CONFIDENTIAL July 2009 Prepared for 1

CONFIDENTIAL Confidential and Proprietary property of Source Refrigeration and HVAC Inc. May not be duplicated or disclosed without the expressed written consent of Source Refrigeration and HVAC Inc. This Refrigerant Conversion Presentation (the “Presentation”) is being furnished in strict confidence. This presentation has been assembled by Source Refrigeration and HVAC Inc. (“Source”). The sole purpose of this Presentation is to assist the recipient in deciding whether to proceed with further analysis of Refrigerant Conversions in conjunction with Source. Use of this presentation is governed by the terms of this Confidentiality Agreement, which strictly limits the use, circulation and copying of the information embodied herein. Any person in possession of this Presentation should familiarize himself with this Agreement before reading, circulating or using the Presentation. This Presentation may not be distributed, reproduced, or used without the express consent of Source or for any purpose other than the evaluation of Refrigerant Conversions by the person to whom this Presentation has been delivered.

CONFIDENTIAL  Phase-out Timeline  Refrigerant Options  Engineered Solutions  Nuts and Bolts  Developing a Retrofit Game Plan 3

CONFIDENTIAL 66 Months or 286 Weeks (Until 2015 HCFC Phase-out date) 4

CONFIDENTIAL 5 Montreal Protocol defined phase out requirements for CFC’s and HCFC’s. There will soon be a shorter supply of HCFC’s, and higher costs. CFC’s fully phased out in 1995, but still exist in some stores. HFC refrigerants don’t contain chlorine, therefore are the only suitable replacement gases. A high percentage of new installations include HFC gases, and have for a few years. Global Warming becoming a bigger issue now than Ozone depletion. 90% of existing supermarket AC has R-22. With production decline, concerns exist about plant capacity, and the desire for the refrigerant makers to re-tool and shut down production earlier, creating an imbalance in supply. It’s best to be proactive, and not wait until the last minute! Why Retrofit HCFC’s (and CFC’s)?

CONFIDENTIAL : Production rate during this year used as the basis for determining going forward HCFC production 2004: 35% reduction of HCFC’s from 1996 production rates 2010: 75% reduction (Recent Change from 65%) 2015: 90% reduction 2020: Full Phase Out (Recent Change) A shortage in supply is expected during 2010, along with steady price increases of R-22 to phase-out. Higher usage of HFC’s doesn’t seem to be lowering costs as one might expect. Very little reclaimed refrigerant is being put back into the market. HCFC Phase-Out Milestone Dates

CONFIDENTIAL 0 4,000 8,000 12, Year ODP (1000 KG R-11 Equivalents) % Reduction % Reduction 2003 R-22 Production Allocated 2010 No new 22 Equipment %Reduction 2015 Forced Reduction Undefined ,240 ODP 120 million pound (est.) R-22 Service Demand for Installed base. Demand likely to grow through Max 2015 consumption only ~60 million lbs! 2020 Stop R22 Production 13 SEER Standard For Home Equipment Planned U.S. HCFC Phase Out Changed to 75% reduction!! 7

CONFIDENTIAL Important Facts 1.58% Supply Reduction Jan 1, demand exceeds supply by more than 27 Million pounds demand exceeds supply by more than 22 Million pounds *Based on December 23, 2008 EPA Allocation Draft Proposal to set HCFC limits to meet phasedown caps under the Montreal Protocol. **“The U.S. Phaseout of HCFCs: Projected Servicing Needs in the U.S. Air Conditioning and Refrigeration Sector,” June 2008 R-22 Estimates based upon EPA Projections in lbs 2010 Supply estimate adjusted to EPA Proposed Allowance Rule* 110 Million 2010 Demand estimate from U.S. Projected Servicing Needs** 137 Million 8

CONFIDENTIAL  CFC: Chlouro-Flouro-Carbon refrigerant, still in use in some retail locations, production stopped years ago. R502 & R-12 are CFC’s. Contains Chlorine, bad on ozone.  HCFC: Hydro-Chlouro-Flouro-Carbon. The Chlorine is still in, less than CFC’s. Common types are R-22, R408A, R401A, R402A.  HFC: Hydro-Flouro-Carbon. No Chlorine component, non- ozone depleting, various degrees of GWP, Common gases are R404A, R507, R134A, R410A. All current projects should be using HFC’s. 9

