Document:

exv10w1

Exhibit
10.1

COOPER INDUSTRIES, LTD.

DIRECTORS DEFERRED COMPENSATION PLAN

(As Amended and Restated as of November 4, 2008)

BACKGROUND

     In order to comply with the requirements of Section 409A of the Internal Revenue Code of 1986,
as amended, and the Treasury regulations and rulings thereunder (collectively, “Section 409A”) and
to facilitate administration of deferrals under Section 409A, the Cooper Industries, Ltd. Directors
Deferred Compensation Plan is being amended and restated as of November 4, 2008, with such
amendment and restatement being effective January 1, 2005. Deferrals that were earned or vested
after December 31, 2004, including those for 2005, 2006, and 2007, and 2008 were made and
administered in good faith in accordance with the requirements of Section 409A.

ARTICLE I

DEFINITIONS

     1.1 Definitions. Except as otherwise required by the context, the terms used shall have the
meanings hereinafter set forth.

     (a) “Affiliate” shall mean all employers, present and future, with whom the Company is
considered a single employer under Sections 414(b) and 414(c) of the Code.

     (b) “Beneficiary” shall mean the person who, in accordance with the provisions of
Article VII, shall be entitled to receive a distribution of a Participant’s interest, or portion
thereof, under the Plan if a Participant dies prior to receiving distribution of his entire
interest.

     (c) “Board” shall mean the Board of Directors of Cooper Industries, Ltd.

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

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

     (f) “Committee” shall mean the Committee on Nominations and Corporate Governance of
the Board.

     (g) “Company” shall mean Cooper Industries, Ltd., a Bermuda corporation, its corporate
successors, and the surviving corporation resulting from any merger of Cooper Industries, Ltd. with
any other corporation or corporations.

 - 1 -

 

     (h) “Cooper Deferral Plan” shall mean the Cooper Industries Management Incentive
Compensation Deferral Plan, as amended from time to time.

     (i) “Deferred Account” shall mean the account established pursuant to Article IV to
which a Participant’s deferred Fees and interest deemed to be earned thereon are credited.

     (j) “Director” shall mean any member of the Board who is not an employee of the
Company or an Affiliate.

     (k) “Fees” shall mean the total cash fees, including annual Board and committee
retainers, the annual retainer fee (if any) for serving as a chairperson of a Board committee or as
the presiding non-management Director, and any fees payable for attendance at meetings of the Board
or any of its committees, payable to a Director during a Plan Year from the Company for services as
a Director.

     (l) “Participant” shall mean any Director who participates in the Plan. To the extent
required by the context, Participant shall include an inactive or former Participant.

     (m) “Plan” shall mean the Cooper Industries, Ltd. Directors Deferred Compensation
Plan.

     (n) “Plan Year” shall mean the 12-month period commencing each May 1 and ending on the
following April 30.

     (o) “Secretary” shall mean the Secretary of the Company.

     (p) “Section 409A” shall mean Section 409A of the Internal Revenue Code of 1986, as
amended, and the Treasury regulations and rulings thereunder.

     (q) “Separation from Service” shall mean the termination of service as a director, and
the termination of all employment (if any), with the Company and all Affiliates for any reason
other than death. Whether a Director has incurred a Separation from Service shall be determined in
accordance with Section 409A.

     1.2 Construction. Where necessary or appropriate to the meaning hereof, the singular shall be
deemed to include the plural, the plural to include the singular, the masculine to include the
feminine, and the feminine to include the masculine.

ARTICLE II

ELIGIBILITY FOR PARTICIPATION

     All Directors are eligible to participate in the Plan.

 - 2 -

 

ARTICLE III

DEFERRALS

     3.1 Deferral Requirements and Election Forms

     (a) Deferral Requirements. A Director’s election to defer Fees for any Plan Year
shall be made on a written form prescribed by the Company that complies with Articles III and V and
specifies:

     (i) the type of Fees being deferred;

     (ii) the amount of each type of Fees to be deferred for a Plan Year, by percentage or
by dollar amount; provided that in the Plan Year of a Participant’s Separation from
Service or death the percentage or dollar amount shall be the actual amount withheld prior
to the effective date of the Separation from Service or death;

     (iii) the date or dates for payment of the deferred Fees, such that objectively
determinable amounts are payable at a date or dates that are objectively determinable at the
time of deferral in accordance with Article V; and

     (iv) the form of payment of the deferred Fees.

     3.2 Timing of Deferrals

     (a) In General. A Director may, not later than December 31 immediately preceding a
Plan Year, elect, by delivering a properly executed election form to the Secretary, to participate
in the Plan and to defer all or a portion of his Fees attributable to services to be performed in
the immediately following Plan Year. Such election shall be irrevocable as of the end of each
December 31 with respect to Fees payable with respect to services to be performed in the
immediately following Plan Year for which an election has been made (or continues) subject to
Section 5.1(b) and (c).

     (b) Certain First Year Directors. This Section 3.2(b) is only applicable to a Director
who has not previously been eligible to participate in the Plan or in any other nonqualified
account balance plan of the Company or of any Affiliate that is required to be aggregated with the
Plan under Section 409A (a “Qualifying Director”).

     (i) Prior to Election or Appointment. A Qualifying Director may elect, by
delivering a properly executed election form to the Secretary prior to his election or
appointment as a Director, to participate in the Plan and to irrevocably defer all or a
portion of his Fees to be earned during the period starting on his date of election or
appointment and ending on the final day of the Plan Year, subject to Section 5.1(b). A
Qualifying Director may also make an election within thirty (30) days of election or
appointment, pursuant to the immediately following paragraph.

