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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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    <B><FONT style="color: #E8112D">As filed with the Securities and
    Exchange Commission on May&#160;18, 2010</FONT></B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Registration
    <FONT style="white-space: nowrap">No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
</DIV>

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    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">Form&#160;S-1</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">REGISTRATION
    STATEMENT</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">UNDER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">THE SECURITIES ACT OF
    1933</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">Heritage-Crystal Clean,
    Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <TD width="35%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
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<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Delaware</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>4955</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>26-0351454</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(State or other jurisdiction
    of<BR>
    incorporation or organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(I.R.S. Employer<BR>
    Identification No.)</FONT></I><FONT style="font-size: 8pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">2175 Point Boulevard,</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Suite&#160;375</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Elgin, Illinois 60123</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt"><FONT style="white-space: nowrap">(847)&#160;836-5670</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Address, including zip code,
    and telephone number,</FONT></I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">including area code, of
    registrant&#146;s principal executive offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Joseph Chalhoub</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">President and Chief Executive
    Officer</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Heritage-Crystal Clean,
    Inc.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">2175 Point Boulevard,
    Suite&#160;375</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Elgin, Illinois 60123</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt"><FONT style="white-space: nowrap">(847)&#160;836-5670</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name, address, including zip
    code, and telephone number,</FONT></I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">including area code, of agent
    for service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 9pt">Copies to:</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="49%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
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<TR valign="bottom">
<TD align="center" valign="top">
    <B>Mark A. Harris<BR>
    Heidi J. Steele<BR>
    McDermott Will&#160;&#038; Emery LLP<BR>
    227&#160;W.&#160;Monroe Street, Suite&#160;4700<BR>
    Chicago, Illinois 60606</B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>Larry A. Barden<BR>
    Robert L. Verigan<BR>
    Sidley Austin LLP<BR>
    1&#160;S.&#160;Dearborn Street<BR>
    Chicago, Illinois 60603</B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale to the
    public:</B>&#160;&#160;As soon as practicable after this
    Registration Statement becomes effective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule&#160;415 under the Securities Act of 1933, check the
    following
    box.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act,
    check the following box and list the Securities Act registration
    statement number of the earlier effective registration statement
    for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    &#147;large accelerated filer,&#148; &#147;accelerated
    filer&#148; and &#147;smaller reporting company&#148; in
    <FONT style="white-space: nowrap">Rule&#160;12b-2</FONT>
    of the Exchange Act. (Check one):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="23%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Large&#160;accelerated&#160;filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Accelerated&#160;filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Non-accelerated&#160;filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Smaller&#160;reporting&#160;company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 8pt">(Do&#160;not&#160;check&#160;if&#160;a
    smaller<BR>
    reporting&#160;company)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Each Class of<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Amount to be<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Offering Price<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Aggregate Offering<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Registration<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Securities to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>per Share</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Fee</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common Stock, par value $.01 per share
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    3,162,500&#160;shares<SUP style="font-size: 85%; vertical-align: top">(1</SUP>

</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    9.76<SUP style="font-size: 85%; vertical-align: top">(2</SUP>

</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    30,866,000<SUP style="font-size: 85%; vertical-align: top">(2</SUP>

</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    2,200.75<SUP style="font-size: 85%; vertical-align: top">(3</SUP>

</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Includes shares issuable upon
    exercise of the underwriters&#146; option to purchase additional
    shares.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Estimated solely for purposes of
    calculating the registration fee pursuant to Rule&#160;457(c)
    under the Securities Act, based upon $9.76 per share, which is
    the average of the high and low sales prices of the common stock
    reported on The Nasdaq Global Market on May&#160;13, 2010.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">The amount of filing fee equals
    $71.30 per million of the maximum aggregate offering price.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act of 1933, as amended, or until this
    Registration Statement shall become effective on such date as
    the Commission, acting pursuant to said Section&#160;8(a), may
    determine.</B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<FONT style="font-size: 9pt; color: #E8112D">The information in
this preliminary prospectus is not complete and may be changed.
We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. This preliminary prospectus is not an offer to sell,
and we are not soliciting an offer to buy, these securities in
any state where the offer or sale is not permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #E8112D">SUBJECT TO
    COMPLETION, DATED MAY 18, 2010</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="c58173c5817300.gif" alt="(Heritage Crystal Clean logo)"><FONT style="font-size: 9pt">
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">2,750,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">Heritage-Crystal Clean,
    Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are selling 2,750,000&#160;shares of our common stock, par
    value $0.01 per share. Our common stock is traded on The NASDAQ
    Global Market under symbol &#147;HCCI.&#148; On May&#160;17,
    2010, the last reported sale price of our common stock on The
    NASDAQ Global Market was $9.72 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investing in our common stock involves a high degree of risk.
    See &#147;Risk Factors&#148; beginning on page&#160;9 to read
    about factors you should consider before buying our common
    stock.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 23%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or passed upon the adequacy or accuracy of this
    prospectus. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 23%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds to the Company (before expenses)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have granted the underwriters an option for a period of
    30&#160;days to purchase up to 412,500 additional shares of our
    common stock on the same terms and conditions set forth above.
    See the section of this prospectus entitled
    &#147;Underwriting.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters expect to deliver the shares to purchasers on
    or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">William Blair&#160;&#038;
    Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">Baird</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">
    Needham&#160;&#038; Company, LLC</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The date of this prospectus
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Table
    of Contents</FONT></U></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>Cautionary Statement Regarding Forward-Looking
    Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>About This Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    iii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    iii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Prospectus Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Price Range of Common Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Dividend Policy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Capitalization</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Selected Consolidated Financial Data</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Business</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Management</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    53
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Principal Stockholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    56
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>Relationships and Transactions With Related
    Persons</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    58
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>Underwriting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c58173exv23w1.htm">EX-23.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c58173exv23w2.htm">EX-23.2</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained or
    incorporated by reference in this prospectus or to which we have
    referred you. We have not authorized anyone to provide you with
    information that is different. Offers to sell, and solicitations
    of offers to buy, shares of our common stock are being made only
    in jurisdictions where offers and sales are permitted. The
    information contained in this prospectus is accurate only as of
    the date of this prospectus and the information in the documents
    incorporated or deemed to be incorporated by reference in this
    prospectus is accurate only as of the respective dates those
    documents were filed with the Securities&#160;&#038; Exchange
    Commission, regardless of the time of delivery of this
    prospectus or any sale of our common stock.</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus contains forward-looking statements that are
    based upon current management expectations. All statements other
    than statements of historical facts included in this prospectus,
    including statements regarding our future financial position,
    economic performance and results of operations, as well as our
    business strategy, budgets, and projected costs and plans and
    objectives of management are forward-looking statements.
    Generally, the words &#147;aim,&#148; &#147;anticipate,&#148;
    &#147;believe,&#148; &#147;could,&#148; &#147;estimate,&#148;
    &#147;expect,&#148; &#147;intend,&#148; &#147;may,&#148;
    &#147;plan,&#148; &#147;project,&#148; &#147;should,&#148;
    &#147;will be,&#148; &#147;will continue,&#148; &#147;will
    likely result,&#148; &#147;would&#148; and similar expressions
    identify forward-looking statements. These forward-looking
    statements are based on current expectations, estimates and
    projections, many of which are by their nature inherently
    uncertain and beyond our control and involve known and unknown
    risks, uncertainties and other important factors that could
    cause our actual results, performance or achievements or
    industry results to differ materially from any future results,
    performance or achievements expressed or implied by these
    forward-looking statements. These risks, uncertainties and other
    important factors are further described in &#147;Risk
    Factors&#148; and include, among others:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    economic conditions including the recent recession and financial
    crisis; and downturns in the business cycles of automotive
    repair shops, industrial manufacturing businesses and small
    businesses in general;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increased solvent, fuel and energy costs and volatility in the
    price of crude oil;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to build and operate our used oil re-refinery as
    anticipated;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we are unable to generate sufficient funds to build and support
    our used oil re-refinery;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the used oil re-refinery may not generate the operating results
    that we anticipate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    further consolidation
    <FONT style="white-space: nowrap">and/or</FONT>
    declines in the U.S.&#160;automotive repair and manufacturing
    industries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of extensive environmental, health and safety and
    employment laws and regulations on our business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    legislative or regulatory requirements or changes adversely
    affecting our business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    competition in our existing lines of business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    claims and involuntary shutdowns relating to our handling of
    hazardous substances;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the limited demand for our used solvent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our dependency on key employees;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to effectively manage our extended network of branch
    locations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    warranty expense and liability claims;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the control of The Heritage Group over our Company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    personal injury litigation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dependency of suppliers;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to manage our growth.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because forward-looking statements are subject to risks and
    uncertainties, actual results may differ materially from those
    expressed or implied by such statements. You are cautioned not
    to place undue reliance on such statements, which speak only as
    of the date of this prospectus. Actual results of the Company
    may differ materially from those expressed in these
    forward-looking statements. Many of the factors that will
    determine these results and values are beyond our ability to
    control or predict.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We urge investors to review carefully the section of this
    prospectus entitled &#147;Risk Factors&#148; in evaluating the
    forward-looking statements contained in this prospectus. The
    information in this release should be read in light of such
    risks and in conjunction with the consolidated financial
    statements and the notes thereto which are incorporated by
    reference. Unless required by law, we do not undertake any
    obligation to release publicly any revisions to such
    forward-looking statements to reflect events or circumstances
    after the date of this prospectus, to reflect the occurrence of
    unanticipated events or for any other reason.
</DIV>

<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely only on the information contained in this
    prospectus and information incorporated by reference not
    included within. We have not, and the underwriters have not,
    authorized any person to provide you with different or
    inconsistent information. If anyone provides you with different
    or inconsistent information, you should not rely on it. We are
    not, and the underwriters are not, making an offer to sell these
    securities in any jurisdiction where the offer or sale is not
    permitted. You should assume that the information appearing in
    this prospectus is accurate only as of the date of this
    prospectus, unless the information specifically indicates that
    another date applies. Our business, financial condition, results
    of operations and prospects may have changed since such dates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Market data and certain industry forecasts used herein were
    obtained from internal surveys, market research, publicly
    available information and industry publications. While we
    believe that market research, publicly available information and
    industry publications we use are reliable, we have not
    independently verified market and industry data from third-party
    sources. Moreover, while we believe our internal surveys are
    reliable, they have not been verified by any independent source.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated or unless the context requires
    otherwise, all references in this prospectus to
    &#147;Heritage-Crystal Clean,&#148; the &#147;Company,&#148;
    &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; or similar
    references, mean Heritage-Crystal Clean, Inc. and its
    consolidated subsidiary, Heritage-Crystal Clean, LLC.
</DIV>

<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports, proxy statements
    and other information with the Securities and Exchange
    Commission, or the SEC. You may read and copy any document we
    file at the SEC&#146;s Public Reference Room at
    100&#160;F&#160;Street, N.E., Washington,&#160;D.C. 20549. You
    may obtain information on the operation of the Public Reference
    Room by calling the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330.</FONT>
    The SEC also maintains an Internet site that contains reports,
    proxy and information statements, and other information
    regarding issuers that file electronically with the SEC. The
    internet address of the SEC&#146;s website is www.sec.gov. Such
    reports and other information concerning Heritage-Crystal Clean
    can also be inspected at the offices of Heritage-Crystal Clean
    at 2175 Point Boulevard, Suite&#160;375, Elgin, Illinois 60123
    and can also be retrieved by accessing our website at
    www.crystal-clean.com. Information on our website is not part of
    this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus, which is a part of a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    that we have filed with the SEC under the Securities Act of
    1933, as amended, or the Securities Act, omits certain
    information set forth in the registration statement.
    Accordingly, for further information, you should refer to the
    registration statement and its exhibits on file with the SEC.
    Furthermore, statements contained in this prospectus concerning
    any document filed as an exhibit are not necessarily complete
    and, in each instance, we refer you to the copy of such document
    filed as an exhibit to the registration statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows us to incorporate by reference information we
    file with it, which means that we can disclose important
    information to you by referring you to other documents. The
    information incorporated by reference is considered to be part
    of this prospectus. We incorporate by reference the documents
    listed below, except to the extent that any information
    contained in such filings is deemed &#147;furnished&#148; in
    accordance with SEC rules:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended January&#160;2, 2010 and our Quarterly Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;27, 2010;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Definitive Proxy Statement on Schedule&#160;14A filed with
    the SEC on April&#160;5, 2010;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on May&#160;13, 2010, May&#160;17, 2010 and
    May&#160;18, 2010.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also intend to provide our stockholders with annual reports
    containing financial statements audited by our independent
    auditors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will provide each person to whom this prospectus is delivered
    a copy of any or all of the information that has been
    incorporated by reference in this prospectus but not delivered
    with this prospectus, upon written or oral request at no cost,
    by writing or telephoning us at the address set forth below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Heritage-Crystal Clean, Inc.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attention: Corporate Secretary
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2175 Point Boulevard, Suite&#160;375
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Elgin, Illinois 60123
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(847)&#160;836-5670</FONT>
</DIV>
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<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary highlights selected information contained
    elsewhere in this prospectus. Because this is only a summary, it
    does not contain all the information that you should consider
    before investing in our common stock. You should read the entire
    prospectus and the information incorporated by reference
    carefully, especially &#147;Risk Factors&#148; beginning on
    page&#160;9 and our consolidated financial statements and
    related notes, which are incorporated herein by reference,
    before making an investment decision. Our fiscal year ends the
    Saturday closest to December&#160;31. Accordingly, fiscal years
    2007, 2008 and 2009 ended December&#160;29, 2007,
    January&#160;3, 2009 and January&#160;2, 2010, respectively.
