Pricing ……………………………………………………………………………………..12

Functional overview

Coolearth’s Whistle automated solution for catch weighting is a unique blend of hardware and software that increases warehouse and manufacturing operational efficiency. Whistle automates the data collection and transaction processing associated with the entire finished goods production of random / catchweight items, including collecting product information, check weighing the cases, applying finished good labels, verifying correct application of the label, creation of sublots and lots in ERP, palletizing the cases in the Whistle SCE system, reporting of production to the ERP system and the associated inventory transactions. The heart of the system is a proven Windows based transactional software that can weigh and label cases at a rate of one case every two seconds throughput, and at greater than 120 feet per minute velocity. The software is displayed on a rugged NEMA-rated 4x touch screen that displays a visualization of the automation providing an easy method for troubleshooting the entire machine, including otherwise hard to solve issues like real-time timing. Real-time control of automation elements like case gapping (to ensure one case on scale at a time) and case rejection (to divert cases over/under weight cases) are handled with a National Instruments Programmable Automation Controller (PAC) running the VxWorks real-time OS. The same software used in automation elements of the Boeing 787 and NASA’s Mars Landers. These systems, along with industry leading Mettler-Toledo conveyor scales and Universal case label applicators, lead to an integrated software/hardware system that will run at near 100% reliability for many years to come.

ERP IIntegration

The syystem has excceptional, reall-time ERP inntegration. It ffully integratees all catchweeight reportinng transacctions with ERRP. This inclludes creationn of Lots and Sublots in reeal-time, and rreporting aga inst Producction Orders iin ERP, incluuding the crea tion of stock inventory in EERP. The syystembundless all the accounnting transaction on a per ppallet basis. WWhistle also aallows shop floor users to query ERP foor real-time innformation onn transactionss such as Prodduction Orderrs. {Pleasse see diagramm in next sectiion-for a detaailed descriptiion}

*Unattended Operation *Handle cases up to 24X27 *Case weights up to 70 lbs *Scale accurate to +-0.56 oz (16g). *Throughput of 1 case per 3 seconds surge *Use bartender label formats *Automatic label application to carton with tamp arm applicator. *For short (2") boxes a retractable wiper will fold the excess label along the top edge of the box. *Verifies correct application of information to box information with scan. *Automatically rejects over/under weight cases. *Touchscreen visualization to monitor system and troubleshoot. *Creates lots/sublots in ERP. *Records Production in ERP. *Sequential shut down of conveyor system when problems detected. Automatic restart when resolved.

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100% duty cycle for all components.

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All electronics & controllers in Nema 4 enclosures.

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Industry leading Metler Toledo scale, National Instruments controllers and Universal case printers.

Rapidd return on investment and increa sed operatinng efficienccy

The syystem deliverss significant oongoing operaational savinggs to food prooducers who hhandle randomm weightt case. In add ition, the systtem typically pays for itsellf within one year. The auttomation provvides this rappid return on investment bby leveraging the existing iinvestments mmade in the ERRP and the WWhistle systemm. Cooleaarth and otherr companies’ managementt collaboratedd on collectionn of operationnal data for a ttypical producction facility. This informaation includedd information on clerical wworkers, materrial handlers, managgement, and innventory leveels. Based upoon this data, CCoolearth has provided est imates for onngoing operatiional savings associated wwith the Whisttle applicationn.

Reducced material hhandling laboor costs. Thee system elimminates the neeed for scale aand label operrators. Furtheermore it elimminates the neeed for standbyy labor to assist in processing cases (staacking, gapingg) at times oof surge prodduction.

PHONEAX WWW.COOLEAARTH.COM 226SORCASSSTREET •SEATTLLE,WA98108

Total number of full time equivalent (FTE) material handling personnel on all shifts. This includes all picking, put-away, receiving and shipping personnel.

Average annual salary of material handling personnel: Burden factor as a percentage of salary: Total annual material handling labor costs: Material handling productivity increase provided by Whistle:

Savings: $156,800

Total Expected Savings. Whistle provides an infrastructure for the elimination of paper in production and warehousing environments. Preliminary analysis indicates that the transition to an automated solution at customer will result in a substantial and quantitative improvement in ongoing operational savings.

Coolearth estimates that ongoing annual savings associated with the system total $156,800.00 for a typical facility.

Additional benefits:

The System provides additional benefits that are harder to quantify but important nonetheless:

• Improved production throughput. The current manual system is limited to one box every 5-7 seconds. This system will remove that constraint reducing overtime and other associated overhead.

• Improved palletization process. Currently material handlers must scan ever box. With this system workers only need to scan the last case to use as a checksum for calculation.

Overview

Coolearth will provide customer with a comprehensive catchweight solution for ERP-Whistle that includes software, consulting, support, and hardware.

Goals

Specific goals of this project are:

• Eliminate need for scale and label operators.

• Support increasing overall throughput to 1 case per 3 seconds.

• Install a complete system that has 100% duty cycle and greater than 99.99% accuracy.

Scope

The system will be installed at the customer manufacturing facility. The implementation described below describes a single site implementation.

Implementation tasks

A Whistle implementation is divided into separate stages, each of which is described below. All effort estimates are in full time equivalent (FTE) days.

1.1 – Project Management Setup Coolearth will provide customer with project management for this project. This includes determining the various resources, staffing availability, and goals for installation. In addition, Coolearth will work with customer to establish operational performance metrics for the purpose of providing comparisons of existing and future performance and for ongoing efficiency analysis. This stage in the implementation

will typically require 2 to 3 days of project management effort and 1 to 2 days of functional consultant effort.

1.2 Requirements Gathering and Gap Analysis Coolearth will work with customer staff in information technology, operations, and maintenance to

determine specific requirements and to assess any gaps between these and system functionality. During this process, additional gaps not identified during the pre-sales process may be found.

This stage in the implementation is expected to require 1-2 days of consultant effort. The deliverable from this phase will be a fully specified solution.

1.3 – Parts Procurement Parts for the system will be purchased. Typical longest lead items are the scale and printer. Expected effort is 1 day. Duration is typically 4 weeks.

1.4 – System construction System parts will be integrated at Coolearth’s lab/facility in Seattle. The system will be built to the

specifications designed here and further refined during project setup and gap analysis. This effort is 10-15 days of engineering and 1-2 days of Project management.

1.5 – System Test

Coolearth will test and tune the completed system at the Seattle lab/facility. Testing effort is 2-5 days of Engineer time and 1 day of Project Management.

1.6 – Hardware Setup System will be crated and shipped to the customer facility. Hardware setup will encompass uncrating, installation of conveyors, installation of enclosures, routing of power and air, configuration of barcode scanning equipment, calibration of photo eyes, setup on network, and setup of printers. This stage of the

implementation will require 2 to 3 days of effort. Customer will be responsible to have appropriate 208v 3phase power, 80 psi 2 SCFM air, and 120v utilities in general area of installation.

1.7 – User Acceptance Testing

Coolearth engineers will install the machine and collaborate with customer for acceptance testing into the production environment. Acceptance testing typically runs 3 days.

1.8 – User Training Coolearth will provide application training to staff members of customer who will in turn train end users. Coolearth will additionally provide complete documentation of the system for managers,

maintenance and end users. It is estimated that the process of training both managers and selected end users will require 1 day.

The amount of work required for the Low Effort Estimate is 25 FTE days of work by Coolearth consultants. A preliminary implementation timeline for the Low Effort Estimate, starting on the 15th of December (as an example), is provided below:

Hardware – example list

Description Estimated Total Cost

Professional Services-example

Summary of Total Estimated Costs