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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;NOTE 8: COMMITMENTS AND CONTINGENCIES&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Cooper and its subsidiaries are defendants or otherwise involved in a number of lawsuits in
   the ordinary course of business. We estimate the range of our liability related to pending
   litigation when we believe the amount and range of loss can be estimated. We record our best
   estimate of a loss when the loss is considered probable. When a liability is probable and there is
   a range of estimated loss with no best estimate in the range, we record the minimum estimated
   liability related to the lawsuits or claims. As additional information becomes available, we
   assess the potential liability related to our pending litigation and claims and revise our
   estimates. Due to uncertainties related to the resolution of lawsuits and claims, the ultimate
   outcome may differ from our estimates. In the opinion of management and based on liability
   accruals provided, our ultimate exposure with respect to these pending lawsuits and claims is not
   expected to have a
   material adverse effect on our consolidated financial position or cash flows, although they
       could have a material adverse effect on our results of operations for a particular reporting
       period.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The U.S. Federal Government has enacted legislation intended to deny certain federal funding
       and government contracts to U.S. companies that reincorporate outside the United States, including
       Section&amp;#160;745 of the Consolidated Appropriations Act, 2008 (Public Law 110-161), Section 724(c) of
       the Transportation, Treasury, Housing and Urban Development, the Judiciary, and Independent
       Agencies Appropriations Act, 2006 (Public Law 109-115), and 6 U.S.C. 395(b) of The Homeland
       Security Act. Cooper has self-reported to the Department of Defense certain transactions
       aggregating approximately $8&amp;#160;million with U.S. government entities which may be subject to the
       legislation. At the time of this filing, it is too early to determine whether any fines or
       penalties may be assessed against Cooper.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Cooper has entered into various operating lease agreements, primarily for manufacturing,
       warehouse and sales office facilities and equipment. Generally, the leases include renewal
       provisions and rental payments may be adjusted for increases in taxes, insurance and maintenance
       related to the property. Rent expense for all operating leases was $42.9&amp;#160;million, $42.2&amp;#160;million
       and $36.4&amp;#160;million during 2009, 2008 and 2007, respectively. At December&amp;#160;31, 2009, minimum annual
       rental commitments under noncancellable operating leases that have an initial or remaining lease
       term in excess of one year were $26.6&amp;#160;million in 2010, $22.1&amp;#160;million in 2011, $14.6&amp;#160;million in
       2012, $9.9&amp;#160;million in 2013, $6.4&amp;#160;million in 2014 and $22.9&amp;#160;million thereafter.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Cooper has purchase obligations of approximately $262&amp;#160;million related to commitments to
       purchase certain goods and services in 2010.
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