Document:

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                                                                    Exhibit 10.8
                                                                       EXHIBIT I

                   TAX SHARING AND INDEMNIFICATION AGREEMENT

                                By and Between

                              APPLIED POWER INC.

                                      and

                                   APW LTD.

                            Dated __________, 2000
<PAGE>

                                                                       EXHIBIT I

                               TABLE OF CONTENTS

                   TAX SHARING AND INDEMNIFICATION AGREEMENT

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ARTICLE I
             DEFINITIONS
     1.1     Affiliated Group..............................................  2
     1.2     API Group.....................................................  2
     1.3     APW Group.....................................................  2
     1.4     Code..........................................................  2
     1.5     Consolidated Returns..........................................  2
     1.6     Contribution..................................................  2
     1.7     Date of Distribution or Distribution Date.....................  2
     1.8     Distribution..................................................  2
     1.9     Expenses......................................................  2
     1.10    Final Determination...........................................  2
     1.11    IRS...........................................................  3
     1.12    Party.........................................................  3
     1.13    Restructuring Taxes...........................................  3
     1.14    Tax or Taxes..................................................  3
     1.15    Taxing Authority..............................................  3
     1.16    Tax Controversy...............................................  3
     1.17    Tax Item......................................................  3
     1.18    Tax Returns...................................................  3

ARTICLE II
             LIABILITY FOR PRE-DISTRIBUTION AND OTHER TAX LIABILITIES
     2.1     Taxes.........................................................  4
             (a)   Current and Prior Consolidated Return Periods...........  4
             (b)   Future Periods..........................................  4
             (c)   Separate Return Periods.................................  4
             (d)   Zero Consolidated Returns...............................  4
     2.2     Indemnification for Restructuring Taxes.......................  5

ARTICLE III
             REFUNDS OF CREDITS AND TAXES
     3.1     Refunds and Credits...........................................  5
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ARTICLE IV
             TAX RETURN PREPARATION
     4.1     Tax Returns...................................................  5
     4.2     Post-Distribution Tax Returns.................................  5
     4.3     Cooperation; Exchange of Information..........................  5

ARTICLE V
             TAX AUDITS
     5.1     Tax Controversies.............................................  6
     5.2     Cooperation...................................................  6
     5.3     Record Retention..............................................  7

ARTICLE VI
             PAYMENTS
     6.1     Payments in General...........................................  7
     6.2     Payment of Restructuring Taxes................................  7
     6.3     Interest on Late Payments.....................................  7

ARTICLE VII
             ADMINISTRATIVE PROVISIONS
     7.1     Interest......................................................  7
     7.2     Expenses......................................................  7

ARTICLE VIII
             DISPUTE RESOLUTION
     8.1     General.......................................................  8
     8.2     Arbitration...................................................  8
     8.3     Legal Proceedings.............................................  8

ARTICLE IX
             MISCELLANEOUS
     9.1     Termination of Tax Sharing Agreement..........................  8
     9.2     Enforceability................................................  8
     9.3     Modification of Agreement.....................................  8
     9.4     Successors and Assigns........................................  8
     9.5     Term..........................................................  9
     9.6     Rights Confined to Parties....................................  9
     9.7     Notices.......................................................  9
     9.8     Effect of Headings............................................  9
     9.9     Governing Law.................................................  9
     9.10    Counterparts..................................................  9
</TABLE>

                                    I-ToC-ii
<PAGE>

                                                                       EXHIBIT I

                   TAX SHARING AND INDEMNIFICATION AGREEMENT

     This Tax Sharing and Indemnification Agreement dated __________, 2000, is
entered into by and between APPLIED POWER INC., a Wisconsin corporation, with
offices at 6101 N. Baker Road, Milwaukee, Wisconsin 53209 ("API"), and APW LTD.,
a Bermuda corporation, with offices at N22 W23685 Ridgeview Parkway West,
Waukesha, Wisconsin  53188-1013 ("APW").

     WHEREAS, API and APW have entered into a Contribution Agreement, Plan and
Agreement of Reorganization and Distribution dated __________, 2000 (the
"Contribution Agreement");

     WHEREAS, API is the common parent of an "affiliated group", as that term is
defined in Section 1504 of the Code, which files consolidated federal income tax
returns and prior to APW becoming a Bermuda corporation, APW and certain of its
subsidiaries were members of such group.

     WHEREAS, pursuant to the Contribution Agreement, API and APW have agreed to
a Plan and Agreement of Reorganization and Distribution (the "Plan") which
provides for the reorganization and pro rata distribution to API shareholders of
all of the outstanding shares of the stock of APW (the "Distribution");

     WHEREAS, as a consequence of the Distribution, APW will no longer be a
subsidiary of API;

     WHEREAS, pursuant to Treas. Reg. Section 1.1502-6, API and each subsidiary
which was a member of the API Group (as hereinafter defined but excluding any
foreign corporations) during any part of a consolidated return year is severally
liable for the consolidated federal income tax liability of the API Group for
such year;  and

     WHEREAS, API and APW desire to set forth their rights and obligations with
respect to foreign, federal, state and local taxes due for periods both before
and after the Distribution and with respect to certain tax liabilities that may
be asserted in connection with the Distribution.