CONFIDENTIAL  Global Warming Potential (GWP): measurement of a compounds ability to affect the warming of the atmosphere compared to Carbon dioxide.  Greenhouse Gas: One of the many gases that either occur naturally or are fabricated that have an affect on atmospheric warming. Methane, refrigerants, etc. are typical greenhouse gases.  POE Oil: Short for Polyol Ester oil. Highly refined oil that is typically only used with HFC refrigerants. Specific blends by compressor manufacturer. Expensive. Absorbs moisture quickly. 10

CONFIDENTIAL Key Elements of a Conversion Program Consulting In-house Engineering Refrigerant Change-out Refrigerant Banking/Transfer Energy Optimization One Source for Conversion Support 1.Consulting: Proprietary planning software that will organize with respect to each stores conversion personality. Survey of stores, planning assistance, budgeting, prioritization included. 2.Engineering: Detailed engineering review prepared to define each conversion scope of work, and make recommendations for modifications 3.Conversion Execution: Source will execute conversions for our customers either directly or through our subcontractor network. 4.Banking: Options available to simplify the tracking and handling aspects of removing refrigerant. 5.Energy Optimization: Key element to any conversion, insuring the system is as energy efficient as possible, and that the conversion actually includes a cost savings component related to energy savings. Key byproduct that Source is unique in offering….. 11

CONFIDENTIAL Individual store detail >> Budget roll-up by Division>> Scheduling Tool >> << Division Budgeting Tool <<Customer Portal 12

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CONFIDENTIAL  There are many choices depending on the type of existing refrigerant, and the nature of the installation.  Early conversion stores used the following retrofit gases: R404A or R507. R134A has been used on some retrofits where R-12 or a similar HCFC gas was in use. Oil changes required for retrofit of these refrigerants.  More recent retrofit projects utilize refrigerants with lower GWP (Global Warming Potential) ratings, that don’t require oil changes. These refrigerants include R422D and R422A.  The package AC industry has moved towards R410A already, which cannot be used as a retrofit gas due to it’s high pressure. 14

CONFIDENTIAL  Most new systems are being installed with R404A or R507.  Remodels are not being addressed at this point in terms of refrigerant conversion. Cost budgets are the main reason. Remodel complexity may increase with the gas change.  New refrigerants may eventually wind up being a better fit than existing R404A/R507 gases used in new stores.  New refrigerants that have been developed have better ROI than traditional for conversions due to closer if not better energy performance 15

CONFIDENTIAL RefrigerantsODPDirect GWP R R-134A01300 R-407C01530 R-410A01730 R-404A03260 R R-422A (MO 79)02532 R-422D (MO 29)02232 MO CO201 Currently, there are no restrictions on refrigerants with higher GWP. With pressures to comply to the Kyoto Protocol, it is conceivable that EPA will eventually address higher GWP gases with restrictions. 16

CONFIDENTIAL R422D R404A R422A 17

CONFIDENTIAL R422D R404A R422A 18

CONFIDENTIAL R422A R422D R417A 19

CONFIDENTIAL There are a number of items that must be addressed prior to starting a conversion, and handled during the conversion. Some examples: Pre-Conversion leak check, repair of leaks, and component modifications. Coordination with Store Director with respect to the conversion time line, deliveries of refrigerant to and from store, surrounding community, etc. Making sure proper equipment is in place, with a back-up plan. This includes reclaimers, cylinders, vacuum pumps, hoses and gauges, all necessary materials and the proper manpower to match the task. Coordinate product protection with the store Director. Provisions for handling case maintenance issues during the conversion (plugged drains, bad fan motors, dirty cases, etc.) Removal process itself, must be well coordinated, and handled in such a way to minimize store down time. Fine tuning, re-labeling, clean-up, leak checking, filter replacement, etc. 20

