Document:

EX-10.1

Exhibit 10.1

SUMMARY OF COMPENSATION ARRANGEMENTS FOR

NAMED EXECUTIVE OFFICERS

Following is a description of compensation arrangements that were approved by the Management
Development and Compensation Committee (“Committee”) of Cooper’s Board of Directors on February 13,
2006 for the Chief Executive Officer and the other four most highly compensated executive officers
in 2005 (the “Named Executive Officers”).

Base Salary – In recognition of the promotion of Mr. Kirk S. Hachigian to the additional
position of Chairman of the Board, the Committee increased his annual base salary to $1,000,000
effective February 16, 2006. The current annual base salaries for the other Named Executive
Officers are as follows:

	 	 	 	 	 
	T. A. Klebe – Senior Vice President and Chief Financial Officer
	 	$	466,000	 
	P. M. Isabella – Executive Vice President, Cooper Connection
	 	$	400,000	 
	D. R. Sheil – Senior Vice President, Human Resources and Chief
Administrative Officer
	 	$	388,500	 
	G. L. Gawronski – Vice President, International Operations
	 	$	300,000	 

Annual Incentive Compensation

The Management Annual Incentive Plan (“MAIP”) is a bonus plan for senior executives that is
designed to link executive compensation to achievement of our short-term business objectives.
Participants can receive a bonus based on a percentage of their annual salary if Cooper meets
threshold, good, target or maximum attainments. In determining the actual annual incentive award
to be paid to an executive, the Committee may also consider the executive’s individual performance
objectives and personal contributions. The Committee may pay awards earned in cash or in Cooper
Class A common shares or a combination of cash and shares. Subject to the Committee’s approval, a
participant in the MAIP may request to have all or a portion of his or her award paid in shares of
Cooper stock.

In February 2005, the Committee established the performance goals and maximum bonus
opportunities under the MAIP for Named Executive Officers and for other executive officers. The
performance goals were based upon actual results compared to budgeted performance for 2005 on two
financial measures: (1) earnings per share; and (2) free cash flow. Under the MAIP, the Committee
has discretion to adjust the amount of any award that would otherwise be payable upon achievement
of the performance goals based on its assessment of an individual’s actual performance.

In February 2006, the Committee determined results under the MAIP for 2005 and awarded the
following bonuses to the Named Executive Officers: K.S. Hachigian – $2,000,000, T. A. Klebe –
$700,000, P. M. Isabella – $340,000, D. R. Sheil – $200,000, and G. L. Gawronski – $280,000. This
determination was based on significant earnings per share growth and excellent cash flow
performance. The Committee credited management with achieving strong earnings growth through a
combination of strategic growth initiatives and stringent cost controls despite challenges
presented by highly competitive market conditions and rapid increases in energy, commodity and raw
material costs. The Committee also recognized Cooper’s excellent cash flow performance
accomplished through operating efficiencies and effective management of working capital. In
determining 2005 incentive awards, the Committee provided additional bonus compensation outside the
MAIP to Mr. Hachigian in recognition of extraordinary contributions following his promotion to
Chief Executive Officer in May and to Mr. Klebe for contributions to development of effective
strategies to resolve complex issues facing Cooper.

On February 13, 2006, the Committee established performance goals and maximum bonus
opportunities for the Named Executive Officers and other executives under the MAIP for the fiscal
year ending December 31, 2006. The performance goals for 2006 are based upon actual results as
compared to budgeted performance on two financial measures: (1) earnings per share; and (2) free
cash flow, with the award being determined by reference to a matrix of different performance
levels.

The following table sets forth the minimum and maximum annual incentive award payouts for each
of Cooper’s Named Executive Officers based on the achievement of Cooper’s performance criteria for
the year ending December 31, 2006.

	 	 	 	 	 	 	 	 	 
	 	 	Minimum Payout	 	Maximum Payout
	K. S. Hachigian
	 	 	0	%	 	 	200	%
	T. A. Klebe
	 	 	0	%	 	 	120	%
	P. M. Isabella
	 	 	0	%	 	 	120	%
	D. R. Sheil
	 	 	0	%	 	 	100	%
	G. L. Gawronski
	 	 	0	%	 	 	100	%

Stock Options

Cooper’s Amended and Restated Stock Incentive Plan provides for the granting of stock options,
restricted stock units and performance-based share awards to the Named Executive Officers and other
key executives. On February 13, 2006 the Committee approved the following nonqualified stock
option grants to the Named Executive Officers at an exercise price equal to the fair market value
of Cooper’s stock on the grant date.

