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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.
   &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;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.
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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 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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