to the Company’s long-term
disability plan. If for any period Executive receives long-term disability compensation
payments under a long-term disability plan of the Company as well as payments under Section
5(a)(i) above, and if the sum of such payments (the “combined salary/disability benefit”)
exceeds the payment for such period to which Executive is entitled under Section 5(a)(i)
above (determined without regard to the proviso set forth therein), he shall promptly pay
such excess in reimbursement to the Company; provided, that in no event shall application of
this sentence result in reduction of Executive’s combined salary/disability benefit below
the level of long-term disability compensation

-5-

 

payments to which Executive is entitled under the long-term disability plan or plans of
the Company.

     (vii) If termination occurs by reason of death, Incapacity or Disability, Executive
shall also be entitled to an amount equal to Executive’s MIP Target Award for the year of
termination, without proration. This amount will be paid not later than MIP awards for the
year of termination are paid.

     (viii) Except as expressly set forth above or as required by law, Executive shall not
be entitled to continue participation during the termination period in any employee benefit
or fringe benefit plans, except for continuation of any automobile allowance.

     (b) Termination on the End Date. Unless earlier terminated or except as otherwise
mutually agreed by Executive and the Company, Executive’s employment with the Company shall
terminate on the End Date. Unless the Company in connection with such termination shall offer to
Executive continued service in a position on reasonable terms, Executive shall be treated as having
terminated under Section 5(a) on the day immediately preceding the End Date and shall be entitled
to the pay and benefits described therein. In addition, in such event, Executive shall be relieved
of the requirement under Section 3(c)(i)(A) (with respect to the restricted Stock award described
in such Section 3(c)(i)(A)) that he continue in employment until September 6, 2010 (but all the
other requirements of such award shall remain operative). If the Company in connection with such
termination offers to Executive continued service in a position on reasonable terms, and Executive
declines such service, he shall be treated for all purposes of this Agreement as having terminated
his employment voluntarily on the End Date and he shall be entitled only to those benefits to which
he would be entitled under Section 6(a) (“Voluntary termination of employment”). For purposes of
the two preceding sentences, “service in a position on reasonable terms” shall mean service in a
position comparable to the position in which Executive was serving immediately prior to the End
Date, as reasonably determined by the Committee.

     6. OTHER TERMINATION.

     (a) Voluntary termination of employment. If Executive terminates his employment
voluntarily, Executive or his legal representative shall be entitled (in each case in accordance
with and subject to the terms of the applicable arrangement) to any Stock Incentive Plan benefits
described in Section 3(b) (Existing Awards) or Section 3(c) (New Stock Awards) and to any vested
benefits under the plans described in Section 3(f) (Qualified Plans; Other Deferred Compensation
Plans). In addition, the Company will pay to Executive or his legal representative any unpaid
amounts to which Executive is entitled under MIP for the fiscal year of the Company ended
immediately prior to Executive’s termination of employment, plus any unpaid amounts owing with
respect to LRPIP cycles in which Executive participated and which were completed prior to
termination, in each case at the same time as other awards for such prior year or cycle are paid.
No other benefits shall be paid under this Agreement upon a voluntary termination of employment.

     (b) Termination for Cause. If the Company should end Executive’s employment for Cause
all compensation and benefits otherwise payable pursuant to this Agreement shall cease,

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other than (x) such vested amounts as are credited to Executive’s account (but not received)
under GDCP and ESP in accordance with the terms of those programs; (y) any vested benefits to which
Executive is entitled by law under the Company’s tax-qualified plans; and (z) Stock Incentive Plan
Benefits, if any, to which Executive may be entitled (in each case in accordance with and subject
to the terms of the applicable arrangement) under Sections 3(b) (Existing Awards) and 3(c) (New
Stock Awards).

     7. BENEFITS UPON CHANGE OF CONTROL. Notwithstanding any other provision of this Agreement, in
the event of a Change of Control, the determination and payment of any benefits payable thereafter
with respect to Executive shall be governed exclusively by the provisions of Exhibit C.