    Fiscal years 2007 and 2009 each consisted of 52&#160;weeks while
    Fiscal year 2008 consisted of 53&#160;weeks. Our convention with
    respect to reporting periodic financial data is that each of our
    first three fiscal quarters consist of twelve weeks while our
    last fiscal quarter consists of sixteen or seventeen weeks.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on revenues, we believe that we are the second largest
    provider of parts cleaning services in the U.S.&#160;and a
    leading provider of containerized waste services targeting small
    and mid-sized customers. Within the industrial and hazardous
    waste services market, we focus on parts cleaning, containerized
    waste, used oil and vacuum services, and we have recently
    announced plans to develop a used oil re-refinery. We estimate
    these components together represent a $6&#160;billion market
    opportunity, of which approximately $1&#160;billion represents
    the increase in market potential if the used oil re-refining
    market is included. Through our network of 62 branches, we
    provide our services to more than 41,000 active customer
    locations. During fiscal 2009, we performed more than 250,000
    parts cleaning service calls.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our customers frequently need to remove grease and dirt from
    machine and engine parts. Typical customers include businesses
    involved in vehicle maintenance operations, such as car
    dealerships, automotive repair shops and trucking firms, as well
    as small manufacturers, such as metal product fabricators and
    printers. Based on 2007 data from the U.S.&#160;Census Bureau,
    we estimate that there are more than 800,000 such firms in the
    U.S.&#160;Our services allow our customers to outsource their
    handling and disposal of parts cleaning solvents as well as
    other containerized waste. These materials are subject to
    extensive and complex regulations, and mismanagement can result
    in citations, penalties, and substantial direct costs. We allow
    our customers to focus more on their core business and devote
    fewer resources to industrial and hazardous waste management. We
    believe that these services are highly attractive to small and
    mid-sized customers, which we define as firms that generally
    spend less than $50,000 per year on industrial and hazardous
    waste services. These small and mid-sized customers typically
    have limited administrative infrastructure and have needs, such
    as assistance in preparing waste manifests and drum labels and
    regularly-scheduled service visits to check inventories and
    remove accumulated waste, that are often highly differentiated
    from the needs of larger accounts. We believe that our company
    is structured to meet these particular needs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In each of our services, we have adopted innovative approaches
    to minimize the regulatory burdens for our customers, and we
    have designed our services to provide &#147;ease of use&#148; to
    our customers. Our company has pioneered two different programs
    whereby our customers&#146; used parts cleaning solvent may be
    excluded from the U.S.&#160;Environmental Protection
    Agency&#146;s, or the EPA&#146;s, definition of hazardous waste.
    These two programs not only simplify the management of used
    solvent generated by our customers, but also reduce the total
    volume of hazardous waste generated at many of our
    customers&#146; locations. This can allow the customer to
    achieve a lower &#147;generator status&#148; with the EPA and
    thereby reduce their overall regulatory burden, including
    reduced reporting obligations and inspections.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competitive
    Strengths</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From our current base of 62 branch locations, we implement an
    organized and disciplined approach to increasing our market
    share, taking advantage of the following competitive strengths:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Large and Highly Diverse Customer Base.</I>&#160;&#160;Our
    focus on small and mid-sized businesses has enabled us to
    attract a variety of customers engaged in a range of businesses
    spread across the spectrum of the manufacturing, vehicle
    service, and transportation industries. Our customer base
    consists of over 41,000 active customer locations. In fiscal
    2009, our largest single customer represented less than 2% of
    our annual sales,
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and our largest ten customers represented approximately 6.2% of
    our annual sales. This diverse customer base helps insulate us
    from disruption caused by the possible loss of a single large
    account.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Innovative Services that Reduce Customers&#146; Regulatory
    Burdens.</I>&#160;&#160;We have designed our service programs to
    meet the needs of our target customers. In particular, these
    customers desire to minimize their regulatory compliance burdens
    and we have developed innovative methods to help our customers
    achieve this objective. For example, we have created two
    parts-cleaning service programs which each exempt our customers
    from certain hazardous waste regulations and filing requirements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Non-hazardous Program for Parts Cleaning. In our non-hazardous
    program for parts cleaning, we provide our customers with an
    alternative solvent that is not included in the EPA&#146;s
    definition of hazardous waste due to its increased flashpoint,
    and we educate each participating customer to prevent harmful
    contaminants from being added to the solvent during use. Because
    of the reduced solvent flammability, as long as the customer
    doesn&#146;t add toxic or flammable contaminants during use,
    neither the clean solvent that we supply nor the resulting used
    solvent generated by customers participating in our
    non-hazardous program for parts cleaning is classified as
    hazardous waste by the EPA and as a result can be managed as
    non-hazardous waste. After we collect the used solvent from
    customers participating in our non-hazardous program for parts
    cleaning, we recycle it via distillation for re-delivery to our
    parts cleaning customers, while at the same time minimizing the
    burdensome hazardous waste regulations faced by our customers.
    In order to most efficiently operate our non-hazardous program
    for parts cleaning, we have built a solvent recycling system at
    our Indianapolis hub capable of recycling up to 6&#160;million
    gallons per year of used solvent generated by customers
    participating in our non-hazardous program.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Product Reuse Program for Parts Cleaning. Rather than managing
    used solvent as a waste, we have developed a program that uses
    the solvent as an ingredient in the manufacture of asphalt
    roofing materials. Used solvent generated by customers
    participating in our product reuse program for parts cleaning is
    sold as a direct substitute for virgin solvent that is otherwise
    used in the asphalt manufacturing process. Because the used
    solvent is destined for reuse, it is not deemed a waste, and
    therefore it is not subject to hazardous waste regulations. To
    enhance the marketing of these programs, in the past
    20&#160;years we and our predecessor Heritage Environmental
    Services have voluntarily obtained concurrence letters from more
    than 30&#160;state environmental agencies to validate this
    approach.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Excellent Customer Service.</I>&#160;&#160;Since our
    founding, we have instilled a standardized, sales-oriented
    approach to our customers across our branch network. Our branch
    personnel are focused on local sales and service delivery, and a
    significant portion of their compensation is linked to sales
    growth and new business development. In order to achieve this
    sales growth, our personnel understand that they must retain
    existing business, which is best achieved by providing a very
    high level of customer service. Our high quality service leads
    to high customer satisfaction, customer retention, cross-selling
    opportunities, and referrals to new prospects. During fiscal
    2009, approximately 88% of our sales were generated from
    customers that we also served during fiscal 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Experienced Management Team.</I>&#160;&#160;Our management
    team has substantial experience in the industry and possesses
    particular expertise in the small to mid-sized customer segment.
    The management team also has industry-leading experience in the
    used oil re-refining industry. Our senior managers have on
    average more than 20&#160;years of industry experience and our
    middle managers have on average more than 10&#160;years of
    experience. Many of our managers held key positions with
    Safety-Kleen, our largest competitor, between 1986 and 1998
    during which time Safety-Kleen grew from $255&#160;million to
    over $1.0&#160;billion in annual revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost-Efficient Branch Rollout Model.</I>&#160;&#160;Our
    branch model allows us to consolidate operational and
    administrative functions not critical to sales and service at
    either a regional hub or our headquarters. This model has been
    the foundation for our new branch rollout during the past ten
    years, as we have expanded from 14 to 62 branches, and we expect
    to extend this model to new locations. Furthermore, as we grow
    within each branch, we improve our route density, which is an
    important contribution to profitability in our business.
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    <B><FONT style="font-family: 'Times New Roman', Times">Growth
    Strategies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to grow by providing environmental solutions that meet
    the needs of our customers. We have several different strategies
    to accomplish this and they include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Same-Branch Sales Growth.</I>&#160;&#160;We seek to generate
    <FONT style="white-space: nowrap">year-over-year</FONT>
    growth in existing markets by obtaining new customers and by
    cross-selling multiple services to existing customers. Our sales
    and marketing strategy includes providing significant incentives
    to our field sales and service personnel to find and secure new
    business. These incentives include commission compensation for
    individuals and managers, as well as prize awards and contests
    at the individual and team level. Our company culture is
    designed to consistently emphasize the importance of sales and
    service excellence, and to build and maintain enthusiasm that
    supports continued sales success. Additionally, we intend to
    drive profitability by leveraging fixed costs against
    incremental sales growth at our existing branches.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expanded Service Offerings.</I>&#160;&#160;All of our
    branches currently offer parts cleaning and containerized waste
    management services. Other services that we provide, including
    used oil collection services and vacuum truck services, are
    currently offered in less than half of our branch locations. As
    part of our effort to enter the used oil re-refining industry,
    we intend to accelerate the number of branches providing used
    oil collection services. As our business grows and we achieve
    sufficient market penetration, we expand the number of services
    offered at our branches. We also have other new business
    programs in various stages of development and these have the
    potential to be offered through our branch locations in the
    future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Geographic Expansion.</I>&#160;&#160;We currently operate
    from 62 branch locations that offer our parts cleaning and
    containerized waste management services to customers in
    39&#160;states and the District of Columbia. We have
    historically been able to install new branches at a relatively
    low cost. Within the contiguous United States, we believe that
    there are opportunities to open more branches and provide
    convenient local service to additional markets. In the future,
    we believe that there will be opportunities to offer our
    services in international markets as well.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selectively Pursue Acquisition
    Opportunities.</I>&#160;&#160;Our management team has
    significant experience in identifying and integrating
    acquisition targets. During the past nine years, we have
    successfully acquired the assets of several small competitors.
    Given the number of small competitors in our business, there are
    generally multiple acquisition opportunities available to us at
    any given time. Our growth plan is not dependent on
    acquisitions, but we will continue to pursue complementary
    acquisitions that leverage our established infrastructure.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Development
    of Used Oil Re-refinery</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have recently announced plans to develop a used oil
    re-refinery to convert used oil into re-refined lubricating base
    oil. We collect used oil from our customers as part of our core
    service offerings, and we typically sell the used oil we collect
    today as a fuel. Our development of a used oil re-refinery will
    enable us to increase the resale value of the used oil we
    collect, which we believe will improve our margins and provide
    us with a significant competitive advantage over most other used
    oil collectors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the development of a used oil re-refinery fits
    into our strategic growth plans for the following reasons:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We expect that the used oil we will collect from our customers
    will supply a significant portion of the used oil to be
    processed at the re-refinery because this service is needed by
    almost all of our current and target customers. Our network of
    62 branches provides us with an opportunity to efficiently
    collect used oil from a broad geographic area for re-refining.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We believe that a strong demand for re-refining capabilities
    exists since we estimate that only 20% of the one billion
    gallons of used oil collected in North America is routed to
    re-refining due to a lack of used oil re-refining capacity.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Re-refining is a preferred approach to used oil management based
    on a variety of environmental considerations, including resource
    recovery and reuse, energy efficiency and pollution prevention.
    Re-
</TD>
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    <BR>
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    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    refining of used oil recovers more of the economic value of the
    resource than alternative methods such as burning for energy
    recovery.
</TD>
</TR>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We have extensive experience with the design, construction and
    operation of used oil re-refineries as several members of our
    management were significant contributors to the development of
    approximately 75% of the used oil re-refining capacity in North
    America while employed at Safety-Kleen, Inc.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The re-refining process has been used in the United States for
    decades to remove impurities from used oil and create
    lubricating base oil that can be re-used in place of virgin
    lubricating oil. The process generally consists of two steps:
    first, vacuum distillation to separate the base lubricating oil,
    followed by hydrotreating to remove impurities. We estimate that
    less than 10% of the base lubricating oil supply in the United
    States is currently supplied by re-refineries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe the three key components to a re-refining business
    are used oil supply, re-refining technology and lubricating oil
    product sales. Our goal is to collect enough used oil feedstock
    to eventually ensure self-sufficient plant operation, although
    used oil feedstock is also available for purchase from third
    party suppliers. We intend to leverage our used oil collection
    network to generate this supply. Production of marketable
    lubricating oil from feedstock requires complex processes,
    robust screening and testing programs, and advanced re-refining
    technology. We believe a management team with extensive
    experience with these processes and technologies is necessary to
    design, build and operate a successful plant. We expect that our
    re-refinery will produce high quality lubricating base oils.
