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

Instructor TFSS BVS Program Structure TFSS Steering Committee (Jerry Boggess, Ken Chmiel Rick Henderson, Etc.) Executive Consultant Deployment Support (Scottsdale) SSA Executive Program Support (Debby & Jim) SSA Commits To Support BVS TFSS Deployment ADT Steering Committee SSA MBB 2 SSA MBB 3 SSA MBB 4 SSA MBB 5 SSA MBB 1 SSA MBB 1 Instructor Deployment Planning Deployment Logistics Human Resources Financial Support (project accounting & program strategic support) Communications Admin. Support (travel, material, etc.) Training Mentoring Strategic Support Overall Program Responsibility Strategic & Tactical Right resources working on the right things Results & timing SSA MBBs responsible for projects TSP Steering Committee SSA MBB 6 SSA MBB 6 SimplexGrinnell Steering Committee SSA MBB 7 SSA MBB 7 TSP Europe Steering Committee SSA MBB 8 SSA MBB 8 Sr. MBBs provide coordination & oversite support for business units Mentoring Full Time When Not in Training

Instructor TFSS Accelerated Deployment Program Structure TFSS Steering Committee (Jerry Boggess, Ken Chmiel Rick Henderson, Etc.) Executive Consultant SSA Back Office Support SSA Executive Program Support (Debby & Jim) SSA Commits To Support TFSS Accelerated Deployment ADT Steering Committee SSA MBB 2 SSA MBB 3 SSA MBB 4 SSA MBB 5 SSA MBB 1 SSA MBB 1 Instructor Deployment Planning Deployment Logistics Admin. Support (travel, material, etc.) Training Mentoring Tactical Support Overall Program Responsibility Tactical & Strategic Troubleshooting SSA MBBs responsible for projects TSP Steering Committee SSA MBB 6 SSA MBB 6 SimplexGrinnell Steering Committee SSA MBB 7 SSA MBB 7 TSP Europe Steering Committee SSA MBB 8 SSA MBB 8

Instructor TFSS Knowledge Transfer Program Structure TFSS Steering Committee (Jerry Boggess, Ken Chmiel Rick Henderson, Etc.) Executive Consultant SSA Back Office Support SSA Commits To Support TFSS KT Deployment Instructor Deployment Planning Deployment Logistics Admin. Support (travel, material, etc.) Training Mentoring Overall Program Responsibility Tactical & Strategic Troubleshooting

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