Document:

<PAGE>
                                                                     EXHIBIT 4.3

         THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS SECURITY IS NOT
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS
SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY
OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR TO A
NOMINEE OF SUCH SUCCESSOR DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

<PAGE>

Registered No. 1                    Principal Amount $300,000,000, as revised by
                                    the Schedule of Increases and Decreases in
                                    Global Security attached hereto

                                    CUSIP No.  216669 AE 1
                                    ISIN:  US216669AE16

                             COOPER INDUSTRIES, INC.
                           5.25% SENIOR NOTES DUE 2007

         COOPER INDUSTRIES, INC., a corporation duly organized and existing
under the laws of the State of Ohio (herein called the "Company", which term
includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to Cede & Co. or
registered assigns the principal amount of Three Hundred Million Dollars
($300,000,000), as revised by the Schedule of Increases and Decreases in Global
Security attached hereto, on July 1, 2007 and to pay interest (computed on the
basis of a 360-day year of twelve 30-day months) on January 1 and July 1
("Interest Payment Date") in each year and on July 1, 2007 on said principal
amount, at the rate of 5.25% per annum, from the Interest Payment Date next
preceding the date of authentication of this Note to which interest has been
paid, unless the date of authentication of this Note is a date to which interest
has been paid, in which case from the date of authentication of this Note, or
unless no interest has been paid on this Note, in which case from June 21, 2002
(the "Original Issue Date"), until payment of said principal amount has been
made or duly provided for. Notwithstanding the foregoing, if the date of
authentication of this Note is on or after a Regular Record Date (as hereinafter
defined) and before the next following Interest Payment Date, this Note shall
bear interest from such Interest Payment Date, unless the Company shall default
in the payment of interest due on such Interest Payment Date, in which case this
Note shall bear interest from the next preceding Interest Payment Date to which
interest has been paid, or unless no interest has been paid on this Note, in
which case this Note shall bear interest from the Original Issue Date. Interest
payments on this Note will include interest accrued to but excluding the
Interest Payment Date. The interest so payable on any Interest Payment Date
(other than at maturity) will be paid to the person in whose name this Note is
registered at the close of business on the December 15 or June 15, as the case
may be, prior to such Interest Payment Date (whether or not a Business Day)
(each such date, a "Regular Record Date"), unless the Original Issue Date is
after a Regular Record Date and before the next following Interest Payment Date,
in which case the first payment of interest will be made on the Interest Payment
Date following the next succeeding Regular Record Date to the person in whose
name this Note is registered on such next succeeding Regular Record Date or
unless the Company shall default in the payment of interest due on any such
Interest Payment Date, in which case such defaulted interest shall be paid to
the person in whose name this Note is registered at the close of business on a
special record date for the payment of such defaulted interest established by
notice to the holders of Notes not less than ten days preceding such special
record date. Notwithstanding the foregoing, interest payable at maturity shall
be payable to the person to whom the principal is payable. In any case where the
date for any payment on the Notes is not a Business Day, such payment shall be
made on the next succeeding Business

<PAGE>

Day, and no interest shall accrue for the period from and after such date to
such next succeeding Business Day. A Business Day is any day that is not a
Saturday or Sunday and that, in New York, New York, is not a day on which
banking institutions are authorized by law to close.

         Principal of, premium, if any, and interest on this Note are payable in
immediately available funds of the United States of America which at the time of
payment is legal tender for the payment of public and private debts. Payments of
principal, premium, if any, and interest will be made in New York, New York at
the corporate trust office of JPMorgan Chase Bank, or at such other office or
agency of the Company (the "Paying Agent") as the Company shall designate
pursuant to the Indenture referred to on the reverse hereof.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

         This Note shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been signed by the Trustee
under the Indenture referred to on the reverse hereof.

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<PAGE>
                  IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed by its authorized officer.

Dated:  November 4, 2002
                                      COOPER INDUSTRIES, INC.,

                                      By:
                                         ------------------------------
                                          Vice President and Treasurer

                                      Attest:
                                             --------------------------
                                             Secretary

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

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

JPMORGAN CHASE BANK, as Trustee

By:
   --------------------------
       Authorized Officer

<PAGE>
                                [Reverse of Note]

                             COOPER INDUSTRIES, INC.

                           5.25% SENIOR NOTES DUE 2007

         This Note is one of a duly authorized issue of debentures, notes, bonds
or other evidences of indebtedness of the Company (hereinafter called the
"Securities"), of the series hereinafter specified, all issued or to be issued
under an indenture dated as of January 15, 1990, as supplemented by the First
Supplemental Indenture dated May 15, 2002, the Second Supplemental Indenture
dated June 21, 2002 and the Third Supplemental Indenture dated October 28, 2002
(hereinafter called the "Indenture"), among the Company, Cooper Industries, Ltd.
(the "Guarantor") and JPMorgan Chase Bank (formerly The Chase Manhattan Bank
(National Association)), as trustee (hereinafter called the "Trustee"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
description of the respective rights and duties thereunder of the Trustee, the
Company, the Guarantor and the holders of the Securities. The terms of this Note
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended. The Securities may be
issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be subject to different redemption provisions
(if any), may be subject to different sinking, purchase or analogous funds (if
any), may be subject to different covenants and Events of Default and may
otherwise vary as permitted in the Indenture. This Note is one of a series
designated as the "5.25% Senior Notes due 2007" of the Company (hereinafter
called the "Notes") issued under the Indenture and initially limited in
aggregate principal amount to $300,000,000. Unless otherwise provided herein,
all terms used in this Note that are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

         Pursuant to the Indenture, the Guarantor has fully and unconditionally
guaranteed to each holder of a Note authenticated and delivered by the Trustee,
and to the Trustee on behalf of such holder, the due and punctual payment of the
principal of, premium, if any, and interest, if any, on the Notes and all other
obligations of the Company under the Indenture when and as the same shall become
due and payable, whether at the stated maturity, by acceleration or otherwise,
in accordance with the terms of the Notes and of the Indenture.

         The Notes will not have a sinking fund. The Notes are not subject to
redemption except in the case of a Change in Tax Law that causes Guarantor (or a
successor) to pay Additional Amounts as provided in the Indenture. In such case,
the Notes may be redeemed in whole, but not in part, on the terms set forth in
the Indenture, together with interest accrued and unpaid on the principal amount
redeemed to the date of redemption. Notice of each redemption of any Note shall
be given to the holders of the Notes to be redeemed not less than 30 nor more
than 60 days prior to the date of redemption. If this Note is called for
redemption and payment thereof is duly provided for as specified in the
Indenture, interest shall cease to accrue hereon from and after the date of
redemption.

         The Indenture contains provisions for defeasance, at the Company's
option, at any time of (i) the entire indebtedness of this Note or (ii) certain
restrictive covenants and Events of

<PAGE>

Default with respect to this Note, in each case upon compliance with certain
conditions set forth in the Indenture.