     NOW THEREFORE, API on behalf of itself and members of the API Group other
than APW and its subsidiaries listed on Schedule 1 hereto, and APW, on behalf of
itself and members of the APW Group (as hereinafter defined), in consideration
of the mutual covenants contained herein, agree as follows:
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                                   ARTICLE I
                                  DEFINITIONS

For purposes of this Agreement, the following definitions shall apply:

     1.1  Affiliated Group means an affiliated group of corporations within the
meaning of section 1504(a) (determined without regard to the exceptions
contained in section 1504(b)) of the Code for the taxable period in question.

     1.2  API Group means, for each taxable period, the Affiliated Group of
which API or any successor of API is the common parent.

     1.3  APW Group means APW and the subsidiaries listed on Schedule 1.

     1.4  Code means the Internal Revenue Code of 1986, as amended from time to
time.

     1.5  Consolidated Returns means the consolidated United States federal
income tax returns of the API Group for consolidated return years beginning
before the Date of Distribution and any consolidated, unitary or combined state
income tax returns of any members of the API Group for taxable years beginning
before the Date of Distribution.

     1.6  Contribution shall mean the transfer to APW by API of those certain
assets of API as set forth in and pursuant to the Contribution Agreement.

     1.7  Date of Distribution or Distribution Date means the date on which the
Distribution occurs.

     1.8  Distribution shall mean the distribution as defined in the recitals.

     1.9  Expenses means out-of-pocket expenses paid to third party providers
and shall not include any overhead or indirect costs.

     1.10 Final Determination means the final resolution of liability for any
Tax for a taxable period (i) by IRS Form 870 or 870-AD (or any successor forms
thereto), on the date of acceptance by or on behalf of the IRS, or by a
comparable agreement form under the laws of other jurisdictions, except that a
Form 870 or 870-AD or comparable form that reserves the right of the taxpayer to
file a claim for refund and/or the right of the taxing authority to assert a
further deficiency shall not constitute a Final Determination, to the extent of
the reservation; (ii) by a decision, judgment, decree, or other order by a court
or agency of competent jurisdiction which has become final and unappealable;
(iii) by a closing agreement or offer in compromise under Section 7121 or 7122
of the Code or any subsequently enacted corresponding provisions of the Code, or
comparable agreements under the laws of other jurisdictions; (iv) by an
allowance of a refund or credit in respect of an overpayment of Tax, but only
after the expiration of all periods during which such refund may be

                                      I-2
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recovered (including by way of offset) by the Tax imposing jurisdiction; or (v)
by any other final disposition by reason of the expiration of the applicable
statutes of limitations.

     1.11 IRS means the Internal Revenue Service.

     1.12 Party means either of the parties to this Agreement.

     1.13 Restructuring Taxes means any Taxes (including any Tax imposed as a
result of the application of Sections 311, 355(c), 361, 367(a) or 1001 of the
Code) incurred on the consummation of the transactions set forth on Schedule 2.

     1.14 Tax or Taxes means all forms of taxation, whenever created or imposed,
whether domestic or foreign, and whether imposed by a nation, locality,
municipality, government, state, federation, or other body (a "Taxing
Authority"), and without limiting the generality of the foregoing shall include
net income, alternative or add-on minimum tax, gross income, sales, use,
franchise, gross receipts, value added, ad valorem, profits, license, payroll,
withholding, social security, unemployment insurance, employment, property,
transfer, recording, excise, severance, stamp, occupation, premium, windfall
profit, custom duty, or other tax, governmental fee or other like assessment or
charge of any kind whatsoever, together with any related interest, penalties or
other additions to tax, or additional amounts imposed by any such Taxing
Authority.

     1.15 Taxing Authority means any federal, national, foreign, state,
municipal or other local government, or any subdivision, agency, commission or
authority thereof or any quasi-governmental body or other authority exercising
any taxing or tax regulatory authority.

     1.16 Tax Controversy means any audit, examination, dispute, suit, action,
litigation or other judicial or administrative proceeding by or against the IRS
or any other Taxing Authority.

     1.17 Tax Item means any item of income, gain, loss, deduction, credit,
recapture of credit or any other item including, but not limited to, an
adjustment under Code Section 481 resulting from a change in accounting method
which increases or decreases taxes paid or payable.

     1.18 Tax Returns means all reports, estimates, declarations of estimated
tax, information statements, returns or other documents required to be filed in
connection with any Taxes, including but not limited to requests for extensions
of time, information statements and reports, claims for refund, and amended
returns.

