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Parker Hannifin Corporation Fluid Control Division 95 Edgewood Avenue New Britain, CT 06051 Office 860 827 2300 Fax 860 827 2384 December 16, 2013 Subject: List Price Adjustment effective date January 15, 2014 Dear Valued Distributor: Fluid Control Division (FCD) is implementing a list price adjustment effective January 15, 2014. This adjustment will affect standard list pricing, standard discounting, and any quotations or special deals based on a discount off of current list price. The list price adjustment for the product portfolio is targeted to maintain competitively priced core products and to manage pricing on non-core product lines that are in the “mature and declining phases” of the product life cycle. These changes will seek to improve our current lead time and to enable you to strategically price FCD’s products with respect to your OEM and MRO customers’ needs. The following changes will take place in accordance with our product strategy: 660 parts have seen a lead time reduction of one or more product classes 3000 Series with Nitrile and Viton seal options will be available beginning January 15, 2014 GoldRing and Skinner assembled valves will receive a $5.00 list price adder; this adder will not affect any purchase of modular components Quantity break pricing will be applied to all Non Standard products; details for quantity break pricing are fully explained in the “Quantity Break Pricing” document attached and in PHConnect Price Increase by Product Family Product Family Gold Ring Series 7000 Series Sinclair Collins Overall Increase Average Percent Increase 0.0% 1.5% <0.5% 1.3% In addition to lead time improvement, FCD will continue to deploy concentrated efforts to shield you from significant commodity, energy and logistics increases by alleviating these costs through our lean manufacturing and strategic procurement initiatives. Our teams work continuously to provide the highest customer value, quality and service. The new excel pricing file will be available for download from www.phconnect.com as of December 17, 2013. Also, the new price book can be downloaded from the PDF file posted on PHConnect as of January 15, 2014. We appreciate your continued business and support. If you have any questions or concerns in regard to the price increase, please do not hesitate to contact your Territory Manager or your Parker Fluid Control Division customer service representative. Sincerely, Craig Chapman Division Marketing & Sales Manager