How Rapid Refill Arrived at These Financial Performance Disclosures

1. The representations made below reflect the financial performance of 42 Rapid Refill franchised stores during calendar year 2010, out of the 94 franchised stores operating as of December 31, 2010. These 42 Rapid Refill stores properly submitted financial statements in the form and format required by the franchisor and were open for the full 2010 calendar year.

2. Excluded were 52 non-conforming Rapid Refill franchised locations, including all Commercial Sales Program locations, Store Within a Store locations, stores that submitted incomplete financial statements or financial statements that differed from the company’s reporting standards, and stores not open for the full calendar year 2010.

3. All 42 reporting stores were ranked by EBITDA, and then grouped based on their EBITDA ranking into 3 Performance Triads, each containing 14 stores.

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