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                                  ARTICLE II
           LIABILITY FOR PRE-DISTRIBUTION AND OTHER TAX LIABILITIES

     2.1  Taxes.

          (a)  Current and Prior Consolidated Return Periods.  Except as
               ---------------------------------------------
otherwise provided in this Agreement:  (i) API shall pay, on a timely basis, all
Taxes based upon income of the API Group required to be shown in Consolidated
Returns for the taxable year that includes the Distribution Date (the "2000
Income Taxes") and for all periods ending prior to the Distribution Date and
(ii) API hereby assumes all such liability and shall indemnify and hold harmless
APW and any member of the APW Group from and against any share or amount of the
2000 Income Taxes and all income taxes based upon income of the API Group
required to be shown in Consolidated Returns for periods ending prior to the
Distribution Date; provided that, in the event of any income Tax Controversies
of the API Group for 2000 Income Taxes and for all periods ending prior to the
Distribution Date, APW assumes and shall indemnify and hold harmless API and the
members of the Affiliated Group of which API is a member from all income Taxes
(other than Restructuring Taxes which are separately provided for in Section 2.2
hereof) in excess of $1,000,000 resulting from any Final Determinations based
upon adjustments to the separate taxable income of any member of the APW Group.

          (b)  Future Periods.  Except as otherwise provided in this Agreement:
               --------------

               (i)  APW and the members of the APW Group shall pay, on a timely
basis, all Taxes based upon income of the APW Group for any period beginning
after the Distribution Date, and APW shall indemnify and hold harmless API and
the members of any Affiliated Group of which API is a member from and against
all income Taxes based upon the income of the APW Group for any period beginning
after the Distribution Date; and

               (ii) API and the members of any Affiliated Group of which API is
a member shall pay, on a timely basis, all Taxes based upon the income of such
Affiliated Group for any period beginning after the Distribution Date and API
shall indemnify and hold harmless APW and any member of the APW Group from and
against all income Taxes based upon the income of the Affiliated Group of which
API is a member for any period beginning after the Distribution Date.

          (c)  Separate Return Periods.  Except as otherwise provided in this
               -----------------------
Agreement, each member of the API Group and the APW Group shall be liable for
its own Taxes required to be shown in a separate return of such member for any
period filed with any Tax Authority.

          (d)  Zero Consolidated Returns.  APW shall cause Zero Corporation to
               -------------------------
pay all Taxes based upon income of Zero Corporation and its subsidiary
corporations required to be shown in consolidated, unitary or combined federal
or state income tax returns of Zero Corporation and its subsidiary corporations
for any period ending on or before the date of the acquisition by Zero
Corporation by API, and APW shall indemnify and hold harmless API from and
against any such Taxes.

                                      I-4
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     2.2  Indemnification for Restructuring Taxes.  Notwithstanding any other
provision of this Agreement to the contrary, APW shall pay, and shall indemnify
and hold harmless API and the members of any Affiliated Group of which API is a
member from and against any and all Restructuring Taxes.

                                  ARTICLE III
                         REFUNDS OF CREDITS AND TAXES

     3.1  Refunds and Credits.  Each Party shall be entitled to all refunds or
credits of any Tax, including without limitation, in the case of APW, any
refunds or credits attributable to Restructuring Taxes, for which such Party is
liable hereunder. Any Party receiving a refund or credit (and interest, if any,
with respect thereto) that is for the account of another Party hereunder shall
promptly and, in any event, no later than five business days following its
receipt, pay to the other Party such refund or credit (and any interest with
respect thereto).

                                  ARTICLE IV
                            TAX RETURN PREPARATION

     4.1  Tax Returns.

          API and APW shall jointly prepare and timely file all Consolidated
Returns for the 2000 Income Taxes and other Tax Returns for any period beginning
before or ending on the Distribution Date, if not already filed. APW shall
control the decisions in the preparation of such Tax Returns for which it has
liability hereunder (including without limitation all items regarding
Restructuring Taxes) and API shall control the decisions in the preparation of
such Tax Returns for which it has liability hereunder. Such Consolidated Returns
shall be prepared and filed in compliance with applicable tax laws and on a
basis that is consistent with API's prior Tax Returns.

     4.2  Post-Distribution Tax Returns.  All Tax Returns of the APW Group for
periods beginning after the Distribution Date shall be filed by APW or the
appropriate member of the APW Group, and all Tax Returns of the Affiliated Group
of which API is a member for periods beginning after the Distribution Date shall
be filed by API or the appropriate member of the Affiliated Group of which API
is a member. APW, with the assistance of API as needed, shall be responsible for
providing information to shareholders as APW may determine for purposes of
Treasury Regulations, Section 1.355-5(b).

     4.3  Cooperation; Exchange of Information.  Each Party shall promptly
deliver to the other Party all information of which it has knowledge regarding
any Tax Item which may properly be included in any Tax Return to be filed by the
other Party, and shall provide any and all other information and documentation
(including, but not by way of limitation, working papers and schedules)
reasonably requested by the other Party for use in connection with the
preparation and filing of any Tax Returns.

                                      I-5
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                                   ARTICLE V
                                  TAX AUDITS

     5.1  Tax Controversies.

          (a)  Except as otherwise provided in this Article V, API shall have
full responsibility and discretion in handling, settling or contesting any Tax
Controversy involving a Tax Return for which it has liability, and any legal and
accounting costs incurred in handling, settling or contesting any such Tax
Controversy shall be borne by API.

          (b)  APW shall have full responsibility and discretion in handling,
settling or contesting any Tax Controversy which involves matters for which APW
is obligated to indemnify API under Section 2.1 or 2.2 of this Agreement. API
shall immediately inform APW of any such Tax Controversy and any legal and
accounting costs incurred in handling, setting or contesting any such Tax
Controversy shall be borne by APW. APW shall attend and control any meeting with
representatives of a Taxing Authority concerning Restructuring Taxes.