     8. AGREEMENT NOT TO SOLICIT OR COMPETE

     (a) During the Employment Period and for a period of twenty-four (24) months thereafter (the
“Nonsolicitation Period”), Executive shall not, and shall not direct any other individual or entity
to, directly or indirectly (including as a partner, shareholder, joint venturer or other investor)
(i) hire, offer to hire, attempt to hire or assist in the hiring of, any protected person as an
employee, director, consultant, advisor or other service provider, (ii) recommend any protected
person for employment or other engagement with any person or entity other than the Company and its
Subsidiaries, (iii) solicit for employment or other engagement any protected person, or seek to
persuade, induce or encourage any protected person to discontinue employment or engagement with the
Company or its Subsidiaries, or recommend to any protected person any employment or engagement
other than with the Company or its Subsidiaries, (iv) accept services of any sort (whether for
compensation or otherwise) from any protected person, or (v) participate with any other person or
entity in any of the foregoing activities. Any individual or entity to which Executive provides
services (as an employee, director, consultant, advisor or otherwise) or in which Executive is a
shareholder, member, partner, joint venturer or investor, excluding interests in the common stock
of any publicly traded corporation of one percent (1%) or less), and any individual or entity that
is affiliated with any such individual or entity, shall, for purposes of the preceding sentence, be
irrebuttably presumed to have acted at the direction of Executive with respect to any “protected
person” who worked with Executive at any time during the six (6) months prior to termination of the
Employment Period. A “protected person” is a person who at the time of termination of the
Employment Period, or within six (6) months prior thereto, is or was employed by the Company or any
of its Subsidiaries either in a position of Assistant Vice President or higher, or in a salaried
position in any merchandising group. As to (I) each “protected person” to whom the foregoing
applies, (II) each subcategory of “protected person,” as defined above, (III) each limitation on
(A) employment or other engagement, (B) solicitation and (C) unsolicited acceptance of services, of
each “protected person” and (IV) each month of the period during which the provisions of this
subsection (a) apply to each of the foregoing, the provisions set forth in this subsection (a)
shall be deemed to be separate and independent agreements. In the event of unenforceability of any
one or more such agreement(s), such unenforceable agreement(s) shall be deemed automatically
reformed in order to allow for the greatest degree of enforceability authorized by law or, if no
such reformation is possible, deleted from the provisions hereof entirely, and such reformation or
deletion shall not affect the enforceability of any other provision of this subsection (a) or any
other term of this Agreement.

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     (b) During the course of his employment, Executive will have learned vital trade secrets of
the Company and its Subsidiaries and will have access to confidential and proprietary information
and business plans of the Company and its Subsidiaries. Therefore, during the Employment Period
and for a period of twelve (12) months thereafter (the “Noncompetition Period”), Executive will
not, directly or indirectly, be a shareholder, member, partner, joint venturer or investor
(disregarding in this connection passive ownership for investment purposes of common stock
representing one percent (1%) or less of the voting power or value of any publicly traded
corporation) in, serve as a director or manager of, be engaged in any employment, consulting, or
fees-for-services relationship or arrangement with, or advise with respect to the organization or
conduct of, or any investment in, any “competitive business” as hereinafter defined or any Person
that engages in any “competitive business” as hereinafter defined, nor shall Executive undertake
any planning to engage in any such activities. The term “competitive business” (i) shall mean any
business (however organized or conducted) that competes with a business in which the Company or any
of its Subsidiaries was engaged, or in which the Company or any Subsidiary was planning to engage,
at any time during the 12-month period immediately preceding the date on which the Employment
Period ends, and (ii) shall conclusively be presumed to include, but shall not be limited to, (A)
any business specified on Schedule I to this Agreement, and (B) any other off-price, promotional,
or warehouse-club-type retail business, however organized or conducted, that sells apparel,
footwear, home fashions, home furnishings, jewelry, accessories, or any other category of
merchandise sold by the Company or any of its Subsidiaries at the termination of the Employment
Period. For purposes of this subsection (b), a “Person” means an individual, a corporation, a
limited liability company, an association, a partnership, an estate, a trust and any other entity
or organization, other than the Company or its Subsidiaries, and reference to any Person (the
“first Person”) shall be deemed to include any other Person that controls, is controlled by or is
under common control with the first Person. If, at any time, pursuant to action of any court,
administrative, arbitral or governmental body or other tribunal, the operation of any part of this
subsection shall be determined to be unlawful or otherwise unenforceable, then the coverage of this
subsection shall be deemed to be reformed and restricted as to substantive reach, duration,
geographic scope or otherwise, as the case may be, to the extent, and only to the extent, necessary
to make this paragraph lawful and enforceable to the greatest extent possible in the particular
jurisdiction in which such determination is made.

     (c) Executive shall never use or disclose any confidential or proprietary information of the
Company or its Subsidiaries other than as required by applicable law or during the Employment
Period for the proper performance of Executive’s duties and responsibilities to the Company and its
Subsidiaries. This restriction shall continue to apply after Executive’s employment terminates,
regardless of the reason for such termination. All documents, records and files, in any media,
relating to the business, present or otherwise, of the Company and its Subsidiaries and any copies
(“Documents”), whether or not prepared by Executive, are the exclusive property of the Company and
its Subsidiaries. Executive must diligently safeguard all Documents, and must surrender to the
Company at such time or times as the Company may specify all Documents then in Executive’s
possession or control. In addition, upon termination of employment for any reason other than the
death of Executive, Executive shall immediately return all Documents, and shall execute a
certificate representing and warranting that he has returned all such Documents in Executive’s
possession or under his control.

