Kessler Sales & Distribution - Supplying Plumbing and HVAC Wholesalers

2. Kessler Sales & DistributionWho we are and what we do Founded in 1935, KSD is a third generation family owned and operated company. KSD leads the industry in supplying copper tube, domestic and import steel pipe, plastic pipe and PEX tubing to plumbing and HVAC wholesalers. Our key to success has been to offer competitive pricing, fast deliveries and unmatched customer service. KSD’s mission is to earn the position as “Supplier of Choice” for all of our customers. KSD currently operates eight strategically located distribution centers in Hattiesburg, MS, Tucker, GA, Ardmore, TN, Woodbridge, NJ, Clinton, IL, Dover, NH, Madison, NC, and Shelby, OH. We have plans to open several more distribution centers in the near future. KSD maintains over one million square feet of warehousing space and a fleet of more than 40 trucks to service the needs and requirements of our customers.

3. Advantages of dealing with KSD: • Competitive Pricing - On Small Orders And Truckload Orders • Low FFA Requirements And Mix & Match Product Lines To Meet FFA • Ability To Order Only What You Need • Faster Inventory Turns, Lower Operating Costs • Delivery On KSD’s Own Fleet Of Trucks (Within 200 Mile Radius Of DC) • Sales Professionals With Market Knowledge • Our Ability To Source From More Than One Manufacturer To Meet our Customers Needs • Mix and Match Steel, Copper, Plastic and Pex Tubing on One Order

4. Strategic Vision Maximize the distribution of our products by continually adding to our market share through sustained organic growth in our existing markets and expanding the company on a regional basis until we are servicing the entire United States, Canada, Mexico and Caribbean market places. By using our strength in pipe products we can offer a variety of products to multiple channels of distribution. If you can’t measure it, you can’t manage it

5. Table of Contents • Steel Pipe • Domestic • Global • Copper Tubing • Linesets • Plastic Pipe • PEX Tubing& Fittings • Ball Valves • Strut & Threaded Rod

6. Steel Pipe – Domestic Wheatland Tube, Sharon, PA (www.wheatland.com) Wheatland is the only domestic manufacturer of standard CW pipe left in the USA CW - Continuous Weld: This process makes one diameter of pipe continuously for thousands of feet at a time. They use a process called “Butt Weld” to join the pipe together. They use the heat of the furnace to make the edges of the pipe red hot and then “Butt” the edges together to “Weld” the pipe. The CW process is older, simple but effective method for joining pipe. Good enough for low pressure applications. It is easier to thread because the weld is softer than the weld on the ERW process ERW - Electric Resistance Weld: This process uses electricity to heat the edges of the pipe and weld the pipe together. This is a much stronger and better joining method than CW. All import pipes are ERW. Because of the process, the weld on ERW pipe is harder and contractors will complain that is difficult to thread.

7. Black Pipe - Domestic • BTC: Black Threaded & Coupled, Diameters: 1/8” – 4”, Lengths: 21’, Schedule 40 • Uses: Water, Oil and Gas lines (contractors), Structural • BTBE: Black Threaded Both Ends (No couplings) , Diameters: ½” – 4”, Lengths: 10’, Schedule 40 • Uses: Water, Oil and Gas lines (contractors), Great for city locations/tight spaces, hardware & home owner • BPE: Black Plain End, Diameters: 1/8” – 6”, Lengths: 21’ only, Schedule 40 • Uses: WOG lines, Beveled for welding (PVF Customers), Hand Rails • BPEXH: Extra Heavy, Diameters: ½” – 4”, Lengths 21’, Schedule 80 • Uses: Same as above except it can handle higher pressures • FBC: Fusion Bond Coated, Diameters: ½” – 4”, Lengths: 21’ Schedule 40, Plain End • Uses: Underground gas lines

8. Galvanized Pipe- Domestic • GTC: Galvanized Threaded & Coupled, Diameters: ½” – 4”, Lengths: 21’, Schedule 40 • Uses: Water lines, Structural • GTBE: Galvanized Threaded Both Ends (No couplings), Diameters: ½” – 4:, Lengths: 10’, Schedule 40 • Uses: Water lines, structural, Hardware & home owner

9. Omni Buying Group Rebate on all steel pipe purchases Extra credit for adding a vendor to their list F.B.I. Platinum Vendor – ((Frequent Buyer Incentive) Additional rebate (highest level) on travel expenses for the annual Omni meeting Winwholesale Rebate on all steel pipe purchases Hajoca Corp. Rebate on all steel pipe purchases Wheatland is ISO 9001 approved Specification: ASTM A 53 Type F Grade A CW (1/8” – 2” Diameters) Specification: ASTM A 53 Grade B ERW (2-1/2” – 8” Diameters) Buying Groups and Specs.

