Six Sigma Program Options A. Deployment Base Requirements (Knowledge Transfer) oTrain 300 Black Belts oTrain 15 Master Black Belts o4 Executive training courses o3 Champion courses oExecutive consultant (1) oBack office support (deployment policy, logistics, administrative support) oIntellectual property (training materials) – 5 years Accelerated Deployment oTrain 300 Black Belts oTrain 15 Master Black Belts o4 Executive training courses o3 Champion courses oExecutive consultant oBack office support (deployment policy, logistics, administrative support) oIntellectual property (training materials) – 5 years Breakthrough Value Services oTrain 300 Black Belts oTrain 15 Master Black Belts o4 Executive training courses o3 Champion courses oExecutive consultant oBack office support (deployment policy, logistics, administrative support) oIntellectual property (training materials) – 5 years Plus 8 Master Black Belts for 16 months o5 at ADT o1 at SimplexGrinnell o2 at Tyco Safety Products will facilitate major projects Plus 8 Master Black Belts for 16 months o5 at ADT o1 at SimplexGrinnell o2 at Tyco Safety Products will facilitate major projects oFast start pre Black Belt training – 2 days oProject closeout training – 2 days oFull time Black Belt student mentoring oFull time deployment manager oStrategic support and Sr. Master Black Belt involvement oAdditional back office support (HR, communications, international) oFinancial support (project accounting and program strategic support) B. Payment Base Requirements (Knowledge Transfer) Pay Fee ($8M) and expenses Accelerated Deployment Pay fee ($16M) and expenses Breakthrough Value Services Pay 8% of audited project net savings and pay expenses Plus $14MM Negotiated down to $14mm…Debby Ron…This is the chart that Ken Chmiel used to discuss the Program comparisons during the negotiation phase…Debby

Ron…The next two pages reflect the data we discussed last night…Debby

Key Six Sigma Roles Sr. Six Sigma Champion –Full-Time Commitment, reports to CEO, President & Board –Overall responsibility for six sigma program deployment & results –Created & drives six sigma vision for organization –Responsible for communication & elimination of barriers –Select Deployment Team members and lead the team in creation of deployment plan. –Interface with Six Sigma Academy. –Internally publicize six sigma goals, plans, progress, results, and best practices. Business Unit Champion –Similar to Sr. Six Sigma Champion position, but scope is for Business Unit –Full time commitment – minimum 1 year –Responsible for six sigma program results for Business Unit –Sets goals & deployment timing & plan for Business Unit’s six sigma –Selects Project Champions Project Champion –Full-Time Commitment –Work with BU Deploy Champs to develop strategy & timeline for six sigma rollout –Ensure success of BBs & BB Projects –Ratio = 15BB/PC –Project Selection