-8-

 

     (d) If, during the Employment Period or at any time following termination of the Employment
Period, regardless of the reason for such termination, Executive breaches any provision of this
Section 8, the Company’s obligation, if any, to pay benefits under Section 5 hereof shall forthwith
cease and Executive shall immediately forfeit and disgorge to the Company, with interest at the
prime rate in effect at Bank of America, or its successor, all of the following: (i) any benefits
theretofore paid to Executive under Section 5; (ii) any unexercised stock options and stock
appreciation rights held by Executive; (iii) if any other stock-based award vested in connection
with termination of the Employment Period, whether occurring prior to, simultaneously with, or
following such breach, or subsequent to such breach and prior to termination of the Employment
Period, the value of such stock-based award at time of vesting plus any additional gain realized on
a subsequent sale or disposition of the award or the underlying stock; and (iv) in respect of each
stock option or stock appreciation right exercised by Executive within six (6) months prior to any
such breach or subsequent thereto and prior to the forfeiture and disgorgement required by this
Section 8(d), the excess over the exercise price (or base value, in the case of a stock
appreciation right) of the greater of (A) the fair market value at time of exercise of the shares
of stock subject to the award, or (B) the number of shares of stock subject to such award
multiplied by the per-share proceeds of any sale of such stock by Executive.

     (e) Executive shall notify the Company immediately upon securing employment or becoming
self-employed at any time within the Noncompetition Period, and shall provide to the Company such
details concerning such employment or self-employment as it may reasonably request in order to
ensure compliance with the terms hereof.

     (f) Executive hereby advises the Company that Executive has carefully read and considered all
the terms and conditions of this Agreement, including the restraints imposed on Executive under
this Section 8, and agrees without reservation that each of the restraints contained herein is
necessary for the reasonable and proper protection of the good will, confidential information and
other legitimate business interests of the Company and its Subsidiaries, that each and every one of
those restraints is reasonable in respect to subject matter, length of time and geographic
area; and that these restraints will not prevent Executive from obtaining other suitable
employment during the period in which Executive is bound by them. Executive agrees that Executive
will never assert, or permit to be asserted on his behalf, in any forum, any position contrary to
the foregoing. Executive also acknowledges and agrees that, were Executive to breach any of the
provisions of this Section 8, the harm to the Company and its Subsidiaries would be irreparable.
Executive therefore agrees that, in the event of such a breach or threatened breach, the Company
shall, in addition to any other remedies available to it, have the right to obtain preliminary and
permanent injunctive relief against any such breach or threatened breach without having to post
bond, and will additionally be entitled to an award of attorney’s fees incurred in connection with
enforcing its rights hereunder. Executive further agrees that, in the event that any provision of
this Agreement shall be determined by any court of competent jurisdiction to be unenforceable by
reason of its being extended over too great a time, too large a geographic area or too great a
range of activities, such provision shall be deemed to be modified to permit its enforcement to the
maximum extent permitted by law. Finally, Executive agrees that the Noncompetition Period and the
Nonsolicitation Period shall be tolled, and shall not run, during any period of time in which
Executive is in violation of any of the terms

-9-

 

of this Section 8, in order that the Company shall have the agreed-upon temporal protection
recited herein.

     (g) Executive agrees that if any of the restrictions in this Section 8 is held to be void or
ineffective for any reason but would be held to be valid and effective if part of its wording were
deleted, that restriction shall apply with such deletions as may be necessary to make it valid and
effective. Executive further agrees that the restrictions contained in each subsection of this
Section 8 shall be construed as separate and individual restrictions and shall each be capable of
being severed without prejudice to the other restrictions or to the remaining provisions.

     (h) Executive expressly consents to be bound by the provisions of this Agreement for the
benefit of the Company and its Subsidiaries, and any successor or permitted assign to whose employ
Executive may be transferred, without the necessity that this Agreement be re-signed at the time of
such transfer. Executive further agrees that no changes in the nature or scope of his employment
with the Company will operate to extinguish the terms and conditions set forth in Section 8, or
otherwise require the parties to re-sign this Agreement

     (i) The provisions of this Section 8 shall survive the termination of the Employment Period
and the termination of this Agreement, regardless of the reason or reasons therefor, and shall be
binding on Executive regardless of any breach by the Company of any other provision of this
Agreement.