12. Steel Pipe – Globally Sourced Universal Tube, Dubai, UAE(www.universaltubes.com) Currently our entire GS steel pipe offering is being sourced from the Universal Tube mill in Dubai. We are actively looking for additional mills around the world to source from, but this is proving difficult based on the current conditions around the globe. Prior to buying from Dubai we were buying from two different mills in China. We may still have some Chinese pipe in stock. This would likely be galvanized and odd sizes of black pipe. We occasionally will buy products from other importers to cover a stock outage. We might have pipe from other countries as well as the UAE and China. ERW - Electric Resistance Weld: This process uses electricity to heat the edges of the pipe and weld the pipe together. This is a much stronger and better joining method than CW. All import pipes are ERW. Because of the process, the weld on ERW pipe is harder and contractors will complain that is difficult to thread.

13. Black Pipe – Globally Sourced • BTC: Black Threaded & Coupled, Diameters: ½” – 4”, Lengths: 21’, Schedule 40 • Uses: Water, Oil and Gas lines (contractors), Structural • BTBE: Black Threaded Both Ends (No couplings) , Diameters: ½” – 4”, Lengths: 10’, Schedule 40 • Uses: Water, Oil and Gas lines (contractors), Great for city locations/tight spaces, hardware & home owner • BPE: Black Plain End, Diameters: ½” – 6”, Lengths: 21’ only, Schedule 40 • Uses: WOG lines, Beveled for welding (PVF Customers), Hand Rails

14. Galvanized Pipe – Globally Sourced • GTC: Galvanized Threaded & Coupled, Diameters: ½” – 4”, Lengths: 21’, Schedule 40 • Uses: Water lines, Structural • GTBE: Galvanized Threaded Both Ends (No couplings), Diameters: ½” – 4:, Lengths: 10’, Schedule 40 • Uses: Water lines, structural, Hardware & home owner

15. Specifications • Universal Tube is ISO 9001 approved • Specification: ASTM A 53 Grade A ERW • All pipe is shipped in containers, this keeps it very clean • All import pipe is ERW

16. Affiliations/Buying Groups • Omni Buying Group • Rebate on all steel pipe purchases • Extra credit for adding a vendor to their list • F.B.I. Platinum Vendor – ((Frequent Buyer Incentive) Additional rebate (highest level) on travel expenses for the annual Omni meeting • Winwholesale, Hajoca & Noland Co. • Rebate on all steel pipe purchases (Preferred Vendor) • Home Depot, Menards, Ace Hardware • National programs in place with these customers

17. ASTM A-53 • 1. TOLERANCE • : a) On Thickness : The minimum wall thickness at any point shall be not more than 12.5% under the nominal • wall thickness specified. • : b) On Diameter :For NPS 11/2" & under at any point shall not vary more than +/- 0.4mm. For NPS 2" & above • shall not vary more than +/-1% from the standard specified. • : c) On Weight: The weight of the pipe shall not vary by more than +/- 10% of the specified value. • 2. ENDS • : a) 11/2" and below size - End finish shall be at the option of manufacturer. Nominally square cut with the • axis of tube and free from excessive burrs. • : b) 2" and above size - Beveled with ends beveled to an angle of 30 degrees +5/-0 measured from a line • perpendicular to the axis of the pipe with a root face of 1.6mm +/-0.8mm. • 3. INTERNAL DEBEADING • : From size 2" & above internal beads can be completely removed. • 4. PROPERTIES • :a) Chemical = (Maximum) C - 0.25%, Mn - 0.95%, S - 0.045% & P - 0.050%, Cu-0.40%, Ni-0.40%, Cr-0.40%, • Mo-0.15%, V-0.08%, (Cu+Ni+Cr+Mo+V = 1.0% max) • :b) Mechanical (Minimum) = UTS - 330 N/mm2, YS - 205 N/mm2 & %Elongation 25 to 30% .

18. Copper Tube Kobe Wieland Copper Products, Pine Hall, NC (www.kwcp.net): 100% of our copper tubing comes from KWCP (1/4” – 2” K, L, M, DWV, ACR, K Oxy and Refrigeration coils) Large Diameter 5”, 6” & 8” we buy from KWCP’s parent company Wieland of Germany

19. Copper Notes • KWCP is ISO 9000 Approved • Specifications: ASTM B88, B280 and B306 – The only domestic manufacturer to qualify for marking their tube with these specs • All tubing is seamless • KSD currently gets 85% of their water tube production, working towards 100% • KWCP has very few direct wholesale customers • KWCP Prefers to use KSD as their main source for distribution

