<PAGE>
                          STRATTEC SECURITY CORPORATION

                              ECONOMIC VALUE ADDED
                                   BONUS PLAN
                                       FOR
                           NON-EMPLOYEE MEMBERS OF THE
                               BOARD OF DIRECTORS

                             Effective June 30, 1997
                as Amended August 21, 2001, October 23, 2001 and
                                  May 20, 2003

<PAGE>

                          STRATTEC SECURITY CORPORATION

                              ECONOMIC VALUE ADDED
                                   BONUS PLAN
                                       FOR
                           NON-EMPLOYEE MEMBERS OF THE
                               BOARD OF DIRECTORS

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                        Page
<S>                                                                                     <C>
I.       Plan Objectives                                                                  1

II.      Plan Administration                                                              1

III.     Definitions                                                                      1

IV.      Eligibility                                                                      4

V.       Individual Participation Levels                                                  4

VI.      Performance Factors                                                              4

VII.     Change in Status During Plan Year                                                5

VIII.    Bonus Payment                                                                    6

IX.      Administrative Provisions                                                        6

X.       Miscellaneous                                                                    7
</TABLE>

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I.       PLAN OBJECTIVES

         A.       To promote the maximization of shareholder value over the long
                  term by providing incentive compensation to non-employee
                  members of the Board of Directors of STRATTEC SECURITY
                  CORPORATION (the "Company") in a form which is designed to
                  financially reward participants for an increase in the value
                  of the Company.

         B.       To provide competitive levels of compensation that enable the
                  Company to attract and retain people who can have a positive
                  impact on the economic value of the Company to its
                  shareholders.

         C.       To encourage teamwork and cooperation in the achievement of
                  Company goals.

II.      PLAN ADMINISTRATION

         The Chairman & C.E.O. of the Company shall be responsible for the
         design, administration, and interpretation of the Plan.

III.     DEFINITIONS

         A.       "Actual EVA" means the EVA as calculated for the relevant Plan
                  Year.

         B.       " Bonus" means the bonus which is calculated in the manner set
                  forth in Section V.A.

         C.       "Capital" means the Company's average monthly net operating
                  capital employed for the Plan Year, calculated as follows:

                                    Current Assets

                           -        Current Interest Bearing Assets

                           +        Bad Debt Reserve

                           +        LIFO Reserve

                           -        Future Income Tax Benefits

                           -        Current Noninterest-Bearing Liabilities

                           +        Property, Plant, Equipment, (Net)

                           -        Construction in Progress

                         (+/-)      Unusual Capital Items

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         D.       "Capital Charge" means the deemed opportunity cost of
                  employing Capital in the Company's business, determined as
                  follows:

                           Capital Charge = Capital x Cost of Capital

         E.       "Company" means STRATTEC SECURITY CORPORATION. The Company's
                  Chairman & C.E.O., or his/her designee may act on behalf of
                  the Company with respect to this Plan.

         F.       "Compensation Committee" means the Compensaiton Committee of
                  the Board of Directors, which among other duties, is
                  responsible for administering the EVA Plan for the Company's
                  Officers and Senior Managers.

         G..      "Cost of Capital" means the weighted average of the cost of
                  equity and the after tax cost of debt for the relevant Plan
                  Year. For the purpose of this Plan, the Cost of Capital will
                  be the same as that determined (to the nearest tenth of a
                  percent) by the Compensaiton Committee prior to each Plan Year
                  for the Executive Officer and Senior Managers EVA Plan,
                  consistent with the following methodology:

                  (a)      Cost of Equity = Risk Free Rate + (Business Risk
                           Index x Average Equity Risk Premium)

                  (b)      Debt Cost of Capital = Debt Yield x (1 - Tax Rate)

                  (c)      The weighted average of the Cost of Equity and the
                           Debt Cost of Capital is determined by reference to
                           the expected debt-to-capital ratio

                  where the Risk Free Rate is the average daily closing yield
                  rate on 10 year U.S. Treasury Bonds for an appropriate period
                  (determined by the Compensation Committee from time to time)
                  preceding the relevant Plan Year, the Business Risk Index is
                  determined by reference to an auto supply industry factor
                  selected by the Compensation Committee, the Average Equity
                  Risk Premium is 6%, the Debt Yield is the weighted average
                  yield of all borrowing included in the Company's permanent
                  capital, and the tax rate is the combination of the relevant
                  corporate Federal and state income tax rates.

                  The Compensation Committee will review the Cost of Capital
                  annually and make appropriate adjustments only if the
                  calculated Cost of Capital changes by more than 1% from that
                  used during the prior Plan Year.