         In case an Event of Default with respect to the Notes, as defined in
the Indenture, shall have occurred and be continuing, the principal hereof may
be declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

         The Indenture contains provisions permitting, with certain exceptions
as therein provided, the Company, the Guarantor and the Trustee, with the
consent of the holders of not less than a majority in aggregate principal amount
of the Securities at the time outstanding of each series to be affected,
evidenced as provided in the Indenture, to execute supplemental indentures
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of any supplemental indenture or Securities of a
series or modifying in any manner the rights of the holders of the Securities of
such series to be affected. In addition, the Indenture contains provisions
permitting, with certain exceptions as therein provided, the Company, the
Guarantor and the Trustee, without the consent of the holders of any of the
Securities at the time outstanding, to execute supplemental indentures for
certain purposes, including, but not limited to, the following purposes: (i) to
cure any ambiguity or to correct or supplement any provision contained in the
Indenture or in any supplemental indenture or Securities of a series which may
be defective or inconsistent with any other provision of the Indenture or any
supplemental indenture or Securities of a series; or (ii) to make such other
provisions in regard to matters or questions arising under the Indenture or any
supplemental indenture or Securities of a series which shall not adversely
affect the interests of the holders of the Securities. The Indenture also
provides that, prior to any declaration accelerating the maturity of the
Securities of a series, the holders of a majority in aggregate principal amount
of the Securities of such series at the time outstanding may, on behalf of the
holders of all of the Securities of such series, waive compliance by the Company
or the Guarantor with certain provisions of the Indenture and certain past
defaults or Events of Default with respect to the Securities of such series and
their consequences. Any such consent or waiver by the holder of this Note
(unless revoked as provided in the Indenture) shall be conclusive and binding
upon such holder and upon all future holders and owners of this Note and any
Notes which may be issued in exchange or substitution herefor, irrespective of
whether or not any notation thereof is made upon this Note or such other Notes.

         As provided in and subject to the provisions of the Indenture, the
holder of this Note shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Notes, the holders of not less than 25% in principal amount of the Notes at the
time outstanding shall have made a written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the
holders of a majority in principal amount of Notes at the time outstanding a
direction inconsistent with such request, and shall have failed to institute any
such proceeding for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the holder of
this Note for the enforcement of any payment of

                                       2
<PAGE>

principal hereof or any premium or interest hereon on or after the respective
due dates expressed herein.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium, if any, and
interest on this Note at the place, at the respective times, at the rate and in
the coin or currency herein prescribed; provided, however, this Note is subject
in all respects to the provisions of Article Thirteen of the Indenture providing
under the circumstances set forth therein for discharge of certain of the
Company's obligations under the Indenture.

         The Notes are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof, in the manner and
subject to the limitations provided in the Indenture, but without the payment of
any service charge. Notes may be exchanged for an equal aggregate principal
amount of Notes of other authorized denominations having the same tenor at the
office or agency of the Company maintained for such purpose in New York, New
York. Upon due presentment for registration of transfer of this Note at the
office or agency of the Company for such registration in New York, New York, a
new Note or Notes of authorized denominations for an equal aggregate principal
amount having the same tenor as the Note so presented will be issued to the
transferee in exchange herefor, subject to the limitations provided in the
Indenture, without charge except for any tax or other governmental charge
imposed in connection therewith.

         Prior to due presentment for registration of transfer of this Note, the
Company, the Trustee, any Paying Agent and any Security registrar may deem and
treat the registered holder hereof as the absolute owner of this Note (whether
or not this Note shall be overdue and not withstanding any notation of ownership
or other writing hereon), for all purposes, and neither the Company nor the
Trustee nor any Paying Agent nor any Security registrar shall be affected by any
notice to the contrary. All payments made to or upon the order of such holder
shall be valid, and, to the extent of the sum or sums so paid, effectual to
satisfy and discharge the liability for moneys payable on this Note.

         No recourse for the payment of the principal of, premium, if any, or
interest on this Note, or for any claim based hereon or otherwise in respect
hereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in the Indenture or any indenture supplemental thereto or in any
Note or because of the creation of any indebtedness represented thereby, shall
be had against any incorporator, stockholder, officer or director, as such, of
the Company or any successor, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by the acceptance hereof and as part of the consideration
for the issue hereof, expressly waived and released..

         The Indenture and this Note shall be governed by and construed in
accordance with the laws of the State of New York.

                                       3
<PAGE>

                              [FORM OF ASSIGNMENT]

To assign this Note, fill in the form below:

                    I or we assign and transfer this Note to

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

              -----------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. No.)

         and irrevocably appoint ________________ as agent for the transfer of
         this Note on the books of the Company. The agent may substitute another
         to act for him.

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

Date:                                    Your Signature:
     --------------------                               -----------------------

Signature Guarantee:
                    ----------------------------------------------
                           (Signature must be guaranteed)

--------------------------------------------------------------------------------
Sign exactly as your name appears on the other side of this Note.

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

<PAGE>

                SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

     The following increases or decreases in this Global Note have been made

<Table>
<Caption>
             Amount of increase in        Amount of decrease in        Principal Amount of this        Signature of authorized
Date of      Principal Amount of this     Principal Amount of this     Global Note following each      signatory of Trustee or
Exchange     Global Note                  Global Note                  decrease or increase             Securities Custodian
--------     ------------------------     -----------------------      ---------------------------      ------------------------
<S>          <C>                          <C>                           <C>                             <C>
</Table>

                                       2<PAGE>

                                                                    EXHIBIT 10.1

                         MANAGEMENT CONTINUITY AGREEMENT

                  THIS AGREEMENT, dated as of ________________, is made by and
between Cooper Industries, Inc., an Ohio corporation (the "Company"), and
_________________ (the "Executive").