 - 3 -

 

     (ii) Within 30 Days of Election or Appointment. A Qualifying Director may, by
delivering a properly executed election form to the Secretary, elect to participate in the
Plan and to irrevocably defer all or a portion of his Fees to be earned for services to be
performed subsequent to the deferral election and ending on the final day of the Plan Year,
subject to Section 5.1(b).

     3.3 Duration of Deferral Elections

     Once a Participant has elected to defer all or a portion of his Fees, such election shall
remain in effect for future Plan Years unless the Participant changes or terminates the election on
or prior to the December 31 preceding the Plan Year for which the change or termination is to be
effective.

ARTICLE IV

PARTICIPANT ACCOUNTS

     4.1 Establishment of Accounts

     There shall be established for each Participant a Deferred Account. Deferred Fees shall be
allocated to a Participant’s Deferred Account at the time that such Fees would otherwise have been
paid to such Participant had no election to defer been made. To facilitate the operation of the
Plan, the Secretary may direct the maintenance of sub-accounts within a Participant’s Deferred
Account. Deferred Accounts under the Plan shall continue to be maintained until paid out pursuant
to the terms of the Plan.

     4.2 Income on Accounts

     The funds represented by the Deferred Account of a Participant shall be deemed to earn
interest in the manner and rate set forth in the Cooper Deferral Plan.

     4.3 Adjustments for Distributions

     Deferred Accounts shall be reduced for any distributions.

ARTICLE V

PAYMENT OF DEFERRED FEES

     5.1 Payment Elections

     (a) Initial Elections. At the time of making the election to defer the payment of
Fees, a Participant shall elect, on a Company-approved form, the time and form of payment of such
Fees (and related income).

     (i) The date for the payment, or commencement of payment, shall be a specified calendar
year. Subject to any limitations imposed by the Secretary and/or

 - 4 -

 

Section 409A, the specified calendar year may be during the Participant’s service as a
Director; the earlier or later of the calendar year in which a Participant incurs a
Separation from Service or attains a specified age; or the earliest of the Participant’s
death, Separation from Service, a specified calendar year, or a Change in Control.

     (ii) The form of the payment shall be either a lump sum or a series of substantially
equal annual installments over a period not to exceed ten (10) years. If the deferred Fees
(and related income) are payable in installments, the amount of each installment shall be
equal to a fraction of the amount of the Deferred Account remaining to be paid with respect
to the Fees (and related income) relating to the applicable deferral election, the numerator
of which is one and the denominator of which is the number of installments of the Fees (and
related income) remaining to be paid. The installments of the Fees remaining to be paid
shall continue to earn interest equivalents as provided in Section 4.2.

     (b) Subsequent Elections. A Participant may change an initial election in order to
delay payment or to change the form of payment if the following conditions are met:

     (i) Such election shall not take effect until at least twelve (12) months after the
date on which the election is made; and

     (ii) The payment with respect to which such election is made is deferred for a period
of not less than five (5) years from the date such payment would otherwise be made; and

     (iii) Any election for a “specified time (or pursuant to a fixed schedule),” within the
meaning of Section 409A, may not be made less than twelve (12) months prior to the date of
the first scheduled payment.

To the extent permitted under Section 409A, payments previously elected as installments shall be
treated as a single payment.

     (c) Special Election. On or before December 31, 2008, a Participant may make an
election to change the time and form of payment of that portion of his Account credited for fees
that were deferred for calendar years 2005, 2006, 2007, and 2008; provided that:

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

     (ii) The special election shall be subject to Section 5.1(a) of this Plan.

 - 5 -

 

     5.2 Payment of Fees

     Except as provided in Section 5.3, the payment (or payments) to be made to the Participant
pursuant to Section 5.1 shall be made on the date or dates specified by the Participant in his
initial election or any valid subsequent election to defer payment(s). All payments shall be made
in cash. Unless otherwise provided in the applicable deferral election, payments shall be made or
begin on March 1 of the calendar year specified by the Participant in his deferral election, and if
installments are elected and effective, the second installment and any other subsequent
installments shall be paid on each subsequent March 1 for the period certain.

     5.3 Acceleration of Distributions

     (a) In General No Acceleration. Except as provided in this Section 5.3 and permitted
under Section 409A, no acceleration of the time or form of payment of a Deferred Account, or any
portion thereof, shall be permitted.

     (b) Death. Unless a Participant has elected otherwise, the undistributed balance of
his Deferred Account shall be distributed upon his death to his Beneficiary in accordance with
Article VII.

     (c) Change in Control. Unless a Participant has elected otherwise, the undistributed
balance of his Deferred Account shall be paid to him upon a Change in Control, to the extent
permitted under Section 409A, on or before the fifteenth (15th) day following the Change
in Control.

     (d) Section 409A Violation. If the Plan fails to meet the requirements of Section 409A
with respect to a Participant, the Secretary shall distribute the amount required to be included in
such Participant’s gross income as a result of such failure.

ARTICLE VI

AMOUNT OF PLAN BENEFITS

     Except as specified in Section 10.3, Fees deferred at the election of a Participant shall be
held in the general funds of the Company. The benefit payable to a Participant under the Plan
shall be equal to the amount credited to such Participant’s Deferred Account.

 - 6 -

 

ARTICLE VII

BENEFICIARIES

     In the event of the death of a Participant, the undistributed balance of his Deferred Account
shall be distributed upon his death to his beneficiary in one lump sum within ninety (90) days of
his death provided that, if such ninety-day period begins in one taxable year and ends in another
taxable year, neither the estate nor any beneficiary of the Participant may choose in which taxable
year such lump sum will be paid. The beneficiary or beneficiaries shall be designated in writing
by the Participant in the form and manner specified by the Secretary; if no designation has been
made, the estate of the Participant shall be his beneficiary.