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CONFIDENTIAL Conversion projects are organized to only have off line what is realistic to convert in an overnight shut-down. Many details need handled, it’s important to not try and do too much at one time. Most conversion projects start transferring refrigerant in the late afternoon to other racks or cylinders. Cases are off between 8 and 9 PM. Refrigerant is removed typically by midnight. Modifications take place next with system flat. System is evacuated and prepped for charging. Re-charging and start-up typically by 6:00 AM Next day spent leak checking and fine tuning. 22

CONFIDENTIAL <<Reclaim machine, scale and refillable cylinder Vapor collection manifold, large capacity black hose >>>> <<Piercing tool for hot tapping pipe under pressure The more hose the better>>>> 23

CONFIDENTIAL Refrigerant evacuation process… Reclaim equipment, gas transfer 24

CONFIDENTIAL Dry Ice and Visqueen in place Deli products left in cases Meat products removed 25

CONFIDENTIAL  Refrigerant Banking/Transfer ◦ Source has a variety of services available to deal with refrigerant that is removed from a store. Refrigerant Options are as follows:  Self Banking. Handled and tracked internally  “SourceBank”, low or no cost option  Banking Vendor. Up front cost per # to use.  Destroy. ◦ “400” series gases can’t be banked. Consulting In-house Engineering Refrigerant Change-out Refrigerant Banking/Transfer Energy Optimization

CONFIDENTIAL  Energy Optimization: ◦ Each project needs to be fine tuned and commissioned as part of the conversion process. We believe that an Optimization Package is an integral part of each conversion event. ◦ Source has many years of experience in this field, and will use that experience to optimize each store to aggressively reduce operating costs. ◦ In some parts of the country, it may be possible to receive a utility incentive for this portion of the work, further offsetting up front expenses. Consulting In-house Engineering Refrigerant Change-out Refrigerant Banking/Transfer Energy Optimization

CONFIDENTIAL  Source and DuPont entered into an agreement in early 2008 for the purpose of supplying R-22 / MO99 kWH test data in a controlled environment.  Testing utilized the Source Training Center in Chino Ca., which has multiple cases and controls connected to a 3 compressor rack system.  Instrumentation included a CPC E2 controller, as well as Veris power metering. Test data included many operating parameters including superheat, system temperatures and pressures & product temps.  Test data was gathered under normal operating conditions over 2-3 day periods, including subcooled and non- subcooled conditions, and with ½ day periods at extreme head conditions. 28

CONFIDENTIAL 29 Compressor system, cases, coils are all used, have been donated from live stores, and include product simulation with 5 gallon water bottles. Space environment kept as close to 75 F/ 55 RH as possible, but not perfect. Testing Fixtures

CONFIDENTIAL  Lower First Cost ◦ No line set changes ◦ No oil change  No EPR plugging or TXV strainer plugging ◦ No TXV Changes ◦ Standard elastomeric seal changes (gaskets, o-rings, sight glass etc)  Select modifications ◦ No condenser, receiver modifications ◦ Minimal control adjustments  Energy Performance ◦ Lowest overall energy consumption of any R22 replacement refrigerant  Lowest Total Cost of Ownership  Carbon Footprint ◦ 42% lower GWP vs. 404A 30

CONFIDENTIAL MO99 has similar energy consumption as R-22 31

CONFIDENTIAL  Hourly energy consumption of ISCEON® MO99 was statistically the same as R-22 within the variability of the data  Suction and discharge pressures of ISCEON® MO99 were similar to R-22.  Minimal control setting changes were required  Use of liquid subcooling improved ISCEON® MO99 energy performance  Case temperatures with ISCEON® MO99 were similar to case temperatures with R-22 32

CONFIDENTIAL  Source is promoting being proactive to our customers. If all chains wait until there is short supply of HCFC’s, there may not be enough refrigerant to go around, or tech’s to do the retrofit work.  Planning in advance, adjusting to construction plans, using existing refrigerant resources to defray new maintenance expense with respect to refrigerant makes good sense.  Scheduling conversion work outside of the heat of the summer is critical, allowing the best use of technician resources, and imposing the least amount of operational concerns at the store level.  Many chains are already underway in the industry. 33