                  WHEREAS, the Company is a significant subsidiary of Cooper
Industries, Ltd., a Bermuda corporation ("Cooper") and Executive is employed by
the Company in a key management position; and

                  WHEREAS, the Executive is an officer of Cooper; and

                  WHEREAS, Cooper considers it essential to the best interests
of its shareholders to foster the continued employment of key management
personnel of the Company; and

                  WHEREAS, the Board recognizes that, as is the case with many
publicly held corporations, the possibility of a Change in Control exists and
that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of management
personnel to the detriment of Cooper and its shareholders; and

                  WHEREAS, the Board has determined that appropriate steps
should be taken to reinforce and encourage the continued attention and
dedication of members of the Company's management, including the Executive, to
their assigned duties without distraction in the face of potentially disturbing
circumstances arising from the possibility of a Change in Control; and

                  WHEREAS, Cooper will derive substantial direct and indirect
benefit from this Agreement as the Company's parent and desires to guaranty the
company's obligations hereunder in order to induce the Executive to enter into
this Agreement;

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants herein contained, Cooper, the Company and the Executive hereby
agree as follows:

                  1. Defined Terms. The definitions of capitalized terms used in
this Agreement are provided in Section 17 hereof.

                  2. Term of Agreement. The Term of this Agreement shall
commence on the date hereof and shall continue in effect through December 31,
2003; provided, however, that commencing on January 1, 2004 and each January 1
thereafter, the Term shall automatically be extended for one additional year
unless, not later than September 30 of the preceding year, the Company or the
Executive shall have given notice not to extend the Term; and further provided,
however, that if a Change in Control shall have occurred during the Term, the
Term shall expire no earlier than twenty-four (24) months beyond the month in
which such Change in Control occurred. Notwithstanding any other provision
hereof, (a) the Term shall expire upon any termination of the Executive's
employment prior to a Potential Change in Control and (b) the Term shall expire
(and for purposes of the application of the provisions of the Agreement, shall
be deemed to have expired) on the date (or scheduled date, as the case may be)
of the Executive's Retirement.

                                       1
<PAGE>

                  3. Company's Covenants Summarized. In order to induce the
Executive to remain in the employ of the Company and in consideration of the
Executive's covenants set forth in Section 4 hereof, the Company agrees, under
the conditions described herein, to pay the Executive the Severance Payments and
the other payments and benefits described herein. Except as provided in Section
9.1 hereof, no Severance Payments shall be payable under this Agreement unless
there has been (or, under the terms of the second sentence of Section 6.1
hereof, there shall be deemed to have been) a termination of the Executive's
employment with the Company following a Change in Control and during the Term.
This Agreement shall not be construed as creating an express or implied contract
of employment and, except as otherwise agreed in writing between the Executive
and the Company, the Executive shall not have any right to be retained in the
employ of the Company.

                  4. The Executive's Covenants. The Executive agrees that,
subject to the terms and conditions of this Agreement, in the event of a
Potential Change in Control during the Term, the Executive intends to remain in
the employ of the Company until there occurs a Change in Control.

                  5. Compensation Other Than Severance Payments.

                  5.1 Following a Change in Control and during the Term, during
any period that the Executive fails to perform the Executive's full-time duties
with the Company as a result of incapacity due to physical or mental illness,
the Company shall pay the Executive's full salary to the Executive at the rate
in effect at the commencement of any such period, together with all compensation
and benefits payable to the Executive under the terms of any compensation or
benefit plan, program or arrangement maintained by the Company during such
period, until the Executive's employment is terminated by the Company for
Disability.

                  5.2 If the Executive's employment shall be terminated for any
reason following a Change in Control and during the Term, the Company shall pay
the Executive's full salary to the Executive through the Date of Termination at
the rate in effect immediately prior to the Date of Termination (without giving
effect to any reduction in base salary, which reduction constitutes an event of
Good Reason) or, if higher, the rate in effect immediately prior to the Change
in Control, together with all compensation and benefits payable to the Executive
through the Date of Termination under the terms of the Company's compensation
and benefit plans, programs or arrangements as in effect immediately prior to
the Date of Termination (without giving effect to any reduction in compensation
or benefits, which reduction constitutes an event of Good Reason) or, if more
favorable to the Executive, as in effect immediately prior to the Change in
Control.

                  5.3 If the Executive's employment shall be terminated for any
reason following a Change in Control and during the Term, the Company shall pay
to the Executive the Executive's normal post-termination compensation and
benefits as such payments become due. Such post-termination compensation and
benefits shall be determined under, and paid in accordance with, the Company's
retirement, insurance and other compensation or benefit plans, programs and
arrangements as in effect immediately prior to the Date of Termination (without
giving effect to any adverse change in such plans, programs and arrangements,
which adverse change constitutes an event of Good Reason) or, if more favorable
to the Executive, as in effect immediately prior to the Change in Control.

                                       2
<PAGE>

                  6. Severance Payments.

                  6.1 Subject to Section 6.2 hereof, if (i) the Executive's
employment is terminated following a Change in Control and during the Term,
other than (A) by the Company for Cause, (B) by reason of death, Disability or
Retirement, or (C) by the Executive without Good Reason, then the Company shall
pay the Executive the amounts, and provide the Executive the benefits, described
in this Section 6.1 ("Severance Payments") and Section 6.2, in addition to any
payments and benefits to which the Executive is entitled under Section 5 hereof.
For purposes of this Agreement, the Executive's employment shall be deemed to
have been terminated following a Change in Control by the Company without Cause
or by the Executive with Good Reason, if (i) the Executive's employment is
terminated by the Company without Cause after the occurrence of a Potential
Change in Control and prior to a Change in Control (whether or not a Change in
Control ever occurs) and such termination was at the request or direction of a
Person who has entered into an agreement with the Company the consummation of
which would constitute a Change in Control or (ii) the Executive terminates his
employment for Good Reason after the occurrence of a Potential Change in Control
and prior to a Change in Control (whether or not a Change in Control ever
occurs) and the circumstance or event which constitutes Good Reason occurs at
the request or direction of such Person.

                  (A) In lieu of any further salary payments to the Executive
for periods subsequent to the Date of Termination and in lieu of any severance
benefit otherwise payable to the Executive, the Company shall pay to the
Executive a lump sum severance payment, in cash, equal to _____________ [three
in the case of the Chief Executive Officer, Chief Operating Officer and Senior
and Executive Vice Presidents and two in the case of other key executives] (or,
if less, the number of full and partial years between the Date of Termination
and the Executive's scheduled date of Retirement) times the sum of (i) the
Executive's base salary as in effect immediately prior to the Date of
Termination (without giving effect to any reduction in base salary, which
reduction constitutes an event of Good Reason) or, if higher, in effect
immediately prior to the Change in Control, and (ii) the higher of (A) the
average annual bonus earned by the Executive pursuant to the annual bonus or
incentive plan maintained by the Company in respect of the three fiscal years
ending immediately prior to the fiscal year in which occurs the Date of
Termination (without giving effect to any reduction in bonus caused by an
adverse change in the Executive's bonus plan participation, which adverse
constitutes an event of Good Reason) or, if higher, immediately prior to the
fiscal year in which occurs the Change in Control or (B) the Executive's target
annual bonus for the fiscal year in which occurs the Date of Termination
(without giving effect to any reduction in bonus caused by an adverse change in
the Executive's bonus plan participation, which adverse change constitutes an
event of Good Reason) or, if higher, the fiscal year in which occurs the Change
in Control.