                                       2

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         H.       "Earned Wages" includes all cash compensation paid in the Plan
                  Year.

         I.       "Economic Value Added" or "EVA" means the NOPAT that remains
                  after subtracting the Capital Charge, expressed as follows:

                                    EVA = NOPAT - Capital Charge

                  EVA may be positive or negative.

         J.       Effective Date. June 30, 1997, the date as of which the Plan
                  first applies to the Company.

         K.       "EVA Leverage Factor" means the adjustment factor reflecting
                  deviation in the use of capital expressed as a percentage of
                  net operating capital employed. For purposes of this Plan, the
                  Company's EVA Leverage Factor is determined to be 5% of the
                  monthly average net operating capital employed during the
                  prior Plan year.

         L.       "NOPAT" means cash adjusted net operating profits after taxes
                  for the Plan Year, calculated as follows:

                                    Net Sales

                         -          Cost of Goods Sold

                       (+ -)        Change in LIFO Reserve

                         -          Engineering/Selling & Admin.

                       (+ -)        Change in Bad Debt Reserve

                       (+ -)        Other Income & Expense excluding Interest
                                    Income or Expense

                       (+ -)        Other Unusual Income or Expense Items

                       (+ -)        Amortization of Unusual Income or Expense
                                    Items

                         -          Cash Taxes on the Above (+/- change in
                                    deferred tax liability)

         M.       Participant. Any individual who has satisfied the eligibility
                  requirements of the Plan as provided in Section IV.

         N.       "Plan Year" means the one-year period coincident with the
                  Company's fiscal year.

                                       3

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         O.       "Target EVA" means the target level of EVA for the Plan Year,
                  determined as follows:

                   Current Plan        Prior Year     Prior Year     Expected
                   Year Target EVA  =  Target EVA  +  Actual EVA  +  Improvement
                                       -------------------------
                                                   2

                  Expected Improvement will be approved by the Board of
                  Directors annually, based on past practice and consideration
                  for current relevant economic conditions. Regardless of the
                  above defined formula, the Current Plan Year Target EVA cannot
                  be less than the Expected Improvement approved by the Board of
                  Directors.

IV.      ELIGIBILITY

         Members of the Company's Board of Directors who are not regular
         full-time employees of the Company are the only individuals eligible to
         participate in this Plan.

V.       INDIVIDUAL PARTICIPATION LEVELS

         A.       Bonus Formula. Each Participant's Bonus will be determined as
                  a function of the Participant's Earned Wages, the
                  Participant's Target Incentive Award (provided in paragraph
                  V.B., below), and the Company Performance Factor (provided in
                  Section VI.) for the Plan Year. Each Participant's Accrued
                  Bonus will be calculated as follows:

                                     Target        Company
                  Participant's  x   Incentive  x  Performance
                  Earned Wages       Award         Factor

         B.       Target Incentive Award. The Target Incentive Award for all
                  non-employee Directors will be 40% of Earned Wages.

VI.      PERFORMANCE FACTOR

         A.       Company Performance Factor Calculation. For any Plan Year, the
                  Company Performance Factor will be calculated as follows:

                  Company Performance Factor = 1.00 + Actual EVA - Target EVA
                                                      -----------------------
                                                        EVA Leverage Factor

                                       4

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         B.       Adjustments to Company Performance. When Company performance
                  is based on Economic Value Added, it may be necessary to
                  exclude significant, unusual, unbudgeted or noncontrollable
                  gains or losses from actual financial results in order to
                  properly measure performance. The Chairman & C.E.O. will
                  decide those items that shall be considered in adjusting
                  actual results. For example, some types of items that may be
                  considered for exclusion are:

                  (1)      Any gains or losses which will be treated as
                           extraordinary in the Company's financial statements.

                  (2)      Profits or losses of any entities acquired by the
                           Company during the Plan Year, assuming they were not
                           included in the budget and/or the goal.

                  (3)      Material gains or losses not in the budget and/or the
                           goal which are of a nonrecurring nature and are not
                           considered to be in the ordinary course of business.
                           Some of these would be as follows:

                           (a)      Gains or losses from the sale or disposal of
                                    real estate or property.

                           (b)      Gains resulting from insurance recoveries
                                    when such gains relate to claims filed in
                                    prior years.

                           (c)      Losses resulting from natural catastrophes,
                                    when the cause of the catastrophe is beyond
                                    the control of the Company and did not
                                    result from any failure or negligence on the
                                    Company's part.