ARTICLE VIII

ADMINISTRATIVE PROVISIONS

     The Plan shall be administered by the Committee. The Committee shall, subject to the
provisions of the Plan, adopt such rules as it may deem appropriate in order to carry out the
purpose of the Plan. All questions of interpretation, administration, and application of the Plan
shall be determined by a majority of the members of the Committee, except that the Committee may
authorize any one or more of its members, or any officer or employee of the Company, to execute and
deliver documents on behalf of the Committee. The determination of such majority shall be final
and binding in all matters relating to the Plan. No member of the Committee shall be liable for
any act done or omitted to be done by such member or by any other member of the Committee in
connection with the Plan, except for such member’s own willful misconduct or as expressly provided
by statute. All costs and expenses involved in administration of the Plan shall be borne by the
Company.

ARTICLE IX

AMENDMENT AND TERMINATION

     The Company reserves the right to amend or terminate the Plan at any time; provided,
however, that no such action shall adversely affect any Participant who is receiving benefits
under the Plan or who has accrued a benefit under the Plan and provided further that any
change in the time and form of payments under the Plan shall be made only after consideration of
the requirements of Section 409A.

 - 7 -

 

ARTICLE X

MISCELLANEOUS

     10.1 Non-Alienation of Rights or Benefits

     No benefit under the Plan shall at any time be subject in any manner to alienation or
encumbrance. If any Participant or Beneficiary shall attempt to, or shall, alienate or in any way
encumber his benefits under the Plan, or any part thereof, or if by reason of his bankruptcy or
other event happening at any time any such benefits would otherwise be received by anyone else or
would not be enjoyed by him, his interest in all such benefits shall automatically terminate and
the same shall be held or applied to or for the benefit of such person, his spouse, children, or
other dependents as the Secretary may select.

     10.2 Payment of Benefits to Others

     If any Participant or Beneficiary to whom a Plan benefit is payable is unable to care for his
affairs because of illness or accident, any payment due (unless prior claim therefor shall have
been made by a duly qualified guardian or other legal representative) may be paid to the spouse,
parent, brother, or sister, or any other individual deemed by the Secretary to be maintaining or
responsible for the maintenance of such person. Any payment made in accordance with the provisions
of this Section 10.2 shall be a complete discharge of any liability of the Plan with respect to the
benefit so paid.

     10.3 Funding

     In order to provide a source of payment for its obligations under the Plan, the Company may
establish a trust fund. Notwithstanding any such trust fund, however, the obligation of the
Company under the Plan to provide a Participant or a Beneficiary with a benefit shall constitute
the unsecured promise of the Company to make payments as provided herein.

     10.4 Claims of Other Persons

     The provisions of the Plan shall in no event be construed as giving any person, firm, or
corporation any legal or equitable right as against the Company, its officers, employees, or
Directors, except any such rights as are specifically provided for in the Plan or are hereafter
created in accordance with the terms and provisions of the Plan.

     10.5 Severability

     The invalidity or unenforceability of any particular provision of the Plan shall not affect
any other provision hereof, and the Plan shall be construed in all respects as if such invalid or
unenforceable provision were omitted.

 - 8 -

 

     10.6 Governing Law

     The provisions of the Plan shall be governed and construed in accordance with the laws of the
State of Texas, without giving effect to its conflict of laws provisions, and applicable federal
law.

     10.7 Tax Treatment

     Notwithstanding any other provision of the Plan, although the Board, the Secretary, and any
designee of the Board or Secretary shall use their best efforts to avoid the imposition of
taxation, penalties, and interest under Section 409A, the tax treatment of Participant deferrals
under the Plan shall not be, and is not, warranted or guaranteed. Neither the Company, the Board,
the Secretary, nor any of their designees shall be held liable for any taxes, penalties, or other
monetary amounts owed by a Participant, Beneficiary, or other person as a result of any deferral or
payment under the Plan.

     10.8 Claims Procedure

     Generally benefits will be paid under the Plan without the necessity of filing a claim. A
Participant or Beneficiary who believes he is entitled to a benefit under the Plan (hereinafter
referred to as the “Claimant”) may file a written claim with the Secretary. A claim must state
with specificity the determination desired by the Claimant.

     The Secretary shall consider the Claimant’s claim within a reasonable time, but no later than
ninety (90) days of receipt of the claim. If the Secretary determines that special circumstances
require an extension of time for processing the claim, the Secretary shall notify the Claimant in
writing of the extension before the end of the initial ninety (90)-day period and the written
notice shall indicate the special circumstances requiring an extension of time and the date by
which the Secretary expects to make a decision. The extension of time shall not exceed ninety (90)
days from the end of the initial ninety (90)-day period.

     The Secretary shall notify the Claimant (in writing or electronically) that a determination
has been made and that the claim is either allowed in full or denied in whole or in part. If the
claim is denied in whole or in part, the Secretary shall notify (in writing or electronically) such
Claimant or an authorized representative of the Claimant, as applicable, of any adverse benefit
determination within ninety (90) days of receipt of the claim. Any adverse benefit determination
notice shall describe the specific reason or reasons for the denial, refer to the specific Plan
provisions on which the determination was based, describe any additional material or information
necessary for the Claimant to perfect his claim and explain why that material or information is
necessary, describe the Plan’s review procedures and the time limits applicable to those
procedures.