     5.2  Cooperation.  API and APW agree to afford full cooperation to one
another and to their respective representatives, if any, in any Tax Controversy
involving:

          (a)  any Tax Return filed or required to be filed by or for any member
of the API Group for any pre-Distribution period or period which includes the
Distribution Date, or

          (b)  any item or issue affecting API or APW's potential liability
hereunder.

          Such cooperation shall include, but not by way of limitation:

               (i)   preparing responses to information requests by any Taxing
          Authority;

               (ii)  making available books, records and other documentation
          (including, but not by way of limitation, working papers and
          schedules) relevant to such proceeding, and systems support for
          documentation furnished in electronic form;

               (ii)  making directors, officers or employees available to appear
          in person for interview or for testimony;

               (iv)  making employees available on a mutually convenient basis
          to provide additional information and explanation of materials
          provided hereunder;

               (v)   executing powers of attorney, tax information
          authorizations and any other necessary or appropriate authorizations;

                                      I-6
<PAGE>

               (vi)  executing agreements with the Taxing Authority or other
          documents reasonably necessary or appropriate for the settlement or
          pursuit of the contest of such issue; and

               (vi)  doing whatever is reasonable in the circumstances to assist
          the other Party.

     5.3  Record Retention.  The parties agree to retain all books, records,
returns, schedules, documents and all material papers or relevant items of
information for periods ending on or  prior to the Date of Distribution for the
later of (i) seven (7) years or (ii) the full period of the applicable statute
of limitations, including any extensions thereof.

                                  ARTICLE VI
                                   PAYMENTS

     6.1  Payments in General.  Except as otherwise provided in this Agreement,
any amount required to be paid by one Party pursuant to this Agreement shall be
paid in immediately available funds within thirty (30) days after written demand
therefor from the other Party given after a Final Determination of the amount
thereof.

     6.2  Payment of Restructuring Taxes.  APW shall pay to API or to the
applicable Tax authority as APW may determine the amount of Restructuring Taxes
which APW is obligated to pay pursuant to Section 2.2 hereof. Such payment of
Restructuring Taxes by APW shall be made at the time such Taxes are due,
including estimated Tax payments which take into account its liability for the
Restructuring Taxes as and when such estimated Tax payments are required to be
made.

     6.3  Interest on Late Payments.  Any amount payable under this Agreement
by one Party to another Party shall, if not paid within ten (10) business days
after the due date specified in this Agreement (or in the case of payments
pursuant to Section 6.2 hereof if not paid when due), bear interest from the
due date until the date paid at the applicable Federal short term rate as
defined in Section 6621 of the Code in effect on the due date.

                                  ARTICLE VII
                           ADMINISTRATIVE PROVISIONS

     7.1  Interest.  Except as expressly provided herein, no obligation to pay
or right to collect interest or other amounts shall arise by virtue of this
Agreement.

     7.2  Expenses.  Except as otherwise provided in this Agreement, each Party
to this Agreement hereby agrees to be responsible for all of the Expenses which
it may incur in carrying out its duties hereunder.

                                      I-7
<PAGE>

                                 ARTICLE VIII
                              DISPUTE RESOLUTION

     8.1  General.  In an effort to resolve informally and amicably any claim or
controversy arising out of or related to the interpretation or performance of
this Agreement without resorting to litigation, a party shall first notify the
other of any difference or dispute hereunder that requires resolution. API and
APW each shall designate an employee to investigate, discuss and seek to settle
the matter between them. If the two are unable to settle the matter within 30
days after such notification (or such longer period as may be agreed upon), the
matter shall be submitted to a senior officer of API and APW, respectively, for
consideration.

     8.2  Arbitration.  If settlement cannot be reached through the efforts of
the senior officers within an additional 30 days or such longer period as may be
agreed upon, the parties shall consider arbitration or other alternative means
to resolve the dispute.

     8.3  Legal Proceedings.  If the parties are unable to agree on an
alternative dispute resolution mechanism within the period specified in Section
8.2, either party may initiate legal proceedings to resolve such matter.

                                  ARTICLE IX
                                 MISCELLANEOUS

     9.1  Termination of Tax Sharing Agreement.  Except for this Agreement, any
Tax sharing agreement or policy of the API Group is hereby terminated and API
and APW shall have no obligation under any such agreement or policy.

     9.2  Enforceability.  In case any one or more of the provisions contained
in this Agreement should be invalid, illegal or unenforceable, the
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby.

     9.3  Modification of Agreement.  No modification, amendment or waiver of
any provision of this Agreement shall be effective unless the same shall be in
writing, and signed by each of the Parties hereto and then such modification,
amendment or waiver shall be effective only in the specific instance and for the
purpose for which given.

