Channel HVAC Marketing and Sales Support Proposals for: August 18, 2010

1. Channel HVAC Marketing and Sales Support Proposals for: August 18, 2010

2. What We’ll Cover… MMC / Channel HVAC proposals to support business development for Hutchinson: • Channel HVAC • Customer Zone - Cross-sell/Up-sell Center • Hutchinson Green Energy Forum • Service Contract 360 • C-Level marketing and lead generation initiative • DIRECT Install program

3. Channel HVAC Program Overview…

4. Channel HVAC… Channel HVAC is a combination of marketing and sales services, analytics, and various product opportunities that can be utilized individually, or together to form a complete sales and marketing growth engine. This engine, when combined with your customer and prospect database, will drive growth – helping your business reach its full potential.

5. Channel HVAC… • Three modular components • All utilize common platform and infrastructure • Starting point for all components is existing customer data • Program components are all geared to help gain, retain and drive the value of customer relationships

6. Step 1 – Program Set-up… Building and populating the program marketing infrastructure and database: • Gather all pertinent customer data and sales history files • Scrub, format and load customer data into an online, secure marketing database: • Contact manager • Campaign tools & execution • Perform marketing audit • ID and evaluate current marketing efforts and tools • Recommendations to improve and/or adapt for direct marketing approach. • Perform initial analytics and segmentation to provide a starting picture of current customer database:

7. Step 1 – Program Set-up, cont’d… Initial Segmentation Output: • Number of residential customers • Active, By Type • Equipment Only • Equipment + IAQ and/or other accessories • Equipment + Service Contract • Service Contract Only • Repair/Service Only • Inactive/Lost • Number of commercial customers • Active, By Type • Equipment Only • Equipment + IAQ and/or other accessories • Equipment + Service Contract • Service Contract Only • Repair/Service Only • Inactive/Lost

8. Analytics and Database Development Outputs… • Potential new customer analysis • Geographical radius targeting • Residential & commercial • Potential campaign opportunities • Lapsed service contracts • Customers purchasing equipment but no service contract • Customers purchasing equipment, but no IAQ products • Previous equipment customers with opportunity for equipment upgrades or replacement • “Inactive” equipment or service customers for failure event awareness • Previous equipment or lapsed service contract customers for clean & check. • Others, TBD.

9. Step 2 – Ongoing Program/Campaign Management and Analytics… For selected program components (Customer Zone Service, Green Energy Forum, Contract 360) MMC will “refresh” the customer data file on a quarterly basis to reflect changes in customer status, new customer acquisition, and results of previous campaigns MMC will then re-run the analytics and segmentation process to identify and present opportunities and recommendations for marketing activities and campaigns within the targeting categories previously outlined

10. Marketing Services Options – Module 1 – Customer Zone… The main focus of Customer Zone is to facilitate the cross-sell/up-sell of various traditional HVAC products and services within your current customer base. Channel HVAC provides: • On-line and off-line content • Marketing tools and support • Exclusive product opportunities for you to grow revenue

11. Marketing Services Options – Module 1 – Customer Zone… Examples of products and services that may be marketed through or provided by the Customer Zone include, but are not limited to: • Energy Efficiency Audits • Service contract / maintenance agreements • Clean & checks • Indoor air quality products • Failure support / service awareness campaigns • Fuel & energy • Duct cleaning • Customer satisfaction “happy” calls with cross-sell • Filter subscription program

12. What You Get… Marketing tools: Customizable multi-channel marketing tools designed to create awareness, interest and sales for various products and services. Types of available marketing tools: • Variable data direct mail pieces • Email marketing templates • Newsletter-appropriate content to integrate with any current newsletter programs • “Buck-slip” billing inserts • Customized “tech leave behind” sell sheets

13. What You Get… Ongoing marketing analytics, segmentation and marketing campaign recommendations: • Cross-sell campaign opportunities • Lapsed service contracts • Customers purchasing equipment but no service contract • Customers purchasing equipment, but no IAQ products • Previous equipment customers with opportunity for equipment upgrades or replacement • “Inactive” equipment or service customers for failure event awareness • Previous equipment or lapsed service contract customers for clean & check. • Others, TBD. • New customer campaign opportunities • Geographical radius targeting • Clean and check specials • First time customer specials • Residential and/or commercial lead generation

14. What You Get… Monthly Marketing Campaigns: The Customer Zone will execute turn-key marketing campaigns using provided tools to the campaign targets that you select. A minimum of 4,000 monthly campaign targets are included in base fees, to be identified using marketing analytics out of Hutchinson’s total customer base. With Channel HVAC campaigns, each campaign target will receive: • A variable data direct mail postcard • A customized email with the same offer • Additional options for outbound follow-up for specific campaigns

15. What You Get… Equipment and training: Where applicable, MMC will supply your company with a channel to purchase equipment, and will train your staff how to properly sell and service products available through ChannelHVAC.

