Burke Coatings HR Team Presentation Overview Corporate Citizenship – Michelle Roseman Performance Management – Kelly Brigman Compensation & Benefits – Chris Hazlip Environmental, Health & Safety – Jane Carswell Employee Relations – Ted Carothers AV Provided by our HR Webmaster – John Brock

Corporate Citizenship Code of Business Conduct Burke Coatings is committed to establishing a reputation for honesty and integrity and demonstrating the highest standards of ethical business conduct.

The fundamental principles that guide Burke Coatings’ associates in ethical business conduct are: Obey the law Respect the rights of competitors, customers, and suppliers Maintain accurate financial records Avoid any association which might represent a conflict of interest Comply with rules and regulations related to government contracts Be proactive Be responsible citizens Corporate Citizenship Code of Business Conduct

Training & Development Through Performance Management New Performance Management program for 2003 Focus is on evaluation of accomplishments and competencies 14 competencies have been identified which are key for success at Burke Coatings Areas identified for improvement will be addressed through classroom training as well as on-line training modules, which will be introduced this year

Training & Development Through Performance Management The SMART Model - Performance goals are: Specific Measurable Agreed Upon Realistic Time-Bounded (Follows the Crosby Philosophy)

Compensation and Benefits Highlights 2003 Company will move forward with budgeted 5% wage and salary increases Increases will not be ‘across the board’ Increase range will be 0-10%, based on individual results in the Performance Management review process There will be no reductions or elimination of benefits in 2003

Severance package administration will be geared toward creating goodwill so that displaced associates will be willing to accept recall when business conditions improve Recall rights are for 12 months; those recalled within that time frame would have all seniority restored Severance payment will be two weeks at full salary for all who lose their job COBRA will be subsidized by Burke Coatings for 90 days Compensation and Benefits Highlights 2003

Staff reductions will be equitable 20% staffing budget cut in each department Reduction by Classification Compensation and Benefits Highlights 2003

Environmental Health & Safety 2003 Goals OSHA-recordable incident rate goal:0.90 Target is <1 recordable injury Slight increase in TRIR due to fewer hours worked TRIR

Focus on ISO14000: Integration of existing Responsible Care and Sustainable Development internal standards into ISO14000 format Customers are beginning to demand conformance, and our competitors are pursuing this goal as well Our existing programs already fulfill most of the demands required in ISO14000 certification Goal is complete preparation for audit by 1st qtr 2005 Environmental Health & Safety 2003 Goals

Employee Relations Union Policy: It is the policy of Burke Coatings to treat all employees fairly and equitably. It is the belief of management this objective can be best achieved in a working environment where each employee has the opportunity to communicate directly and as an individual.

Employee Relations Emphasizing a Positive Organizational Culture to maintain morale during this difficult period: Annual Pig Pickin' Annual Christmas Party Service Pins Employee of the month Silver Dollar Award Employee opinion survey