	 	 	 
	K. S. Hachigian

	 	140,000 shares
	 
	 	 
	T. A. Klebe

	 	30,400 shares
	 
	 	 
	P. M. Isabella

	 	25,000 shares
	 
	 	 
	D. R. Sheil

	 	10,000 shares
	 
	 	 
	G. L. Gawronski

	 	12,000 shares

All the stock option grants disclosed above vest in three equal annual installments and expire
seven years after the grant date.

Performance Shares

On February 13, 2006 the Committee also set performance goals for performance-based share
awards for the Named Executive Officers and other key executives for a three-year performance
period beginning on January 1, 2006 and ending on December 31, 2008. The Committee set performance
goals tied to the cumulative compound growth in earnings per share during the performance period.
The Committee determined that compound earnings per share growth over the period of at least 4% was
required before any award would be earned and at least 16% was required for a payout at the maximum
level. The awards, to the extent earned, will be distributed in Class A common shares of Cooper.
The following table presents information about the long-term incentive award granted in 2006 to the
Named Executive Officers.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Performance or	 	 
	 	 	Other Period Until	 	 
	 	 	Maturation or	 	Estimated Future Payouts Under Non-Stock
	 	 	Payout	 	Price-Based Plans
	 	 	 	 	Threshold	 	Target	 	Maximum
	 	 	 	 	(shares)	 	(shares)	 	(shares)
	K. S. Hachigian

	 	February 2009
	 	 	17,000	 	 	 	57,000	 	 	 	76,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	T. A. Klebe

	 	February 2009
	 	 	4,350	 	 	 	13,040	 	 	 	17,380	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	P. M. Isabella

	 	February 2009
	 	 	4,000	 	 	 	10,000	 	 	 	14,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	D. R. Sheil

	 	February 2009
	 	 	1,500	 	 	 	3,500	 	 	 	4,500	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G. L. Gawronski

	 	February 2009
	 	 	2,000	 	 	 	6,000	 	 	 	8,000EX-10.2

Exhibit 10.2

SUMMARY OF NONEMPLOYEE DIRECTOR COMPENSATION

On February 14, 2006, Cooper’s Board of Directors approved the following changes to its
director compensation program: the presiding non-management director and Audit Committee chairman
will each receive supplemental annual retainers of $15,000, and the chairman of the Management
Development and Compensation Committee and Committee on Nominations and Corporate Governance will
each receive supplemental annual retainers of $10,000. No changes were made to other provisions of
the director compensation program which are described below.

Cooper pays nonemployee directors an annual retainer fee of $45,000. In addition, nonemployee
directors are paid meeting attendance fees of $2,000 for regular Board meetings, $1,500 for regular
committee meetings and $2,000 for special Board or committee meetings. The Board has established a
stock ownership guideline of three times the annual retainer for each director.

In lieu of receiving the annual retainer and meeting fees in cash, each nonemployee director
may elect, under the Directors Deferred Compensation Plan, to defer receipt of such amounts until a
date determined by the director or until retirement from the Board. Alternatively, each
nonemployee director may elect to receive all or a portion of the annual retainer fee and meeting
fees in Cooper Class A common shares instead of cash, under the Directors’ Retainer Fee Stock Plan,
which was approved by shareholders in April 1998. The Directors’ Retainer Fee Stock Plan also
provides that each nonemployee director may elect to defer the receipt of all or a portion of the
shares of Cooper stock otherwise payable under the Plan.

Under the Directors’ Stock Plan, which was approved by the shareholders in April 1996, each
nonemployee director receives an annual stock award of 500 Cooper Class A common shares and 1,000
restricted stock units on each annual meeting date. Restricted stock units represent one Class A
common share each and vest during the year following grant on a pro rata basis depending on the
number of regularly scheduled Board meetings during the year. Restricted stock units are credited
with additional shares equal to the amount of dividends that would have been paid on an equal
number of outstanding shares. Upon a director’s cessation of service on the board, restricted
stock units are converted into Class A common shares and are distributed to the director in
accordance with the director’s payment election. Each newly elected or appointed nonemployee
director receives, upon election or appointment, a pro rata stock and restricted stock unit award
according to the time remaining before the next annual meeting date. Each nonemployee director may
elect under the Directors’ Stock Plan to defer receipt of all or a portion of the Class A common
shares payable under the Plan until a date determined by the director or until retirement from the
Board. Each nonemployee director is also granted annually a stock option for 2,000 shares at fair
market value under the Directors’ Stock Plan. The option vests on the third anniversary of the date
of grant and has a 10-year term. As of December 31, 2005, options for 90,000 shares were
outstanding under the Directors’ Stock Plan.

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