                  (B) For the ______________ [thirty-six in the case of the
Chief Executive Officer, Chief Operating Officer and Senior and Executive Vice
Presidents and twenty-four in the case of other key executives] month period
(or, if less, the number of months between the Date of Termination and the
Executive's scheduled date of Retirement) immediately following the Date of
Termination, the Company shall arrange to provide the Executive and his
dependents with life, disability, accident and health insurance benefits
substantially similar to those provided to the Executive and his dependents
immediately prior to the Date of Termination (without giving effect to any
reduction in benefits, which reduction constitutes an event of Good Reason) or,
if more favorable to the Executive, those provided to the Executive and his
dependents immediately prior to the Change in Control, at no greater cost to the
Executive than the cost to the Executive immediately prior to such date;
provided, however, that, unless the Executive consents to a different method
(after taking into account the effect of such method on

                                        3
<PAGE>
the calculation of "parachute payments" pursuant to Section 6.2 hereof), such
health insurance benefits shall be provided through a third-party insurer.
Benefits otherwise receivable by the Executive pursuant to this Section 6.1 (B)
shall be reduced to the extent benefits of the same type are received by or made
available to the Executive during the ______________ [thirty-six in the case of
the Chief Executive Officer, Chief Operating Officer and Senior and Executive
Vice Presidents and twenty-four in the case of other key executives] (or, if
less, the number of months between the Date of Termination and the Executive's
scheduled date of Retirement) month period following the Executive's termination
of employment (and any such benefits received by or made available to the
Executive shall be reported to the Company by the Executive); provided, however,
that the Company shall reimburse the Executive for the excess, if any, of the
cost of such benefits to the Executive over such cost immediately prior to the
Date of Termination or, if more favorable to the Executive, the date on which
the Change in Control occurs. If the Severance Payments shall be decreased
pursuant to Section 6.2 hereof, and the Section 6.1(B) benefits which remain
payable after the application of Section 6.2 hereof are thereafter reduced
pursuant to the immediately preceding sentence, the Company shall, no later than
five (5) business days following such reduction, pay to the Executive the least
of (a) the amount of the decrease made in the Severance Payments pursuant to
Section 6.2 hereof, (b) the amount of the subsequent reduction in these Section
6.1(B) benefits, or (c) the maximum amount which can be paid to the Executive
without being, or causing any other payment to be, nondeductible by reason of
section 280G of the Code.

                  In the event the Executive receives health insurance benefits
during the _______________ [thirty-six in the case of the Chief Executive
Officer, Chief Operating Officer and Senior and Executive Vice Presidents and
twenty-four in the case of other key executives]-month period following the Date
of Termination pursuant to the foregoing provisions of this Section 6.1(B), the
Executive and his or her dependents shall continue to be eligible for health
insurance benefits for up to an additional sixty (60) months, provided however,
that no benefits will be provided (i) if health insurance benefits are available
to the Executive through another employer during such period, or (ii) after the
insured individual reaches age 65. Such health insurance benefits shall be
substantially similar to, and have no greater cost to the Executive than those
in effect for the [NUMBER]-month period following the Date of Termination.

                  (C) Notwithstanding any provision of any annual incentive plan
to the contrary, the Company shall pay to the Executive a lump sum amount, in
cash, equal to the product of (i) the target bonus to which the Executive would
have been entitled under the Company's annual incentive plan in respect of the
year in which the Date of Termination occurs and (ii) a fraction, the numerator
of which shall be the number of months (including fractions thereof) from the
first day of the fiscal year during which the Date of Termination occurs to the
Date of Termination, and the denominator of which shall be twelve (12);
provided, however, that if the Date of Termination occurs during the same year
as the Change in Control, the payment under this Section 6.1(C) shall be offset
by any payments received under the Company's annual incentive plan in connection
with such Change in Control.

                  (D) In addition to the retirement benefits to which the
Executive is entitled under each Pension Plan or any successor plan thereto, the
Company shall pay the Executive a lump sum amount, in cash, equal to the sum of
(i) the pay related credits the Executive would have accrued under the Salaried
Employees' Retirement Plan of Cooper Industries, Inc. and the Cooper Industries,
Inc., Supplemental Excess Defined Benefit Plan; and (ii) the Company-Matching
Contributions the Executive would have accrued under the Cooper Industries,
Inc., Savings and Stock Ownership Plan and the Cooper Industries, Inc.,
Supplemental Excess Defined Contribution Plan (the plans referred to in
subsections (i) and (ii) hereof, "The Plans"),

                                        4
<PAGE>
 in each case, during the ______________ [thirty-six in the case of the Chief
Executive Officer, Chief Operating Officer and Senior and Executive Vice
Presidents and twenty-four in the case of other key executives] month (or, if
less, the number of months between the Date of Termination and the Executive's
scheduled date of Retirement) period immediately following the Executive's Date
of Termination based upon: (1) the terms and provisions of The Plans as in
effect immediately prior to the Change in Control; (2) the lump sum payment set
forth in Section 6.1(A) hereof, which lump sum shall be deemed to have been
earned ratably over such period; and (3) the assumption that the Executive was
making the maximum allowable pre-tax contributions under The Plans during such
period.

                  (E) The Company shall provide the Executive with outplacement
services suitable to the Executive's position for a period of one year or, if
earlier, until the first acceptance by the Executive of an offer of employment.

                  (F) Cooper shall continue to maintain officers'
indemnification insurance for the Executive for a period of five years following
the Date of Termination, the terms and conditions of which shall be no less
favorable than the terms and conditions of the officers' indemnification
insurance maintained by Cooper for the Executive immediately prior to the date
on which the Change in Control occurs.

                  6.2 (A) Whether or not the Executive becomes entitled to the
Severance Payments, if any payment or benefit received or to be received by the
Executive in connection with a Change in Control or the termination of the
Executive's employment (whether pursuant to the terms of this Agreement or any
other plan, arrangement or agreement with the Company, any Person whose actions
result in a Change in Control or any Person affiliated with the Company or such
Person) (all such payments and benefits, including the Severance Payments, being
hereinafter called "Total Payments") will be subject (in whole or part) to the
Excise Tax, then, subject to the provisions of subsection (B) of this Section
6.2, the Company shall pay to the Executive an additional amount (the "Gross-Up
Payment") such that the net amount retained by the Executive, after deduction of
any Excise Tax on the Total Payments and any federal, state and local income and
employment taxes and Excise Tax upon the Gross-Up Payment, shall be equal to the
Total Payments. For purposes of determining the amount of the Gross-Up Payment,
the Executive shall be deemed to pay federal income taxes at the highest
marginal rate of federal income taxation in the calendar year in which the
Gross-Up Payment is to be made and state and local income taxes at the highest
marginal rate of taxation in the state and locality of the Executive's residence
on the Date of Termination (or if there is no Date of Termination, then the date
on which the Gross-Up Payment is calculated for purposes of this Section 6.2),
net of the maximum reduction in federal income tax which could be obtained from
deduction of such state and local taxes.