     9. REPRESENTATION BY EXECUTIVE. Executive hereby represents that his employment by the
Company, his provision of services to the Company and its Subsidiaries and his performance of his
duties under this Agreement will not breach or be in conflict with any other agreement to which he
is a party or by which he is bound and that he is not now subject to any covenants against
competition or similar covenants or other obligations to third parties or to any court order,
judgment or decree that would affect the performance of his obligations hereunder or of his duties
and responsibilities to the Company and its Subsidiaries. Executive further agrees that he will
not copy or take any confidential or proprietary information belonging to his prior employer or any
affiliate thereof, will not use or disclose any such information in the course of his employment by
the Company and its Subsidiaries, and will not otherwise engage in any conduct or action that would
violate his obligations under any existing trade-secret or confidential information undertaking by
which he is bound.

     10. ASSIGNMENT. The rights and obligations of the Company shall enure to the benefit of and
shall be binding upon the successors and assigns of the Company. The rights and obligations of
Executive are not assignable except only that stock issuable, awards and payments payable to him
after his death shall be made to his estate except as otherwise provided by the applicable plan or
award documentation, if any.

     11. NOTICES. All notices and other communications required hereunder shall be in writing and
shall be given by mailing the same by certified or registered mail, return receipt requested,
postage prepaid. If sent to the Company the same shall be mailed to the Company at 770 Cochituate
Road, Framingham, Massachusetts 01701, Attention: Chairman of the Executive Compensation
Committee, or other such address as the Company may hereafter designate by notice to Executive; and
if sent to Executive, the same shall be mailed to Executive at his address

-10-

 

as set forth in the records of the Company or at such other address as Executive may hereafter
designate by notice to the Company.

     12. WITHHOLDING; CERTAIN TAX MATTERS. Anything to the contrary notwithstanding, (a) all
payments required to be made by the Company hereunder to Executive shall be subject to the
withholding of such amounts, if any, relating to tax and other payroll deductions as the Company
may reasonably determine it should withhold pursuant to any applicable law or regulation, and (b)
to the extent any payment hereunder shall be required to be delayed until six months following
separation from service to comply with the “specified employee” rules of Section 409A it shall be
so delayed (but not more than is required to comply with such rules).

     13. GOVERNING LAW. This Agreement and the rights and obligations of the parties hereunder
shall be governed by the laws of the Commonwealth of Massachusetts.

     14. ARBITRATION. In the event that there is any claim or dispute arising out of or relating
to this Agreement, or the breach thereof, and the parties hereto shall not have resolved such claim
or dispute within sixty (60) days after written notice from one party to the other setting forth
the nature of such claim or dispute, then such claim or dispute shall be settled exclusively by
binding arbitration in Boston, Massachusetts in accordance with the Rules Governing Resolutions of
Employment Disputes of the American Arbitration Association by an arbitrator mutually agreed upon
by the parties hereto or, in the absence of such agreement, by an arbitrator selected according to
such Rules. Notwithstanding the foregoing, if either the Company or Executive shall request, such
arbitration shall be conducted by a panel of three arbitrators, one selected by the Company, one
selected by Executive and the third selected by agreement of the first two, or, in the absence of
such agreement, in accordance with such Rules. Judgment upon the award rendered by such
arbitrator(s) shall be entered in any Court having jurisdiction thereof upon the application of
either party.

     15. ENTIRE AGREEMENT. This Agreement, including Exhibits, represents the entire agreement
between the parties relating to the terms of Executive’s employment by the Company and supersedes
all prior written or oral agreements between them except to the extent provided herein.

	 	 	 	 	 
	 

	 	 	 	/s/ Nirmal Tripathy
	 

	 	 	 	 
	 

	 	 	 	Executive
	 
	 	 	 	 
	 

	 	 	 	THE TJX COMPANIES, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Carol Meyrowitz
	 

	 	 	 	 

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EXHIBIT A

Certain Definitions

     (a) “Base Salary” means, for any period, the amount described in Section 3(a).

     (b) “Board” means the Board of Directors of the Company.

     (c) “Cause” means dishonesty by Executive in the performance of his duties, conviction of a
felony (other than a conviction arising solely under a statutory provision imposing criminal
liability upon Executive on a per se basis due to the Company offices held by Executive, so long as
any act or omission of Executive with respect to such matter was not taken or omitted in
contravention of any applicable policy or directive of the Board); gross neglect of duties (other
than as a result of Incapacity, Disability or death), or conflict of interest which conflict shall
continue for thirty (30) days after the Company gives written notice to Executive requesting the
cessation of such conflict; or any fact or circumstance other than Incapacity, Disability or death
that prevents Executive from continuing to provide services to the Company.

