CONFIDENTIAL – SPE Use Only – DRAFT v111 October 21, 2008 Human Capital Management Program Domestic Human Capital Management (HCM), CIPS Reintegration, European Payroll Consolidation October 21, 2008

CONFIDENTIAL – SPE Use Only – DRAFT v112 October 21, 2008 Executive Summary: Problem Business Challenges International Payroll is fragmented among vendors resulting in processes that are inconsistent, controls that are poor and little cost leverage. Human Resources applications don’t support even basic business needs, provide little in the way of decision support and are at-risk from obsolete and unsupported technology. Little support exists to manage and oversee a global workforce. North American Payroll is under-integrated with HR and Financials and has a high-risk support model. Certain SOX and GISP requirements may be hard – or impossible – to meet from where we are now. International Payroll Global HCM North American Payroll

CONFIDENTIAL – SPE Use Only – DRAFT v113 October 21, 2008 Executive Summary: Response Resolutions Initiate a strategic, phased program to address each set of issues and provide more integrated solutions that ultimately piggy-back on SAP investment. Ensure SOX and GISP compliance on all fronts. Consolidate territories onto a single international payroll provider and also gain basic HR information from them to enhance reporting and support consistent processes and controls. Implement “core” HR functionality in North America on SAP for expansion internationally and then as a platform for future process enhancements and providing basic global reporting. Improve CIPS to maintain its viability for several years until a replacement strategy can begin and document the system to reduce support risks. International Payroll Global HCM North American Payroll

CONFIDENTIAL – SPE Use Only – DRAFT v114 October 21, 2008 Executive Summary: Why? Benefits Manage spend over a longer investment period to reduce near- term capital infusion. Make changes over a longer planning horizon to enable other options to mature and to allow SPE to absorb changes incrementally. Consolidating international payroll providers means cost economies of scale, greater consistency and controls more easily monitored. Basic global reporting accommodated. “Core” HR functionality on SAP will be richer than now available and will replace the hardware and software obsolescence risks with a more flexible platform. CIPS gets a makeover with long-awaited improvements and better integration to HR and Financials. Urgency for replacement can be reduced by extending system life 3-5 years. International Payroll Global HCM North American Payroll

CONFIDENTIAL – SPE Use Only – DRAFT v115 October 21, 2008 Executive Summary: Financial Summary International Payroll Global HCM North American Payroll Project Costs S/W and Licenses:$ 135K Hardware$ 667K Internal Labor:$ 1,835K External Labor:$10,478K Other/Miscellaneous$ 950K Total Project Costs:$ 14,065K Project Benefits Hard Dollar Benefits:$ 2,694K Soft Dollar Benefits:$50,584K Total Project Benefits:$53,278K Ten-year Summary and Payback Ten-year total costs: $ 35.9M Ten-year total benefits: $ 53.3M Ten-year net benefit: $ 17.4M Internal Rate of Return: 16.6% Net present 10%: $ 3.9M Payback: 65 months Budget Summary (This project is in the FY09 Budget Current Funding$ 4.4M Funding Needed$ 9.7M

CONFIDENTIAL – SPE Use Only – DRAFT v116 October 21, 2008 Executive Summary: Financial Summary International Payroll Global HCM North American Payroll Project Depreciation Annual Support Costs