    Based on our management team&#146;s prior experience with the
    design, construction and operation of used oil re-refineries, we
    have entered into preliminary discussions with several potential
    purchasers of our re-refined lubricating base oil.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are designing our re-refinery to have an input capacity of
    approximately 50&#160;million gallons of used oil feedstock per
    year and expect to produce about 30&#160;million gallons of
    lubricating base oil per year. We plan to construct our
    re-refinery in Indiana. We estimate that the construction of the
    re-refinery will take approximately two years, allowing us to
    begin operations at partial capacity in 2012, and have a total
    capital cost of approximately $40&#160;million. We also
    anticipate that when the re-refinery starts operations, we will
    feed the re-refinery with a combination of used oil collected
    from our customers and used oil that we purchase from third
    parties. In 2009, we collected 4.3&#160;million gallons of used
    oil from our customers. During the construction period, we plan
    to roll out additional used oil collection routes to increase
    the volume of used oil we collect, and we estimate that during
    fiscal 2010 and 2011 we will incur roughly $1&#160;million and
    $1.5&#160;million of net expense, respectively, related to this
    roll out. We also expect that the operations of the re-refinery
    will increase our working capital requirements by approximately
    $5&#160;million to $10&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The expected revenue and profitability of this project will
    depend on a large number of factors, some of which are beyond
    our control, such as crude oil and lubricating oil prices and
    the costs of operations, but based on market conditions and
    crude oil prices prevailing in March 2010, we estimate that when
    the re-refinery is operating at full capacity, it will generate
    approximately $90&#160;million of annual revenue and have
    operating margins of approximately 20%.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Corporate Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our corporate and executive offices are located at 2175 Point
    Boulevard, Suite&#160;375, Elgin, Illinois 60123, and our
    telephone number at that address is
    <FONT style="white-space: nowrap">(847)&#160;836-5670.</FONT>
    Our website is located at
    <FONT style="white-space: nowrap">http://www.crystal-clean.com.</FONT>
    The information contained in our website is not a part of this
    prospectus.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Common stock offered by us in the offering</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    2,750,000&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Common stock to be outstanding after the offering</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    13,555,186&#160;shares<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Use of proceeds</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    We estimate that our net proceeds from the offering will be
    approximately $24.4&#160;million, based on an assumed public
    offering price per share of $9.72 (the last reported sale price
    of our common stock on The NASDAQ Global Market on May&#160;17,
    2010). We currently intend to use the net proceeds from the
    offering to fund a portion of the construction costs for our
    used oil re-refinery facility in Indiana. See &#147;Use of
    Proceeds.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Nasdaq Global Market symbol </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#147;HCCI&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The number of shares of common stock to be outstanding after the
    offering is based on 10,805,186&#160;shares outstanding as of
    May&#160;17, 2010 and:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    excludes 889,654&#160;shares of common stock issuable upon the
    exercise of outstanding options at a weighted average strike
    price of $10.76;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    excludes 971,197 and 66,430 additional shares of common stock
    that are reserved for future grants, awards or sale under our
    2008 Omnibus Stock Incentive Plan and our Employee Stock
    Purchase Plan of 2008, respectively.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated, the number of shares of common stock
    presented in this prospectus excludes 412,500&#160;shares of
    common stock issuable pursuant to the exercise of the
    underwriter&#146;s option to purchase additional shares:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Of the 2,750,000&#160;shares (not including amounts offered if
    the underwriters exercise their option to purchase additional
    shares) being offered under this prospectus, The Heritage Group,
    our largest stockholder (&#147;Heritage&#148;), will be offered
    862,769&#160;shares in accordance with certain participation
    rights as described in &#147;Relationships and Transactions with
    Related Persons&#148; and certain related trusts of Fred
    Fehsenfeld,&#160;Jr., the Chairman of our Board and an affiliate
    of Heritage, will be offered 257,807&#160;shares, in each case
    representing the same percentage of shares being sold in this
    offering as each of Heritage and Mr.&#160;Fehsenfeld currently
    holds of our outstanding common stock. In the event the
    underwriters&#146; option to purchase additional shares is
    exercised, Heritage and related trusts of Mr.&#160;Fehsenfeld
    will be offered 31.4% and 9.4%, respectively, of the total
    number of shares for which the option is exercised. See the
    &#147;Underwriting&#148; section of this prospectus for more
    information.
</DIV>
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</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Consolidated Financial and Other Data</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents a summary of our historical
    consolidated financial information. When you read this summary
    consolidated financial and other data, it is important that you
    read along with it our consolidated financial statements and the
    related notes, which are incorporated herein by reference, as
    well as the sections titled &#147;Selected Consolidated
    Financial Data&#148; and &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of Operations,&#148;
    included elsewhere in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our fiscal year ends the Saturday closest to December&#160;31.
    Accordingly, fiscal years 2007, 2008 and 2009 ended
    December&#160;29, 2007, January&#160;3, 2009 and January&#160;2,
    2010, respectively. Fiscal years 2007 and 2009 each consisted of
    52&#160;weeks and fiscal 2008 consisted of 53&#160;weeks. Our
    results for the fiscal years ended December&#160;29, 2007,
    January&#160;3, 2009 and January&#160;2, 2010 have been audited
    and the audit reports are incorporated herein by reference. We
    refer to the first twelve weeks of each fiscal year as the
    &#147;first quarter.&#148; Accordingly, the first quarters of
    fiscal 2009 and 2010 ended March&#160;28, 2009 and
    March&#160;27, 2010, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Quarter Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;28,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;27,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(Dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>STATEMENT OF OPERATIONS DATA:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    89,734
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    108,143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    98,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,920
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,040
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,497
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of sales&#160;&#151; inventory impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,182
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,778
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,632
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,358
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,497
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,940
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,495
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Selling, general, and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,583
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,852
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,364
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds from contract
    termination<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Operating income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,281
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,140
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss on disposal of fixed assets&#160;&#151; net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,810
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,140
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for income
    taxes<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (808
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Preferred return
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Net income (loss) available to common stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,147
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income (loss) per share available to common stockholders:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.11
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.11
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average shares outstanding (thousands):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,178
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,685
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,713
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,229
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,772
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,754
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Quarter Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;28,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;27,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(Dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>PRO FORMA DATA (UNAUDITED):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (808
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma provision for income
    taxes<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    497
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Return on preferred and mandatorily redeemable capital units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    372
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma net income (loss) available to common stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,677
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma net income (loss) per common share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.17
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.17
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>OTHER OPERATING DATA (UNAUDITED):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,848
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average sales per working day
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    356
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    388
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Number of branches at end of fiscal period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of March&#160;27, 2010</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As
    Adjusted<SUP style="font-size: 85%; vertical-align: top">(6)</SUP></B>

</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom">
    <B>(Unaudited) </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom">
    <B>(Dollars in thousands)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>BALANCE SHEET DATA:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,655
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,091
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    In fiscal 2007, we received $3.0&#160;million from the
    termination of a contract with a customer of our used solvent
    who had failed to meet its volume purchase obligations. We
    recorded cost of sales of $2.2&#160;million to reduce solvent
    inventories to net realizable value in connection with this
    settlement.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    In fiscal 2008, we recorded an impairment charge, reducing the
    reuse solvent and used oil inventory value by $2.8&#160;million.
    This charge was due to a sharp decline in crude oil prices which
    resulted in the market value for our reuse solvent declining
    below the historic (FIFO) values.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    On March&#160;12, 2008, the date of our initial public offering,
    we reorganized our corporate legal structure from a limited
    liability company to a corporation. As a limited liability
    company, we were not subject to Federal or state corporate
    income taxes. Therefore, net income did not give effect to taxes
    for periods prior to the reorganization and initial public
    offering. For comparison purposes, we have presented pro forma
    net income, which reflects income taxes assuming we had been a
    corporation since the time of our formation and assuming tax
    rates equal to the rates that would have been in effect had we
    been required to report tax expense in such years.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    The weighted average common shares outstanding reflects the
    <FONT style="white-space: nowrap">500-for-1</FONT>
    exchange of common units for common stock and the issuance of
    1,217,390&#160;shares of common stock in our reorganization that
    occurred prior to our initial public offering in March 2008. We
    have included the redeemable common capital units outstanding
    prior to the reorganization in the calculation of basic and
    diluted earnings per share as the effect of excluding them would
    have been anti-dilutive. In accordance with FASB guidance,
    shares of common stock that are mandatorily redeemable are
    excluded from the calculation of basic and diluted earnings per
    share. We have deducted earnings attributable to mandatorily
    redeemable units from income available to common unit holders.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    EBITDA represents net income before income tax expense, interest
    income, interest expense, depreciation and amortization. We have
    presented EBITDA because we consider it an important
    supplemental measure of our performance and believe it is
    frequently used by analysts, investors, our lenders and other
    interested parties in the evaluation of companies in our
    industry. Management uses EBITDA as a measurement tool for
    evaluating our actual operating performance compared to budget
    and prior periods. Other companies in our industry may calculate
    EBITDA differently than we do. EBITDA is not a measure of
    performance under GAAP and should not be considered as a
    substitute for net income prepared in accordance with GAAP.
    EBITDA has limitations as an analytical tool, and you should not
    consider it in isolation or as a substitute for analysis of our
    results as reported under GAAP. Some of these limitations are:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    EBITDA does not reflect our cash expenditures, or future
    requirements, for capital expenditures or contractual
    commitments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    EBITDA does not reflect interest expense or the cash
    requirements necessary to service interest or principal payments
    on our debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    EBITDA does not reflect tax expense or the cash requirements
    necessary to pay for tax obligations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Although depreciation and amortization are non-cash charges, the
    assets being depreciated and amortized will often have to be
    replaced in the future, and EBITDA does not reflect any cash
    requirements for such replacements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We compensate for these limitations by relying primarily on our
    GAAP results and using EBITDA only as a supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table contains a reconciliation of our net income
    determined in accordance with GAAP to EBITDA:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Quarter Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;28,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;27,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(Dollars in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income
    (loss)<SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (808
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,874
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    877
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,848
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 6%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="1%"></TD>
    <TD width="91%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    On March&#160;12, 2008, the date of our initial public offering,
    we reorganized our corporate legal structure from a limited
    liability company to a corporation. As a limited liability
    company, we were not subject to Federal or state corporate
    income taxes. Therefore, net income does not give effect to
    taxes for periods prior to the reorganization and initial public
    offering.</TD>
</TR>

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    <TD width="97%"></TD>
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    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    The summary balance sheet data as of March&#160;27, 2010 is
    presented on an as adjusted basis to give effect to the receipt
    by us of net proceeds from the sale of common stock offered by
    us in the public offering but before the application of the net
    proceeds, based on an assumed public offering price per share of
    $9.72 (the last reported sale price of our common stock on The
    NASDAQ Global Market on May&#160;17, 2010).</TD>
</TR>

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<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Investing in our common stock involves a high degree of risk.
    You should carefully consider the following factors, as well as
    other information contained or incorporated by reference in this
    prospectus, before deciding to invest in shares of our common
    stock. The trading price of our common stock could decline due
    to any of these risks, and you may lose all or part of your
    investment in our common stock.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our results of operations and financial condition have
    been and could in the future be materially adversely impacted by
    the economic downturn.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The economy has experienced a severe and prolonged downturn as a
    result of the deterioration in the capital markets and related
    financial crisis which has adversely impacted our customer base,
    which is primarily composed of companies in the automotive
    repair and manufacturing industries. The overall levels of
    demand for our parts cleaning products and supplies and other
    services are influenced by fluctuations in levels of end-user
    demand, which depend in large part on general macroeconomic
    conditions in the U.S.&#160;and the regional economic conditions
    affecting our branches. Many of our customers are heavily
    dependent on general economic conditions, including the
    availability of affordable energy sources, employment levels,
    interest rates, financial credit availability, consumer
    confidence and housing demand. Downturns in these general
    economic conditions can significantly affect the business of our
    customers, which in turn affects demand, volumes, pricing and
    operating margins for our services and products. Both our
    customers and suppliers have felt the impact of the economic
    downturn. During the recent economic downturn, our customers
    sought ways to reduce their costs which in turn have reduced
    their demand for our services. Our customers and suppliers may
    face severe financial difficulties causing them to cease some or
    all their business operations or to reduce the volume of
    products they purchase from us in the future. We may have
    accounts receivables owing from customers who may not be able to
    honor their obligations to us. Failure to collect a significant
    portion of amounts due on those receivables could have a
    material adverse effect on our results of operations and
    financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adverse economic and financial markets conditions may cause our
    suppliers to be unable to provide materials and components to us
    or may cause suppliers to make changes in the credit terms they
    extend to us, such as shortening the required payment period for
    our amounts owing them or reducing the maximum amount of trade
    credit available to us. Such changes could adversely affect our
    liquidity and could have a material adverse effect on our
    results of operations and financial condition. If we are unable
    to successfully anticipate changing economic and financial
    market conditions, we could be adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, a substantial or prolonged material adverse impact
    on our results of operations and financial condition due to the
    recent economic downturn could affect our ability to satisfy the
    financial covenants in our bank credit facility, which could
    result in our having to seek amendments or waivers from our
    lenders to avoid the termination of commitments
    <FONT style="white-space: nowrap">and/or</FONT> the
    acceleration of the maturity of amounts that may be outstanding
    under our bank credit facility. The cost of our obtaining an
    amendment or waiver could be significant, and could
    substantially increase our cost of borrowing over the remaining
    term of our bank credit facility. Further, there can be no
    assurance that we would be able to obtain an amendment or
    waiver. If our lenders were unwilling to enter into an amendment
    or provide a waiver, all amounts outstanding under our bank
    credit facility would become immediately due and payable
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our operating margins and profitability may be negatively
    impacted by the volatility in crude oil, solvent, fuel and
    energy costs.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is dependent on the widespread availability of
    certain crude oil products such as solvent and fuel for
    operating our fleet of trucks. Changes and volatility in the
    price of crude can adversely impact the prices for these
    products and therefore affect our operating results. The price
    and supply of fuel and solvent is unpredictable and fluctuates
    based on events beyond our control, including geopolitical
    developments, supply and demand for oil and gas, actions by OPEC
    and other oil and gas producers, war and unrest in oil producing
    countries, regional production patterns and environmental
    concerns.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Increased costs of crude can significantly increase our
    operating costs. Because solvent is a product of crude oil, we
    are also susceptible to increases in solvent costs when crude
    oil costs increase. The market price of crude has been volatile
    and rose substantially from 2004 to 2008 before falling
    significantly in late 2008. During this period of rising crude
    costs, we experienced increases in the cost of fuel, solvent and
    other petroleum-based products. We have in the past been able
    mitigate the increased fuel and solvent costs through the
    imposition of price increases and energy surcharges on our
    invoices to customers. However, because of the competitive
    nature of the industry, the recent economic downturn and the
    terms of customer contracts, there can be no assurance that we
    will be able to pass on future price increases. Due to political
    instability in oil-producing countries, oil prices could
    increase significantly in the future. A significant increase in
    fuel or solvent costs could lower our operating margins and
    negatively impact our profitability. We currently do not use
    financial instruments to hedge against fluctuations in oil,
    solvent or energy prices. If this volatility continues, our
    operating results could also be volatile and adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, a significant portion of our inventory consists of
    new and used solvents. Volatility in the price of crude oil has
    in the past impacted and can significantly impact in the future
    the value of this inventory and our operating margins. For
    example, in the fourth quarter of fiscal 2008, we generally
    experienced a sharp decrease in the cost of crude oil and
    related commodities which caused a decline in the market value
    of our solvent and used oil inventory and we recorded a
    $2.8&#160;million non-cash inventory impairment charge on that
    portion of the Company&#146;s solvent and oil inventory that is
    held for sale, reflecting the lower market value of such
    inventory. Additionally, we recorded $1.7&#160;million in
    additional expense to reflect the lower value of the solvent
    inventory held for use in the Company&#146;s service programs.