     Upon receipt of an adverse benefit determination, a Claimant may, within sixty (60) days after
receiving notification of that determination, submit a written request asking the Board to review
the Claimant’s claim. Each Claimant, when making his request for review of his adverse benefit
determination, shall have the opportunity to submit written comments, documents, records,

 - 9 -

 

and any other information relating to the claim for benefits. Each Claimant shall also be
provided, upon request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to such Claimant’s claim for benefits. The review shall
take into account all comments, documents, records, and other information submitted by the Claimant
relating to the claim, regardless of whether the information was submitted or considered in the
initial benefit determination. If a Claimant does not submit his request for review in writing
within the sixty (60)-day period described above, his claim shall be deemed to have been
conclusively determined for all purposes of the Plan and the adverse benefit determination will be
deemed to be correct.

     If the Claimant submits in writing a request for review of the adverse benefit determination
within the sixty (60)-day period described above, the Board (or its designee) shall notify (in
writing or electronically) him of its determination on review within a reasonable period of time
but not later than sixty (60) days from the date of receipt of his request for review, unless the
Board (or its designee) determines that special circumstances require an extension of time. If the
Board (or its designee) determines that an extension of time for processing a Claimant’s request
for review is required, the Board (or its designee) shall notify him in writing before the end of
the initial sixty (60)-day period and inform him of the special circumstances requiring an
extension of time and the date by which the Board expects to render its determination on review.
The extension of time will not exceed sixty (60) days from the end of the initial sixty (60)-day
period.

     If the Board confirms the adverse benefit determination upon review, the notification will
describe the specific reason or reasons for the adverse determination, refer to the specific Plan
provisions on which the benefit determination is based, include a statement that the Claimant is
entitled to receive, upon request and free of charge, reasonable access to, and copies of, all
documents, records, and other information relevant to the Claimant’s claim.

     A Claimant’s compliance with the foregoing claims procedures shall be a mandatory prerequisite
to the Claimant’s right to commence any legal action with respect to any claim for benefits under
the Plan.

 - 10 -exv10w7

Exhibit 10.7

COOPER US, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

 

COOPER US, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page	 
	ARTICLE I
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	2	 
	1.2 Construction
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	ELIGIBILITY FOR PLAN PARTICIPATION
	 	 	 	 
	 
	 	 	 	 
	2.1 Active Participants
	 	 	5	 
	2.2 Former SEDB Participants
	 	 	5	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	COMPANY CONTRIBUTIONS
	 	 	 	 
	 
	 	 	 	 
	3.1 Amount of Company Contributions
	 	 	6	 
	3.2 Eligibility for Company Contributions
	 	 	6	 
	3.3 Vesting
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	ACCOUNTS AND DEEMED INTEREST
	 	 	 	 
	 
	 	 	 	 
	4.1 Establishment and Crediting of Accounts
	 	 	7	 
	4.2 Adjustment of Accounts
	 	 	7	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	DISTRIBUTION
	 	 	 	 
	 
	 	 	 	 
	5.1 Distributions
	 	 	8	 
	5.2 Payment Options
	 	 	8	 
	5.3 Alternative Payment Forms
	 	 	9	 
	5.4 No Acceleration
	 	 	9	 
	5.5 Special Transition Elections
	 	 	9	 
	5.6 Section 409A Violation
	 	 	10	 
	5.7 Payment Upon Change in Control
	 	 	10	 
	5.8 Payment Upon Disability
	 	 	10	 
	5.9 Rules
	 	 	10	 

i

 

	 	 	 	 	 
	Section	 	Page	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	BENEFICIARIES
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	ADMINISTRATIVE PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	7.1 Administration
	 	 	12	 
	7.2 Powers and Authorities of the Plan Administrator
	 	 	12	 
	7.3 Indemnification
	 	 	12	 
	7.4 Claims Review
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	ADMINISTRATIVE PROVISIONS
	 	 	14	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	9.1 Non-Alienation of Benefits
	 	 	15	 
	9.2 Payment of Benefits to Others
	 	 	15	 
	9.3 Plan Non-Contractual
	 	 	15	 
	9.4 Funding
	 	 	16	 
	9.5 Controlling Status
	 	 	16	 
	9.6 Claims of Other Person
	 	 	16	 
	9.7 Specified Employees
	 	 	16	 
	9.8 Section 409A
	 	 	16	 
	9.9 Severability
	 	 	17	 
	9.10 Governing Law
	 	 	17	 

i

 

COOPER US, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     WHEREAS, Cooper US, Inc. (the “Company”) desires to establish, effective January 1, 2007, the
Cooper US, Inc. Supplemental Executive Retirement Plan (the “Plan”) to provide a select group of
management employees and highly compensated employees of the Company and its affiliates with
supplemental retirement benefits; and

     WHEREAS, Plan benefits that were accrued or vested after January 1, 2007, prior to the
execution of this plan document have been administered in good faith compliance with the
requirements of Section 409A; and

     WHEREAS, the Plan is intended to comply with Section 409A of the Internal Revenue Code of
1986, as amended (“Section 409A”) and shall be construed consistently with such intent;

     NOW, THEREFORE, effective January 1, 2007, the Plan is hereby established as hereinafter set
forth.

 

 

ARTICLE
I

DEFINITIONS

     1.1 Definitions. As used herein, the following words shall have the meanings
hereinafter set forth unless otherwise specifically provided.

     (1) The term “Account” shall mean the bookkeeping account establish in the name
of each Participant under the Plan.

     (2) The term “Active Participant” shall mean each Participant who is eligible
for a Company Contribution with respect to the current Plan Year.