     9.4  Successors and Assigns.  Except as hereinafter provided, neither this
Agreement nor any rights hereunder shall be assignable or transferable by either
Party hereto, without the prior written consent of the other Party hereto,
except by operation of law. Each Party hereby guarantees the performance of all
actions, agreements and obligations provided for under this Agreement of each of
its subsidiaries. Each Party shall, upon the written request of the other Party,
cause any of its subsidiaries formally to execute this Agreement. This Agreement
shall be binding upon, and shall inure to the benefit of, the successors,
assigns and persons controlling any of the corporations bound

                                      I-8
<PAGE>

hereby for so long as such successors, assigns or controlling persons are a
subsidiary of a Party or its successors and assigns by operation of law.

     9.5  Term.  This Agreement shall commence on the date of execution
indicated below and shall continue in effect until otherwise agreed to in
writing by the Parties or their successors. Notwithstanding any other provision
in this Agreement, this Agreement shall remain in effect and its provisions
shall survive for the full period of all applicable statutes of limitation
(giving effect to any extension, waiver or mitigation thereof).

     9.6  Rights Confined to Parties.  Nothing expressed or implied herein is
intended or shall be constructed to confer upon or to give to any person, firm
or corporation (other than the Parties hereto, members of their Affiliated
Groups, and their successors and assigns) any right, remedy or claim under or by
reason of this Agreement or of any term, covenant or condition hereof. All
terms, covenants, conditions, promises and agreements contained herein shall be
for the sole and exclusive benefit of the Parties hereto, the members of their
Affiliated Groups, and their successors and assigns.

     9.7  Notices.  All demands, notices and communications under this Agreement
shall be in writing and shall be deemed to have been duly given if personally
delivered or sent by certified or registered United States Mail, postage
prepaid, to:

          (a)  in the case of API:
               Applied Power Inc.
               6101 N. Baker Road
               Milwaukee, Wisconsin 53209
               Attention:  ___________________

          (b)  in the case of APW Ltd.:
               APW Ltd.
               N22 W23685 Ridgeview Parkway West
               Waukesha, WI 53188-1013
               Attention:  ___________________

     9.8  Effect of Headings.  The paragraph headings herein are for convenience
only and shall not affect the construction hereof.

     9.9  Governing Law.  The provisions of this Agreement and all rights and
obligations of the parties hereunder shall be governed by the internal laws of
the State of Wisconsin.

     9.10 Counterparts.  This Agreement may be executed in any number of
counterparts, each of which shall, when so executed, be considered an original
and all of which, taken together, shall be considered one document.

                                      I-9
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their duly authorized officers this _____ day of __________, 2000.

                                   APPLIED POWER INC.

                                   By: _________________________________________
                                       President and Chief Executive Officer

                                   APW LTD.

                                   By: _________________________________________
                                       President and Chief Executive Officer

                                     I-10<PAGE>

                                                                    Exhibit 10.9
                                                                       EXHIBIT J

                   INTERIM ADMINISTRATIVE SERVICES AGREEMENT

     This Interim Administrative Services Agreement ("Agreement"), dated as of
__________, 2000 (the "Effective Date"), is made between Applied Power Inc., a
Wisconsin corporation, with offices at 6101 N. Baker Road, Milwaukee, Wisconsin
53209 ("API"), and APW North America Inc., a Delaware corporation ("APW North
America") which will ultimately become a wholly owned subsidiary of APW LTD., a
Bermuda corporation ("APW"), with offices at N22 W23685 Ridgeview Parkway West,
Waukesha, Wisconsin 53188-1013.  The term "APW" when used in this agreement
means APW and its subsidiaries listed on Schedule 1, which generally constitute
the electronics business (collectively, "Electronics Business").  The term "API"
means API and its subsidiaries, exclusive of APW as listed on Schedule 2.

     WHEREAS, the Electronics Business was one of API's segments until the
Effective Date when it was spun off as a separate and independent company, APW
(the "Spin-off");

     WHEREAS, APW will operate the Electronics Business as a separate publicly
traded company and API will continue to operate its industrial business
("Industrial Business");

     WHEREAS, prior to the Spin-Off, API provided certain limited support
services to its Electronics Business and Industrial Business;

     WHEREAS, APW North America, a U.S. subsidiary of APW, acquired certain
corporate office functions of API and, as set forth herein, APW has acquired
certain subsidiaries of API used to provide certain support services to the
corporate headquarters and each party will provide limited support services to
other party on an interim basis; and

     WHEREAS, API desires and APW North America is willing to provide certain
administrative and support services (as herein defined) for API's operations for
certain specified interim periods after the Spin-off solely for purposes of
assisting API in the transition.  Further, one of API's subsidiaries will
provide certain information technology services to APW North America and other
subsidiaries of APW North America and one of API's European facilities will
provide certain administrative services to an APW subsidiary upon APW's request.

     NOW, THEREFORE, in consideration of the promises set forth herein, the
parties do hereby agree as follows:

     1.  Services.
         --------

         (a)  Subject to the terms and conditions provided herein, APW North
America shall provide API with Services on an interim basis, consisting of:
<PAGE>

            (i)  "Tax Services" shall mean tax preparation of the return and tax
                 compliance matters.

            (ii) "Insurance/Risk Management Services" which shall mean the
                 procurement and renewal of property, casualty and related
                 insurance policies and the administration of claims and rights.