     In respect of any termination during a Standstill Period, Executive shall not be deemed to
have been terminated for Cause until the later to occur of (i) the 30th day after notice of
termination is given and (ii) the delivery to Executive of a copy of a resolution duly adopted by
the affirmative vote of not less than a majority of the Company’s directors at a meeting called and
held for that purpose (after reasonable notice to Executive), and at which Executive together with
his counsel was given an opportunity to be heard, finding that Executive was guilty of conduct
described in the definition of “Cause” above, and specifying the particulars thereof in detail;
provided, however, that the Company may suspend Executive and withhold payment of his Base Salary
from the date that notice of termination is given until the earliest to occur of (A) termination of
Executive for Cause effected in accordance with the foregoing procedures (in which case Executive
shall not be entitled to his Base Salary for such period), (B) a determination by a majority of the
Company’s directors that Executive was not guilty of the conduct described in the definition of
“Cause” effected in accordance with the foregoing procedures (in which case Executive shall be
reinstated and paid any of his previously unpaid Base Salary for such period), or (C) ninety (90)
days after notice of termination is given (in which case Executive shall then be reinstated and
paid any of his previously unpaid Base Salary for such period). If Base Salary is withheld and
then paid pursuant to clause (B) or (C) of the preceding sentence, the amount thereof shall be
accompanied by simple interest, calculated on a daily basis, at a rate per annum equal to the prime
or base lending rate, as in effect at the time, of the Company’s principal commercial bank.

     (d) “Change of Control” has the meaning given it in Exhibit B.

     (e) “Change of Control Termination” means the termination of Executive’s employment during a
Standstill Period (1) by the Company other than for Cause, or (2) by Executive for good reason, or
(3) by reason of death, Incapacity or Disability.

     For purposes of this definition, termination for “good reason” shall mean the voluntary
termination by Executive of his employment (A) within one hundred and twenty (120) days after

A-1

 

the occurrence without Executive’s express written consent of any one of the events described
in clauses (I), (II), (III), (IV), (V) or (VI) below, provided, that Executive gives notice to the
Company at least thirty (30) days in advance requesting that the pertinent situation described
therein be remedied, and the situation remains unremedied upon expiration of such 30-day period;
(B) within one hundred and twenty (120) days after the occurrence without Executive’s express
written consent of the event described in clause (VII), provided, that Executive gives notice to
the Company at least thirty (30) days in advance of his intent to terminate his employment in
respect of such event; or (C) under the circumstances described in clause (VIII) below, provided,
that Executive gives notice to the Company at least thirty (30) days in advance:

	 	(I)	 	the assignment to him of any duties inconsistent with his
positions, duties, responsibilities, and status with the Company immediately
prior to the Change of Control, or any removal of Executive from or any failure
to reelect him to such positions, except in connection with the termination of
Executive’s employment by the Company for Cause or by Executive other than for
good reason, or any other action by the Company which results in a diminishment
in such position, authority, duties or responsibilities, other than an
insubstantial and inadvertent action which is remedied by the Company promptly
after receipt of notice thereof given by Executive; or
	 
	 	(II)	 	if Executive’s rate of Base Salary for any fiscal year is less
than 100% of the rate of Base Salary paid to Executive in the completed fiscal
year immediately preceding the Change of Control or if Executive’s total cash
compensation opportunities, including salary and incentives, for any fiscal
year are less than 100% of the total cash compensation opportunities made
available to Executive in the completed fiscal year immediately preceding the
Change of Control; or
	 
	 	(III)	 	the failure of the Company to continue in effect any benefits
or perquisites, or any pension, life insurance, medical insurance or disability
plan in which Executive was participating immediately prior to the Change of
Control unless the Company provides Executive with a plan or plans that provide
substantially similar benefits, or the taking of any action by the Company that
would adversely affect Executive’s participation in or materially reduce
Executive’s benefits under any of such plans or deprive Executive of any
material fringe benefit enjoyed by Executive immediately prior to the Change of
Control; or
	 
	 	(IV)	 	any purported termination of Executive’s employment by the
Company for Cause during a Standstill Period which is not effected in
compliance with paragraph (d) above; or
	 
	 	(V)	 	any relocation of Executive of more than forty (40) miles from
the place where Executive was located at the time of the Change of Control; or
	 
	 	(VI)	 	any other breach by the Company of any provision of this
Agreement; or

A-2

 

	 	(VII)	 	the Company sells or otherwise disposes of, in one transaction
or a series of related transactions, assets or earning power aggregating more
than 30% of the assets (taken at asset value as stated on the books of the
Company determined in accordance with generally accepted accounting principles
consistently applied) or earning power of the Company (on an individual basis)
or the Company and its Subsidiaries (on a consolidated basis) to any other
Person or Persons (as those terms are defined in Exhibit B); or
	 
	 	(VIII)	 	the voluntary termination by Executive of his employment at any time within
one year after the Change of Control. Notwithstanding the foregoing, the Board
may expressly waive the application of this clause (VIII) if it waives the
applicability of substantially similar provisions with respect to all persons
with whom the Company has a written severance agreement (or may condition its
application on any additional requirements or employee agreements which the
Board shall in its discretion deem appropriate in the circumstances). The
determination of whether to waive or impose conditions on the application of
this clause (VIII) shall be within the complete discretion of the Board but
shall be made prior to the Change of Control.