     (3) The term “Affiliate” shall mean any member of a controlled group of
corporations (as determined under Section 414(b) of the Code) of which the Company
is a member and any member of a group of trades or business under common control (as
determined under Section 414(c) of the Code) with the Company; any member of an
affiliated service group (as determined under Section 414(m) of the Code) of which
the Company is a member; and any other entity which is required to be aggregated
with the Company pursuant to the provisions of Section 414(o) of the Code.

     (4) The term “Beneficiary” shall mean the person or persons who, in accordance
with the provisions of Article V, is entitled to distribution hereunder in the event
a Participant dies before his interest under the Plan has been distributed to him in
full.

     (5) The term “Change in Control” shall mean a change in the ownership or
effective control of the Company or a change in the ownership of a substantial
portion of the assets of the Company that constitutes a “change in control” under
Section 409A.

     (6) The term “Code” shall mean the Internal Revenue Code of 1986, as amended
from time to time. Reference to a section of the Code shall include such section
and any comparable section or sections of any future legislation that amends,
supplements, or supersedes such section.

     (7) The term “Committee” shall mean the Management Development and Compensation
Committee of the Board of Directors of Cooper Industries, Ltd.

     (8) The term “Company” shall mean Cooper US, Inc., its corporate successors,
and the surviving corporation resulting from any merger of Cooper US, Inc. with any
other corporation or corporations.

     (9) The term “Compensation” shall mean base salary and any management incentive
bonus of a Participant for a Plan Year that is paid in the

2

 

following year, calculated before any reduction for compensation voluntarily
deferred or contributed by or on behalf of a Participant under all qualified and
nonqualified plans of the Employer and including amounts deferred to plans of the
Employer pursuant to provisions of Sections 125, 129, 132(f), 402(e)(3), or 402(h)
of the Code.

     (10) The term “Disability” shall mean that the Participant (i) is unable to
engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than twelve months or (ii) is,
by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of
not less than twelve months, receiving income replacement benefits for a period of
not less than three months under a welfare benefit plan covering employees of the
Employer.

     (11) The term “Election Form” shall mean the form which may be electronic,
telephonic or hard copy and on which a Participant elects the manner in which he
shall receive distribution of his Account.

     (12) The term “Eligible Employee” shall mean any highly compensated or select
management employee of the Company or an Affiliate who is approved in advance of
each Plan Year by the Committee to participate in the Plan for such Plan Year.

     (13) The term “Employer” shall mean the Company as well as any Affiliates of
the Company that is designated as a participating employer under the Plan by the
Plan Administrator.

     (14) The term “ERISA” shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time. Reference to a section of ERISA shall include
such section and any comparable section or sections of any future legislation that
amends, supplements, or supersedes such section.

     (15) The term “Former SEDB Participant” shall mean each Participant in the SEDB
Plan who was actively employed by the Company on January 1, 2007 and whose account
under the SEDB Plan was transferred to the Plan on March 31, 2007, and who shall
thereafter be an Inactive Participant in the Plan, unless he is selected to be an
Active Participant with respect to a Plan Year.

     (16) The term “Inactive Participant” shall mean any Former SEDB Participant and
any former Active Participant, who has an Account under the Plan.

     (17) The term “Participant” shall mean any Active Participant as well as any
Inactive Participant.

3

 

     (18) The term “Plan” shall mean the Cooper US, Inc. Supplemental Executive
Retirement Plan as established effective January 1, 2007, with all amendments,
supplements, and modifications hereafter made.

     (19) The term “Plan Administrator” shall mean the Company.

     (20) The term “Plan Year” shall mean the calendar year.

     (21) The term “Retirement” shall mean a Separation from Service by a
Participant on or after the attainment of age 65.

     (22) The term “SEDB Plan” shall mean the Cooper US, Inc. Supplemental Excess
Defined Benefit Plan.

     (23) The term “Section 409A” shall mean Section 409A of the Code, and the
regulations and rulings promulgated thereunder.

     (24) The term “Separation from Service” shall mean the termination of
employment of a Participant with the Company and all Affiliates for any reason other
than death; provided, however, that a Company-approved leave of absence shall not be
considered a termination of employment if the leave does not exceed six months or,
if longer, so long as the Participant’s right to reemployment is provided either by
statute or by contract. Notwithstanding the foregoing, whether or not a Participant
has incurred a Separation from Service shall be determined in accordance with
Section 409A.

     (25) The term “SERP Contribution Percentage” shall mean the percentage of
Compensation that is selected by the Committee and credited under the Plan with
respect to a Participant for a Plan Year.

     (26) The term “Specified Employee” shall mean a “specified employee” within the
meaning of Section 409A and the Company’s Specified Employee identification policy,
if any.

     (27) The term “Years of Service” shall mean a year of service as defined in the
Cooper US, Inc. Retirement Savings and Stock Ownership Plan.

     1.2 Construction.  Where necessary or appropriate to the meaning herein, the singular
shall be deemed to include the plural and the masculine pronoun to include the feminine.

4

 

ARTICLE II

ELIGIBILITY FOR PLAN PARTICIPATION

     2.1 Active Participants. Prior to the first day of such Plan Year, the Committee
shall approve the selection of certain Company officers and certain division presidents as an
Active Participant in the Plan with respect to such Plan Year as well as the Compensation
Percentage of each such Active Participant for such Plan Year. Upon being so selected and prior to
the first day of such Plan Year, each Active Participant shall complete and return all necessary
Election Forms. All Election Forms of a Participant must be consistent and comply with the
provisions of Article V.