VII.     CHANGE IN STATUS DURING THE PLAN YEAR

         A.       New Board Members. A newly appointed or elected non-employee
                  Director will accrue a pro rata Bonus based on Earned Wages
                  received during the first Plan Year in which that Director
                  joins the Board of Directors.

         B.       Removal. A non-employee Director removed from the Board of
                  Directors by due process during the Plan Year shall not be
                  eligible for a Bonus.

                                       5

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         C.       Resignation. A non-employee Director who resigns during the
                  Plan Year will be eligible for a pro rata Bonus based on
                  Earned Wages received.

         D.       Death, Disability and Retirement. If a non-employee Director
                  ceases to function as a member of the Board of Directors
                  during a Plan Year by reason of death or disability, a
                  tentative Bonus will be calculated as if the Participant had
                  remained an active member of the Board as of the end of the
                  Plan Year. The final Bonus will be calculated based upon the
                  Earned Wages received.

                  Each non-employee Director may name any beneficiary or
                  beneficiaries (who may be named contingently or successively)
                  to whom any benefit under this Plan is to be paid in case of
                  the non-employee Director's death.

                  Each such designation shall revoke all prior designations by
                  the non-employee Director, shall be in the form prescribed by
                  the Compensation Committee, and shall be effective only when
                  filed by the non-employee Director in writing during his or
                  her lifetime with the Chairman & C.E.O.

                  In the absence of any such designation, benefits remaining
                  unpaid at the non-employee Director's death shall be paid to
                  that Director's estate.

         E.       Leave of Absence. A non-employee Director whose status as an
                  active Board Member is changed during a Plan Year as a result
                  of a leave of absence may, at the discretion of the Chairman &
                  C.E.O., be eligible for a pro rata Bonus determined in the
                  same way as in paragraph D of this Section.

VIII.    BONUS PAYMENT

         All positive Bonuses of Participants for the Plan Year shall be paid in
         full as soon as administratively feasible following the end of the Plan
         Year in which the Bonus was earned.

IX.      ADMINISTRATIVE PROVISIONS

         A.       Amendments. The Chairman & C.E.O. of the Company shall have
                  the right to amend or restate the Plan at any time from time
                  to time. The Company reserves the right to suspend or
                  terminate the Plan at

                                       6

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                  any time. No such modification, amendment, suspension, or
                  termination may, without the consent of any affected
                  participants (or beneficiaries of such participants in the
                  event of death), reduce the rights of any such participants
                  (or beneficiaries, as applicable) to a payment or distribution
                  already earned under Plan terms in effect prior to such
                  change.

         B.       Authority to Act. The Chairman & C.E.O. (or in his or her
                  absence, the President & C.O.O.) may act on behalf of the
                  Company for purposes of the Plan.

         C.       Interpretation of Plan. Any decision of the Chairman & C.E.O.
                  with respect to any issues concerning, the amounts, terms,
                  form and time of payment of awards, and interpretation of any
                  Plan guideline, definition, or requirement shall be final and
                  binding.

         D.       Reporting Compliance. Awards made under this Plan shall be
                  included in the employee's compensation for purposes of
                  Securities & Exchange Commission required reporting.

         E.       Right to Continued Employment; Additional Awards. The receipt
                  of a bonus award shall not give the recipient any right to
                  continued membership on the Company's Board of Directors. In
                  addition, the receipt of a bonus award with respect to any
                  Plan Year shall not entitle the recipient to an award with
                  respect to any subsequent Plan Year.

X.       MISCELLANEOUS

         A.       Indemnification. The Chairman & C.E.O. (or any Company officer
                  designated to act in the Chairman's behalf) shall not be
                  liable for, and shall be indemnified and held harmless by the
                  Company from any loss, cost, liability, or expense that may be
                  imposed upon or reasonably incurred in connection with any
                  claim, action, suit, or proceeding to which the Chairman &
                  C.E.O., President & C.O.O. and/or the Compensation Committee
                  may be a party by reason of any action taken or failure to act
                  under this Plan. The foregoing right of indemnification shall
                  not be exclusive of any other rights of indemnification to
                  which such person(s) may be entitled under the Company's
                  Certificate of Incorporation of By-Laws, as a matter of law,
                  or otherwise, or any power that the Company may have to
                  indemnify them or hold them harmless.

                                       7

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         B.       Expenses of the Plan. The expenses of administering this Plan
                  shall be borne by the Company.

         C.       Governing Law. This Plan shall be construed in accordance with
                  and governed by the laws of the State of Wisconsin.

                                       8