                  (B) In the event that the amount of the Total Payments does
not exceed 110% of the largest amount that would result in no portion of the
Total Payments being subject to the Excise Tax (the "Safe Harbor"), then
subsection (A) of this Section 6.2 shall not apply and the noncash Severance
Payments shall first be reduced (if necessary, to zero), and the cash Severance
Benefits shall thereafter be reduced (if necessary, to zero) so that the amount
of the Total Payments is equal to the Safe Harbor; provided, however, that the
Executive may elect to have the cash Severance Payments reduced (or eliminated)
prior to any reduction of the noncash Severance Payments.

                                        5
<PAGE>

                  (C) For purposes of determining whether any of the Total
Payments will be subject to the Excise Tax and the amount of such Excise Tax,
(i) all of the Total Payments shall be treated as "parachute payments" within
the meaning of section 280G(b)(2) of the Code, unless in the opinion of tax
counsel ("Tax Counsel") reasonably acceptable to the Executive and selected by
the accounting firm which was, immediately prior to the Change in Control,
Cooper's independent auditor (the "Auditor"), such other payments or benefits
(in whole or in part) do not constitute parachute payments, including by reason
of section 280G(b)(4)(A) of the Code, (ii) all "excess parachute payments"
within the meaning of section 280G(b)(l) of the Code shall be treated as subject
to the Excise Tax unless, in the opinion of Tax Counsel, such excess parachute
payments (in whole or in part) represent reasonable compensation for services
actually rendered, within the meaning of section 280G(b)(4)(B) of the Code, in
excess of the Base Amount allocable to such reasonable compensation, or are
otherwise not subject to the Excise Tax, and (iii) the value of any noncash
benefits or any deferred payment or benefit shall be determined by the Auditor
in accordance with the principles of sections 280G(d)(3) and (4) of the Code.
Prior to the payment date set forth in Section 6.3 hereof, the Company shall
provide the Executive with its calculation of the amounts referred to in this
Section 6.2(C) and such supporting materials as are reasonably necessary for the
Executive to evaluate the Company's calculations. If the Executive disputes the
Company's calculations (in whole or in part), the reasonable opinion of Tax
Counsel with respect to the matter in dispute shall prevail.

                  (D) In the event that (i) amounts are paid to the Executive
pursuant to subsection (A) of this Section 6.2, (ii) the Excise Tax is finally
determined to be less than the amount taken into account hereunder in
calculating the Gross-Up Payment, and (iii) after giving effect to such
redetermination, the Severance Payments are to be reduced pursuant to subsection
(B) of this Section 6.2, the Executive shall repay to the Company, within five
(5) business days following the time that the amount of such reduction in Excise
Tax is finally determined, the portion of the Gross-Up Payment attributable to
such reduction (plus that portion of the Gross-Up Payment attributable to the
Excise Tax and federal, state and local income and employment taxes imposed on
the Gross-Up Payment being repaid by the Executive), to the extent that such
repayment results in (i) no portion of the Total Payments being subject to the
Excise Tax and (ii) a dollar-for-dollar reduction in the Executive's taxable
income and wages for purposes of federal, state and local income and employment
taxes) plus interest on the amount of such repayment at the rate provided in
section 1274(b)(2)(B) of the Code. In the event that (x) the Excise Tax is
determined to exceed the amount taken into account hereunder at the time of the
termination of the Executive's employment (including by reason of any payment
the existence or amount of which cannot be determined at the time of the
Gross-Up Payment) and (y) after giving effect to such redetermination, the
Severance Payments should not have been reduced pursuant to subsection (B) of
this Section 6.2, the Company shall make an additional Gross-Up Payment in
respect of such excess and in respect of any portion of the Excise Tax with
respect to which the Company had not previously made a Gross-Up Payment (plus
any interest, penalties or additions payable by the Executive with respect to
such excess and such portion) within five (5) business days following the time
that the amount of such excess is finally determined.

                  6.3 The payments provided in subsections (A), (C) and (D) of
Section 6.1 hereof and in Section 6.2 hereof shall be made not later than the
fifth day following the Date of Termination; provided, however, that if the
amounts of such payments, and the limitations on such payments set forth in
Section 6.2 hereof, cannot be finally determined on or before such day, the
Company shall pay to the Executive on such day an estimate, as determined in
good

                                        6
<PAGE>

faith by the Executive or, in the case of payments under Section 6.2 hereof, in
accordance with Section 6.2 hereof, of the minimum amount of such payments to
which the Executive is clearly entitled and shall pay the remainder of such
payments (together with interest on the unpaid remainder [or on all such
payments to the extent the Company fails to make such payments when due] at the
rate provided in section 1274(b)(2)(B) of the Code) as soon as the amount
thereof can be determined but in no event later than the thirtieth (30th) day
after the Date of Termination. In the event that the amount of the estimated
payments exceeds the amount subsequently determined to have been due, such
excess shall constitute a loan by the Company to the Executive, payable on the
fifth (5th) business day after demand by the Company (together with interest at
the rate provided in section 1274(b)(2)(B) of the Code). At the time that
payments are made under this Agreement, the Company shall provide the Executive
with a written statement setting forth the manner in which such payments were
calculated and the basis for such calculations including, without limitation,
any opinions or other advice the Company has received from Tax Counsel, the
Auditor or other advisors or consultants (and any such opinions or advice which
are in writing shall be attached to the statement).

                  6.4 The Company also shall pay to the Executive all legal fees
and expenses incurred by the Executive in disputing in good faith any issue
hereunder relating to the termination of the Executive's employment, in seeking
in good faith to obtain or enforce any benefit or right provided by this
Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of section 4999 of the Code to any payment or
benefit provided hereunder. Such payments shall be made within five (5) business
days after delivery of the Executive's written request(s) for payment
accompanied with such evidence of fees and expenses incurred as the Company
reasonably may require.

                  7. Termination Procedures and Compensation During Dispute.

                  7.1 Notice of Termination. After a Change in Control and
during the Term, any purported termination of the Executive's employment (other
than by reason of death) shall be communicated by written Notice of Termination
from either Cooper or the Company to the Executive (or in the case of a
termination for Good Reason, from the Executive to the Company) in accordance
with Section 10 hereof. For purposes of this Agreement, a "Notice of
Termination" shall mean a notice which shall indicate the specific termination
provision in this Agreement relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Executive's employment under the provision so indicated. Further, a Notice of
Termination for Cause is required to include a copy of a resolution duly adopted
by the affirmative vote of not less than three-quarters (3/4) of the entire
membership of the Board at a meeting of the Board which was called and held for
the purpose of considering such termination (after reasonable notice to the
Executive and an opportunity for the Executive, together with the Executive's
counsel, to be heard before the Board) finding that, in the good faith opinion
of the Board, the Executive was guilty of conduct set forth in clause (i) or
(ii) of the definition of Cause herein, and specifying the particulars thereof
in detail.

