April 1, 2010 Lobbying: The Scarlet “L” or Democracy in Action?

April 1, 2010page 2 / Introduction Who We Are What We Do Today’s Discussion Role of Lobbyist Role of grassroots program Role of political giving Putting it all together

April 1, 2010page 3 / An Overview of Tyco Electronics (TE) We Serve Large Attractive Markets And Extensive Global Resources 100 Manufacturing Sites Serving Every Region With a Broad Range of Connectivity Products and Technology Transportation Communications Energy Consumer Products Industrial Equipment Aerospace & Defense Connectors Fiber OpticsTouch SystemsCircuit Protection Wireless Sealing & Protection Healthcare Precision Wiring 7,000 Engineers Close to our Customers 5,000 Salespeople Advising our Customers 125 Countries Served Consumer Industrial and Infrastructure

April 1, 2010page 4 / What is Global Government Affairs? The TE Office of Global Government Affairs promotes and safeguards TE’s business objectives by interfacing with federal/central/state/local government officials in an ethical manner influences legislation and regulations that are aligned with the company’s strategic business priorities

April 1, 2010page 5 / Government Affairs: Three-Legged Approach Grassroots Political Action Committee (U.S. Only) Direct Lobbying/ Relationship Building Policy & Business Priorities

April 1, 2010page 6 / Policy Priority Setting Process Issue Critical to Company / Organization NoYes No Action Unique to Company/Org. Other Companies and/or Industries Impacted Moderately Effective Leadership Provided by Others Highly Effective Leadership Provided by Other Companies and/or Associations No Leadership Provided by Others Priority #2Priority #3Priority #1 Compelling external (PR) or other reason to get involved Priority #1 AFFECTEDLEGISLATIVE PRIORITY INDUSTRY LEAD___________ 1)HighCompanyCompany 2)HighIndustries Others / Company 3)MediumAll Industries Others / Associations

April 1, 2010page 7 / Direct Lobbying / Relationship Building Interaction with : U.S. Congress U.S. Administration U.S. State Legislatures U.S. State Governors Foreign Ministries Members of Parliament European Commissioners

April 1, 2010page 8 / Tools for Lobbying Credibility Corporate Reputation Personal Integrity The Facts Advocacy Direct Lobbying Grassroots Trade Associations Coalitions Political Relationships Leadership: Executive and Congressional Political Parties Think Tanks Political Action Committees

April 1, 2010page 9 / HEARINGS MARK-UP, VOTE HOUSE IDEA SUBCOMMITTEE FULL COMMITTEE COMMITTEE ASSIGNMENT FULL COMMITTEE BILL INTRODUCTION BILL NUMBER HEARINGS MARK-UP, VOTE NEGOTIATIONDRAFTING SUBCOMMITTEE ASSIGNMENT HOUSE IDEA SUBCOMMITTEE FULL COMMITTEE COMMITTEE ASSIGNMENT FULL COMMITTEE BILL INTRODUCTION BILL NUMBER HOUSE FLOOR SENATE (same procedure with the exception of the role of the Rules Committee) MARK-UP, VOTE MARK-UP VOTE SUSPENSION OF THE RULES RULE RULES COMMITTEE How a Bill Becomes a Law... CONFERENCE COMMITTEE RESOLVEDIFFERENCES CONFERENCE REPORT SENATE FLOOR HOUSE FLOOR FINAL BILL VOTEVOTE SENATE FLOOR VOTE TO OVERRIDE HOUSE FLOOR PUBLIC LAW VETO SIGN VOTE TO OVERRIDE PRESIDENT VOTE VOTE

April 1, 2010page 10 / Ethics Rules U.S. congressional gift / lobbying disclosure rules Administration rules – ban on lobbyists; post- employment lobbying restrictions Each state has individual ethics rules Outside the United States: compliance with Foreign Corrupt Practices Act (FCPA) Corporate Ethics Policies

April 1, 2010page 11 / Grassroots "Grassroots advocacy“ - efforts by people and organizations at the local level to influence public policy at the state, national and international levels for a common cause Individual constituents writing letters, sending s and faxes, or visiting legislators to "petition the government" Organizations try to educate supporters, employees, local communities and others about key public policy issues that affect them Then when a legislative debate ensues, these people are encouraged to communicate with their elected officials

April 1, 2010page 12 / U.S. Political Action Committees Federal law and some state laws prohibit corporate contributions to candidates for elected office Companies and other organizations are able to participate in the political process by establishing a Political Action Committee (PAC) - PAC is legal, transparent, federally regulated organization - Pools voluntary contributions of a company’s U.S. employees and shareholders Support candidates / committees who support the philosophy and values of the PAC

April 1, 2010page 13 / Grassroots: A TE Case Study Step 1: Define Issue Stimulus Funds for “Alaska” Project Step 2: Create Coalition / Develop Strategy Consultants / Suppliers / Internal Support Step 3: Identify Congressional Champions Constituent Members of TE and TE Suppliers Step 4: Support Congressional Champions Develop talking points / sample letters Step 5: Implement Strategy / Follow Up Updates to Suppliers / Congressional Champions

April 1, 2010page 14 / Tying it All Together  Identify / Manage Issue  Develop lobbying strategy  Identify Stakeholders  Target Legislators - must have integrity - make a credible case  Use grassroots network to communicate message  Build a “war chest” of political funds  Implement Strategy to Achieve Goal

April 1, 2010page 15 / So You Want to Be a Lobbyist Where to Begin: Capitol Hill Internship Legislator’s Office of Committee Campaign Volunteer Paid Staff Graduate Degree Willingness to start at bottom and work your way up