SUGGESTED BUSINESS PLAN OUTLINE Executive Summary Summary of situation and the unmet customer need Our solution

on and value proposition How we would deliver that proposition and compete effectively Fit with our strategy and core competencies; sources of sustainable competitive advantage Projected economics of the business Test and expansion plan Investment required and projected returns ***
1) Market Opportunity Unmet Customer Needs Enabling trends within the market context (e.g., technology breakthroughs, change in

government regulation, demographic shifts, etc.) Market existing and potential size; growth rate Market segmentation Basis (e.g., price/cost, product performance requirements, customer service, etc.) Segment sizes and relative profitability Competitive overview; profit pool size and shares; barriers to entry Whats the unmet need, and how significant is it? 2) Proposed Product/Service Offering The Value Proposition Target customers/segments (planned geography of operation) Proposed product/service offering How it works; comparison of working prototype to eventual product Comparison to alternatives (including not using something like this at all) Product line breadth Description of key technology and IP protection/ownership Pricing strategy Channels of distribution; economics; bargaining power relative to downstream actors 3) Business Model Value chain and how it fits with our existing core competencies, e.g., Sourcing Manufacturing Marketing Sales and service Details on the go-to-market strategy Key suppliers and partners Economics Capital investment required P&L structure Balance sheet structure Economies of scale 4) Competitors and Sources of Competitive Advantage Existing and potential competitors Their products and business models (value chains, partnerships, economics) Sources of sustainable competitive advantage Potential and expected competitive response to our entry/offering

2 5) Management Team Leader Functional heads Sponsor Advisors Gaps and plans/timing to address these 6) Market Test and Expansion Plan Test plan description, geography and timing How it will be read; benchmarks of success Pilots and expansion plans Test/pilot costs 7) Summary Financial Projections Volume and revenue projections annual, out 5+ years Cost structure (fixed/variable, margins, EBIT, etc.) Investments required and timing Balance sheet Cash flows ROI/NPV Summary of sensitivity analysis Key non-financial metrics 8) Legal and Regulatory Issues IP ownership and protection Brand trademarks Federal, state and local legal/regulatory issues International regulatory issues 9) Key Risks, e.g., Customer uptake Competitive response Technology leapfrog Raw material supply Legal/regulatory Etc. 10) Next Steps Decisions and funding required; timing Key milestones Subsequent funding stage gates *** Appendix 1) Financial projections by quarter, out 5+ years 2) Sensitivity analysis 3) Team member profiles 4) Market research 5) Competitor profiles 6) Details on the technology and IP 7) Details on implementation and project milestones; Gantt chart JMS

3 12/8/09