                  7.2 Date of Termination. "Date of Termination," with respect
to any purported termination of the Executive's employment after a Change in
Control and during the Term, shall mean (i) if the Executive's employment is
terminated for Disability, thirty (30) days after Notice of Termination is given
(provided that the Executive shall not have returned to the full-time
performance of the Executive's duties during such thirty (30) day period), and
(ii) if the

                                        7
<PAGE>

Executive's employment is terminated for any other reason, the date specified in
the Notice of Termination (which, in the case of a termination by Cooper or the
Company, shall not be less than thirty (30) days (except in the case of a
termination for Cause) and, in the case of a termination by the Executive, shall
not be less than fifteen (15) days nor more than sixty (60) days, respectively,
from the date such Notice of Termination is given).

                  7.3 Dispute Concerning Termination. If within fifteen (15)
days after any Notice of Termination is given, or, if later, prior to the Date
of Termination (as determined without regard to this Section 7.3), the party
receiving such Notice of Termination notifies the other party that a dispute
exists concerning the termination, the Date of Termination shall be extended
until the earlier of (i) the date on which the Term ends or (ii) the date on
which the dispute is finally resolved, either by mutual written agreement of the
parties or by a final judgment, order or decree of an arbitrator or a court of
competent jurisdiction (which is not appealable or with respect to which the
time for appeal therefrom has expired and no appeal has been perfected);
provided, that the Date of Termination shall be extended by a notice of dispute
given by the Executive only if such notice is given in good faith and the
Executive pursues the resolution of such dispute with reasonable diligence.

                  7.4 Compensation During Dispute. If a purported termination
occurs following a Change in Control and during the Term and the Date of
Termination is extended in accordance with Section 7.3 hereof, the Company shall
continue to pay the Executive the full compensation in effect when the notice
giving rise to the dispute was given (including, but not limited to, salary) and
continue the Executive as a participant in all compensation, benefit and
insurance plans in which the Executive was participating when the notice giving
rise to the dispute was given, until the Date of Termination, as determined in
accordance with Section 7.3 hereof. Amounts paid under this Section 7.4 are in
addition to all other amounts due under this Agreement (other than those due
under Section 5.2 hereof) and shall not be offset against or reduce any other
amounts due under this Agreement.

                  8. No Mitigation. The Company agrees that, if the Executive's
employment with the Company terminates during the Term, the Executive is not
required to seek other employment or to attempt in any way to reduce any amounts
payable to the Executive by the Company pursuant to Section 6 hereof or Section
7.4 hereof. Further, the amount of any payment or benefit provided for in this
Agreement (other than Section 6.1(B) hereof) shall not be reduced by any
compensation earned by the Executive as the result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

                  9. Successors; Binding Agreement.

                  9.1 In addition to any obligations imposed by law upon any
successor to Cooper or the Company, Cooper or the Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of Cooper
or the Company as the case may be, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that Cooper or the Company
would be required to perform it if no such succession had taken place. Failure
of Cooper or the Company to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement and
shall entitle the Executive to compensation from the Company

                                        8
<PAGE>

in the same amount and on the same terms as the Executive would be entitled to
hereunder if the Executive were to terminate the Executive's employment for Good
Reason after a Change in Control, except that, for purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be
deemed the Date of Termination.

                  9.2 This Agreement shall inure to the benefit of and be
enforceable by the Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Executive shall die while any amount would still be payable to the Executive
hereunder (other than amounts which, by their terms, terminate upon the death of
the Executive) if the Executive had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the executors, personal representatives or administrators of the
Executive's estate.

                  10. Notices. For the purpose of this Agreement, notices and
all other communications provided for in the Agreement shall be in writing and
shall be deemed to have been duly given when delivered or mailed by United
States registered mail, return receipt requested, postage prepaid, addressed, if
to the Executive, to the address inserted below the Executive's signature on the
final page hereof and, if to Cooper or the Company, to the addresses set forth
below, or to such other address as either party may have furnished to the other
in writing in accordance herewith, except that notice of change of address shall
be effective only upon actual receipt:

                           To the Company:

                           Cooper Industries, Inc.
                           P.O. Box 4446
                           Houston, Texas 77210-4446
                           Attention:  Senior Vice President, Human Resources

                           To Cooper:

                           Cooper Industries, Ltd.
                           P.O. Box 4446
                           Houston, Texas 77210-4446
                           Attention:  General Counsel

                  11. Miscellaneous. No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and authorized officers of
Cooper and the Company. No waiver by any party hereto at any time of any breach
by another party hereto of, or of any lack of compliance with, any condition or
provision of this Agreement to be performed by any party shall be deemed a
waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. This Agreement supersedes any other agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof which have been made by either party; provided, however,
that this Agreement shall supersede any agreement setting forth the terms and
conditions of the Executive's employment with the Company only in the event that
the Executive's employment with the Company is terminated on or following a
Change in Control by the Company other than for Cause or by the Executive for
Good Reason. The validity,

                                        9
<PAGE>

interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Ohio. All references to sections of the Exchange Act
or the Code shall be deemed also to refer to any successor provisions to such
sections. Any payments provided for hereunder shall be reduced to the extent
necessary so that the Company may satisfy any applicable withholding required
under federal, state or local law and any additional withholding to which the
Executive has agreed. The obligations of Cooper, the Company and the Executive
under this Agreement which by their nature may require either partial or total
performance after the expiration of the Term (including, without limitation,
those under Sections 6 and 7 hereof) shall survive such expiration.

                  12. Validity. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

                  13. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

                  14. Settlement of Disputes; Arbitration.

                  14.1 All claims by the Executive for benefits under this
Agreement shall be directed to and determined by the Board and shall be in
writing. Any denial by the Board of a claim for benefits under this Agreement
shall be delivered to the Executive in writing and shall set forth the specific
reasons for the denial and the specific provisions of this Agreement relied
upon. The Board shall afford a reasonable opportunity to the Executive for a
review of the decision denying a claim and shall further allow the Executive to
appeal to the Board a decision of the Board within sixty (60) days after
notification by the Board that the Executive's claim has been denied.

                  14.2 Any further dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in
Houston, Texas in accordance with the rules of the American Arbitration
Association then in effect; provided, however, that the evidentiary standards
set forth in this Agreement shall apply. Judgment may be entered on the
arbitrator's award in any court having jurisdiction. Notwithstanding any
provision of this Agreement to the contrary, the Executive shall be entitled to
seek specific performance of the Executive's right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising under or
in connection with this Agreement.

                  15. Termination of Prior Management Continuity Agreement. This
Agreement supercedes any Management Continuity Agreement previously executed by
the Company and the Executive and any such previous agreement is terminated
effective as of the date hereof.

