Enviroclear® Technology

1. Enviroclear® Technology NOTICE TO READER: The following information concerning Enviroclear Technology is confidential, proprietary and part of the body of interllectual property owned by Container Corproation of Canada. Per the existing signed confidentiality convenants, none of the following shall be disclosed to any third party without Container Corporation of Canada’s explicit authorization

2. Enviroclear® Food and Beverage Packaging • Chemical and Abrasion Resistance • Carbonation Retention • Barrier to Oxygen Absorption • Retention of Vacuum

3. Enviroclear®Resource CommitmentLong-Term R&D Effort • Six Member R&D Team – Advanced Research • Pilot Plant Scale-Up Support • Plant Lab Applications Support • Mocon Testing Equipment • Oxtran 1000 – Oxygen • Oxtran 2/20 – Oxygen • Permatran C-IV – Carbon Dioxide • Permatran W-6 - MVTR • Several U.S. and Foreign Patents Granted

4. Oxygen Barrier Enviroclear® Development:Measured Permeability Constantsin cc-mil/100in2/day/atm Temperature = 30°C Continued

5. Enviroclear® vs. EVOHPermeability Constant Comparison Constants Measured @ 30°C

6. Oxygen Tolerance of Foods Food/Beverage Beer Canned Vegetables & Soups Baby Foods Fine Wine Tomato-Based Products High Acid Fruit Juices Oils and Shortenings Peanut Butter Salad Dressing Jams, Jellies Tolerance (ppm) 1-2 1-3 1-3 2-5 3-8 8-20 20-50 30-100 30-100 50-200+

7. Enviroclear® • Commercial carbon dioxide barrier: 6.4 X shelf life • Oxygen barrier 10 x superior to EVOH • Equivalent performance on PET or Polyolefins • Good hot water resistance (Hot Fill or Retort) • Capability to upgrade barrier of closures • Freedom to add color

8. Capabilities Summary Three major interactions can occur between a package and its contents: Donor: When substances in the package migrate into the contents of the package. Acceptor: When flavour molecules from the contents migrate into the packaging material. This process is also called flavour scalping. Barrier: When the package moderates or prevents migration between the environment and the contents. Container Corporation Of Canada can serve you in five ways:  Conduct and initiate research to build polymer interaction knowledge base.  Employ this knowledge base for polymer process and product development.  Translate research into manufacturing and on-line quality control.  Help Enviroclear Customers understand the interactions taking place between packages and products.  Offer solutions which prevent and eliminate or resolve odor or flavour difficulties caused by the interactions.

9. Supplemental Information About Enviroclear® Barrier Technology The information below should act as a guide to further comprehend some of the most common questions posed regarding Enviroclear® Barrier. How does the Enviroclear® Barrier work? Permeability is the process by which a mass of material transfers from one side of a non-porous material, such as a plastic, to the other side. The overall process involves the individual processes of initial absorption into the molecular matrix of the plastic, movement and equilibrium into and through the plastic, and desorption from the other side of the plastic into whatever medium is in contact with it. With the exception of water vapour, materials which are a good barrier (provide low permeability such as Enviroclear®) to one gas are generally a good barrier to most other gasses. The parameters which are most important in determining the barrier properties of a material include crystallinity, orientation, chain stiffness (Tg) [Glass Transition Temperature, is the measure of stiffness of a polymer], free volume, cohesive energy, moisture sensitivity, and temperature sensitivity. Since one of the keys to a cost effective barrier system is the ability to incorporate only as much of the barrier layer as needed, the use of a pure solution of the barrier material provides the most versatility. Materials with high degrees of crystallinity and high Tg tend to present solubility problems and are not as useful. The use of a solution of barrier material also does not lend itself to the ability to orient the layer after application. The design of a very high barrier material thus relies heavily upon the principles of low free volume and high cohesive density to produce a tightly packed matrix through which it is very difficult for gasses to permeate. The effects of increased moisture level and increased temperature upon barrier properties have in common the net result of reducing the “tightness” of a matrix and thus facilitating permeation of a gas. The advantage of a chemically crosslinked barrier is that both the swelling due to moisture absorption and the volume increase due to temperature, are greatly limited by the physical restraints of the crosslinks. The heat sensitive nature of plastic containers requires that the desired crosslinking reaction take place at relatively low temperatures, i.e. 140° - 180°F.

10. Supplemental Information About Enviroclear® Barrier Technology (cont’d) How well adhered or cohesive is the barrier to the substrate? The Enviroclear® CO2 barrier has been in controlled limited commercial use on PET and polypropylene soft bottles for over three years with no adhesion problems. Our laboratory results indicate that the adhesion of the O2 barrier to Enviroclear® is equal to its adhesion to PET. Will scuffing compromise the barrier? How can we test this? The degree of scuffing is a function of the handling/distribution conditions to which the package is subjected. The surfaces can be scuffed in the same way that any plastic bottle can be scuffed. We anticipate that the degree of scuffing that would be acceptable from an aesthetic perspective would not alter the barrier performance significantly. The best way to test this would be to expose a small number of Enviroclear® bottles to the full distribution system and to measure the barrier performance before and after handling. Will the Enviroclear® package affect labelling or label adhesion? Our controlled experience with barrier PET and PP/Enviroclear® bottles has not indicated any negative effect on labelling. The existing bottles utilize wrap-around polystyrene or paper or polypropylene labels with standard hot melt adhesives. The hot melt adhesives tested on Enviroclear® bottles are the same as those used on PET bottles.

11. Supplemental Information About Enviroclear® Barrier Technology (cont’d) How will high internal and external humidities impact barrier properties? Compared to other barrier materials such as EVOH, the barrier properties of Enviroclear® are relatively unaffected by humidity. This is likely due to the highly crosslinked nature of the barrier coating matrix, which tends to prevent the penetration of water molecules that would detract from barrier performance. The barrier properties are not directional; that is, they are equally effective at preventing the ingress and escape of gasses. Finally, the highest humidity will usually be on the inside of the bottle. Because of the excellent moisture vapour barrier properties of Enviroclear®, the barrier will generally be exposed to a relatively low humidity at its location on the exterior surface of the bottle. Furthermore, as Enviroclear® has at least 5 to 15 times the moisture barrier of PET, the barrier properties of the package are further enhanced. Will the dry time required preclude high-speed production? The fastest estimated controlled projections have barrier coating application run up to 28,000 bottles per hour. Is the Enviroclear® Process FDA approved? Yes, for PET and PP bottles of standard wall thickness.