     2.2 Former SEDB Participants. Effective as of March 31, 2007, the account of each
participant in the SEDB Plan who was actively employed by the Company on January 1, 2007, shall be
transferred to the Plan and credited to an Account under the Plan in the name of such Participant
and thereafter administered pursuant to the terms of the Plan. Upon such transfer each Former SEDB
Plan Participant shall complete and file an Election Form with respect to the distribution of such
Account. All Election Forms of a Participant must be consistent and comply with the provisions of
Article V.

5

 

ARTICLE III

COMPANY CONTRIBUTIONS

     3.1 Amount of Company Contributions.  Except as specifically provided otherwise in the
Plan, within 30 days of payment of any bonus earned for a Plan Year under the Cooper US, Inc.
Management Annual Incentive Plan, the Account of each Active Participant shall be credited with a
Company Contribution for such Plan Year that is based upon his Compensation for such Plan Year
multiplied by his Compensation Percentage for such Plan Year.

     3.2 Eligibility for Company Contributions. Notwithstanding any other provision of the
Plan, the Account of an Active Participant shall only be credited with a Company Contribution (i)
for a Plan Year prior to the 2009 Plan Year, if such Active Participant is employed by the Company
or an Affiliate on the date such Company Contribution is to be credited to the Participant’s
Account, and (ii) for any Plan Year after the 2008 Plan Year, if such Active Participant is
employed by the Company or an Affiliate on the date such Company Contribution is to be credited to
the Participant’s Account or if such Participant incurred a Separation from Service during such
Plan Year or in the immediately following Plan Year and prior to the contribution crediting date
due to death, Disability, or Retirement or in the discretion of the Committee after attainment of
age 55 with at least 5 years of Vesting Service.

     3.3 Vesting. Company Contributions credited to the Accounts of Active Participants
pursuant to the provisions of Section 3.1 and 3.2 shall be fully vested pursuant to the schedule
set forth below.

	 	 	 	 	 
	Years of Vesting Service	 	Vested Percentage
	0 to less than 5
	 	 	0	 
	5 or more
	 	 	100	%

6

 

ARTICLE IV

ACCOUNTS AND DEEMED INTEREST

     4.1 Establishment and Crediting of Accounts.  Each Participant shall have a
bookkeeping Account established in his name that will reflect any Company Contributions of the
Participant as well as any transferred account balances from the SEDB Plan on March 31, 2007, and
interest credited thereon pursuant to Section 4.2.

     4.2 Adjustment of Accounts.   Each Account shall be deemed to earn, and shall be
credited daily with, a rate of interest equal to the average prime rate published by JPMorgan chase
Bank for the immediately prior calendar quarter.

7

 

ARTICLE V

DISTRIBUTION

     5.1 Distributions. Subject to the provisions of Section 5.2, 5.3, 5.5, 5.6, 5.7, and
5.8, on and after January 1, 2007, the Accounts of a Participant shall be distributed to a
Participant or his Beneficiary in the form and time set forth on the Election Form filed with the
Company or its designee by the Participant in accordance with procedures established by the Plan
Administrator. The elections made on an Election Form shall continue in effect for future Plan
Years unless subsequent elections pursuant to the provisions of Section 5.3 are made and become
effective. Notwithstanding the foregoing provisions of this Section 5.1, in the event any
Participant fails to file an Election Form indicating the time and form of the distribution of his
Account, his Account shall be distributed in a lump sum payment on the first payroll date of the
seventh month following his Separation from Service; provided however, that such distribution
provisions shall be subject to the provisions of Section 5.6, 5.7 and 5.9.

     5.2 Payment Options. Except as otherwise provided in this Article V and subject to
the provisions of Section 9.7, the Account of a Participant shall be paid to such Participant under
one of the following options elected by the Participant:

	 	(a)	 	Single Sum Option – Payment in a single sum as of the
first day of the calendar year quarter immediately after the Participant’s
Commencement Date.
	 
	 	(b)	 	Installment Option – Payment in annual installments as
of the first day of the calendar year quarter immediately after the
Participant’s Commencement Date over a period of 3, 5, 7, or 10 years as
specified by the Participant on his Election Form. To the extent permitted by
Section 409A, installment payments shall be treated as a single payment.

For purposes hereof, a Participant’s Commencement Date shall be the .5, 3, 5, or 10 year
anniversary of the Participant’s Separation from Service as indicated on the Participant’s Election
Form. Notwithstanding the foregoing, subject to the requirements of Section 409A, if

8

 

the balance of a Participant’s Account on his Separation from Service is less than $25,000, such
amount shall be paid to him in a single sum payment (in lieu of any other payment method that he
may have elected) on the first day of the calendar year quarter immediately following the six-month
anniversary of such Participant’s Separation from Service.

     5.3 Alternative Payment Forms. Subject to the Company’s consent, a Participant who is
employed by the Employer may elect to delay payment or to change the form of payment of his
Account, if all the following conditions are met:

     (i) Such election will not take effect until at least twelve months after the date on
which the election is made; and

     (ii) The payment with respect to which such election is made is deferred for a period
of not less than five years from the date such payment would otherwise be made; and

     (iii) Any election for a “specified time (or pursuant to a fixed schedule)” within the
meaning of Section 409A(a)(2)(A)(iv) of the Code, may not be made less than twelve months
prior to the date of the first scheduled payment.

To the extent permitted under Section 409A, installment payments shall be treated as a single
payment.

     5.4 No Acceleration. Except as permitted under Section 409A, no acceleration of the
time or form of payment of a Participant’s Account under the Plan shall be permitted.