                  16. Guarantee by Cooper. Cooper, as direct obligor and not
merely as a surety, absolutely and unconditionally guarantees the punctual
payment, performance and observance of each and every covenant, agreement, duty
or any other obligation of the Company under or arising out of this Agreement
(collectively, the "Guaranteed Obligations"). This is an irrevocable and
continuing guarantee of payment and performance and not merely a guarantee of
collection and shall remain in full force and effect until the Guaranteed
Obligations have been

                                       10
<PAGE>

satisfied, paid and performed in full. Cooper waives any right to require that
an Executive proceed against any other person or entity or asset liable on or
securing the Guaranteed Obligations or pursue or exhaust any other remedy
whatsoever. To the fullest extent permitted by applicable law, Cooper further
waives any legal or equitable defense to the enforceability of its obligations
hereunder, and agrees that its obligations shall be absolute and unconditional
and shall not be affected or discharged by any circumstance, act or event
whatsoever (including without limitation the insolvency, voluntary or
involuntary bankruptcy, liquidation, dissolution, winding up, merger,
consolidation or reorganization of the Company), except payment and performance
in full of the Guaranteed Obligations.

                  17. Definitions. For purposes of this Agreement, the following
terms shall have the meanings indicated below:

                  (A) "Affiliate" shall have the meaning set forth in Rule 12b-2
promulgated under Section 12 of the Exchange Act.

                  (B) "Auditor" shall have the meaning set forth in Section 6.2
hereof.

                  (C) "Base Amount" shall have the meaning set forth in section
280G(b)(3) of the Code.

                  (D) "Beneficial Owner" shall have the meaning set forth in
Rule 13d3 under the Exchange Act.

                  (E) "Board" shall mean the Board of Directors of Cooper
Industries, Ltd.

                  (F) "Cause" for termination by the Company of the Executive's
employment shall mean (i) the willful and continued failure by the Executive to
substantially perform the Executive's duties with the Company (other than any
such failure resulting from the Executive's incapacity due to physical or mental
illness or any such actual or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 7.1 hereof)
after a written demand for substantial performance is delivered to the Executive
by the Board, which demand specifically identifies the manner in which the Board
believes that the Executive has not substantially performed the Executive's
duties, or (ii) the willful engaging by the Executive in conduct which is
demonstrably and materially injurious to the Company or its subsidiaries,
monetarily or otherwise. For purposes of clauses (i) and (ii) of this
definition, (x) no act, or failure to act, on the Executive's part shall be
deemed "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the Executive's act, or failure to
act, was in the best interest of the Company and (y) in the event of a dispute
concerning the application of this provision, no claim by the Company that Cause
exists shall be given effect unless the Company establishes to the Board by
clear and convincing evidence that Cause exists.

                  (G) A "Change in Control" shall be deemed to have occurred if
the event set forth in any one of the following paragraphs shall have occurred:

                           (I) any Person is or becomes the Beneficial Owner,
                  directly or indirectly, of securities of Cooper (not including
                  in the securities beneficially

                                       11
<PAGE>

                  owned by such Person any securities acquired directly from
                  Cooper or its Affiliates) representing 25% or more of the
                  combined voting power of Cooper's then outstanding securities
                  (other than Cooper's Class B Common Shares), excluding any
                  Person who becomes such a Beneficial Owner in connection with
                  a transaction described in clause (i) of paragraph (III)
                  below; or

                           (II) the following individuals cease for any reason
                  to constitute a majority of the number of directors then
                  serving on the Board: individuals who, on the date hereof,
                  constitute the Board and any new director (other than a
                  director whose initial assumption of office is in connection
                  with an actual or threatened election contest, including but
                  not limited to a consent solicitation, relating to the
                  election of directors of Cooper) whose appointment or election
                  by the Board or nomination for election by Cooper's
                  shareholders was approved or recommended by a vote of at least
                  two-thirds (2/3) of the directors then still in office who
                  either were directors on the date hereof or whose appointment,
                  election or nomination for election was previously so approved
                  or recommended; or

                           (III) there is consummated a merger or consolidation
                  of Cooper or any direct or indirect subsidiary of Cooper with
                  any other corporation, other than (i) a merger or
                  consolidation which results in the directors of Cooper
                  immediately prior to such merger or consolidation continuing
                  to constitute at least a majority of the board of directors of
                  Cooper, the surviving entity or any parent thereof, or (ii) a
                  merger or consolidation effected to implement a
                  recapitalization of Cooper (or similar transaction) in which
                  no Person is or becomes the Beneficial Owner, directly or
                  indirectly, of securities of Cooper (not including in the
                  securities Beneficially Owned by such Person any securities
                  acquired directly from the Cooper or its Affiliates)
                  representing 25% or more of the combined voting power of
                  Cooper's then outstanding securities (other than Cooper's
                  Class B Common shares); or

                           (IV) the shareholders of Cooper approve a plan of
                  complete liquidation or dissolution of Cooper or there is
                  consummated an agreement for the sale or disposition by Cooper
                  of all or substantially all of Cooper's assets, other than a
                  sale or disposition by Cooper of all or substantially all of
                  Cooper's assets to an entity, at least 60% of the combined
                  voting power of the voting securities of which are owned by
                  shareholders of Cooper in substantially the same proportions
                  as their ownership of Cooper immediately prior to such sale.

                  (H) "Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time.

                  (I) "Company" shall mean Cooper Industries, Inc. and, shall
include any successor to its business and/or assets which assumes and agrees to
perform this Agreement by operation of law or otherwise.

                  (J) "Cooper" shall mean Cooper Industries, Ltd., a Bermuda
corporation and, except in determining under Section 17(G) hereof whether any
change in Control has occurred,

                                       12
<PAGE>

shall include any successor to its business and/or assets which assumes and
agrees to perform this Agreement by operation of law or otherwise.

                  (K) "Date of Termination" shall have the meaning set forth in
Section 7.2 hereof.

                  (L) "Disability" shall be deemed the reason for the
termination by the Company of the Executive's employment, if, as a result of the
Executive's incapacity due to physical or mental illness, the Executive shall
have been absent from the full-time performance of the Executive's duties with
the Company for a period of six (6) consecutive months, the Company shall have
given the Executive a Notice of Termination for Disability, and, within thirty
(30) days after such Notice of Termination is given, the Executive shall not
have returned to the full-time performance of the Executive's duties.

                  (M) "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended from time to time.

                  (N) "Excise Tax" shall mean any excise tax imposed under
section 4999 of the Code.

                  (O) "Executive" shall mean the individual named in the first
paragraph of this Agreement.