     (f) “Code” means the Internal Revenue Code of 1986, as amended.

     (g) “Committee” means the Executive Compensation Committee of the Board.

     (h) “Date of Termination” means the date on which Executive’s employment terminates.

     (i) “Disabled"/“Disability” has the meaning given it in the Company’s long-term disability
plan. Executive’s employment shall be deemed to be terminated for Disability on the date on which
Executive is entitled to receive long-term disability compensation pursuant to such long-term
disability plan.

     (j) “End Date” has the meaning set forth in Section 1 of the Agreement.

     (k) “ESP” means the Company’s Executive Savings Plan.

     (l) “GDCP” means the Company’s General Deferred Compensation Plan, or, if the General Deferred
Compensation Plan is no longer maintained by the Company, a nonqualified deferred compensation plan
(other than the ESP) or arrangement the terms of which are not less favorable to Executive than the
terms of the General Deferred Compensation Plan as in effect on the Effective Date.

     (m) “Incapacity” means a disability (other than Disability within the meaning of (i) above) or
other impairment of health that renders Executive unable to perform his duties (either with or
without reasonable accommodation) to the reasonable satisfaction of the Committee.

     (n) “LRPIP” has the meaning set forth in Section 3(c) of the Agreement.

A-3

 

     (o) “MIP” has the meaning set forth in Section 3(c) of the Agreement..

     (p) “Section 409A” means Section 409A of the Code.

     (q) “Standstill Period” means the period commencing on the date of a Change of Control and
continuing until the close of business on the earlier of the day immediately preceding the End Date
or the last business day of the 24th calendar month following such Change of Control.

     (r) “Stock” means the common stock, $1.00 par value, of the Company.

     (s) “Stock Incentive Plan” has the meaning set forth in Section 3(c) of the Agreement.

     (t) “Subsidiary” means any corporation in which the Company owns, directly or indirectly, 50%
or more of the total combined voting power of all classes of stock.

A-4

 

EXHIBIT B

Definition of “Change of Control”

     “Change of Control” shall mean the occurrence of any one of the following events:

     (a) there occurs a change of control of the Company of a nature that would be required to be
reported in response to Item 5.01 of the Current Report on Form 8-K (as amended in 2004) pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) or in any other
filing under the Exchange Act; provided, however, that no transaction shall be deemed to be a
Change of Control (i) if the person or each member of a group of persons acquiring control is
excluded from the definition of the term “Person” hereunder or (ii) unless the Committee shall
otherwise determine prior to such occurrence, if Executive or an Executive Related Party is the
Person or a member of a group constituting the Person acquiring control; or

     (b) any Person other than the Company, any wholly-owned subsidiary of the Company, or any
employee benefit plan of the Company or such a subsidiary becomes the owner of 20% or more of the
Company’s Common Stock and thereafter individuals who were not directors of the Company prior to
the date such Person became a 20% owner are elected as directors pursuant to an arrangement or
understanding with, or upon the request of or nomination by, such Person and constitute at least
1/4 of the Company’s Board of Directors; provided, however, that unless the Committee shall
otherwise determine prior to the acquisition of such 20% ownership, such acquisition of ownership
shall not constitute a Change of Control if Executive or an Executive Related Party is the Person
or a member of a group constituting the Person acquiring such ownership; or

     (c) there occurs any solicitation or series of solicitations of proxies by or on behalf of any
Person other than the Company’s Board of Directors and thereafter individuals who were not
directors of the Company prior to the commencement of such solicitation or series of solicitations
are elected as directors pursuant to an arrangement or understanding with, or upon the request of
or nomination by, such Person and constitute at least 1/4 of the Company’s Board of Directors; or

     (d) the Company executes an agreement of acquisition, merger or consolidation which
contemplates that (i) after the effective date provided for in the agreement, all or substantially
all of the business and/or assets of the Company shall be owned, leased or otherwise controlled by
another Person and (ii) individuals who are directors of the Company when such agreement is
executed shall not constitute a majority of the board of directors of the survivor or successor
entity immediately after the effective date provided for in such agreement; provided, however, that
unless otherwise determined by the Committee, no transaction shall constitute a Change of Control
if, immediately after such transaction, Executive or any Executive Related Party shall own equity
securities of any surviving corporation (“Surviving Entity”) having a fair value as a percentage of
the fair value of the equity securities of such Surviving Entity greater than 125% of the fair
value of the equity securities of the Company owned by Executive and any Executive Related Party
immediately prior to such transaction, expressed as a percentage of the fair value of all equity
securities of the Company immediately prior to such transaction (for purposes of this paragraph
ownership of equity securities shall be determined in the same manner as

B-1

 

ownership of Common Stock); and provided, further, that, for purposes of this paragraph (d),
if such agreement requires as a condition precedent approval by the Company’s shareholders of the
agreement or transaction, a Change of Control shall not be deemed to have taken place unless and
until such approval is secured (but upon any such approval, a Change of Control shall be deemed to
have occurred on the date of execution of such agreement).