     5.5 Special Transition Elections.

          (a) Changes in Payment Elections. During 2007 and 2008, a Participant may make an
election(s) to receive payment of his Account without complying with the requirements of
Section 5.2 or 5.1; provided, however, that such election(s) shall only be effective:

(i) If made in 2007, it applies only to amounts that would not otherwise be payable
in 2007 and does not cause an amount to be paid in 2007 that would not otherwise be
payable in 2007; and

9

 

(ii) If made in 2008, it applies only to amounts that would not otherwise be payable
in 2008 and that does not cause an amount to be paid in 2008 that would not
otherwise be payable in 2008.

     5.6 Section 409A Violation. If the Plan fails to meet the requirements of
Section 409A with respect to a Participant, the Company shall distribute the amount required to be
included in such Participant’s gross income as a result of such failure within 60 days of the
Company’s determination of such compliance failure.

     5.7 Payment Upon Change in Control. Notwithstanding any provision of the Plan to the
contrary, to the extent permitted under Section 409A, the balance of the Account of a Participant
under the Plan shall be paid to such Participant within 15 days following a Change in Control.

     5.8 Payment Upon Disability. Notwithstanding any provision of the Plan to the
contrary, to the extent permitted under Section 409A, the balance of the Account of a Participant
who incurs a Disability shall be paid to such Participant as of the first day of the calendar year
quarter following a decision by the Plan Administrator that the Participant has incurred a
Disability.

     5.9 Rules. Subject to the provisions of Section 409A, the Plan Administrator may from
time to time adopt additional policies or rules governing the manner in which distributions are
made from the Plan so that the Plan may be conveniently administered and comply with Section 409A.

10

 

ARTICLE VI

BENEFICIARIES

     In the event a Participant dies before his interest under the Plan has been distributed to him
in full, any remaining interest shall be distributed in a single sum to his Beneficiary who shall
be the person designated as his beneficiary on the beneficiary designation form provided by and
filed with the Employer or its designee. If the Participant does not designate a Beneficiary, the
Beneficiary shall be his surviving spouse. If the Participant does not designate a Beneficiary and
has no surviving spouse, the Beneficiary shall be the Participant’s estate. The designation of a
Beneficiary may be changed or revoked only by filing a new beneficiary designation form with the
Plan Administrator or its designee. If a Beneficiary (the “Primary Beneficiary”) is receiving or
is entitled to receive payments under the Plan and dies before receiving all of the payments due
him, the balance to which he is entitled shall be paid to the Contingent Beneficiary, if any, named
in the Participant’s current beneficiary designation form. If there is no Contingent Beneficiary,
the balance shall be paid to the estate of the Primary Beneficiary. Any Beneficiary may disclaim
all or any part of any benefit to which such Beneficiary shall be entitled hereunder by filing a
written disclaimer with the Plan Administrator before payment of such benefit is to be made. Such
a disclaimer shall be made in form satisfactory to the Plan Administrator and shall be irrevocable
when filed. Any benefit disclaimed shall be payable from the Plan in the same manner as if the
Beneficiary who filed the disclaimer had died on the date of such filing. Notwithstanding the
foregoing, the six-month delay applicable to Participants under Article V shall not apply to any
Beneficiary.

11

 

ARTICLE VII

ADMINISTRATIVE PROVISIONS

     7.1 Administration. The Plan shall be administered by the Plan Administrator in a
manner consistent with the requirements of Section 409A, as from time to time amended.

     7.2 Powers and Authorities of the Plan Administrator. The Plan Administrator shall
have full power and authority to interpret, construe and administer the Plan and its
interpretations and construction hereof, and actions hereunder, including the timing, form, amount
or recipient of any payment to be made hereunder, shall be binding and conclusive on all persons
for all purposes. The Plan Administrator may delegate any of its powers, authorities, or
responsibilities for the operation and administration of the Plan to any person or committee so
designated in writing by it and may employ such attorneys, agents, and accountants as it may deem
necessary or advisable to assist it in carrying out its duties hereunder. No member of the
Committee shall be liable to any person for any action taken or omitted in connection with the
interpretation and administration of the Plan unless attributable to his own willful misconduct or
lack of good faith. Members of the Committee shall not participate in any action or determination
regarding their own benefits, if any, payable under the Plan.

          7.3 Indemnification. In addition to whatever rights of indemnification a member of
the Plan Administrator or any other person or persons to whom any power, authority, or
responsibility is delegated pursuant to Section 7.2, may be entitled under the articles of
incorporation, regulations, or by-laws of the Company, under any provision of law, or under any
other agreement, the Company shall satisfy any liability actually and reasonably incurred by any
such member or such other person or persons, including expenses, attorneys’ fees, judgments, fines,
and amounts paid in settlement, in connection with any threatened, pending, or completed action,
suit, or proceeding which is related to the exercise or failure to exercise by such member

12

 

or such other person or persons of any of the powers, authority, responsibilities, or
discretion provided under the Plan.

          7.4 Claims Review. Any Eligible Employee or Participant, as the case may be, who is
eligible for a benefit under the Plan, and does not receive the amount of benefit to which he
believes he is entitled, may submit an application therefor to the Plan Administrator requesting
such distribution or withdrawal. The Plan Administrator shall accept, reject or modify such
request and shall notify the requesting party in writing, setting forth the response of the Plan
Administrator and, in the case of a denial or modification, the Plan Administrator shall:

	 	(a)	 	state the specific reason or reasons for the denial or modification;
	 
	 	(b)	 	provide specific reference to pertinent Plan provisions on which the denial or
modification is based;
	 
	 	(c)	 	provide a description of any additional material or information necessary for
the requesting party to perfect the claim and an explanation of why such material or
information is necessary; and
	 
	 	(d)	 	explain the Plan’s claim review procedures as contained herein.