     (b) Subject to the terms and conditions provided herein, API and its
subsidiaries shall provide APW and its subsidiaries with certain Services as
defined below:

            (i)  "Veenendaal Support" which shall mean administrative services
                 offered by API's subsidiary Enerpac Europe B.V. as presently
                 conducted. These services include invoicing, preparing purchase
                 orders, tracking of inventory, warehousing, shipping, Oracle
                 systems support, inventory storage and other general
                 administrative services currently provided as of the date of
                 this agreement at Veenendaal, Holland to support APW's Wright
                 Line operations.

            (ii) "Computer and Financial Support" which shall mean computer and
                 financial support for the corporate headquarters and related
                 Electronics Business as currently provided by the Industrial
                 Business Glendale, Wisconsin facility. Such financial services
                 shall include the payroll processing, credit support for
                 receivables, fixed asset listing and human resources services
                 currently provided to corporate and other Electronics
                 Businesses as currently provided.

     2.  Agreement Principles and Guidelines.  By this Agreement, API, APW North
         -----------------------------------
America and APW seek to implement the general principle that with the exceptions
noted herein or in the Contribution Agreement, Plan and Agreement of
Reorganization and Distribution including any Schedules, Exhibits or Annexes
thereto ("Contribution Documents"), each party will provide Services on an
interim basis similar to those previously offered to the other party while it is
not reasonably feasible for API, APW North America or APW, as the case may be,
to provide independently such Services itself.  Each party will continue to
offer Services in the same or similar magnitude as previously offered to the
other party and by this Agreement does not promise, covenant, or agree to
provide a greater level or magnitude of Services.  Each party acknowledges and
covenants to use reasonable efforts to independently provide such Services for
itself as soon as

                                      J-2
<PAGE>

reasonably feasible. If reasonably feasible, each party will provide such
Services for itself, prior to the term limits set forth in Section 4 of this
Agreement. Each party hereby acknowledges that the requirement for the other
party to use reasonable efforts to independently provide such Services as soon
as reasonably feasible is a material element and condition to this Agreement and
that failure to fully comply with such provision will give rise to, among other
provisions, the termination rights set forth in Paragraph 16(e) of this
Agreement. Nothing in this Agreement shall be construed to cause APW North
America or API to become a service bureau or to perform a Service which it
cannot provide (i) without conflict with a third-party contract to which APW,
APW North America or API is a party or (ii) a breach of any third-party contract
to which APW, APW North America or API is a party. In no event will APW, APW
North America or API be responsible for any damages if it is unable to offer or
continue to provide a Service to the other party pursuant to this paragraph.

     3.  Fees and Additional Charges.  The parties agree to pay for the Services
         ---------------------------
the amounts respectively shown on Schedule 3 hereto.

         (a) Additional Charges.  In addition to the charges set forth above,
             ------------------
API or APW North America, as the case may be, agrees to pay for any
manufacturers, sales, use, excise, personal property, or any other tax or
charge, or duty or assessment cost, expense, or fee attributable to the
execution or performance of any Service pursuant to this Agreement, except (i)
any income, franchise, doing business or similar taxes levied or assessed on or
based on such party's income, capital stock or other similar base, and (ii)
employment taxes with respect to employees of such party (including, but not
limited to, unemployment taxes, social security taxes and income tax
withholdings).  Each party also agrees to pay any fee, expense, or charge
associated with obtaining consents from any party other than such party to
utilize software or other contracts necessary to offer any Service under this
Agreement.  Each party also agrees to reimburse the other party for its
reasonable out-of-pocket expenses directly attributable to the provision of
Services hereunder.

         (b) Terms of Payment.  Each party shall pay the other party's fees and
             ----------------
any additional charges owed within fifteen (15) days of invoice.  Each party
shall also pay any collection fees and reasonable attorneys' fees incurred by
the other party in collecting payment of the charges and other amounts for which
such party is liable under the terms and conditions of this Agreement.  Without
limiting the foregoing, if one party is more then two months in arrears on any
payment, the other party may terminate this Agreement pursuant to the provisions
of Paragraph 16(e).

     4.  Term.  This Agreement shall be effective upon __________, 2000 or such
         ----
other date as agreed upon by the parties ("Effective Date").  Subject to the
requirement set forth in Section 2 that each party must use reasonable efforts
to independently provide such Services when reasonably feasible, the respective
periods Services offered by API or APW North America will be for a six-month
term.

         Each party, at its sole discretion, and upon request of the party at
least 30 days prior to termination of any Service Period, may extend the term
date for an additional period not greater than

                                      J-3
<PAGE>

six months. Such Services will then be offered at a rate of up to 200% of the
billing rate in effect at such time, subject to any subsequent adjustment
pursuant to Section 3 of this Agreement.

     5.  Subsidiaries.  To the extent such Services were previously provided to
         ------------
subsidiaries of API or APW, as the case may be, all Services shall be included
as part of the Services provided under this Agreement and shall be done in
accordance with the terms and conditions of this Agreement.  API and APW each
agree that each are responsible for assuring compliance with the Agreement by
its subsidiaries and further agrees to be responsible for the compliance with
its subsidiary's obligations in order to allow the other party to offer the
above described Services.

