Dilmar Fluid Services Offsite Reclamation A Reclamation Solution for Small to Mid Volume Customers

Onsite Reclamation Historically our only option for reclamation has been onsite with our fleet of Mobile Reclamation Units. Due to the cost of operation this has made it impractical for our smaller volume customers.

New Opportunity! DFS is now ready for our “off site” reclamation program! Small volume customer can now benefit from the substantial savings offered through current on site reclamation programs. New minimum is 275 gallons (1 Tote) DHEC Licensed HIGH PROFIT MARGINS!!

How Offsite Reclamation Works Customer accumulates segregated oil in totes. The order is generated by DFS to initiate pick up. Once full the customers tote is pick up by the local branch and sent via round robin to the DFS facility in Columbia for processing. Process has all the capabilities of the Mobile unit. Once processed the oil is labeled and shipped back to the customer. Turn around time will very with pick up, delivery and RR schedules. Average should be days.

Bulk Transfers Bulk Transfer and Processing available

Advantages to You Shows the customer your interest in his operation Makes you a solutions provider You are not just seen as a cost…… You are now a cost savings Customer is less likely to “price shop” in the future Provides opportunity to “up sell” to higher quality, high cost, higher margin products. While maintaining lower total oil cost. High Margin = High Commission

Potential In the last 12 months Dilmar has sold 626,569 gallons of bulk hydraulic oil In the last 12 months there have been Seven Price increases Customers are more open than ever to reclamation as a cost savings option

Identifying Potential Customer Annual purchases of 1000 – 6000 gallons (one product) Performs regular oil change out (PM) Has leaks on equipment that can be captured and segregated Is shopping for less costly lower quality oil due to higher prices Needs help in reducing oil costs

Target Products for Reclamation Hydraulic Oil This will be the primary oil for consideration. Other Oils to Consider Industrial Gear Oils Turbine Oil Quenching Oil Synthetic Industrial Oil Heat Transfer Oils FR Hydraulic (Fire Resistant Fluid) Cutting Oils-Neat Stamping Compounds Other Industrial Oils

Key Prospects Injection Molding Extrusion Presses Stamping Presses Larger Gear Boxes Machining (Change outs Only) Customers with large mobile hydraulic equipment Off Road Cement Pumping Cranes

Approach To Customer (existing) How much oil do your systems currently leak? How do you currently collect oil from regular change outs (PM) on you systems, gearboxes, reservoirs. How much do you currently pay for oil disposal? Lets see how much we could save on total replacement oil cost? Complete Reclamation Profile form to develop cost savings. ProfileProfile

Approach New Customer As to be expected you are and oil salesperson and will be leading with your products. You will always have a lower price than you competitor when combining reclamation programs with your new oil sales regardless of product. Consider that you will now be able to now offer Premium products to your prospective customer while still providing lower total cost. Complete Reclamation Profile form to develop cost savings. ProfileProfile

Savings Sheets Two cost savings sheets are available: Cost savings using current product. Reclaim Only Cost savings using current product. Reclaim and New Oil

Waste from Reclamation The customer is responsible for decanting all free water from totes prior to pick up. The customer is allowed up to 5 gallons of water to be removed from the process at no charge. If the water exceeds 5 gallons the customer will be charged $.85/gal for all gallons removed. If the customers oil is determined to be non- reclaimable it will be returned to the customer and a $75 fee will be charged

Filters and Supplies The customer will be allowed one filter per tote. Customer will be charged for additional filters used Customer will be allowed one lab test per tote or “batch” reclaimed. Metalworking analysis will be charged at $65ea if requested.

New Oil Addition New oil can be combined with the reclaim product to complete a tote. New oil can be combined with the reclaim product to increase volume and enhance product. Example: Customer sends in two totes for reclamation. It is combined with a tote of virgin during reclamation and the are returned 3 full totes. Advantages are enhancing reclaim and filtration of new oil to spec.

To begin a new program with a customer, as always we will require an account be set up. Submit Reclamation Profile form to John Erikson for review. Insure complete and current customer contact info has been entered in ACT! Pickup requests are to be submitted to Mark Engelhart in DFS COLA office Setting up New Customer

Reclamation Order Form

Product Tracking All activity is tracked through out the transfer and process to insure the integrity of the customers product.

Labeling Professional and compliant labeling of totes Inbound and returning product maintain the same product information as the virgin product Labels will include product and customer information as well as order #. Incoming product labels will specify for filtration and dehydration Products will not be labeled as “dirty” or Used oil

Incoming Label

Return Label

DFS Facility Lab Onsite lab for pre-screening and final analysis Final samples sent to independent lab for analysis

Typical Opposition to Reclamation Reclaimed oil is “bad”! DFS processed does not comingle oils to insure product integrity. Since we are filtering the oil directly from the process into clean new or reconditioned totes oil cleanliness is as good or better then new oil. All oil is monitor for water and cleanliness through out the process. Additives additions are available Top and blending with new oil available

Typical Opposition to Reclamation Continued How do I know that I am getting my oil back? Oil is tracked by a chain of custody through out transfers and processing. All oil is batched processed and not combined with other customers.

Current Competition Taylor Enterprises Inc. Offsite reclamation of bulk oil Customers oil is segregated Predominantly Carolinas McPherson Oil Company Offsite reclamation of bulk oil Customers oil is not segregated Oil is returned as a blended product (RENEW) Throughout the southeast