          In the event the request is denied or modified, if the requesting party desires to have such
denial or modification reviewed, he must, within 60 days following receipt of the notice of such
denial or modification, submit a written request for review by the Plan Administrator of the
initial decision of the Plan Administrator. As soon as practicable, and in no event later than 120
days following such request for review, the Plan Administrator shall, after providing a full and
fair hearing, render its final decision in writing to the requesting party stating specific reasons
for such decision.

13

 

ARTICLE VIII

AMENDMENT AND TERMINATION

     The Company may amend, modify, suspend or terminate (individually or in the aggregate, a
“Change”) the Plan for any purpose or extend the Plan to any Affiliate by action of the Plan
Administrator, except that: (i) no Change shall adversely affect the benefit amount that any
Participant is receiving or is eligible to receive under the Plan, unless an equivalent benefit is
otherwise provided under another plan or program sponsored by the Company or any of its
subsidiaries; and (ii) no distribution of a Account subject to the Plan shall occur unless the
requirements of Section 409A have been met.

14

 

ARTICLE IX

MISCELLANEOUS

     9.1 Non-Alienation of Benefits. No benefit under the Plan shall at any time be
subject in any manner to alienation or encumbrance. If any Participant or Beneficiary shall
attempt to, or shall, alienate or in any way encumber his benefits under the Plan, or any part
thereof, or if by reason of his bankruptcy or other event happening at any time any such benefits
would otherwise be received by anyone else or would not be enjoyed by him, his interest in all such
benefits shall automatically terminate and the same shall be held or applied to or for the benefit
of such person, his spouse, children, or other dependents as the Plan Administrator may select.

     9.2 Payment of Benefits to Others. If any Participant or Beneficiary to whom a
benefit is payable is unable to care for his affairs because of illness or accident, any payment
due (unless prior claim therefor shall have been made by a duly qualified guardian or other legal
representative) may be paid to the spouse, parent, brother, or sister, or any other individual
deemed by the Plan Administrator to be maintaining or responsible for the maintenance of such
person. Any payment made in accordance with the provisions of this Section 9.2 shall be a complete
discharge of any liability of the Plan with respect to the benefit so paid.

     9.3 Plan Non-Contractual. Nothing herein contained shall be construed as a commitment
or agreement on the part of any person employed by an Employer to continue his employment with an
Employer, and nothing herein contained shall be construed as a commitment on the part of an
Employer to continue the employment or the annual rate of compensation of any such person for any
period, and all Participants shall remain subject to discharge to the same extent as if the Plan
had never been established.

15

 

     9.4 Funding. In order to provide a source of payment for its obligations under the
Plan, the Company may establish a grantor trust. Subject to the provisions of the trust agreement
governing such grantor trust, the obligation of an Employer under the Plan to provide a Participant
or a Beneficiary with a benefit constitutes the unsecured promise of such Employer to make payments
as provided herein, and no person shall have any interest in, or a lien or prior claim upon, any
property of an Employer.

     9.5 Controlling Status. No Participant shall be eligible for a benefit under the Plan
unless such Participant is a Participant on the date of his retirement, death, or other termination
of employment.

     9.6 Claims of Other Persons. The provisions of the Plan shall in no event be
construed as giving any person, firm or corporation any legal or equitable right as against an
Employer, its officers, employees, or directors, except any such rights as are specifically
provided for in the Plan or are hereafter created in accordance with the terms and provisions of
the Plan.

     9.7 Specified Employees. Notwithstanding anything in the Plan to the contrary, in the
event that a Participant is a Specified Employee at the time of his Separation from Service, to the
extent his benefit under the Plan constitutes “nonqualified deferred compensation” within the
meaning of Section 409A, no Plan benefit shall be paid or begin to be paid to him until the 30-day
period commencing after the six-month period following his Separation from Service; provided,
however, that if such 30-day period begins in one calendar year and ends in another, such
Participant shall have no right to designate the calendar year of payment.

     9.8 Section 409A. Notwithstanding any provision to the contrary in the Plan, nothing
shall restrict the Company’s right to amend the Plan, without the consent of Participants and

16

 

without additional consideration to affected Participants, to the extent necessary to avoid
taxation, penalties, and/or interest arising under Section 409A, even if such amendments reduce,
restrict, or eliminate rights granted thereunder before such amendments. Although the Company
shall use its best efforts to avoid the imposition of taxation, penalties, and/or interest under
Section 409A, tax treatment of deferrals and other credits under the Plan is not warranted or
guaranteed. If, at any time, it is determined that amounts deferred pursuant to the Plan are
currently taxable to a Participant or his Beneficiary under Section 409A, the amounts credited to
such Participant’s Account which become so taxable shall be distributed immediately to him;
provided, however, that in no event shall amounts so payable under the Plan to a Participant exceed
the value of his Account. Notwithstanding the foregoing, the Company, any Affiliate, or any
delegate shall not be held liable for any taxes, penalties, interest or other monetary amount owed
by any Participant, Beneficiary, or other person as a result of the deferral or payment of any
amounts under the Plan or as a result of the administration of amounts subject to the Plan.

     9.9 Severability. The invalidity or unenforceability of any particular provision of
the Plan shall not affect any other provision hereof, and the Plan shall be construed in all
respects as if such invalid or unenforceable provision were omitted herefrom.

     9.10 Governing Law. The provisions of the Plan shall be governed and construed in
accordance with the laws of the State of Texas.

     Executed at Houston, Texas this                      day of December 2008.

	 	 	 	 	 
	 	COOPER US, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]