     6.  Equipment.  API, at its own cost, shall obtain and maintain such data
         ---------
processing, computer and communications equipment as may be necessary or
appropriate to facilitate the proper use and receipt of the Services set forth
in this Agreement.  API will be permitted access to any APW North America
equipment or property in order (i) to provide maintenance, repair or updates, or
(ii) to remove such equipment listed on its accounting records, if appropriate,
or (iii) to respond to any reasonable request related to APW's equipment.  There
will be no charge for API's right to enter APW North America's property.

     7.  Systems Modification; Amendment of Services.  Each party, at its sole
         -------------------------------------------
discretion, may modify, amend, enhance, update or provide an appropriate
replacement for any of the Services offered by this Agreement, the software used
to provide the Services or any element of its systems (hardware or software) at
any time.

     8.  Insurance and Bonds.
         -------------------

         (a)  Fidelity Bonds.  At either party's request, the other party shall
              --------------
obtain, at the requesting party's expense, fidelity bond coverage for the
employees who provide Services hereunder.

         (b)  Insurance.  Throughout the term of this Agreement, each party may
              ---------
maintain insurance coverage for losses from fire, disaster and other causes
contributing to interruption of the Services.  The proceeds of any such
insurance shall be payable to the party contracting for such insurance.  Nothing
in this Agreement shall be construed as to permit the other party to receive any
of such proceeds, or to be named as an additional loss payee under any such
insurance policy.

     9.  Responsibility.
         --------------

         (a)  General.  API and APW North America agree to perform the Services
              -------
in a reasonable manner, which is similar to services the party provides for its
own operations, and assumes no other or higher degree of care.  In connection
with providing Services, API and APW North America acknowledge that it is a
reasonable manner for the party to mail items or documents to the other party,
provided that any party may request documents or items to be delivered via
messenger, at the requesting party's cost.  Except as specifically provided
herein, the party assumes no other obligations as to performance, timing or
quality of the Services provided under this

                                      J-4
<PAGE>

Agreement; all risks of error are expressly and solely assumed by the party
receiving Services and the party providing Services shall not be responsible for
loss or damage due to delays in providing the Services under this Agreement. NO
PARTY WILL IN ANY EVENT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, OR CONSEQUENTIAL
DAMAGES INCURRED BY API INCLUDING, BUT NOT LIMITED TO, LOST PROFITS OR BUSINESS
OPERATION LOSS, REGARDLESS OF WHETHER THE PARTY WAS ADVISED OF THE POSSIBLE
OCCURRENCE OF SUCH DAMAGES. API shall be required to maintain throughout the
term of this Agreement, off-site disaster recovery capabilities which permit API
to recover from a disaster and continue providing Services to APW North America
within a commercially reasonable period.

         (b)  Reliance on the Party.  In connection with the foregoing, API and
              ---------------------
APW North America agree that the other party and its employees will have a
significant impact on the timing and quality of the performance of the Services
offered.  API and APW North America will each provide those Services described
in this Agreement on the basis of information and/or instructions furnished by
the other party.  Each party shall be entitled to rely upon any such data,
information, or instructions as provided by the other party.  If any error
results from incorrect input supplied by a party, such party shall be
responsible for discovering and reporting such error and supplying the
information or instruction necessary to correct such error to the other party.
Each party may rely upon any instrument, signature, instruction or telephone
call from any employee of the other party as to Services requested under this
Agreement.  In connection with providing such Services, neither party shall be
liable for any action taken or omitted by it in good faith and believed to have
been authorized by the other party or its employees.

     10. Warranties.  EXCEPT AS SPECIFICALLY DESCRIBED IN THIS AGREEMENT, EACH
         ----------
PARTY DISCLAIMS ALL OTHER WARRANTIES, WHETHER WRITTEN, ORAL, EXPRESSED OR
IMPLIED INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

     11. Force Majeure.  Each party shall not be liable to the other party if
         -------------
such party's fulfillment or performance of any terms or provisions of this
Agreement is delayed or prevented by revolution or other civil disorders, wars,
act of enemies, strikes, electrical equipment availability failures, labor
disputes, fires, floods, act of God, federal, state, or municipal action,
statute, ordinance or regulation, or, without limiting the foregoing, any other
causes not within its reasonable control, and which by the exercise of
reasonable diligence it is unable to prevent, whether of the class of causes
hereinbefore enumerated or not.  In case of emergency, the party may also select
the order, timeliness, or availability of providing any Services to the other
party.

     12. Employees.  All employees of APW North America providing Services to
         ---------
API will continue to remain employees of APW North America and all employees of
API providing services to APW North America will remain employees of API.

     13. Confidentiality.  The parties recognize that the rendering of Services
         ---------------
will be governed by the Confidentiality and Nondisclosure Agreement entered into
by the parties in connection with

                                      J-5
<PAGE>

the Spin-off, except the confidentiality requirements of both parties will
survive for one (1) year after termination of the Services under this Agreement,
regardless of the reason for termination. In the event of any dispute concerning
confidentiality, the parties agree to utilize the provisions of Section 14.

