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Fisher Scientific Fuel Surcharge


To: Customers of Thermo Fisher Scientific Customer Channels Group
Re: Rising Fuel Costs

Dear Valued Customer:

Since early 2004, fuel prices have steadily increased, with wider fluctuation than in the past. This price volatility has led to greater variability in our carrier's freight rates as they implemented pricing structures that change with the cost of diesel fuel. The on-going effect of fuel prices on Fisher Scientific's shipping and transportation costs required us to institute a fuel surcharge in 2005.

Our fuel surcharge index has remained constant from 2005 through 2007. However, national small-parcel carriers increased their fuel-based charges by more than 14% during the same three-year period. This increase in cost resulted in a need for us to modify our fuel surcharge index, effective Feb. 1, 2008. The fuel surcharge is applied as an order-level charge based upon an index tied to diesel fuel prices as shown below:

Fisher Scientific Fuel Surcharge Index

Diesel Fuel $/gal
At Least Less Than Fuel Surcharge/Order
Effective 2/1/2008

$1.50
$0.00

$1.50

$1.75
$0.55

$1.75

$2.00
$1.10

$2.00

$2.25
$1.65

$2.25

$2.50
$2.20

$2.50

$2.75
$2.75

$2.75

$3.00
$3.30

$3.00

$3.25
$3.85

$3.25

$3.50
$4.40
$3.50
$3.75
$4.95
$3.75
$4.00
$5.50
$4.00
$4.25
$6.05
$4.25
$4.50
$6.60
$4.50
$4.75
$7.15
$4.75
$5.00
$7.70


The diesel fuel price used in the index is the National U.S. Average On-Highway Diesel Fuel Price as reported by the U.S. Department of Energy. The data is published monthly by the Department of Energy and can be downloaded from their Web site, linked below.

Similar to the approach used by multinational small-parcel carriers, the current-month fuel surcharge will be determined by the published diesel fuel price from two (2) months prior. Any changes in the fuel surcharge will be effective the first business day of the month.

The fuel surcharge will be invoiced as a separate line item, added to the first shipment invoice of each order. The surcharge will be a flat rate per order, independent of the size of the order or the number of line items. The amount invoiced is the indexed fuel surcharge as of the invoice date.

Fisher Scientific reserves the right to update the index on a periodic basis. In addition, the index may be extended beyond the current maximum price of $5 per gallon should diesel fuel prices exceed that amount.

Fisher Scientific believes that this method will continue to provide an equitable way to address the unpredictable expense of variable fuel prices. We appreciate your business and will continue to work to deliver cost-effective solutions to support your goals.