    Further, because we apply a
    <FONT style="white-space: nowrap">first-in</FONT>
    first-out accounting method, volatility in solvent and oil
    prices can significantly impact our operating margins. If
    volatility in the price of crude oil continues, our operating
    results will be difficult to predict and could be adversely
    affected. Moreover, the impact of crude oil price volatility on
    our business and financial results will likely increase when we
    enter the used oil re-refining industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We may not be able to build and operate a used oil
    re-refinery as planned and it may cost more than anticipated
    which could harm our business.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have recently announced plans to build a used oil
    re-refinery. The development of the re-refinery is in its early
    stages and we may be unable to construct the re-refinery on the
    current timetable or as currently contemplated. There can be no
    assurance that we will develop a commercially successful
    re-refinery or that unforeseen market conditions will not
    adversely impact the construction, operation or profitability of
    the re-refinery. The development of a used oil re-refinery is a
    new business for our company and requires a different employee
    base and skill set than that required for our current business.
    These new skill sets include chemical engineering, design and
    operational management of the re-refinery. Although our
    management team has operated re-refineries for other companies,
    we cannot assure you that we will have sufficient expertise to
    develop a re-refinery within the budget contemplated or that it
    will operate within the performance parameters currently
    contemplated for the re-refinery. Further, the development of
    the re-refinery will require time and resources, including the
    attention of our management, which could divert our management
    from other activities and may impair the operation of our
    existing business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The development of the re-refinery could take longer than
    expected, cost more than expected or not perform as anticipated.
    For example, the use of subcontractors or the costs of materials
    such as steel to construct the facility may be more expensive
    than we anticipate leading to project cost overruns. In
    addition, the construction and operation of a re-refinery is
    highly regulated. We have not yet obtained all of the required
    permits to build the re-refinery and the permit process is
    ongoing. We may be subject to delays or even cancellation of the
    project if we are unable to obtain permits on terms acceptable
    to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently expect that the development and construction of the
    re-refinery will cost approximately $40&#160;million. In
    addition, during our development of the re-refinery, we expect
    to expand our used oil collection services in preparation for
    servicing the re-refinery, and we estimate that during fiscal
    2010 and 2011 we will incur roughly $1&#160;million and
    $1.5&#160;million of net expense, respectively, related to this
    roll out. We currently expect to use the net proceeds from the
    offering to pay a portion of the costs needed to develop the
    re-refinery and expect to obtain the remaining funds needed from
    borrowings under our credit agreement.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Alternatively, we may consider issuing additional equity as a
    source of financing. If we are not able to borrow sufficient
    funds or obtain other sources to complete the re-refinery, we
    may not be able to complete the re-refinery which could have a
    material adverse effect on our business. Even if we secure
    adequate financing, our investments in this project may limit
    our ability to pursue other opportunities in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Even if we are able to build a used oil re-refinery, the
    used oil re-refinery may not generate the operating results that
    we anticipate and may lead to greater volatility in our revenue
    and earnings.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may not be able to realize the expected benefits from
    developing and operating a used oil re-refinery. If we complete
    the construction of the re-refinery, the subsequent operation of
    the plant creates different and additional risks compared to our
    historic service businesses. We may experience difficulty
    securing sufficient used oil feedstock to run the re-refinery at
    anticipated rates and have to pay more for the feedstock or
    reduce our operating rates. We may also have difficulty selling
    all of the lubricating base oil that we produce. Our costs for
    used oil feedstock and the prices that we can sell the
    lubricating base oil and byproducts made by the re-refinery are
    determined by competitive market factors including the world
    price of crude oil, prices for natural gas, and the lubricating
    oil prices posted by major refiners, none of which we control.
    In addition, we may experience increased downward pricing
    pressure when compared to suppliers of virgin lubricating base
    oil, which has historically sold at a premium to re-refined
    lubricating base oil. Our estimates of revenue and profitability
    for the re-refinery could prove to be erroneous or could be
    impacted by changes in these market factors. In particular, if
    crude oil prices come down, we expect that we would experience a
    reduction in our margins from used oil re-refining as well as
    potential inventory charges related to material held for
    processing or sale. Even if prices decrease, the costs required
    to collect and process the used oil may not decrease. If crude
    oil prices rise, we expect that the feedstock prices for our
    re-refinery would also increase. If the prices we charge for our
    re-refined oil and the costs to collect and re-refine used oil
    do not move together or in similar magnitudes, our profitability
    may be materially and negatively impacted. Any volatility in the
    price of crude oil could also cause volatility in our operating
    results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operation of a re-refinery exposes us to risks related to
    the potential adverse environmental impact of a spill or other
    release at the re-refinery, the loss of permits, the risk of
    explosion or fire or other hazards, the risk of injury to our
    employees or others, as well as the negative publicity due to
    public concerns regarding our operation. While these risks are
    in some respects similar to risks that we have experienced in
    our traditional service businesses, the magnitude of exposure
    may be greater due to the nature of the used oil re-refining
    industry and the greater volumes, temperatures and pressures
    involved. While we may maintain some insurance that covers
    portions of these exposures, in many cases the risks are
    uninsurable or we will not choose to procure insurance at levels
    that will cover any potential exposure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any problem or perception of a problem with our re-refining
    project could have a material adverse impact on our revenue and
    earnings and lead to a loss of stockholder
    <FONT style="white-space: nowrap">and/or</FONT>
    research analyst confidence in our business and could result in
    a sudden and significant reduction in our stock price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Further consolidation and/or declines in the U.S.
    automotive repair and U.S. manufacturing industries could cause
    us to experience lower sales volumes which could materially
    affect our growth and financial performance.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business relies on continued demand for our parts cleaning
    and waste management services in the U.S.&#160;automotive repair
    and U.S.&#160;manufacturing industries, which may suffer from
    declining market size and number of locations, due in part to
    the current economic downturn, the potential bankruptcies of
    U.S.&#160;automobile manufacturers, international competition
    and consolidation in U.S.&#160;markets. Industry trends
    affecting our customers, including the continued trend of
    U.S.&#160;manufacturing moving offshore and the influx of
    inexpensive imported automotive aftermarket products, has caused
    our customers&#146; business to contract which could reduce the
    demand for our parts cleaning and other services and products
    and have a material adverse impact on our business. As a result,
    we may not be able to continue to grow our business by
    increasing penetration into the industries which we serve, and
    our ability to retain our market share and base of sales could
    become more difficult.
</DIV>
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    <B><I>We conduct business in an industry that is highly
    regulated by environmental, health and safety, transportation,
    and employment laws and regulations. If we do not comply with
    these laws and regulations, we may be subject to involuntary
    shutdowns and/or significant financial penalties and negative
    response from our customers.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The sale, handling, transportation, storage, recycling and
    disposal of industrial and hazardous waste, including solvents
    used in parts cleaners, used oil and containerized waste are
    highly regulated by various legislative bodies and governmental
    agencies at the federal, state and local levels, including the
    EPA, the Department of Transportation, and the Occupational
    Safety and Health Administration, or OSHA. Any failure by us to
    maintain or achieve compliance with these laws and regulations
    or with the permits required for our operations could result in
    substantial operating costs and capital expenditures for
    equipment upgrades, fines, penalties, civil or criminal
    sanctions, third-party claims for property damage or personal
    injury, cleanup costs
    <FONT style="white-space: nowrap">and/or</FONT>
    involuntary temporary or permanent discontinuance of our
    operations. There currently exists a high level of public
    concern over hazardous waste operations, including with respect
    to the siting and operation of transfer, processing, storage and
    disposal facilities. Part of our business strategy described
    above is to increase our re-refining capacity through either the
    construction of a new facility or the expansion of existing
    facilities and branch operations in growth markets. Each of
    these efforts would require us to undergo an intensive
    regulatory approval process that could be time consuming and
    impact the success of our business strategy. Zoning, permit and
    licensing applications and proceedings, as well as regulatory
    enforcement proceedings, are all matters open to public scrutiny
    and comment. Accordingly, from time to time we have been, and
    may in the future be, subject to public opposition and publicity
    which may damage our reputation and delay or limit the expansion
    and development of our operating properties or impair our
    ability to renew existing permits which could prevent us from
    implementing our growth strategy and have a material adverse
    effect on our business, financial condition or results of
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>If current environmental laws and regulations are changed,
    we may be forced to significantly alter our business model,
    which could have a material adverse effect on our financial
    performance.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A change in any of the environmental, employment, health and
    safety laws and regulations under which we operate could have a
    material adverse effect on our business and prospects. For
    example, the EPA currently excludes waste used as an ingredient
    in the production of a product from being defined as hazardous
    waste. Our product reuse program for parts cleaning operates
    under this exclusion and provides an advantage by excluding our
    customers&#146; used solvent from being regulated as hazardous
    waste. Similarly, under our non-hazardous program for parts
    cleaning, we provide our customers with a different solvent that
    has a higher flashpoint than traditional solvents. The resulting
    used solvent is not considered to be hazardous waste so long as
    our customers ensure that no inappropriate contaminants were
    contributed to the used solvent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the EPA were to broaden the definition of hazardous waste to
    include used solvents generated by our customers under our
    product reuse
    <FONT style="white-space: nowrap">and/or</FONT>
    non-hazardous programs for parts cleaning, the value of our
    offerings may be significantly reduced which could have a
    material adverse effect on our financial performance. Examples
    of changes by the EPA that could adversely affect our services
    include, but are not limited to, the following:
</DIV>

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    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    elimination of the reuse exception to the definition of
    hazardous waste;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase in the minimum flashpoint threshold at which solvent
    becomes included in the definition of hazardous waste;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increased requirements to test the used solvent that we pick up
    from our customers for the presence of toxic or more flammable
    contaminants;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adoption of regulations similar to those enacted in some
    California air quality districts that prohibit the use of the
    solvents of the type that we sell for parts cleaning operations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, new laws and regulations, new interpretations of
    existing laws and regulations, increased governmental
    enforcement or other developments could require us to make
    additional unforeseen expenditures. We are not able to predict
    the impact of new or changed laws or regulations or changes in
    the ways that such
</DIV>
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    laws or regulations are administered, interpreted or enforced.
    The requirements to be met, as well as the technology and length
    of time available to meet those requirements, continue to
    develop and change. To the extent that our costs associated with
    meeting any of these requirements are substantial and cannot
    adequately be passed through to our customers, our earnings and
    cash flows could suffer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We face intense competition in the industrial and
    hazardous waste services industries.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The markets for parts cleaning, containerized waste management,
    used oil collection, and vacuum truck services are intensely
    competitive. While numerous small companies provide these
    services, Safety-Kleen, our largest competitor, has held
    substantial market share in the parts cleaning industry for the
    last four decades and has developed a significant market share
    in used oil services, including used oil re-refining, and
    containerized waste management. Safety-Kleen and some of our
    other competitors have substantially greater financial and other
    resources and greater name recognition than us. Our business
    growth, financial performance and prospects will be adversely
    affected if we cannot gain market share from these competitors,
    or if any of our competitors develop products or services
    superior to those offered by us. We could lose a significant
    number of customers if Safety-Kleen, or other competitors,
    materially lower their prices, improve service quality or
    develop more competitive product and service offerings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, companies involved in the waste management
    industry, including waste hauling, separation, recovery and
    recycling, may have the expertise, access to customers and
    financial resources that would encourage them to develop and
    market services and products competitive with those offered by
    us. We also face competition from alternative services that
    provide similar benefits to our customers as those provided by
    us. In addition, new technology regarding the treatment and
    recycling of used solvent and used oil may lead to functionally
    equivalent or superior products becoming available, which may
    decrease the demand for our services and products or cause our
    products and services to become obsolete.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We could be subject to involuntary shutdowns or be
    required to pay significant monetary damages if we are found to
    be a responsible party for the improper handling or the release
    of hazardous substances.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a company engaged in the sale, handling, transportation,
    storage, recycling and disposal of materials that are or may be
    classified as hazardous by federal, state, or other regulatory
    agencies, we face risks of liability for environmental
    contamination. The federal Comprehensive Environmental Response,
    Compensation and Liability Act of 1980, as amended
    (&#147;CERCLA&#148;), and similar state laws impose strict
    liability on current or former owners and operators of
    facilities that release hazardous substances into the
    environment, as well as on the businesses that generate those
    substances or transport them to the facilities. As a potentially
    responsible party, or PRP, we may be liable under CERCLA for
    substantial investigation and cleanup costs even if we operate
    our business properly and comply with applicable federal and
    state laws and regulations. Liability under CERCLA may be joint
    and several, which means that if we were found to be a business
    with responsibility for a particular CERCLA site, we could be
    required to pay the entire cost of the investigation and
    cleanup, even though we were not the party responsible for the
    release of the hazardous substance and even though other
    companies might also be liable. Even if we were able to identify
    who the other responsible parties might be, we may not be able
    to compel them to contribute to the remediation costs, or they
    might be insolvent or unable to contribute due to lack of
    financial resources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our facilities and the facilities of our customers and third
    party contractors may have generated, used, handled
    <FONT style="white-space: nowrap">and/or</FONT>
    disposed of hazardous substances and other regulated wastes.