16. Marketing Services Options – Module 2 – Green Energy Forum… The main focus of Green Energy Forum is to provide the process, tools and infrastructure to cross-sell/up-sell renewable energy and/or energy efficiency products and services to your existing customer base. Through the Green Energy Forum, Channel HVAC provides: • On-line and off-line content • Marketing tools and support • Exclusive product opportunities for you to grow revenue

17. Current and Future Product Offerings… • Energy Efficiency Audit & Related Product Recommendations • Solar PV (Kyocera) • Solar Hot Water (Heliodyne) • Ground Source HVAC • Wind Power • Fuel Cell Technology • Water Quality Products • Other, TBD

18. What You Get… Content: Online and offline materials and resources that are integrated with your business, providing a “brand behind the brand”. For example, “HUTCHINSON’s Green Energy Forum”. This includes: • Back end web content, integrated with your site and brand • Landing page(s) with walkout video(s) explaining various green technologies and products • Options for SEO and pay per click strategies to generate new traffic to your Green Energy Forum site

19. What You Get… • Marketing tools: Customizable multi-channel marketing tools designed to create initial awareness and interest, as well as ongoing education and nurturing for interested customers and prospects. Types of available marketing tools: • Variable data direct mail pieces • Email marketing templates • Newsletter-appropriate content to integrate with any current newsletter programs • “Buck-slip” billing inserts • Customized “tech leave behind” sell sheets

20. What You Get… Lead Generation Marketing Campaigns: The Green Energy Forum will execute a minimum of 4 “turn-key” marketing campaigns over the course of 12 months to all targeted customers/prospects. For Hutchinson, we are estimating an initial target audience of 5,000 customers and/or prospects for marketing. Included campaigns are: • 2 direct mail campaigns • 2 email (if available) blast campaigns • Quantity of billing inserts to be integrated with client generated billing • Supply of tech leave behinds to integrate with current sales/service process

21. What You Get… Back office support: • Support inquiries from interested customers and prospects • Answer questions and perform a “Virtual Audit” to assess feasibility for various products • Dedicated Green Energy Forum (800) number, along with options for email and chat support. • Lead qualification and distribution

22. What You Get… Ongoing communications and lead nurturing: • For customers and/or prospects that have responded to one of the Green Energy Forum’s marketing campaigns • “Opt-in” marketing campaigns for education and lead nurturing • Email and web content • Minimum of quarterly communications.

23. Marketing Services Options – Module 3 – Service Contract 360°… The main focus ofService Contract 360 is to retain service contract revenue by reducing customer attrition of current service plan customers as well as generating new service and maintenance contract customers. This is accomplished through an integrated, multi-channel communications process targeting customers in the following stages: • Due to renew within the next 60 days • Lapsed over the past 24 months • Have never purchased service contracts

24. What You Get… • Back-end database, customized with all service contract options • Web infrastructure with PURLs and individual landing pages for each targeted customer with pre-populated account information • Ability to take instant payment for renewal or “Bill Me Later” option • “Tool Kit” of multi-channel marketing tools, such as: • Variable data direct mail templates with PURLs • Email marketing templates with PURLs • Landing page with walkout videos and 1-minute messenger • Option for outbound telephone marketing

25. What You Get… Multi-Touch Marketing Campaign – series of 3-5 direct mail and email communication pieces plus one optional outbound call by Hutchinson (included) or by MMC (optional): • Touch 1: Email 1 (if available) approximately 45 days before expiration date • Touch 2: Direct Mail 1 – Postcard approximately 30 days before expiration date • Touch 3: Direct Mail 2 – Packet with letter and contract approximately 15 days before expiration date • Touch 4: Data feed for expiring customers that are due for Outbound Call 1– timed within 3-5 days of expiration • Touch 5: Email 2 (if available) approximately 45 days after expiration with “last chance” offer • Touch 6: Direct Mail 3 – Postcard 45 days after expiration with “last chance” offer

26. C-Level Marketing Support Proposal…

27. What We Think We Understand… • Goal is to grow commercial business and market share • Have completed demographic/firmographic study: • Who are the “best” current customers • Size and industries that they are in • Have generated target lists of non-customers within specified geographies • Estimated target list of ~ 3,400 companies • Final list of targets would include selected existing commercial customers as well • Potential opportunity to expand target research to expand list of 3,400 targets • Exclusive participating contractor for DIRECT Install program in a 4 county area • Provides rebates and incentives for lighting and HVAC efficiency upgrades that can cover a large portion of capital investment required • Provides entry point for sale of service contracts and other commercial services • Assume average project/job of $40K+ in equipment, plus downstream service revenue

