1. “Biomass in our Schools” EPMA Presentation Presented by: April 10, 2013

2. For over 25 years, McCormick has provided various facilities related services to Maine public schools and other clients. In recent years, our company has created a strong focus on alternative energy, energy savings, and in particular, biomass. We have become a well-respected leader in the biomass industry, traveling overseas and across North America to learn biomass in action and educate others about biomass. McCormick Facilities Management EPMA Presentation 4/10/2013

3. Our hard work and dedication to be a leader in the industry has lead to an exciting opportunity for our company and our customers. McCormick Partnered with Cate Street Capital EPMA Presentation 4/10/2013 McCormick Facilities Management

4. Who is Cate Street? our future. Their focus is on sustainable, environmentally friendly innovations that will provide financial returns to our customers and real change for our planet. They invest time and resources into projects EPMA Presentation 4/10/2013 McCormick Facilities Management They are a company devoted to breakthrough technologies for the protection of our planet and and new technologies that are designed and proven to make a difference.

5. Cate Street’s Industries EPMA Presentation 4/10/2013 McCormick Facilities Management

6. What does this mean to our customers? More opportunities and better resources. We’re expanding but this doesn’t affect our mission. McCormick will still be run by the same team it has been for years. Our staff will have new opportunities to train and learn. This knowledge will be passed on to our customers. EPMA Presentation 4/10/2013 McCormick Facilities Management

7. 2 Business Groups EPMA Presentation 4/10/2013 Facilities Group: Facility Condition Assessments Long-term Master Planning O & M review VFA Database Maintenance DOE SFMS annual surveys Construction Management Security Audits Energy Group: Biomass project development Biomass consulting Heating Purchase Agreements Turnkey projects- design/build Energy Audits Fuel supply Wood chips Torrefied wood pellets McCormick Facilities Management

8. What does the partnership mean? Cate Street is providing capital to McCormick so we can expand our business We will be adding personnel, services, and new product offerings Mechanical engineer, PE, to design biomass Project manager to oversee field projects Sales and marketing to increase our presence Financing for biomass heating Heating Purchase Agreements McCormick Facilities Management EPMA Presentation 4/10/2013

9. Heating Purchase Agreement (HPA) what is it? A Heating Purchase Agreement is a long term contract in that we provide heat energy to the end user at a cost that is McCormick Facilities Management guaranteed to be lower than current fuel sources and heating costs. EPMA Presentation 4/10/2013

10. Heating Purchase Agreement (HPA) what do we do? We are the turnkey project provider: ◦ Develop project with the customer ◦ Complete design w/ stamped drawings ◦ Finance the project ◦ Install, operate, and maintain ◦ Handle permitting, insurance, repairs, etc. ◦ Provide the fuel McCormick Facilities Management EPMA Presentation 4/10/2013

11. Heating Purchase Agreement (HPA) what are the benefits? No up-front capital cost to the customer ◦ Paid for from existing fuel budget Initial 20% savings over #2 heating oil Savings increase each year of the term Savings are guaranteed We operate the plant McCormick Facilities Management EPMA Presentation 4/10/2013

12. Heating Purchase Agreement (HPA) what are the benefits? Keep it fueled Capital renewal costs are in the HPA Customer gets to focus on other matters Don’t have to wait for grants! McCormick Facilities Management EPMA Presentation 4/10/2013

13. HEATING PURCHASE AGREEMENT (HPA) SAVINGS Calculator – 10 year Spreadsheet Customer Illustration Sample 10 year Biomass HPAProprietary and Confidential April 10, 2013 Year Pricing at Oil less 20% fixed with 5% escalator 12345678910 Calculations Use in Fuel Oil per year (gal) 80,000 Cost per Gallon of Fuel $ 3.50 $ 3.85 $ 4.24 $ 4.66 $ 5.12 $ 5.64 $ 6.20 $ 6.82 $ 7.50 $ 8.25 Rate of Inflation in Oil Prices10% Cost per year of Fuel Oil $ 280,000 $ 308,000 $ 338,800 $ 372,680 $ 409,948 $ 450,943 $ 496,037 $ 545,641 $ 600,205 $ 660,225 Boiler efficiency75% BTU/gal 138,800 MMBTU/yr 8,328 Cost in MMBTU with Oil$33.62 $ 36.98 $ 40.68 $ 44.75 $ 49.23 $ 54.15 $ 59.56 $ 65.52 $ 72.07 $ 79.28 Minimum Escalator5.0% Cost in Biomass MMBTU$26.90 $ 28.25 $ 29.66 $ 31.14 $ 32.70 $ 34.33 $ 36.05 $ 37.85 $ 39.74 $ 41.73 Customer Cost of Biomass heat per year $ 224,023 $ 235,224 $ 246,986 $ 259,335 $ 272,302 $ 285,917 $ 300,213 $ 315,223 $ 330,984 $ 347,534 Savings for Customer$55,977 $ 72,776 $ 91,814 $ 113,345 $ 137,646 $ 165,026 $ 195,825 $ 230,418 $ 269,221 $ 312,692 Percentage Savings20%24%27%30%34%37%39%42%45%47% Total projected oil costs next 10 years $ 4,462,479 Total projected cost of biomass fuel $ 2,817,740 Total 10 savings $ 1,644,739 Out of pocket cost to Customer$0 McCormick Facilities Management EPMA Presentation 4/10/2013