    Environmental liabilities could exist, including cleanup
    obligations at these facilities or at off-site locations where
    materials from our operations were disposed of, which could
    result in future expenditures that cannot be currently
    quantified and which could materially reduce our profits. Our
    pollution liability insurance excludes certain liabilities under
    CERCLA. Thus, if we were to incur liability under CERCLA that
    was not covered by our insurance and if we could not identify
    other parties responsible under the law whom we are able to
    compel to contribute to the liabilities, the cost to us could be
    substantial and could impair our profitability, reduce our
    liquidity and have a material adverse effect on our business.
    Although our customer service agreements typically provide that
    the customer is responsible for ensuring that only appropriate
    materials are disposed of, we could be exposed to third party
    claims if customers dispose of improper waste, and we might not
    be successful in recovering our damages from those customers. In
    addition, new services or products offered by us (such as the
    re-refining of
</DIV>
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    used oil) could expose us to further environmental liabilities
    for which we have no historical experience and cannot estimate
    our potential exposure to liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our fixed cost structure may result in a greater loss or
    reduced earnings.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our North American network, including our facilities, fleet and
    personnel, subjects us to fixed costs, which makes our margins
    and earnings sensitive to changes in revenues. In periods of
    declining demand, our fixed cost structure may limit our ability
    to cut costs, which may put us at a competitive disadvantage to
    firms with lower cost structures, or may result in reduced
    operating margins and operating losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We carry inventory of used solvents generated by customers
    participating in our product reuse program for parts
    cleaning.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our inventory of used solvent has fluctuated and it may continue
    to fluctuate. If we are unable to sell our reuse inventory, we
    may be required to take a charge to inventory and we may incur
    additional costs for storage
    <FONT style="white-space: nowrap">and/or</FONT>
    disposal which would adversely impact our operating results. In
    addition, while we sold enough used solvent to satisfy
    speculative accumulation requirements of the EPA for fiscal 2010
    and prior years, we may not in future years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our ability to achieve our business and financial
    objectives is subject to our ability to expand our non-hazardous
    programs for parts cleaning.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For our business to grow we may need to expand our non-hazardous
    program for parts cleaning. Unlike used solvent generated by
    customers participating in our product reuse program for parts
    cleaning (which must be resold for reuse as an ingredient), used
    solvent generated by customers participating in our
    non-hazardous program for parts cleaning can be recycled by
    third party recyclers or by us. We have constructed a solvent
    recycling system at our Indianapolis hub to recycle used solvent
    generated by customers participating in our non-hazardous
    program and we may also undertake similar projects in the
    future. Any unanticipated costs in operating our solvent
    recycling system could have a material adverse effect on our
    operating results and require us to seek an alternative means to
    recycle or dispose of used solvent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The operation of our solvent recycling system may be considered
    inherently dangerous and injury to individuals or property may
    occur, potentially subjecting us to lawsuits. If we fail to
    operate our solvent recycling system as anticipated, our
    business and operating results could suffer. In addition, we may
    decide to alter or discontinue certain aspects of our business
    strategy at any time, or offer new product lines which may not
    be profitable and could materially and adversely affect our
    financial condition and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We depend on the service of key individuals, the loss of
    whom could materially harm our business.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our success will depend, in part, on the efforts of our
    executive officers and other key employees, including Joseph
    Chalhoub, our President and Chief Executive Officer, Gregory
    Ray, our Chief Financial Officer, Vice President, Business
    Management and Secretary, John Lucks, our Vice President of
    Sales, Tom Hillstrom, our Vice President of Operations and Glenn
    Casbourne, our Vice President of Engineering. These individuals
    possess extensive experience in our markets and are critical to
    the operation and growth of our business. If we lose or suffer
    an extended interruption in the services of one or more of our
    executive officers or other key employees, our business, results
    of operations and financial condition may be negatively
    impacted. Moreover, the market for qualified individuals is
    highly competitive and we may not be able to attract and retain
    qualified personnel to succeed members of our management team or
    other key employees, should the need arise. We do not maintain
    any key man life insurance policies. One of our key growth
    strategies is our construction of a used oil re-refinery. Given
    their past experience in the development of re-refinery
    facilities in the U.S., the retention of the members of our
    management team is particularly critical to our ability to
    develop the re-refinery as planned. The loss of any of these
    individuals could adversely impact our ability to compete and
    operate the re-refinery.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our operations and growth strategy rely on the
    expansion of our business through the creation and growth of new
    and existing branches. In order for us to create and grow new
    and existing branches properly, we must continually recruit and
    train a pool of hardworking and motivated sales&#160;&#038;
    service representatives, or SSRs, to develop new customer leads,
    as well as support our existing customer base. If we
</DIV>
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    are not able to retain and recruit a sufficient number of SSRs,
    or we experience an increase in the turnover of existing SSRs,
    we may not be able to support the continued growth of our
    business, which could have a material adverse impact on our
    financial performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We operate our business through many locations, and if we
    are unable to effectively oversee all of these locations, our
    business reputation and operating results could be materially
    adversely affected.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because we rely on our extended network of 62 branch locations
    to operate independently to carry out our business plan, we are
    subject to risks related to our ability to oversee and control
    information reporting from these locations. If in the future we
    are unable to effectively oversee and control information
    reporting from our branch locations, our results of operations
    could be materially adversely affected, we could fail to comply
    with environmental regulations, we could lose customers, and our
    business could be materially adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our insurance policies do not cover all losses, costs or
    liabilities that we may experience.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain insurance coverage, but these policies do not cover
    all of our potential losses, costs or liabilities. We could
    suffer losses for uninsurable or uninsured risks or in amounts
    in excess of our existing insurance coverage which would
    significantly affect our financial performance. For example, our
    pollution legal liability insurance excludes costs related to
    fines, penalties or assessments. Our insurance policies also
    have deductibles and self-retention limits that could expose us
    to significant financial expense. Our ability to obtain and
    maintain adequate insurance may be affected by conditions in the
    insurance market over which we have no control. The occurrence
    of an event that is not fully covered by insurance could have a
    material adverse effect on our business, financial condition and
    results of operations. In addition, our business requires that
    we maintain various types of insurance. If such insurance is not
    available or not available on economically acceptable terms, our
    business could be materially and adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We are subject to potential warranty expense and liability
    claims relating to our services and products.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer our customers specific guarantees that we will be
    responsible for all expenses resulting from any spill that
    occurs while we are transporting, processing or disposing of
    customers&#146; used solvent and other waste. Accordingly, we
    may be required to indemnify our customers for any liability
    under CERCLA or other environmental, employment, health and
    safety laws and regulations. We may also be exposed to product
    liability claims by our customers, users of our parts cleaning
    products or third parties claiming damages stemming from the
    mechanical failure of parts cleaned with solvents
    <FONT style="white-space: nowrap">and/or</FONT>
    equipment provided by us. Although we maintain product liability
    insurance coverage, if our insurance coverage proves inadequate
    or adequate insurance becomes unreasonably costly or otherwise
    unavailable, future claims may not be fully insured. An
    uninsured or partially insured successful claim against us could
    have a material adverse effect on our business, financial
    condition and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our focus on small business customers causes us to be
    subject to the trends and downturns impacting small businesses,
    which could adversely affect our business.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our customer base is primarily composed of small companies in
    the automotive repair and manufacturing industries. The high
    concentration of our customers that are small businesses exposes
    us to some of the broad characteristics of small businesses
    across the U.S.&#160;Small businesses start, close, relocate,
    and get purchased or sold frequently. In addition, small
    businesses tend to be more significantly affected by economic
    recessions than larger businesses. This leads to a certain
    amount of ongoing turnover in the market. As a result, we must
    continually identify new customers and expand our business with
    existing customers in order to sustain our growth. If we
    experience a rise in levels of customer turnover, it may have a
    negative impact on the profitability of our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We obtain services from our largest stockholder, Heritage
    and its affiliates, which we refer to collectively herein as
    Heritage, and our inability to replace these services in the
    future on economically acceptable terms could materially
    adversely affect our business.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We obtain certain services from Heritage including disposal and
    product analytical services and workers&#146; compensation
    insurance. Heritage beneficially owned 31.4% of our outstanding
    common stock as of May&#160;17, 2010.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the services that we receive from Heritage become unavailable
    from Heritage, to the extent that we are unable to negotiate
    replacements of these services with similar terms, we could
    experience increases in our expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Litigation related to personal injury from exposure to
    solvents and the operation of our business may result in
    significant liabilities and affect our profitability.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have been and in the future may be involved in claims and
    litigation filed on behalf of persons alleging injury
    predominantly as a result of exposure to hazardous chemicals
    that are a part of the solvents that we provide. In addition,
    the hazards and risks associated with the use, transport,
    storage, and handling and disposal of our customers&#146; waste
    by us and our customers (such as fires, natural disasters,
    explosions and accidents) and our customers&#146; improper or
    negligent use or misuse of solvent to clean parts may also
    expose us to personal injury claims, property damage claims
    <FONT style="white-space: nowrap">and/or</FONT>
    products liability claims from our customers or third parties.
    As protection against such claims and operating hazards, we
    maintain insurance coverage against some, but not all, potential
    losses. However, we could sustain losses for uninsurable or
    uninsured risks, or in amounts in excess of existing insurance
    coverage. Due to the unpredictable nature of personal injury
    litigation, it is not possible to predict the ultimate outcome
    of these claims and lawsuits, and we may be held liable for
    significant personal injury or damage to property or third
    parties, or other losses, that are not fully covered by our
    insurance, which could have a material adverse effect on our
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We are dependent on third parties to supply us with the
    necessary components and materials to service our customers. We
    are also dependent on third party transport, including rail,
    recycling and disposal contractors.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the operation of our business, we supply a large amount of
    virgin solvent and parts cleaning equipment to our customers. We
    do not maintain extensive inventories for most of these
    products. If we become unable to obtain, or experience delays in
    the transportation of, adequate supplies and components in a
    timely
    <FONT style="white-space: nowrap">and/or</FONT>
    cost-effective manner, we may be unable to adequately provide
    sufficient quantities of our services and products to our
    customers, which could have a material adverse effect on our
    financial condition and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, and our third party transporters, ship used oil and
    containerized waste collected from our customers to a number of
    third party recycling and disposal facilities, including
    incinerators, landfill operators and
    <FONT style="white-space: nowrap">waste-to-energy</FONT>
    facilities. We generally do not have long-term fixed price
    contracts with our third party contractors, and if we are forced
    to seek alternative vendors to handle our third party recycling
    and disposal activities, we may not be able to find alternatives
    without significant additional expenses, or at all, which could
    result in a material adverse effect on our financial
    performance. In addition, we could be subject to significant
    environmental liabilities from claims relating to the transport,
    storage, processing, recycling and disposal of our
    customers&#146; waste by our third party contractors and their
    subcontractors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>A system failure could delay or interrupt our ability to
    provide services and products and could increase our costs and
    reduce our sales.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations are dependent upon our ability to support our
    branch infrastructure. Our business operates through 4 hubs that
    service our 62 local branches. Any damage or failure that causes
    interruptions in our operations could result in the loss of
    customers. To date, we have not experienced any significant
    interruptions or delays which have affected our ability to
    provide services and products to our customers. The occurrence
    of a natural disaster, technological, transportation or
    operational disruption or other unanticipated problem could
    cause interruptions in the services we provide and impair our
    ability to generate sales and achieve profits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We may be unable to manage our growth.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our first nine full years of operation, sales have increased
    at a compound annual growth rate of 24% from 1999 to 2009
    although we experienced a 9% decrease in our sales from 2008 to
    2009. Our growth to date has placed and may continue to place
    significant strain on our management and its operational and
    financial resources. We anticipate that continued growth, if
    any, as well as our plans to enter the used oil re-refining
    industry, will require us to recruit, hire and retain new
    managerial, finance, sales, marketing and operational personnel.
    We cannot be certain that we will be successful in recruiting,
    hiring or retaining those personnel. Our ability to compete
    effectively and to manage our future growth, if any, will depend
    on our
</DIV>
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    <BR>
    16
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ability to maintain and improve operational, financial and
    management information systems on a timely basis and to expand,
    train, motivate and manage our work force. If we continue to
    grow, we cannot be certain that our personnel, systems,
    procedures and controls will be adequate to support our
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Expansion of our business may result in unanticipated
    adverse consequences.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the future, we may seek to grow our business by investing in
    new or existing facilities, making acquisitions, entering into
    partnerships and joint ventures or constructing new facilities
    such as the used oil re-refinery. Acquisitions, partnerships,
    joint ventures, investments or construction projects may require
    significant managerial attention, which may divert our
    management from our other activities and may impair the
    operation of our existing businesses. Any future acquisitions of
    businesses or facilities or the development of a new business
    line could entail a number of additional risks, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the failure to successfully integrate the acquired businesses or
    facilities into our operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the inability to maintain key pre-acquisition business
    relationships;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    loss of key personnel of the acquired business or facility;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    exposure to unanticipated liabilities;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the failure to realize efficiencies, synergies and cost savings.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of these and other factors, including the general
    economic risk associated with the industries in which we
    operate, we may not be able to realize the expected benefits
    from any recent or future acquisitions, new facility
    developments, partnerships, joint ventures or other investments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our business is subject to inclement weather and this may
    have a significant adverse effect on our financial
    performance.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A significant portion of our business includes periodic service
    visits to our customers. Inclement weather in the geographic
    areas in which our branches operate may result in a significant
    number of cancelled service visits, which may result in lost
    sales and profits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We may not be able to protect our intellectual property
    adequately.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We rely upon know-how and technological innovation and other
    trade secrets to develop and maintain our competitive position.