20. Mills Mueller Cerro Cambridge-Lee Howell Master Distributors Curtis Marketing United Pipe & Steel United PVF Sunbelt Marketing JMF Other… The Distribution Group Rebate on all copper National Rebate Programs Hajoca HD Supply Competition/Affiliations

21. K CopperGreen Markings • Thickest wall of all copper tubing • Most expensive copper tubing we sell because of the heavy wall • Only copper suitable for underground burial • Most K copper sales are in coil form for underground water/utilities • Popular sizes are ¾” – 2” soft coils (40’, 60’ and 100’) • 1-1/2 & 2” x 20’ annealed (soft) are available in box quantities only (1-1/2” = 15 pieces & 2” = 10 pieces) • Hard lengths are almost exclusively used in industrial applications • K Hard drawn are available in 20’ lengths only • Uses: Water, fuel oil, natural gas, LP and compressed air higher pressure applications (Above and below ground approved) • Specification: ASTM B88

22. K Oxygen &Medical Gas Tubing • K Oxy/Med is regular K tubing cleaned, capped and nitrogen charged • Up until the mid 1990’s K Oxy was the only approved tubing for medical gas use • Some customers will still demand K Oxy even though L ACR is approved for medical gas

23. L CopperBlue Markings • Medium wall thickness • Most popular tubing we sell • ½” – 2” are the most popular sizes, ½” – 1” for residential 2” – 6” for commercial • Most plumbing codes requires that type L copper be used for potable/domestic water use • Available from ¼” – 8” hard drawn lengths (10’ & 20’) and ¼” – 2” soft coils (60’ & 100’) • Uses: Water, fuel oil, natural gas, LP and compressed air (All for above ground use) • Specification ASTM B88

24. ACR Copper Tubing • ACR is regular L tubing cleaned, capped and charged with nitrogen • ACR is always sold by the O.D. (outside diameter) to avoid confusion with water tube • Cleaned to the specification for refrigeration equipment and oxygen/medical gas use and is marked on every piece • Available from 1/8” O.D. – 4-1/8” O.D. hard drawn lengths • Uses: Air Conditioning and Refrigeration (HVAC), medical gas, both residentially and commercially • Specification ASTM B280

25. Refrigeration Coils • Also Known As: Dry Seal, Dehydrated, Refer and Oil Line • Available from 1/8” O.D. – 1- 5/8” O.D. soft coils (50’ & 100’) • Slightly thinner wall than L tubing • Uses: Air Conditioning and Refrigeration (HVAC), both residentially and commercially • Specification ASTM B280

26. M CopperRed Markings • Thinner wall than L & K tubing • Mainly used for hydronic heating and some drainage and light pressure applications • Most popular sizes are ¾” – 2” • Some states allow M to be used for potable/domestic water • Available from ½” – 4” (10’ & 20’) hard drawn lengths (No coils available) • Specification ASTM B88

27. DWV CopperYellow Markings • Thinnest wall of all copper tubing • Slowest mover of all the copper types • Available from 1-1/4” – 4” (10’ & 20’) hard drawn lengths • Uses: Drain, Waste, Ventilation, zero pressure applications • Used almost exclusively in commercial applications, plastic has displaced any residential use • Specification ASTM B306

32. Benefits to Linesets • Custom Made to order in any length • Easy to ID and inventory • Tear resistant insulation • Space-saving, crush-resistant packaging • 100: Prefabricated • Reduces “time-in-field” • Easy installation

33. Linesets • Manufactured by Linesets, inc. Based in Phoenix, AZ • www.linesetsinc.com • KSD stocks 3/8” x 5/8”, 3/4”, 7/8”, & 1-1/8” in 20’ to 50’ coils • Linesets, Inc. will fabricate other sizes to order. • Comes in patent pending crush-resistant boxing Crush-proof Packaging Tear-resistant Glide Shield

34. Plastic Pipe Technical Info • Plastic Pipe Products • Generally known as Thermoplastics • Products Include: • PVC • CPVC • PE • ABS • PEX • Advantages in our Industry • Relatively inexpensive • Corrosion free • Ease of use and handling • Very long life cycle

35. Polyvinyl Chloride(PVC) • Used extensively in plumbing, electrical, and Water & Sewer industries • Products include, among many, Schedule 40/80, SDR-35, SDR-21, C-900 • Foam Core or “cellular core” Schedule 40 • Used in U.S. markets for more then 35 years • Useful life expectancy of more then 1000 years

36. CPVC Chlorinated Polyvinyl Chloride • Popular in plumbing and industrial industry • Excels in high temperature and corrosive material applications

37. Polyethylene(PE or Poly) • Used in all markets, but focused on water & Sewer and electrical markets • Standard dimension ratio from very thick to very thin • Gaining popularity in the U.S.