14. SAVINGS Calculator – 15 year Spreadsheet Customer Illustraion Sample 15 year Biomass HPAProprietary and Confidential April 10, 2013 Year Pricing at Oil less 20% fixed with 5% escalator123456789101112131415 Calculations Use in Fuel Oil per year (gal) 80,000 Cost per Gallon of Fuel $ 3.50 $ 3.85 $ 4.24 $ 4.66 $ 5.12 $ 5.64 $ 6.20 $ 6.82 $ 7.50 $ 8.25 $ 9.08 $ 9.99 $ 10.98 $ 12.08 $ 13.29 Rate of Inflation in Oil Prices10% Cost per year of Fuel Oil $ 280,000 $ 308,000 $ 338,800 $ 372,680 $ 409,948 $ 450,943 $ 496,037 $ 545,641 $ 600,205 $ 660,225 $ 726,248 $ 798,873 $ 878,760 $ 966,636 $ 1,063,300 Boiler efficiency75% BTU/gal 138,800 MMBTU/yr 8,328 Cost in MMBTU with Oil$33.62 $ 36.98 $ 40.68 $ 44.75 $ 49.23 $ 54.15 $ 59.56 $ 65.52 $ 72.07 $ 79.28 $ 87.21 $ 95.93 $ 105.52 $ 116.07 $ 127.68 Minimum Escalator5.0% Cost in Biomass MMBTU$25.20 $ 26.46 $ 27.78 $ 29.17 $ 30.63 $ 32.16 $ 33.77 $ 35.46 $ 37.23 $ 39.09 $ 41.05 $ 43.10 $ 45.26 $ 47.52 $ 49.89 Customer Cost of Biomass heat per year $ 209,866 $ 220,359 $ 231,377 $ 242,946 $ 255,093 $ 267,848 $ 281,240 $ 295,302 $ 310,067 $ 325,570 $ 341,849 $ 358,941 $ 376,888 $ 395,733 $ 415,520 Savings for Customer$70,134 $ 87,641 $ 107,423 $ 129,734 $ 154,855 $ 183,095 $ 214,797 $ 250,339 $ 290,138 $ 334,655 $ 384,399 $ 439,931 $ 501,871 $ 570,903 $ 647,780 Percentage Savings25%28%32%35%38%41%43%46%48%51%53%55%57%59%61% Total projected oil costs next 15 years $ 8,896,295 Total proected cost of biomass fuel $ 4,528,598 Total 15 year savings $ 4,367,697 Out of pocket cost to Customer$0 HEATING PURCHASE AGREEMENT (HPA) EPMA Presentation 4/10/2013 McCormick Facilities Management

15. Containerized Boilers A containerized boiler is a complete boiler house within a shipping container incorporating boilers, pumps, pipe work, fuel stores and electrical connections. This solution offers many benefits: ease of installation – 'plug in and go' effective supplementary or back up heating system which can be switched on or off easily a portable solution - only a concrete slab is required and the container is easily removable shorter lead times for planning lower costs of planning a low cost alternative to expensive permanent building costs McCormick Facilities Management EPMA Presentation 4/10/2013

16. What are Torrefied Pellets? Unlike commonly recognized “white” pellets, torrefied pellets are black. Through a process called torrefacation, the properties of the wood are changed using microwave technology. This process produces a product that burns cleaner and has the same BTU output as coal or 25% more than white pellets. The pellets are also compatible with existing equipment. (switch to Thermogen power point) www.thermogenind.com McCormick Facilities Management EPMA Presentation 4/10/2013

17. Thank you! 4/10/2013 McCormick Facilities Management Questions? We are very excited about the opportunities this new relationship is presenting not only for McCormick, but also you, our customers. McCormick Facilities Management EPMA Presentation 4/10/2013