    We rely, to a significant extent, on trade secrets,
    confidentiality agreements and other contractual provisions to
    protect our proprietary technology, and such agreements may not
    adequately protect us. Our competitors could gain knowledge of
    our know-how or trade secrets, either directly or through one or
    more of our employees or other third parties. Although we do not
    regard any single trade secret or component of our proprietary
    know-how to be material to our operations as a whole, if one or
    more of our competitors can use or independently develop such
    know-how or trade secrets, our market share, sales volumes and
    profit margins could be adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event we become involved in defending or pursuing
    intellectual property litigation, such action may increase our
    costs and divert management&#146;s time and attention from our
    business. In addition, any potential intellectual property
    litigation could force us to take specific actions, including,
    but not limited to, the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cease selling products that use the challenged intellectual
    property;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    obtain from the owner of the infringed intellectual property a
    license to sell or use the relevant technology, which license
    may not be available on reasonable terms, or at all;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    redesign those products that use infringing intellectual
    property.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Climate change laws or regulations restricting emissions
    of &#147;greenhouse gases&#148; could result in increased
    operating costs and a decreased demand for our services.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;26, 2009, the U.S.&#160;House of Representatives
    passed the American Clean Energy and Security Act of 2009
    (&#147;ACESA&#148;), which would establish an economy-wide
    <FONT style="white-space: nowrap">cap-and-trade</FONT>
    program to reduce U.S.&#160;emissions of carbon dioxide and
    other greenhouse gases (&#147;GHG&#148;) that may contribute to
    warming of the
</DIV>
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    <BR>
    17
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    earth&#146;s atmosphere and other climatic changes. ACESA would
    require a 17&#160;percent reduction in GHG emissions from 2005
    levels by 2020 and just over an 80&#160;percent reduction of
    such emissions by 2050. Under this legislation, the EPA would
    issue a capped and steadily declining number of tradable
    emissions allowances to certain major sources of GHG emissions
    so that such sources could continue to emit GHGs into the
    atmosphere. These allowances would be expected to escalate
    significantly in cost over time. The net effect of ACESA would
    be to impose increasing costs on the combustion of carbon-based
    fuels such as refined petroleum products, oil and natural gas.
    The U.S.&#160;Senate has begun work on its own legislation for
    restricting domestic GHG emissions and President Obama has
    indicated his support of legislation to reduce GHG emissions
    through an emission allowance system. Also, on December&#160;15,
    2009, the EPA published its findings that emissions of GHGs
    present an endangerment to public health and the environment.
    These findings allow the EPA to adopt and implement regulations
    that would restrict emissions of GHGs under existing provisions
    of the federal Clean Air Act. Accordingly, the EPA has already
    proposed two sets of regulations that would require a reduction
    in emissions of GHGs from motor vehicles and, also, could
    trigger permit review for GHG emissions from certain stationary
    sources. In addition, on September&#160;22, 2009, the EPA issued
    a final rule requiring the reporting of GHG emissions from
    specified large GHG emission sources in the United States,
    including petroleum refineries, on an annual basis, beginning in
    2011 for emissions occurring after January&#160;1, 2010. The
    adoption and implementation of any regulations imposing GHG
    reporting obligations on, or limiting emissions of GHGs from,
    our equipment and operations could require us to incur costs to
    reduce emissions of GHGs associated with our operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to our Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>The price of our shares of common stock may be
    volatile.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trading price of shares of our common stock may fluctuate
    substantially. In particular, it is possible that our operating
    results may be below the expectations of public market analysts
    and investors, including the results of our planned entry into
    the used oil re-refining industry, and, as a result of these and
    other factors, the price of our common stock may decline. These
    fluctuations could cause you to lose part or all of your
    investment in shares of our common stock. Factors that could
    cause fluctuations include, but are not limited to, the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    variations in our operating results, including variations due to
    changes in the price of crude oil;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    announcements by us, our competitors or others of significant
    business developments, changes in customer relationships,
    acquisitions or expansion plans;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    analysts&#146; earnings estimates, ratings and research reports;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the depth and liquidity of the market for our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    speculation in the press;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    strategic actions by us or our competitors, such as sales
    promotions or acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    actions by our large stockholders or by institutional and other
    stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conditions in the industrial and hazardous waste services
    industry as a whole and in the geographic markets served by our
    branches;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    domestic and international economic factors unrelated to our
    performance.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The stock markets, in general, periodically experience
    volatility that is sometimes unrelated to the operating
    performance of particular companies. These broad market
    fluctuations may cause the trading price of our common stock to
    decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>The small public float for our shares may make it
    difficult to sell your shares and may cause volatility in our
    stock price.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial portion of our shares of common stock are closely
    held by certain inside investors and our common stock has
    experienced limited trading volume since our initial public
    offering. As of May&#160;17, 2010,
</DIV>
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    18
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Heritage beneficially owned 31.4% of our common stock, Fred
    Fehsenfeld,&#160;Jr., the Chairman of our Board and an affiliate
    of Heritage, beneficially owned 9.4% of our common stock and
    directors and executive officers beneficially owned 41.9% of our
    common stock. At our direction, the underwriters have reserved
    for sale to Heritage and the related trusts of
    Mr.&#160;Fehsenfeld, at the public offering price, shares
    representing the same percentage of shares being sold in the
    offering as each of Heritage and Mr.&#160;Fehsenfeld currently
    holds of our outstanding common stock. These shares are being
    offered to Heritage pursuant to the participation rights
    agreement between us and Heritage under which Heritage has a
    right to purchase shares in the offering so that its percentage
    ownership interest in our common stock does not decrease. See
    &#147;Relationships and Transactions With Related
    Persons&#160;&#151; Transactions with Related Persons.&#148;
    Mr.&#160;Fehsenfeld has requested a similar opportunity to
    participate in the offering, and we have agreed to direct the
    underwriters to reserve shares in response to
    Mr.&#160;Fehsenfeld&#146;s request. If Heritage and the related
    trusts of Mr.&#160;Fehsenfeld purchase all of the shares
    reserved for sale to them in the offering, Heritage and
    Mr.&#160;Fehsenfeld, after taking into account the shares
    purchased by the related trusts in the offering, will maintain
    their respective ownership interests in our common stock.
    Consequently, our public float is expected to remain small for a
    public company, the availability of our shares may be limited
    and you may encounter difficulty selling your shares or
    obtaining a suitable price at which to sell your shares. In
    addition, as a result of the small float, you could experience
    meaningful volatility in the trading price of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>If securities or industry analysts do not publish research
    or reports about our business or publish negative research, or
    our results are below analysts&#146; estimates, our stock price
    and trading volume could decline.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trading market for our common stock may depend on the
    research and reports that industry or securities analysts
    publish about us or our business. We do not have any control
    over these analysts. If one or more of the analysts who cover us
    downgrade our stock or our results are below analysts&#146;
    estimates, our stock price would likely decline. If one or more
    of these analysts cease coverage of our company or fail to
    regularly publish reports on us, we could lose visibility in the
    financial markets, which in turn could cause our stock price or
    trading volume to decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Heritage and Mr.&#160;Fehsenfeld have significant
    influence over our company, and their control could delay or
    deter a change of control or other business combination or
    otherwise cause us to take actions with which you may
    disagree.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of May&#160;17, 2010, Heritage beneficially owned 31.4% of
    our outstanding common stock and Fred Fehsenfeld,&#160;Jr., the
    Chairman of our Board and an affiliate of Heritage, owned an
    additional 9.4% of our outstanding common stock. If Heritage and
    the related trusts of Mr.&#160;Fehsenfeld purchase all of the
    shares reserved for sale to them in the offering, Heritage and
    Mr.&#160;Fehsenfeld, after taking into account the shares
    purchased by the related trusts in the offering, will maintain
    their respective ownership interests in our common stock. As a
    result, Heritage and Mr.&#160;Fehsenfeld will continue to have
    significant influence over our decision to enter into any
    corporate transaction and with respect to any transaction that
    requires the approval of stockholders, regardless of whether
    other stockholders believe that the transaction is in their own
    best interests. This concentration of voting power could have
    the effect of delaying, deterring or preventing a change of
    control or other business combination that might otherwise be
    beneficial to our stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We are required to evaluate our internal control under
    Section&#160;404 of the Sarbanes-Oxley Act of 2002 and any
    adverse results from such evaluation could result in a loss of
    investor confidence in our financial reports and could have an
    adverse effect on our stock price.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to Section&#160;404 of the Sarbanes-Oxley Act of 2002,
    we are required to furnish a report by our management on our
    internal control over financial reporting. Such report contains,
    among other matters, an assessment of the effectiveness of our
    internal control over financial reporting as of the end of our
    fiscal year, including a statement as to whether or not our
    internal control over financial reporting is effective. This
    assessment must include disclosure of any material weaknesses in
    our internal control over financial reporting identified by
    management. Each year we must prepare or update the process
    documentation and perform the evaluation needed to comply with
    Section&#160;404. During this process, if our management
    identifies one or more material weaknesses in our internal
    control over financial reporting, we will be unable to assert
    such internal control is effective. Ensuring that we have
    adequate internal financial and accounting controls and
    procedures
</DIV>
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    <BR>
    19
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in place is a costly and time-consuming effort that needs to be
    re-evaluated frequently. We and our independent auditors may in
    the future discover areas of our internal controls that need
    further attention and improvement, particularly with respect to
    any businesses that we decide to acquire in the future.
    Implementing any appropriate changes to our internal controls
    may require specific compliance training of our directors,
    officers and employees, entail substantial costs in order to
    modify our existing accounting systems and take a significant
    period of time to complete. Such changes may not, however, be
    effective in maintaining the adequacy of our internal controls,
    and any failure to maintain that adequacy, or consequent
    inability to produce accurate financial statements on a timely
    basis, could increase our operating costs and could harm our
    ability to operate our business. Any failure to implement
    required new or improved controls, or difficulties encountered
    in their implementation, could harm our operating results or
    cause us to fail to meet our reporting obligations. Investor
    perception that our internal controls are inadequate or that we
    are unable to produce accurate financial statements on a timely,
    consistent basis may adversely affect our stock price. Failure
    to comply with Section&#160;404 could also potentially subject
    us to sanctions or investigations by the Securities and Exchange
    Commission, or SEC, NASDAQ or other regulatory authorities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We have incurred and will continue to incur increased
    costs as a result of being a public company.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a public company, we have incurred significant legal,
    accounting and other expenses that we did not incur as a private
    company. We incur costs associated with our public company
    reporting requirements. We have incurred costs associated with
    corporate governance requirements, including requirements under
    Sarbanes-Oxley, as well as rules implemented by the SEC and
    NASDAQ. These rules and regulations have increased our legal and
    financial compliance costs and made some activities more
    time-consuming and costly. Further, we may need to hire
    additional accounting, financial and compliance staff with
    appropriate public company experience and technical accounting
    knowledge. We cannot predict or estimate the amount of
    additional costs we may incur or the timing of such costs. Any
    of these expenses could harm our business, operating results and
    financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We do not currently intend to pay cash dividends on our
    common stock to our stockholders and any determination to pay
    cash dividends in the future will be at the discretion of our
    Board of Directors.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently intend to retain any profits to provide capacity
    for general corporate uses and growth of our business. Our Board
    of Directors does not intend to declare cash dividends in the
    foreseeable future. Any determination to pay dividends to our
    stockholders in the future will be at the discretion of our
    Board of Directors and will depend on our results of operations,
    financial condition and other factors deemed relevant by our
    Board of Directors. Consequently, it is uncertain when, if ever,
    we will declare dividends to our stockholders. If we do not pay
    dividends, investors will only obtain a return on their
    investment if the value of our shares of common stock
    appreciates. In addition, the terms of our existing or future
    borrowing arrangements may limit our ability to declare and pay
    dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: -2%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Provisions in our certificate of incorporation and bylaws
    and under Delaware law could prevent or delay transactions that
    stockholders may favor.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our company is incorporated in Delaware. Our certificate of
    incorporation and bylaws, as well as Delaware corporate law,
    contain provisions that could delay or prevent a change of
    control or changes in our management that a stockholder might
    consider favorable, including a provision that authorizes our
    Board of Directors to issue preferred stock with such voting
    rights, dividend rates, liquidation, redemption, conversion and
    other rights as our Board of Directors may fix and without
    further stockholder action. The issuance of preferred stock with
    voting rights could make it more difficult for a third party to
    acquire a majority of our outstanding voting stock. This could
    frustrate a change in the composition of our Board of Directors,
    which could result in entrenchment of current management.