     14. Dispute Resolution Procedure.
         ----------------------------

         (a) General.  Subject to the parties respective rights under Section
             -------
16(e), in an effort to resolve informally and amicably any claim or controversy
arising out of or related to the interpretation or performance of this Agreement
without resorting to litigation, a party shall first notify the others of any
difference or dispute hereunder that requires resolution.  Andrew G. Lampereur
and Richard D. Carroll of API, APW and APW North America, respectively, or their
designated successor each shall investigate, discuss and seek to settle the
matter between them. If the two are unable to settle the matter within 30 days
after such notification (or such longer period as may be agreed upon), the
matter shall be submitted to another executive officer of API, APW and APW North
America, respectively, for consideration.

         (b) Arbitration.  If settlement cannot be reached through the efforts
             -----------
of the senior officers within an additional 30 days or such longer period as may
be agreed upon, API, APW and APW North America shall consider arbitration or
other alternative means to resolve the dispute.

         (c) Legal Proceedings.  If API, APW and APW North America are unable to
             -----------------
agree on an alternative dispute resolution mechanism within the period provided
in Section 14(b), either party may initiate legal proceedings to resolve such
matter.

     15. Precedence and Updating of Agreement.  This Agreement is being executed
         ------------------------------------
contemporaneously with the Contribution Documents.  To the extent the
Contribution Documents, or any other document or other agreement executed in
connection with the Contribution Documents, is in conflict with any term of
provision of this Agreement or any Exhibit to this Agreement, this Agreement
will take precedence.  To the extent this Agreement is in conflict with any
Exhibit, the Exhibit will take precedence.

     16. Miscellaneous.
         -------------

         (a) Governing Law.  This Agreement shall be construed in accordance
             -------------
with the internal laws of the State of Wisconsin.

         (b) Limitations.  Nothing in this Agreement is to be construed as an
             -----------
assignment or grant of any right, title or interest in any trademark, copyright,
design or trade dress or patent right.

         (c) Parties in Interest.  This Agreement may be assigned to a parent or
             -------------------
subsidiary of a party, or to a third party acquiring substantially all of the
assets of a party, provided that prior to such assignment the other party has
granted its written consent to the assignment, and further

                                      J-6
<PAGE>

provided that neither party may unreasonably withhold its consent to a request
for assignment. Except as provided above, this Agreement may not be assigned to
a third party.

         (d) Entire Agreement.  This Agreement and the Exhibits are the entire
             ----------------
Agreement between the Parties in connection with the matters set forth herein.
This Agreement may only be amended in writing signed by both Parties.

         (e) Termination.
             -----------

             (i) APW or APW North America may promptly terminate this Agreement
         upon written notice to API with cause for any material breach of this
         Agreement by API, unless within a period of fifteen (15) days after
         written notice API remedies the breach or proposes a course of action,
         reasonably acceptable to APW or APW North America, to remedy the breach
         within a reasonable time. API may promptly terminate this Agreement
         upon written notice to APW or APW North America with cause for any
         material breach of this Agreement by APW or APW North America, unless
         within a period of fifteen (15) days after written notice APW or APW
         North America remedies the breach or proposes a course of action,
         reasonably acceptable to API, to remedy the breach within a reasonable
         time. This Agreement will terminate automatically (to the extent
         permitted by law at the time) in the event API files a petition in
         bankruptcy, becomes insolvent, makes an assignment for the benefit of
         creditors or an arrangement pursuant to any bankruptcy law, or
         discontinues its business or has a receiver appointed for it.

             (ii) Upon any termination hereunder, API will promptly pay any
         charges or fees owed to APW North America.  There will be no cost or
         charge to APW North America or APW if either of them elects to
         terminate this Agreement.

         (f) Notices.  All notices and communications required or permitted
             -------
under this Agreement shall be in writing and any communication or delivery
hereunder shall be deemed to have been duly made if personally delivered, or if
mailed by first class mail, postage prepaid, or by air express service, with
charges prepaid and addressed as follows:

          If to API:                  Applied Power Inc.
          (must send to               6101 N. Baker Road
          both individuals            Milwaukee, Wisconsin 53209
          specified)                  Attention:  Chief Financial Officer

          If to APW North America     APW North America Inc. or APW Ltd.
          or APW Ltd.                 N22 W23685 Ridgeview Parkway West
                                      Waukesha, Wisconsin  53188-1013
                                      Attention: Richard D. Carroll

                                      J-7
<PAGE>

            Either party may, by written notice so delivered to the other,
change the address to which future delivery shall be made.

            (g)  No Reliance.  No third party is entitled to rely on any of the
                 -----------
representations, warranties and agreements of the parties contained in this
Agreement.  The parties assume no liability to any third party because of any
reliance on the representation, warranties and agreements of the parties
contained in this Agreement.

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
by their duly authorized officers this _____ day of __________, 2000.

                                       APPLIED POWER INC.

                                       By:_____________________________________
                                          President and Chief Operating Officer

                                       APW LTD.

                                       By:_____________________________________
                                          President and Chief Executive Officer

                                       APW NORTH AMERICA INC.

                                       By:_____________________________________
                                          Vice President

                                      J-8

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