Cooper Product Index (CPI 2007) Price Adjustment

The Cooper Product Index (CPI 2007) is a price adjustment mechanism Cooper Power Systems utilizes on some term/blanket contracts to equitably share the risks of commodity volatility. The CPI 2007 Price adjustment charts are shown below for the three product families: Distribution Transformers, Substation Transformers, and Voltage Regulators.

The CPI 2007 price adjustment is applied at time of shipment to the base contract price. For example, if the base price of a 50 kVA distribution transformer is $750. When it ships in the second quarter of 2008, with mineral oil fluid, the 7.418% CPI 2007 incremental increase of $55.64 will be applied with the resulting invoice priced at $805.64.

Cooper Product Index (CPI 2007) Price Adjustment

Mineral Oil 7.418%	FR3® 10.465%

Mineral Oil 5.271%	FR3® 6.908%

Mineral Oil 3.675%	FR3® 4.767%

The CPI 2007 price adjustment is by nature a positive value, with a 0.00 floor (lowest) value. In the event commodities change rapidly, Cooper Power Systems reserves the right to go to monthly CPI 2007 adjustments.

> CPI 2007 Process