Document 9J04vgB0nNe43rG7K0RQRjJMq

COOPER INDUSTRIES LTD(Form 424B2, Received 10/25/2002 13 39 31) Page 52 of 68 Effect on total of service and interest cost components Effect on the postretirement benefit obligation Point Increase Point (in millions) $05 $ $86 $ During 2001, 2000 and 1999, expense with respect to domestic and foreign defined contribution plans (primarily related to various groups of hourly employees) totaled $16 4 million, $17 6 million and $17 5 million, respectively NOTE 14: COOPER SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLANS All full-time domestic employees, except for certain bargainmg unit employees, are eligible to participate m the Cooper Retirement Savings and Stock Ownership Plan ("CO-SAV") Under the terms of the Plan, employee savings deferrals are partially matched with contributions by Cooper of Common stock consistmg of either an allocation of shares in Cooper's Employee Stock Ownership Plan ("ESOP") or treasury shares issued to the ESOP F-20 COOPER INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The ESOP purchased Cooper Common stock which was financed through external borrowings and loans from Cooper The external ESOP debt matured in July 1999 and was fully repaid The purchases funded by loans between the ESOP and Cooper were treated as eliminated mtercompany loans for financial statement purposes These intercompany loans were paid in full during 2001 Cooper made annual contributions to the ESOP to fund the payment of principal and interest. As the debt was repaid, unallocated shares were allocated to CO-SAV participants to satisfy Cooper's matching obligation or to replace dividends on allocated shares with Cooper Common shares in years poor to 2000 Dividends paid on unallocated ESOP shares of $0 1 million, $0 5 million and $10 million dunng 2001, 2000 and 1999, respectively, were used to reduce the amount of cash required to fund principal and interest payments on ESOP debt Dividends paid on allocated ESOP shares of $3 8 million during 1999 were used to pay additional pnncipal and interest payments in order to allocate shares equivalent to the dividend amount to participants in the CO-SAV plan Cooper contributed an additional $8 4 million, $9 6 million and $13 5 million in cash to the ESOP during 2001, 2000 and 1999, respectively, to fund pnncipal and interest payments on ESOP debt The number of allocated, committed to be allocated, and unallocated ESOP shares at December 31, 2001 and 2000 is summanzed below Allocated to CO-SAV participant accounts Committed to be allocated Unallocated Shares Purchased Prior to 1994 2001 2000 2,950,973 2,783,473 1,111 166,389 Shares Pui In IS 2001 928,837 Vtfr\ //u ninv ____ TT-V n /-ITTf -* * m * r\