     In addition, for purposes of this Exhibit B the following terms have the meanings set forth
below:

     “Common Stock” shall mean the then outstanding Common Stock of the Company plus, for purposes
of determining the stock ownership of any Person, the number of unissued shares of Common Stock
which such Person has the right to acquire (whether such right is exercisable immediately or only
after the passage of time) upon the exercise of conversion rights, exchange rights, warrants or
options or otherwise. Notwithstanding the foregoing, the term Common Stock shall not include
shares of Preferred Stock or convertible debt or options or warrants to acquire shares of Common
Stock (including any shares of Common Stock issued or issuable upon the conversion or exercise
thereof) to the extent that the Board of Directors of the Company shall expressly so determine in
any future transaction or transactions.

     A Person shall be deemed to be the “owner” of any Common Stock:

     (i) of which such Person would be the “beneficial owner,” as such term is defined in
Rule 13d-3 promulgated by the Securities and Exchange Commission (the “Commission”) under
the Exchange Act, as in effect on March 1, 1989; or

     (ii) of which such Person would be the “beneficial owner” for purposes of Section 16 of
the Exchange Act and the rules of the Commission promulgated thereunder, as in effect on
March 1, 1989; or

     (iii) which such Person or any of its affiliates or associates (as such terms are
defined in Rule 12b-2 promulgated by the Commission under the Exchange Act, as in effect on
March 1, 1989), has the right to acquire (whether such right is exercisable immediately or
only after the passage of time) pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights, warrants or options or otherwise.

     “Person” shall have the meaning used in Section 13(d) of the Exchange Act, as in effect on
March 1, 1989.

     An “Executive Related Party” shall mean any affiliate or associate of Executive other than the
Company or a majority-owned subsidiary of the Company. The terms “affiliate” and “associate” shall
have the meanings ascribed thereto in Rule 12b-2 under the Exchange Act (the term “registrant” in
the definition of “associate” meaning, in this case, the Company).

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EXHIBIT C

Change of Control Benefits

     C.1. Benefits Upon a Change of Control Termination.

     (a) The Company shall pay the following to Executive in a lump sum, within thirty (30) days
following a Change of Control Termination or on such delayed basis as may be necessary to comply
with Section 409A: an amount equal to (A) two times his Base Salary for one year at the rate in
effect immediately prior to the Date of Termination or the Change of Control, whichever is higher,
plus (B) the accrued and unpaid portion of his Base Salary through the Date of Termination, subject
to the following. If Executive is eligible for long-term disability compensation benefits under
the Company’s long-term disability plan, the amount payable under (A) shall be reduced by the
annual long-term disability compensation benefit for which Executive is eligible under such plan
for the two-year period over which the amount payable under (A) is measured. If for any period
Executive receives long-term disability compensation payments under a long-term disability plan of
the Company as well as payments under the first sentence of this subsection (a), and if the sum of
such payments (the “combined Change of Control/disability benefit”) exceeds the payment for such
period to which Executive is entitled under the first sentence of this subsection (a) (determined
without regard to the second sentence of this subsection (a)), he shall promptly pay such excess in
reimbursement to the Company; provided, that in no event shall application of this sentence result
in reduction of Executive’s combined Change of Control/disability benefit below the level of
long-term disability compensation payments to which Executive is entitled under the long-term
disability plan or plans of the Company.

     (b) Until the second anniversary of the Date of Termination, the Company shall maintain in
full force and effect for the continued benefit of Executive and his family all life insurance and
medical insurance plans and programs in which Executive was entitled to participate immediately
prior to the Change of Control, provided, that Executive’s continued participation is possible
under the general terms and provisions of such plans and programs. In the event that Executive is
ineligible to participate in such plans or programs, the Company shall arrange upon comparable
terms to provide Executive with benefits substantially similar to those which he is entitled to
receive under such plans and programs. Notwithstanding the foregoing, the Company’s obligations
hereunder with respect to life or medical coverage or benefits shall be deemed satisfied to the
extent (but only to the extent) of any such coverage or benefits provided by another employer.

     (c) For a period of two years after the Date of Termination, the Company shall continue to
provide to Executive an automobile allowance on the same basis as it was providing such allowance
immediately prior to the Change of Control.