                  (P) "Good Reason" for termination by the Executive of the
Executive's employment shall mean the occurrence (without the Executive's
express written consent) after any Change in Control, or prior to a Change in
Control under the circumstances described in clauses (ii) and (iii) of the
second sentence of Section 6.1 hereof (treating all references in paragraphs (I)
through (VII) below to a "Change in Control" as references to a "Potential
Change in Control"), of any one of the following acts by Cooper or the Company,
or failures by the Company to act, unless, in the case of any act or failure to
act described in paragraph (I), (V), (VI) or (VII) below, such act or failure to
act is corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

                           (I) the assignment to the Executive of any duties
                  inconsistent with the Executive's status as a senior executive
                  officer of the Company or a substantial adverse alteration in
                  the nature or status of the Executive's responsibilities or
                  reporting relationship from those in effect immediately prior
                  to the Change in Control;

                           (II) a reduction by the Company in the Executive's
                  annual base salary as in effect on the date hereof or as the
                  same may be increased from time to time;

                           (III) the relocation of the Executive's principal
                  place of employment to a location which increases the
                  Executive's one-way commuting distance by more than 50 miles
                  or the Company's requiring the Executive to be based anywhere
                  other than the Executive's principal place of employment
                  immediately prior to the Change in Control (or permitted
                  relocation thereof) except for required travel on the
                  Company's business to an extent substantially

                                       13
<PAGE>

                  consistent with the Executive's business travel obligations
                  immediately prior to the Change in Control;

                           (IV) the failure by the Company to pay to the
                  Executive any portion of the Executive's current compensation,
                  or to pay to the Executive any portion of an installment of
                  deferred compensation under any deferred compensation program
                  of the Company, within seven (7) days of the date such
                  compensation is due, unless paid by Cooper pursuant to Section
                  16 of this Agreement;

                           (V) the failure by the Company to continue in effect
                  any compensation plan in which the Executive participates
                  immediately prior to the Change in Control which is material
                  to the Executive's total compensation, including but not
                  limited to the Stock Incentive Plan, the Amended and Restated
                  Management Annual Incentive Plan and the Management Incentive
                  Compensation Deferral Plan or any substitute plans adopted
                  prior to the Change in Control, unless an equitable
                  arrangement (embodied in an ongoing substitute or alternative
                  plan) has been made with respect to such plan, or the failure
                  by the Company to continue the Executive's participation
                  therein (or in such substitute or alternative plan) on a basis
                  not materially less favorable, both in terms of the amount or
                  timing of payment of benefits provided and the level of the
                  Executive's participation relative to other participants, as
                  existed immediately prior to the Change in Control;

                           (VI) the failure by the Company to continue to
                  provide the Executive with benefits substantially similar to
                  those enjoyed by the Executive under any of the Company's
                  pension, savings, life insurance, medical, health and
                  accident, or disability plans in which the Executive was
                  participating immediately prior to the Change in Control, the
                  taking of any other action by the Company which would directly
                  or indirectly materially reduce any of such benefits or
                  deprive the Executive of any material fringe benefit enjoyed
                  by the Executive at the time of the Change in Control, or the
                  failure by the Company to provide the Executive with the
                  number of paid vacation days to which the Executive is
                  entitled on the basis of years of service with the Company in
                  accordance with the Company's normal vacation policy in effect
                  at the time of the Change in Control;

                           (VII) any purported termination of the Executive's
                  employment which is not effected pursuant to a Notice of
                  Termination satisfying the requirements of Section 7.1 hereof;
                  for purposes of this Agreement, no such purported termination
                  shall be effective. The Executive's right to terminate the
                  Executive's employment for Good Reason shall not be affected
                  by the Executive's incapacity due to physical or mental
                  illness. The Executive's continued employment shall not
                  constitute consent to, or a waiver of rights with respect to,
                  any act or failure to act constituting Good Reason hereunder;
                  or

                           (VIII) any failure of Cooper or the Company to obtain
                  assumption of this Agreements, as set forth in Section 9.1
                  hereof.

                                       14
<PAGE>

                  For purposes of any determination regarding the existence of
                  Good Reason, any claim by the Executive that Good Reason
                  exists shall be presumed to be correct unless the Company
                  establishes to the Board by clear and convincing evidence that
                  Good Reason does not exist.

                  (Q) "Gross-Up Payment" shall have the meaning set forth in
Section 6.2 hereof.

                  (R) "Notice of Termination" shall have the meaning set forth
in Section 7.1 hereof.

                  (S) "Pension Plan" shall mean any tax-qualified, supplemental
or excess benefit pension plan maintained by the Company and any other plan or
agreement entered into between the Executive and the Company which is designed
to provide the Executive with supplemental retirement benefits.

                  (T) "Person" shall have the meaning given in Section 3(a)(9)
of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) Cooper or any of its subsidiaries,
(ii) a trustee or other fiduciary holding securities under an employee benefit
plan of the Company or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering of such securities, or (iv) a
corporation owned, directly or indirectly, by the shareholders of the Cooper in
substantially the same proportions as their ownership of Cooper stock or (v) any
individual, entity or group whose ownership of Cooper securities is reported on
Schedule 13G pursuant to Rule 13d-1 promulgated under the Exchange Act (but only
for so long as such ownership is so reported).

                  (U) "Potential Change in Control" shall be deemed to have
occurred if the event set forth in any one of the following paragraphs shall
have occurred:

                           (I) Cooper enters into an agreement, the consummation
                  of which would result in the occurrence of a Change in
                  Control;

                           (II) Cooper or any Person publicly announces an
                  intention to take or to consider taking actions which, if
                  consummated, would constitute a Change in Control;

                           (III) any Person becomes the Beneficial Owner,
                  directly or indirectly, of securities of Cooper representing
                  15% or more of either the then outstanding Class A Common
                  Shares of Cooper or the combined voting power of Cooper's then
                  outstanding securities other than Cooper's Class B Common
                  Shares (not including in the securities beneficially owned by
                  such Person any securities acquired directly from Cooper or
                  its Affiliates); or

                           (I) the Board adopts a resolution to the effect that,
                  for purposes of this Agreement, a Potential Change in Control
                  has occurred.

                  (V) "Retirement" shall mean the termination of the Executive's
employment in accordance with the Company's mandatory retirement policy as in
effect immediately prior to the Change in Control.

                                       15
<PAGE>

                  (W) "Severance Payments" shall have the meaning set forth in
Section 6.1 hereof.

                  (X) "Tax Counsel" shall have the meaning set forth in Section
6.2 hereof.

                  (Y) "Term" shall mean the period of time described in Section
2 hereof (including any extension, continuation or termination described
therein).

                  (Z) "Total Payments" shall mean those payments so described in
Section 6.2 hereof.

COOPER INDUSTRIES, LTD                       COOPER INDUSTRIES, INC.

By:                                          By:
   --------------------------------             --------------------------------
Name:  H. John Riley, Jr.                    Name:  David R. Sheil
Title: Chairman, President and               Title: Senior Vice President,
       Chief Executive Officer                      Human Resources

                                             -----------------------------------
                                             EXECUTIVE

                                             Address:

                                       16

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