Document 10DMK696garqpkY8DbVRwe35

March 29, 1971 MEMORANDUM: TO: FROM: Mr. J. W. Rawlings G. P. Stromberg Attached are Schedules A, B, C, & D together with an explanation of the price escalation applicable to A28 Asbestos. I understand that it was your intention to include a copy of the adjustments in your letter to the German distributor. / / GPS:pm Att. UCC 010611 EXAMPLE OF PRICE ESCALATION Schedule C lists the indices shown in the Monthly Bulletin of Statistics (March issue) as published by the United Nations. Schedules A, B and C shows a sample calculation of price escalation applicable to the A-28 product, assuming the hypothetical case of contract commencement on April 15, 1970. The base month for index purposes is, therefore, January, 1970. Price escalation is applied to the stated contract price less $.15 for each incremental poundage segment applicable to the first period. The formula is as follows: Mathematical Average 53% (Contract Price/Lb.) x of Wage Indices Base Wage Index 47% (Contract Price/Lb.) x Mathematical Average of Raw Mat. Wholesale Indices Base Raw Mat. Index The sum of the above calculations under the formula, plus $.15, would be the total CIF price per lb. appropriate to each poundage segment for the ensuing price period. Schedule B shows samples of the escalation calculations. Schedule A shows the CIF price per lb. for A-28 as calculated for various pricing periods under the formula for this hypothetical case. Schedule D lists the appropriate indices to be utilized to determine price escalation for various pricing periods on the basis that the contract commencement date is April 15, 1971. UCC 010612 < fxJ WQ1-1 Vl o oo t--4 o n o> <r r-i cn in <s> co n o m in * co co m o in r-i <3* in co co mom *-i ^ m </> co C3CJ i--4 o < C/5 == jz o u o Xo M C/5 o m in o in -- in co CO- in r-4 v> --i in co </> in r-4 vO r-1 <3* in CO co in h ^ r--< <t <n co co _rM+ =5}= u 4J o CM o M fa o m in r-4 sO H <f in co CO in CM nr-l ^ in co CO m cm r^ <f m co co- in cs r^ i-i <r m </> co =*> Xo 4-> O Vi O 3 fOa o in in <M n* rH in co co in co 00 r-i -4" m co CO in ro 00 r-i <f in * co CO riHn ro ono <o co =S= X) o uo H o J3 H m in m co f-i <f in co CO wrS 8C o o u0 a) o co m in ON r-i <f m co CO in < a> r-4 m co CO in m o r-i <f sO co CO in <fr a> r-i <r m CO CO in m o r-4 <3* vO CO CO n h ^<r cintn co co nno r-4 <t so co co 4J o co o Vi o H E*4 o in in n o i-i <f vO CO- CO in vO \0 CO- CO m \o r-l r-l <3* sO CO CO Hn so h co co- O Oa -r-l E<Vdul <v <3* rM \ u u U C o 1-t Vi CLi Or^ 1 O fa Tcc3C e <u r--I Ed Cd fa Ma i-H r--i <u r^ o v -r-l <f U jj Vi r-i U e CVi ^ fa <u (d T3 cu i-i i C rM O cO Ed rH r--1 CM 0) r^ O v. M <r 4J Vi crH Vl CU ^ fa <u 1^. e b T3 <U M 1 C r-l U CO Ed H i-M u ca C/5 CO 4J maoo HHr-l a h 4J to o on co CO 4-1 r- C uH * 4J ^ C/3 co 4-1 mcO o r-i M o H o* co 4J CO uCO in p O 1 M <d H f-H UCC 010613 EXAMPLE OF MATHEMATICS INVOLVED IN PRICE ESCALATION PRICE PERIOD 10/ 15/70 - 1/14/71 1st. 50, 000# .53 ($.45) x $3,33 $3. 29 = $.2414 . 47 ($. 45) x 118. 9 116. 5 Rounded . 2159 $.4573 2nd. 50, 000# . 53 ($. 44) x $3. 33 $3. 29 $ .2360 .47 ($.44) x 118. 9 116. 5 Rounded . 2111 $. 4471 3rd. 50, 000# . 53 ($.43) x $3.33 $3. 29 . 47 ($.43) x 118.9 116. 5 Rounded $.2307 . 2061 $.4368 Schedule B $. 46 $.45 PRICE PERIOD 1/15/71 - 4/14/71 1st. 50, 000# . 53 ($. 45) x $3. 34 $3. 29 = $.2421 . 47 ($. 45) x 118. 4 116. 