     C.2. Incentive Benefits Upon a Change of Control. Within thirty (30) days following a
Change of Control, whether or not Executive’s employment has terminated or been terminated, the
Company shall pay to Executive, in a lump sum, the sum of (i) and (ii), where:

C-1

 

     (i) is the sum of (A) the “Target Award” under the Company’s Management Incentive Plan
or any other annual incentive plan which is applicable to Executive for the fiscal year in
which the Change of Control occurs, plus (B) an amount equal to such Target Award prorated
for the period of active employment during such fiscal year through the Change of Control;
and

     (ii) the sum of (A) for Performance Cycles not completed prior to the Change of
Control, an amount with respect to each such cycle equal to the maximum Award under LRPIP
specified for Executive for such cycle, plus (B) any unpaid amounts owing with respect to
cycles completed prior to the Change of Control.

     C.3. Gross-Up Payment. Payments under Section C.1. and Section C.2. of this Exhibit
shall be made without regard to whether the deductibility of such payments (or any other payments
or benefits to or for the benefit of Executive) would be limited or precluded by Section 280G of
the Code (“Section 280G”) and without regard to whether such payments (or any other payments or
benefits) would subject Executive to the federal excise tax levied on certain “excess parachute
payments” under Section 4999 of the Code (the “Excise Tax”). If any portion of the payments or
benefits to or for the benefit of Executive (including, but not limited to, payments and benefits
under this Agreement but determined without regard to this paragraph) constitutes an “excess
parachute payment” within the meaning of Section 280G (the aggregate of such payments being
hereinafter referred to as the “Excess Parachute Payments”), the Company shall promptly pay to
Executive an additional amount (the “gross-up payment”) that after reduction for all taxes
(including but not limited to the Excise Tax) with respect to such gross-up payment equals the
Excise Tax with respect to the Excess Parachute Payments; provided, that to the extent any gross-up
payment would be considered “deferred compensation” for purposes of Section 409A of the Code, the
manner and time of payment, and the provisions of this Section C.3, shall be adjusted to the extent
necessary (but only to the extent necessary) to comply with the requirements of Section 409A with
respect to such payment so that the payment does not give rise to the interest or additional tax
amounts described at Section 409A(a)(1)(B) or Section 409A(b)(4) of the Code (the “Section 409A
penalties”); and further provided, that if, notwithstanding the immediately preceding proviso, the
gross-up payment cannot be made to conform to the requirements of Section 409A of the Code, the
amount of the gross-up payment shall be determined without regard to any gross-up for the Section
409A penalties. The determination as to whether Executive’s payments and benefits include Excess
Parachute Payments and, if so, the amount of such payments, the amount of any Excise Tax owed with
respect thereto, and the amount of any gross-up payment shall be made at the Company’s expense by
PricewaterhouseCoopers LLP or by such other certified public accounting firm as the Committee may
designate prior to a Change of Control (the “accounting firm”). Notwithstanding the foregoing, if
the Internal Revenue Service shall assert an Excise Tax liability that is higher than the Excise
Tax (if any) determined by the accounting firm, the Company shall promptly augment the gross-up
payment to address such higher Excise Tax liability.

     C.4. Other Benefits. In addition to the amounts described in Sections C.1. and C.2.,
and C.3., Executive or his legal representative shall be entitled to his Stock Incentive Plan
benefits, if any, under Section 3(b) (Existing Awards) and Section 3(c) (New Stock Awards), and to
the

C-2

 

payment of his vested benefits under the plans described in Section 3(f) (Qualified Plans;
Other Deferred Compensation Plans).

     C.5. Noncompetition; No Mitigation of Damages; etc.

     (a) Noncompetition. Upon a Change of Control, any agreement by Executive not to
engage in competition with the Company subsequent to the termination of his employment, whether
contained in an employment agreement or other agreement, shall no longer be effective.

     (b) No Duty to Mitigate Damages. Executive’s benefits under this Exhibit C shall be
considered severance pay in consideration of his past service and his continued service from the
date of this Agreement, and his entitlement thereto shall neither be governed by any duty to
mitigate his damages by seeking further employment nor offset by any compensation which he may
receive from future employment.

     (c) Legal Fees and Expenses. The Company shall pay all legal fees and expenses,
including but not limited to counsel fees, stenographer fees, printing costs, etc. reasonably
incurred by Executive in contesting or disputing that the termination of his employment during a
Standstill Period is for Cause or other than for good reason (as defined in the definition of
Change of Control Termination) or obtaining any right or benefit to which Executive is entitled
under this Agreement following a Change of Control. Any amount payable under this Agreement that
is not paid when due shall accrue interest at the prime rate as from time to time in effect at Bank
of America, or its successor, until paid in full.

     (d) Notice of Termination. During a Standstill Period, Executive’s employment may be
terminated by the Company only upon thirty (30) days’ written notice to Executive.

C-3

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