HUMAN RESOURCES LEADERSHIP PROGRAM (HRLP)

The Human Resources Leadership Program (HRLP) was introduced in 1985 with the immediate goal of improving our available human resources talent while simultaneously creating a future pool of high-potential candidates for significant management positions. This process starts by recruiting candidates at select, targeted universities with highly regarded human resources programs. Candidates generally possess undergraduate or graduate degrees in human resources or management related fields. Most have relevant manufacturing experience and have held leadership positions on campus. Candidates must also demonstrate strong interpersonal skills and a willingness to relocate.

The Human Resources Leadership Program is designed to build on the technical skills of its participants by exposing them to experienced Cooper professionals through three assignments - two at manufacturing locations and one at either the Corporate Office or a Division Headquarters Office. Some HRLP participants will also have the opportunity to complete a six-month plant supervisory assignment. See below for a description of other possible assignments.

Labor Relations
Many of Cooper's plants are organized by labor unions and have been for many years. Whether unionized or not, our policy is to maintain wages and benefits that are competitive in the communities in which we operate in order to attract and retain quality employees. We must also be competitive in the various manufacturing industries so that we can operate profitably. In a union or union-free environment, we try to maintain a harmonious relationship with our employees. Typical assignments in the area of labor relations include:

• Participating in collective bargaining negotiations
• Administering grievance procedures
• Conducting employee surveys
• Preparing and participating in arbitration cases
• Managing hourly employment
• Coordinating employee activity schedules

Safety and Health
The steps we take at Cooper to protect the health and safety of employees go well beyond minimum legal requirements. Cooper considers the health and safety of employees a moral responsibility. Safety and Health programs are centrally directed and have the support of top management throughout the Company. Typical assignments in the area of health and safety include:

• Conducting industrial hygiene audits
• Writing hearing conservation programs
• Training employees in the Safety Training Observation Program (STOP)
• Investigating and reporting accidents
• Administering safety incentive programs
• Facilitating safety and health committees
• Managing workers' compensation claims
• Administering OSHA mandated programs
• Participating in occupational safety and health management evaluations

Communications
We believe a strong communications program is essential in educating employees about corporate goals as well as in building credibility, instilling pride in the company and motivating employees to improve productivity and effect changes. Typical assignments in the area of communications include:

• Writing employee newsletters and handbooks
• Conducting employee feedback meetings
• Revising and developing company policies
• Developing and coordinating a comprehensive communications plan
• Facilitating group or departmental meetings

Salary/Benefits Administration
Cooper's salary and benefits programs are designed to provide internal equity and external competitiveness. Using the Management Development and Planning (MD&P) process, our salary program reinforces the concept of pay for performance through the measurement of mutually established goals. The company's benefits programs are designed with flexibility to meet the insurance, health care, savings and retirement needs of all employees. Typical assignments in the area of salary and benefits administration include:

• Evaluating benefits of new and potential acquisitions
• Auditing levels of existing benefits
• Educating and enrolling employees in optional services
• Developing summary plan descriptions
• Assisting employees in medical plan utilization
• Conducting wage and benefit surveys

Recruiting
The company believes in promotion from within, when the talent and experience are available. We also recognize that, in a growing organization, it becomes necessary to recruit candidates from outside the company from time to time. The recruitment of high-quality candidates is of vital importance to Cooper's future growth and performance. Typical recruiting assignments include:

• Staffing exempt, non-exempt and hourly positions
• Investigating and identifying new selection pools
• Coordinating interview processes
• Representing Cooper Industries at career fairs
• Conducting college campus interviews
• Administering affirmative action plans

Training
Cooper hires employees with training in their areas of expertise. We also encourage continuing education and provide training and education opportunities to help employees perform more effectively in their current positions and to prepare for advancement opportunities. Typical development assignments include:

• Preparing for ISO 9000 audits
• Conducting training for safety, leadership and team-building
• Assisting in the establishment of a technical training program
• Developing and managing on-site educational programs

As a supplement to the day-to-day experiences gained during the rotational assignments, the Company conducts two in-depth workshops for all HRLP participants during their three years of training. These workshops are taught by experienced Cooper managers who provide insight on human resources topics, manufacturing concepts, leadership, and finance.

Values and Practices - An Introduction to Cooper Industries The Values and Practices Workshop provides first-year program participants with an introduction to Cooper's operating principles and philosophies. Topics at this workshop include: operational excellence, management and supervision, inventory management, a review of Cooper's Management Development and Planning program, effective presentations, health and safety issues, compliance, information systems and employment policies. Individual skills such as time management, effective writing and leadership are also presented at this workshop. This workshop is conducted each August, shortly after the development program participant joins the Company.

Finance for Non-Financial Managers Workshop
The Finance for Non-Financial Managers Workshop is conducted the second year of the HR leadership program and provides in depth exposure to Cooper's financial systems and practices. The workshop begins by covering general accounting concepts and continues through Cooper's approach to cash flow, cash decision making, operational budgeting and performance reporting. The course is taught by key financial professionals from the Corporate Office. Newly acquired financial skills are then integrated together through the use of a team case study and group presentation.