38. Acrylonitrile-Butadiene-Styrene(ABS) • Manufactured solid or foam core • ABS used specifically in plumbing industry as a DWV

39. Purchasing Plastics • We are going to focus on better purchasing practices • Develop closer relationships with current vendors • Be proactive and develop partnerships with other vendors • Create opportunities to gain competitive advantages, at minimum, find opportunities that pace Kessler with Competition

40. Selling Plastic Pipe • We have the fundamentals: Customer Relations, Knowledge, Professional Sales Staff • We will develop new pricing based on customer, quantity, etc. • Not unlike Copper or Steel; similar competitive markets • Plastic Pipe is a commodity • We need to re-evaluate the way we sell plastic • Volume vs. Margin • Create the sales opportunity • Ask customers if they would like current competitive pricing on PVC or foam core • Stress skid quantity to customer, stress quantity discount they will be eligible for • Every call should end with a mention of plastic

41. Plastic Pipe - Vendors • JM/Eagle • PVC Sch 40, Foam Core, SDR 35, S & D • Bristol • PVC Sch 40, Foam Core, SDR 35 & 21, S & D, ABS • National Pipe • PVC Sch 40, SDR 35 & 21, Sch 80 • BOW • ABS

42. Plastic Pipe Training • Schedule 40 (White Pipe) • Dual marked for pressure and DWV • Solid core through out the wall of the pipe • Available in Plain End, Bell End, Diameters: ½” – 12” (PE), Lengths: 10’ & 20’ • Foam Core (White Pipe) • Marked for DWV only • Air injected between the inside and outside walls for material savings • Available in Plain End, Diameters: 1-1/2” – 6”, Lengths: 10’ & 20’ • Schedule 80 (Gray Pipe) • Made for higher pressure applications • Available in Plain End only, Diameters: ½” – 8”, Lengths: 20’ only

43. Plastic Pipe, cont. • SDR 21 (White Pipe – 200 psi) • ¾” used for condensate lines for HVAC • Available in Plain End, Bell End, Lengths: 10’ & 20’ • SDR 35 (Green Pipe – Gasketed) • Sewer/septic applications • Available in Gasketed Ends, Diameters: 4”, 6” & 8”, Lengths: 14’ • SDR 35 (Green Pipe – Solvent Weld) a.k.a. 3034 (ASTM Designation) • Available in Bell End, Diameters 4” & 6”, Solid & Perf, Length: 10’ only • Perforated Pipe is a two hole pattern (some areas require 3 hole, not available at KSD)

44. Plastic Pipe, cont. • Sewer & Drain (White Pipe – Solvent Weld) a.k.a. 2729 (ASTM Designation) • Available in Bell End, Diameters: 3”, 4” & 6”, Solid & Perf, Length: 10’ only • 3,000 lb. Crush Test • ABS – Foam Core (Black Pipe) • Marked for DWV only • Air injected between the inside and outside walls for material savings • Available in Plain End, Diameters: 1-1/2” – 6”, Lengths: 10’ & 20’

45. Cross Linked Polyethylene (PEX) • Emerging product for U.S. market, Gaining popularity • Popular uses include radiant floor heat and solar • Used in Europe for more than 30 years • Correlates to copper: SDR-9, CTS 1/4 – 1” • Expensive tools and fittings

46. Plumbing PEX • Designed to be used for domestic (potable) water • Direct replacement of copper tubing • Inside use only • Available in straight lengths and coils • Size range: ½”, ¾” & 1” • Lengths: 20’ straight, 100’, 300’, & 500’ coil • Available in three colors: Red, white & blue • Red = Hot, Blue = Cold, used in newer applications were you may want to differentiate the hot & cold lines • White = Neutral, retro-fit jobs, or where you don’t want or need to differentiate hot & cold lines • CAN NOT BE USED FOR HYDRONICS

47. Hydronic PEX • Designed to be used for radiant floor heating and supplying hot water from the boiler to radiators, baseboard, etc. • Similar to plumbing Pex except an Oxygen Barrier is added to the tubing to make it durable enough to handle the water for the heating system • Available in straight lengths and coils • Size range: ½” & ¾” • Lengths: 20’ straight, 100’, 300’, 500’ & 1,000’ coil • Available in one color; Bright “Cherry” Red

48. PEX Types & Competition The three different ways to manufacture Pex are categorized by A, B or C type. This is NOT a ranking, merely a way to distinguish the different processes available to cross link the Polyethylene into Pex tubing. • Type A: • Chemical cross link using a peroxide curing method • Uponor (Wirsbo) & Rehau • Type B: • Chemical cross link using Silene curing method • KSD, Vanguard, Zurn, Watts, Cambridge Lee • Type C: • Mechanical cross link using gamma rays to physically change the Polyethylene • Nibco (formally CPI)