    Takeover attempts generally include offering stockholders a
    premium for their stock. Therefore, preventing a takeover
    attempt may cause you to lose an opportunity to sell your shares
    at a premium. If a change of control or change in management is
    delayed or prevented, the market price of our common stock could
    decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Delaware law also prohibits a corporation from engaging in a
    business combination with any holder of 15% or more of its
    capital stock until the holder has held the stock for three
    years unless, among other
</DIV>
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    <BR>
    20
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    possibilities, the Board of Directors approves the transaction.
    This provision may prevent changes in our management or
    corporate structure. Also, under applicable Delaware law, our
    Board of Directors is permitted to and may adopt additional
    anti-takeover measures in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation provides that the affirmative
    vote of at least seventy-five percent (75%) of our total voting
    power is required to amend our certificate of incorporation or
    to approve mergers, consolidations, conversions or the sale of
    all or substantially all of our assets. Given the voting power
    of Heritage, we would need the approval of Heritage for any of
    these transactions to occur.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our bylaws provide for the division of our Board of Directors
    into three classes with staggered three year terms. The
    classification of our Board of Directors could have the effect
    of making it more difficult for a third party to acquire, or
    discourage a third party from attempting to acquire, control of
    us.
</DIV>
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    <BR>
    21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We estimate that our net proceeds from the sale of our common
    stock in the offering will be approximately $24.4&#160;million,
    or $28.2&#160;million if the underwriters exercise their option
    to purchase additional shares in full, based on an assumed
    public offering price per share of $9.72 (the last reported sale
    price of our common stock on The NASDAQ Global Market on
    May&#160;17, 2010), after deducting the underwriting discount
    and $0.7&#160;million of estimated offering expenses payable by
    us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently intend to use the net proceeds from the offering to
    fund a portion of the costs required to develop and construct
    our used oil re-refinery facility in Indiana. We believe that
    additional capital of approximately $15.6&#160;million will be
    needed for capital expenditure to complete the re-refinery, or
    $11.8&#160;million if the underwriters exercise their option to
    purchase additional shares in full, based on an assumed public
    offering price per share of $9.72 (the last reported sale price
    of our common stock on The NASDAQ Global Market on May&#160;17,
    2010). We expect to obtain this additional capital from our
    existing bank credit facility as well as from cash flow from our
    operations. Our credit facility currently restricts our ability
    to incur or be obligated to make more than $10&#160;million of
    capital expenditures in a fiscal year, provided that, pursuant
    to an amendment dated May&#160;14, 2010, $42&#160;million of
    capital expenditures with respect to the re-refinery would not
    be subject to this $10&#160;million limitation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is possible that we may delay or cancel the re-refinery
    project for one or more reasons including, without limitation, a
    significant drop in the price of oil or a determination that the
    re-refinery will not generate the benefits to our growth that we
    currently anticipate. If we delay or cancel the re-refinery
    project, we intend to use the net proceeds from the sale of our
    common stock in the offering for general corporate purposes,
    including to fund working capital and other capital expenditures
    as well as fund potential acquisitions.
</DIV>
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    <BR>
    22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRICE
    RANGE OF COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The common stock of Heritage-Crystal Clean began trading on The
    NASDAQ Global Market under the symbol &#147;HCCI&#148; on
    March&#160;12, 2008. Prior to our initial public offering of our
    common stock on March&#160;12, 2008, there was no public market
    for our common stock . The information in the following table
    indicates the high and low sales prices for Heritage-Crystal
    Clean&#146;s common stock from March&#160;12, 2008, the date of
    our initial public offering, to May&#160;17, 2010, as reported
    by NASDAQ.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>2008</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter (commencing March&#160;12, 2008)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16.51
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>2009</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.51
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.51
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>2010</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Quarter through May&#160;17, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;17, 2010, the closing price of our common stock on
    the NASDAQ Global Select Market was $9.72 per share. On
    May&#160;17, 2010, there were 196 stockholders of record of our
    common stock. Several brokerage firms, banks and other
    institutions (&#147;nominees&#148;) are listed once on the
    stockholders of record listing. However, in most cases, the
    nominees&#146; holdings represent blocks of our common stock
    held in brokerage accounts for a number of individual
    stockholders. As such, our actual number of stockholders would
    be higher than the number of registered stockholders of record.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    POLICY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors sets our dividend policy. Our Board of
    Directors does not intend to declare cash dividends on our
    common stock in the foreseeable future. We currently intend to
    retain all available funds and any future earnings for use in
    the operation and expansion of our business, but we may
    determine in the future to declare or pay cash dividends on our
    common stock. Any future determination as to the declaration and
    payment of dividends will be at the discretion of our Board of
    Directors and will be dependent upon our results of operations
    and cash flows, our financial position and capital requirements,
    general business conditions, legal, tax, regulatory and any
    contractual restrictions on the payment of dividends, including
    the restrictions contained in the agreements governing our then
    outstanding indebtedness and any other factors our Board of
    Directors deems relevant. Our bank credit facility currently
    restricts the payment of dividends by us.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our capitalization as of
    March&#160;27, 2010:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    on an actual basis;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    as adjusted to give effect to the receipt by us of net proceeds
    from the sale of common stock offered by us in the offering,
    based on an assumed public offering price per share of $9.72
    (the last reported sale price of our common stock on The NASDAQ
    Global Market on May&#160;17, 2010), and the increase in the
    number of authorized shares of our common stock which occurred
    May&#160;14, 2010 but before the application of the net proceeds.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should read the data set forth below in conjunction with
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#148; and the consolidated
    financial statements and accompanying notes appearing elsewhere
    in this prospectus and incorporated herein by reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of March&#160;27, 2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As
    Adjusted<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Dollars in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Debt:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Bank
    debt<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
    debt<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Preferred stock, $0.01&#160;par value per share:
    500,000&#160;shares authorized; none issued and outstanding, as
    adjusted; none issued and outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common stock, $0.01&#160;par value per share:
    15,000,000&#160;shares authorized; 18,000,000&#160;shares
    authorized, as adjusted; 10,713,086&#160;shares issued and
    outstanding; and 13,463,086&#160;shares issued and outstanding,
    as adjusted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,772
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total capitalization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    69,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    If the underwriters&#146; option to purchase additional shares
    is exercised in full:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an additional 412,500&#160;shares would be issued and we would
    receive $3.8&#160;million in additional net proceeds;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    total stockholders&#146; equity would increase by
    $3.8&#160;million;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    total capitalization would increase by $3.8&#160;million.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Does not include the $15.6&#160;million that we anticipate
    borrowing in connection with the development and construction of
    our used oil re-refinery (or $11.8&#160;million if the
    underwriters&#146; option to purchase additional shares is
    exercised in full) See &#147;Prospectus Summary&#160;&#151;
    Development of Used Oil Re-refinery.&#148;</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    CONSOLIDATED FINANCIAL DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should read the following selected consolidated financial
    information together with our consolidated financial statements
    and the related notes incorporated herein by reference and the
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#148; appearing elsewhere in
    this prospectus. We refer to the first twelve weeks of each
    fiscal year as the &#147;first quarter.&#148; Accordingly, the
    first quarters of fiscal 2009 and 2010 ended March&#160;28, 2009
    and March&#160;27, 2010, respectively. Our results for the first
    quarters ended March&#160;28, 2009 and March 27 and balance
    sheet data as of March&#160;27, 2010 are unaudited. We have
    derived the statement of operations data for each of the years
    ended December&#160;29, 2007, January&#160;3, 2009 and
    January&#160;2, 2010 and the balance sheet data at
    January&#160;3, 2009 and January&#160;2, 2010 from our audited
    financial statements incorporated herein by reference. We have
    derived the statement of operations data for each of the years
    ended December&#160;31, 2005 and December&#160;30, 2006 and the
    balance sheet data at December&#160;31, 2005, December&#160;30,
    2006 and December&#160;29, 2007 from our audited consolidated
    financial statements not included in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Quarter Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;28,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;27,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(Dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>STATEMENT OF OPERATIONS DATA:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    59,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    89,734
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    108,143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    98,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cost of sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,061
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,920
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,040
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,497
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cost of sales&#160;&#151; inventory
    impairment<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,182
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,632
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,358
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Operating costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,677
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,497
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,940
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,495
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Selling, general, and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,355
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,583
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,852
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,364
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Proceeds from contract
    termination<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Operating income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,281
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,140
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    967
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Loss on disposal of fixed assets&#160;&#151; net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,810
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,140
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Provision for income
    taxes<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (808
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Preferred return
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Net income (loss) available to common stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,147
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income (loss) per share available to common stockholders:
    basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.11
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income (loss) per share available to common stockholders:
    diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.11
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Number of weighted average common shares
    outstanding<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>:

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,099
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,178
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,685
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,713
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,099
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,772
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,754
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cash dividends per common share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>PRO FORMA DATA (UNAUDITED):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (808
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Pro forma provision for income
    taxes<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    913
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,791
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    497
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Return on preferred and mandatorily redeemable capital units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    372
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Pro forma net income (loss) available to common stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (569
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,677
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Pro forma net income (loss) per share: basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.08
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.17
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Pro forma net income (loss) per share: diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.08
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.17
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Quarter Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;28,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;27,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(Dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>OTHER OPERATING DATA (UNAUDITED):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,848
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Average sales per working day
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    291
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    356
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    388
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Number of branches at end of fiscal period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>At<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>At Fiscal Year End</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March 27,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(Dollars in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>BALANCE SHEET DATA:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    271
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,387
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,016
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,655
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,130
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Redeemable capital units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total members&#146; capital/stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,776
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,707
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">In fiscal 2007, we received
    $3.0&#160;million from the termination of a contract with a
    customer of our used solvent who had failed to meet its volume
    purchase obligations. We recorded cost of sales of
    $2.2&#160;million to reduce solvent inventories to net
    realizable value in connection with this settlement.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">In fiscal 2008, we recorded an
    impairment charge, reducing the reuse solvent and used oil
    inventory value by $2.8&#160;million. This charge was due to a
    sharp decline in crude oil prices which resulted in the market
    value for our reuse solvent declining below the historic (FIFO)
    values.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">On March&#160;12, 2008, the date of
    our initial public offering, we reorganized our corporate legal
    structure from a limited liability company to a corporation. As
    a limited liability company, we were not subject to Federal or
    state corporate income taxes. Therefore, net income does not
    give effect to taxes for periods prior to the reorganization and
    initial public offering. For comparison purposes, we have
    presented pro forma net income, which reflects income taxes
    assuming we had been a corporation since the time of our
    formation and assuming tax rates equal to the rates that would
    have been in effect had we been required to report tax expense
    in such years.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">The weighted average common shares
    outstanding reflects the
    <FONT style="white-space: nowrap">500-for-1</FONT>
    exchange of common units for common stock and the issuance of
    1,217,390&#160;shares of common stock in our reorganization that
    occurred prior to our initial public offering in March 2008. We
    have included the redeemable common capital units outstanding
    prior to the reorganization in the calculation of basic and
    diluted earnings per share as the effect of excluding them would
    have been anti-dilutive. In accordance with FASB guidance,
    shares of common stock that are mandatorily redeemable are
    excluded from the calculation of basic and diluted earnings per
    share. We have deducted earnings attributable to mandatorily
    redeemable units from income available to common unit holders.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">EBITDA represents net income before
    income tax expense, interest income, interest expense,
    depreciation and amortization. We have presented EBITDA because
    we consider it an important supplemental measure of our
    performance and believe it is frequently used by analysts,
    investors, our lenders and other interested parties in the
    evaluation of companies in our industry. Management uses EBITDA
    as a measurement tool for evaluating our actual operating
    performance compared to budget and prior periods. Other
    companies in our industry may calculate EBITDA differently than
    we do. EBITDA is not a measure of performance under GAAP and
    should not be considered as a substitute for net income prepared
    in accordance with GAAP. EBITDA has limitations as an analytical
    tool, and you should not consider it in isolation or as a
    substitute for analysis of our results as reported under GAAP.
    Some of these limitations are:
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">&#149;&#160;EBITDA does not reflect
    our cash expenditures, or future requirements, for capital
    expenditures or contractual commitments;
    </FONT></DIV>
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">&#149;&#160;EBITDA does not reflect
    interest expense or the cash requirements necessary to service
    interest or principal payments on our debt;
    </FONT></DIV>
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">&#149;&#160;EBITDA does not reflect
    tax expense or the cash requirements necessary to pay for tax
    obligations;&#160;and
    </FONT></DIV>
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">&#149;&#160;Although depreciation
    and amortization are non-cash charges, the assets being
    depreciated and amortized will often have to be replaced in the
    future, and EBITDA does not reflect any cash requirements for
    such replacements.
    </FONT></DIV>
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">We compensate for these limitations
    by relying primarily on our GAAP results and using EBITDA only
    as a supplement.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">The following table contains a
    reconciliation of our net income determined in accordance with
    GAAP to EBITDA:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Quarter Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;28,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;27,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B>(Dollars in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net
    income(loss)<SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (808
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    967
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,694
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,874
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    877
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,848
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 4%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(a)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">On March&#160;12, 2008, the date of
    our initial public offering, we reorganized our corporate legal
    structure from a limited liability company to a corporation. As
    a limited liability company, we were not subject to Federal or
    state corporate income taxes. Therefore, net income does not
    give effect to taxes for periods prior to the reorganization and
    initial public offering.