28. What We’re Proposing… • Integrated marketing program to generate qualified leads and appointments with high level decision makers for the DIRECT Install program • Program components: • Set-up of marketing infrastructure, strategy and tool-kits • Target account profiling and contact identification • Timed, multi-channel communications to generate awareness and inbound response • Outbound marketing for two-way communication and generation of leads/appointments • Ongoing marketing and “lead nurturing” to maintain contact and create future opportunities for qualified but currently not-interested prospects

29. Program Set-up • Build marketing database and infrastructure • Populate with current target list • Perform marketing audit to identify all current marketing tools and brand assets that can be repurposed for this project • Build out remaining marketing tool-kit with new tools as necessary • PURL generator • One minute and/or walkout video messenger • Savings calculator and case study examples • Direct mail and email marketing templates • Program call guides and objection handling guides • Web driven “sound-byte” presentations • Train and certify dedicated marketing rep(s)

30. Profiling and Target Identification… • Step one in the marketing process is to turn a list of companies into a list of decision makers at targeted companies • Outbound call to targeted companies • Identify decision maker(s) in key positions • Attempt to capture email address and 2-3 key pieces of profile information

31. Multi-Channel Communications Strategy… • Touch 1 - send marketing message number 1 in advance of 1st phone call • Variable data direct mail and/or email with PURL • Pain/Promise/Proof messaging • Touch 2 – outbound call to attempt to reach decision maker(s) to introduce program and attempt to generate interest and appointment • Touches 3-6 – marketing messages 2-5 targeting non-respondents to outbound calls: • Existing customer testimonial highlights • Sample savings reports (potentially customized by industry) • Invitation to ongoing webinars • PURLs to hypothetical savings report for their facility

32. Outbound Marketing… • Dedicated, trained outbound marketing representative chartered with initiating 2-way communications with senior level executives at targeted companies • Trained in marketing and sales methodology by MMC • Trained on program content in conjunction with Hutchinson • Functions as a virtual extension of Hutchinson sales force • Engage decision maker • Present program overview and provide information • Secure appointment for presentation • Capture profile information required for preparation • Target 10-15 qualified leads per month

33. Measurement Process… • Program Set-up: Delivery of marketing process and tools • Q1: Completed contacts, phone presentations, pipeline for appointment • Q2: Add number of scheduled and completed F2F presentations • Q3: Add number and total dollars in proposals • Q4: Add closed sales and revenue- target = breakeven in year 1 margin $

34. C-Level Marketing Investment Summary…

35. Investment and ROI Summary Program budget: • Monthly marketing fees = $7,500 per month • 2 months program set-up • 12 months program implementation • Success bonuses: • Per completed appointment = $250 • Per accepted proposal = 5% of first year revenue Expected performance: • Average of 12 leads per month (144 leads in 12 months) • Estimated close rate of 20% of leads to accepted proposal (29 customers) • Average revenue of $50K per new customer ($1.45MM) • Total program cost (12 months) = $192,500 • RTI =7.5:1, Estimated ROI = 1.9:1 (estimated 20% GM)

36. Channel HVAC Investment Summary…

37. Channel HVAC – Investment Summary… • Setup • One-time fee: $8,400.00 • Customer Zone Cross-Sell/Up-Sell Engine • Monthly Fees: $7,500.00 • Includes quarterly analytics and database refresh, ongoing program management • Includes marketing tools and turn-key campaigns for up to 4,000 campaign targets per month. • Additional per customer/prospect fee: $1.25

38. Channel HVAC – Investment Summary… • Green Energy Forum • Monthly Fees: $3,900.00 • Includes all activity associated with managing and supporting infrastructure and all marketing tools and turn-key campaigns for up to 5,000 customers/prospects on an annual basis. Includes up to 25 virtual audits and 10 leads per month. • Additional per customer/prospect fee: $2.50 • Additional virtual audits and leads: • Per Virtual Audit: $25.00 • Per Appointment: $140.00 • Per “Non-Earthsponse” Sale: 3%

39. Channel HVAC – Investment Summary… • Service Contract 360 • One-time fee: $5,000.00 • Monthly fees: $2,100.00 • Customer/Prospect Enrolled Fee: $5.25 per record • Includes all costs for printing and postage

40. Channel HVAC Investment Summary…