December 18th, 2014 Philips Lighting North America 200 Franklin Square Drive Somerset, NJ 08873 Dear Distributor Partners, I am pleased to announce how we will be going to market in the combined New York Metro/New Jersey District. We will be maintaining two direct sales offices, fully staffed with sales & support personnel: Philips Lighting NYC Office 250 Park Ave South, 9th Floor New York, NY 10003 Philips Lighting NJ Office 200 Franklin Square Drive Somerset, NJ 08873 As we have transformed into a lighting solutions company, our teams have been trained across all of our product lines (luminaires, lamps & ballasts) to bring value to the market across all technologies and provide the best solution for every lighting opportunity. As such, we have organized our team as described below to drive sales growth through a targeted channel approach in which the teams in each channel can focus on selling the complete Philips portfolio with our dedicated support team providing high levels of service and support. Project Sales Will be led by Gerard Blandina and will focus on the development of lighting project business with an emphasis on specifying entities, contractors and our distributor project departments. This team will be comprised of Philips’ District salespeople and Agent Partners. The Direct team will focus on all products across the District. Electric Lighting Agencies (ELA) will represent the Philips Color Kinetics product line and Dave Murphy & Associates will focus on lighting projects in the Municipal, Utility and Roadway markets. Stock Sales Thea & Schoen will represent Philips Lighting for all luminaire, lamp & ballast stock sales across the District. Thea & Schoen’s representation of lamps, ballasts and Stonco goes into effect on 1/15/2015. Prior to this date, Burgoyne will continue to act as the agent for lamp, ballast and Stonco sales. End-User/Energy Sales A direct team of Philips’ District salespeople will focus on end-users and energy saving focused companies to develop lighting solutions and drive the sale of all Philips Lighting Products. Philips Lighting North America 200 Franklin Square Drive Somerset, NJ 08873 Sales Support A dedicated team of Quotations, Project Management and Order Management will support the District. Our Project Managers will provide proactive support to your Project Departments to ensure that we deliver the highest standards of service and reliability in the industry. The Order Management team will support all channels and strive toward continuous improvement in all aspects of customer service & order processing. We look forward to reviewing this Go to Market approach with you during our 2015 Planning Meetings and aligning our resources to grow together and provide our mutual customers with the best lighting solutions. Best Regards, Rob Mondillo District Manager New York Metro & New Jersey