5 Rounded .2149 $.4570 2nd 50,000# .53 ($.44) x $3,34 $3. 29 = $Z367 . 47 ($.44) x 118.4 116. 5 Rounded . 2102 $.4469 $. 46 $.45 UCC 010614 Cont'd Next Page 3rd. 50,000# .53 ($.43) x $3. 34 $3. 29 .47 ($.43) x 118.4 116. 5 Rounded PRICE PERIOD 4/15/71 - 7/14/71 1st. 50, 000# . 53 ($.45) x $3.37 $3.29 . 47 ($. 45) x 117.5 116. 5 Rounded 2nd. 50, 000# . 53 ($.44) x $3.37 $3. 29 . 47 ($.44) x 117.5 116. 5 Rounded 3rd. 50,000# 53 ($.43) x $3. 37 3. 29 47 ($. 44) x 117. 5 116. 5 Rounded $.2314 . 2054 $.4368 $.2443 .2133 $.4576 $ .2389 . 2086 $.4475 $ .2334 . 2086 $.4420 $. 44 $.46 $. 45 $. 44 NOTE The next four poundage increments are similarly treated in order to determine the escalation of $.42, $.41, $. 40 and $. 39 respectively. UCC 010615 SCHEDULE C to a> o H fMa a) cocm i--i a)--HU X W cB <v a] 00 T03) 0C1O * QjJ u CO P ai > < 01 f--1 <D CO 4J D CO O PS H UH O p CO au s o o 'o 4J CQ o >6 cO a> o 09 H CO 44 42 caeOi 42 4-tU2o u CO o 2 44 o ON rH * m rH U oo o o fH P ai a 0) rH O ri a\ P <-4 a ** <3 -442 ,-1 4-> PC O CO fa '-> /-s < rH ON rH m rH p cO T) 0 rH in <0 a rH a) r*O O' <H rH P CL * ai rH 42 4-> rH H lH P oa fa < /*S CO s-* co U3 o M Q Z /--N bO-t UHW a) pu rH CO u CO CO 00 P *o rH a> <U2 l4-4t CO e w5 >s a> rH 42 44 44 3 oc M Cl) M <0 co r^ P CO cn CO co CO CO < 09 _. o; 2 n0 s O ID 4J CO PC' 00 CM co CO CM CO </> 00 f^. CO <r * o> O' H N 4 4) rs r- cs ON NO O' CM CM co co co CO co HI -J- cl co <r <r ro co mconnco co co CO CO CO CO <0- u cO 0) PH O0OO 0 0 0 0 r- 0 0 0 rH h** r- r-- O 1^ O' r^. r- -a ON ON on on o> ON ON rH ON a^ O' O' rH i--l rH i--1 rH rH rH rH rH 4: rH U <D >N U * c c0 42 CO (I) P CO P (X >, CO p3 3 00 a u p <D 0 > O O CD p CO MMQ z a Cz-i < cn 0 CD 3 09 09 CQ M 0 iH rH u co on rH rH u CO U 42 CO 0 4H O P H 44 C0 ai c r-l 0 rH fH 3 cq tcai z > rH *0 42 r>* rH rH m OS rH <T rH * rH H h * rH >v Li M <0 rH <3 13 3 H rH U 3 XI C U a; a o <3 a >s pO ai u < rH o o 3u o o-> o l rH CM CM |-"- r-~ r-s. tH OS Os CM OS r-v rH rH r*. CM rH os os r-* iH s PS rH Os r m rH u-> o p* rH *H * rH om in rH Lt rH m Lt V-0 Q a) orH rH X) H M H o </> U W a. <J u rH a> cd rH X> 3 C H H J>* rH o u a3 u o oK 04 c *-> *-> P R IC IN G PERIODS ASSUMING CONTRACT COMMENCEMENT ON A p r il 15, 1971 00 35 11 10 *H (3 *H w 13 4J c3 2 c3 PC Ut o <4U u 3 CO O 13 Au H os Li nJ Qu cn 0) <s> rH CO 1 CO V rH wo xs: x: u 0 H 4H o a 0 x 0) 4- o aj z V Cci CD X eg 0) 4) P3 00 T3 <3 c HM rH i--} rH r>. r- PN. Os OS Os rH rH rH >s >. >* L. U Lt <3 <3 <3 333 cCC <3 c3 c3 n -) *--) r-*s rH f-- as >H O M 5 Z T3 /-N 03 CO 4) rH 13 /\ 13 CM x: r>* 4J rH W CO r. a 0) os e3 c3 4> m os *H 43 rH Li Os Lt ^ u 43 rH rH 4J rH CM qj /--v 4-1 X3 (3 Li 43 03 r- Lt CM 3 Li 4) H Li rH Os a. X3 (3 43 C3 rH I-* a> os 03 g CO pO 00 rH rH <3 Li Li 43 a3 * 03 rH 4) 43 0 3A 43 (3 D tH 4) H O CO O* oo OM <3 CO 43 a> c rH 13 Cd 4J CD O. (0 H3 U rH rH a) r> O Os H rH 4> 43 rH C/3 0 ae 3 tH u3 T3 pC 43 ?a HI C H 43 oo -o A3 ?s HI C H 3 00 "O rH 3 O pC 3 (3 H HI T3 43 43 rH C/3 x0: c 5 *H faO x? M 43 c3 13 3 43 43 43 03 CL pK M 43 x: 00 03 > J= 03 5 x: CO oo x: <3 00 43 ^ : cn cn (3 * *H rH *rH CM *H *H (3 *H a3 ? rH r-w rH N rH rH 3 rH rH C pO os X3 OS pH CM pO X3 <3 c0 H 3 rH 3 rH 3 3 CM 3 ` cn >n a* PH os Pu n pu V OS ^ Li ^ rH ^ Os T3 rH 43 Li rH 4) X3 4-> > O CO rH 4-i 4-1 3 o <0 rH 3 r-i C Li rH (3 CL 3 aj n O -? < 4) a> 43 CO 0) CO 3) x> ZD Q> 03 43 cn CO CO ^5 O UCC 010617