    </FONT></TD>
</TR>

</TABLE>
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    <BR>
    28
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT&#146;S
    DISCUSSION AND ANALYSIS OF<BR>
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should read the following discussion in conjunction with
    our consolidated financial statements and related notes included
    elsewhere and incorporated by reference in this prospectus. In
    addition to historical information, this discussion contains
    forward-looking statements that involve risks, uncertainties and
    assumptions that could cause actual results to differ materially
    from our expectations. We undertake no obligation to update any
    of the forward looking statement. Factors that could cause such
    differences include those described in &#147;Risk Factors&#148;
    and elsewhere in this prospectus. Certain tabular information
    may not foot due to rounding.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a leading provider of industrial and hazardous waste
    services to small and mid-sized customers who are engaged in
    vehicle maintenance or manufacturing activities. We offer a
    broad range of services desired by these customers including
    parts cleaning solvent management, and the removal and
    management of a variety of regulated wastes. We operate from a
    network of 62 branch facilities providing service to customers
    in 39&#160;states.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our sales are generated primarily from providing parts cleaning
    and waste removal services for our clients, which accounted for
    approximately 94.6% of our sales for fiscal 2009. We also
    generate a minimal amount of sales from the sale of used oil,
    which accounted for the remaining 5.4% of our fiscal 2009 sales.
    The sale of used solvent generated by customers participating in
    our product reuse program for parts cleaning is not accounted
    for as sales, but rather as a reduction in our net cost of
    solvent under cost of sales. We define and measure same-branch
    sales for a given period as the subset of all our branches that
    have been open and operating throughout and between the periods
    being compared, and we refer to these as established branches.
    We calculate average sales per working day by dividing our sales
    by the number of non-holiday weekdays in the applicable fiscal
    year or fiscal quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have established prices for our services, based on the
    relevant business variables for each service. With respect to
    our parts cleaning services, our pricing reflects the type of
    parts cleaning machine we provide (if any), the frequency of
    service visits, and the quantity and grade of solvent or other
    cleaning chemistry required. For our other services, our pricing
    typically reflects the nature and quality of the waste materials
    removed. Our customer agreements typically provide for annual
    renewal and price increases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our cost of sales includes the costs of the materials we use in
    our services, such as solvent and other chemicals, depreciation
    on the parts cleaning machines we own and provide to customers,
    transportation of solvents and waste, and our payments to other
    parties to recycle or dispose of the waste materials that we
    collect. The used solvent that we retrieve from customers in our
    product reuse program is accounted for as a reduction in our net
    cost of solvent under cost of sales, whether placed in inventory
    or sold to a purchaser for reuse. Increased costs of crude oil,
    a component of solvent, can increase cost of sales, although we
    attempt to offset such increases with increased prices for our
    services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operating costs include the costs of operating our branch
    system and hubs, including personnel costs (including
    commissions), and facility rent, truck leases, fuel and
    maintenance. Our operating costs as a percentage of sales
    generally increase in relation to the number of new branch
    openings. As new branches achieve route density and scale
    efficiencies, our operating costs as a percentage of sales
    generally decrease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our selling, general, and administrative expenses include the
    costs of performing centralized business functions, including
    sales management at or above the regional level, billing,
    receivables management, accounting and finance, information
    technology, environmental health and safety and legal. Our
    selling, general, and administrative expenses have increased as
    a result of the ongoing costs of being a public company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the first quarter of 2010, we announced our plans to develop
    a used oil re-refinery. The re-refinery is being designed to
    process up to 50&#160;million gallons per year of used oil
    feedstock and produce up to 30&#160;million
</DIV>
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    <BR>
    29
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    gallons per year of lubricating base oil. The estimated capital
    cost of the project is approximately $40&#160;million and the
    re-refinery is expected to begin operating at partial capacity
    during 2012.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    History</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The history of our business activity dates back to the late
    1980s, when Heritage Environmental Services established a
    division to concentrate on the service needs of smaller
    customers. This division, known as Crystal Clean, began
    providing parts cleaning and used oil collection services to
    customers in Indianapolis, Indiana, and gradually expanded to
    several other cities in the Midwest. During the 1990s, the
    Crystal Clean division expanded into markets in Texas and
    Louisiana as the result of a business venture with a major
    branded motor oil company. By the late 1990s, the Crystal Clean
    division was offering services to small to mid-sized customers
    in roughly a dozen metropolitan areas. In 1999, the parent of
    Heritage Environmental Services and Joseph Chalhoub, our current
    Chief Executive Officer, agreed to form a new company,
    Heritage-Crystal Clean, LLC, and to contribute the business
    assets of the Crystal Clean division to this new company.
    Mr.&#160;Chalhoub invested in the new Company and recruited a
    team of seasoned industry professionals to join our company and
    implement plans for growth.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;11, 2008, we completed a reorganization, initial
    public offering and direct placement. In connection with the
    reorganization, initial public offering and direct placement we:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Became a &#145;C&#146; corporation through the reorganization of
    Heritage-Crystal Clean, LLC and a merger of BRS-HCC Investment
    Co., Inc. with and into Heritage-Crystal Clean, Inc.;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Issued an aggregate total of 7,274,290&#160;shares of common
    stock as part of the exchange of common and preferred units of
    Heritage-Crystal Clean, LLC into common stock of
    Heritage-Crystal Clean, Inc. in the reorganization;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Sold an aggregate total of 3,401,100&#160;shares of common stock
    in the initial public offering and concurrent direct placement,
    at $11.50 per share, raising approximately $33.2&#160;million
    after underwriting discounts and transaction costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Repaid approximately $22.3&#160;million of indebtedness with the
    proceeds raised in the initial public offering and direct
    placement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Paid distributions of $10.9&#160;million to preferred unit
    holders of Heritage-Crystal Clean, LLC as part of the
    reorganization relating to an accrued return through
    March&#160;11, 2008;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Recorded a cumulative net deferred tax liability of
    $2.2&#160;million and a corresponding charge to our provision
    for income taxes upon becoming taxable as a &#145;C&#146;
    corporation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Critical
    Accounting Policies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Critical accounting policies are those that both are important
    to the accurate portrayal of a company&#146;s financial
    condition and results, and require subjective or complex
    judgments, often as a result of the need to make estimates about
    the effect of matters that are inherently uncertain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to prepare financial statements that conform to
    accounting principles generally accepted in the United States,
    commonly referred to as GAAP, we make estimates and assumptions
    that affect the amounts reported in our financial statements and
    accompanying notes. Certain estimates are particularly sensitive
    due to their significance to the financial statements and the
    possibility that future events may be significantly different
    from our expectations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have identified the following accounting policies as those
    that require us to make the most subjective or complex judgments
    in order to fairly present our consolidated financial position
    and results of operations. Actual results in these areas could
    differ materially from management&#146;s estimates under
    different assumptions and conditions.
</DIV>
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    <BR>
    30
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable and Allowance for Doubtful Accounts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Trade accounts receivable are recorded at the invoiced amount
    and do not bear interest. Consistent with industry practices, we
    require payment from most customers within 30&#160;days of
    invoice date. The allowance for doubtful accounts is our best
    estimate of the amount of probable credit losses in our existing
    accounts receivable. We determine the allowance based on
    analysis of customer creditworthiness, historical losses and
    general economic trends and conditions. We perform periodic
    credit evaluations of our customers and typically do not require
    collateral. We have an estimation procedure, based on historical
    data and recent changes in the aging of these receivables that
    we use to record reserves throughout the year. In the last eight
    years, our provisions for doubtful accounts have averaged less
    than 0.8% of sales. We do not have any off-balance sheet credit
    exposure related to our customers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Inventory</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Inventory consists primarily of new and used solvents, new and
    refurbished parts cleaning machines, absorbents, accessories,
    repair parts and used oil. Inventories are valued at the lower
    of <FONT style="white-space: nowrap">first-in,</FONT>
    first-out (FIFO) cost or market, net of any reserves for excess,
    obsolete or unsalable inventory. In the first quarter of fiscal
    2007 we reported an impairment charge and reserved an associated
    excess reserve, reducing the reuse solvent inventory by
    $2.2&#160;million. This was due to the supply contract
    termination as described in more detail below in our Results of
    Operations section. In the fourth quarter of fiscal 2008, we
    reported an impairment charge, reducing the reuse solvent and
    used oil inventory by $2.8&#160;million. This was due to a sharp
    decline in crude oil prices which resulted in the market value
    for our reuse solvent declining below the historic (FIFO)
    values. In fiscal 2009, we depleted our excess inventory of
    reuse solvent and correspondingly eliminated the reserve. We
    continually monitor our inventory levels at each of our
    distribution locations and evaluate inventories for excess or
    slow-moving items. If circumstances indicate the cost of
    inventories exceed their recoverable value, inventories are
    reduced to net realizable value.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Share
    Based Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We follow Financial Accounting Standards Board
    (&#147;FASB&#148;) guidance that requires that all stock-based
    compensation be recognized as an expense in the financial
    statements and that such cost be measured at the fair value of
    the award. This statement was adopted using the prospective
    method of application, which requires us to recognize
    compensation cost on a prospective basis. For share-based awards
    granted after January&#160;1, 2006, we recognized compensation
    expense based on estimated grant date fair value. See
    &#147;Fiscal 2009 versus Fiscal 2008 and Fiscal 2008 versus
    Fiscal 2007&#160;&#151; Selling, general, &#038; administrative
    expenses&#148; for a description of compensation expenses
    related to the stock options that were granted and which vested
    in connection with the offerings and the acceleration of vesting
    of common units granted to employees under our Key Employee
    Membership Interest Trust.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Impairment
    of Long-Lived Assets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Long-lived assets, such as property and equipment and purchased
    intangibles subject to amortization, are reviewed for impairment
    whenever events or changes in circumstances indicate that the
    carrying amount of an asset may not be recoverable.
    Recoverability of assets to be held and used is measured by a
    comparison of the carrying amount of an asset to estimated
    undiscounted future cash flows expected to be generated by the
    asset. If the carrying amount of an asset exceeds its estimated
    future cash flows, an impairment charge is recognized as the
    amount by which the carrying amount of the asset exceeds the
    fair value of the asset. Assets to be disposed of would be
    separately presented in the balance sheet and reported at the
    lower of the carrying amount or fair value less costs to sell,
    and would no longer be depreciated. No triggering events
    occurred during fiscal 2009 or the first quarter of 2010 and
    therefore impairment has not been tested.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">New
    Accounting Pronouncements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue
    Arrangements with Multiple Deliverables</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, the FASB ratified guidance for revenue
    arrangements with multiple deliverables. In absence of
    vendor-specific objective evidence (&#147;VSOE&#148;) or other
    third party evidence (&#147;TPE&#148;) of the selling price for
    the deliverables in a multiple-element arrangement, it requires
    companies to use an estimated selling price (&#147;ESP&#148;)
    for the individual deliverables. Companies shall apply the
    relative-selling price model for allocating an
    arrangement&#146;s total consideration to its individual
    elements. Under this model, the ESP is used for both the
    delivered and undelivered elements that do not have VSOE or TPE
    of the selling price. The proposed effective date of the draft
    abstract is for fiscal years beginning on or after June&#160;15,
    2010, and will be applied prospectively to revenue arrangements
    entered into or materially modified after the effective date.
    Since we will apply the requirements of this guidance on a
    prospective basis, we are continuing to evaluate its effect on
    our consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fair
    Value Measurements and Disclosures</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2010, the FASB issued revised guidance which requires
    additional disclosures about items transferring into and out of
    Levels&#160;1 and 2 in the fair value hierarchy. The revised
    guidance also requires additional separate disclosures about
    purchases, sales, issuances, and settlements relative to
    Level&#160;3 measurements, and clarifies, among other things,
    the existing fair value disclosures about the level of
    disaggregation. This pronouncement is effective for interim and
    annual financial periods beginning after December&#160;15, 2009,
    except for the disclosures about purchases, sales, issuances,
    and settlements relative to Level&#160;3 measurements, which are
    effective for interim and annual financial periods beginning
    after December&#160;15, 2010. We adopted these amendments in the
    first quarter of 2010 and the adoption did not have a material
    impact on the disclosures of our consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, the FASB issued amended guidance regarding
    subsequent events. Under this amended guidance, SEC filers are
    no longer required to disclose the date through which subsequent
    events have been evaluated in originally issued and revised
    financial statements. This guidance was effective immediately
    and we adopted these new requirements upon issuance of this
    guidance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;6, 2010, our shareholders voted and approved at our
    annual meeting an amendment to the Amended and Restated
    Certificate of Incorporation to increase the number of
    authorized shares of Common Stock from 15,000,000 to 18,000,000.
    The amendment to the Amended and Restated Certificate of
    Incorporation was filed on May&#160;14, 2010.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Results
    of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain operating data as a
    percentage of sales for the periods indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Quarter Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;28,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;27,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of sales&#160;&#151; inventory impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
    %<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.6
</TD>
<TD nowrap align="left" valign="bottom">
    %<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Selling, general, and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds from contract termination
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.3
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss on disposal of fixed assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net
    income(loss)<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro forma net
    income(loss)<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.0
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    In fiscal 2007, we received $3.0&#160;million from the
    termination of a contract with a customer of our used solvent
    who had failed to meet its volume purchase obligations. We
    recorded cost of sales of $2.2&#160;million to reduce solvent
    inventories to net realizable value in connection with this
    settlement.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    In fiscal 2008, we recorded an impairment charge, reducing the
    reuse solvent and used oil inventory value by $2.8&#160;million.
    This charge was due to a sharp decline in crude oil prices which
    resulted in the market value for our reuse solvent declining
    below the historic (FIFO) values.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    On March&#160;12, 2008, the date of our initial public offering,
    we reorganized our corporate legal structure from a limited
    liability company to a corporation. As a limited liability
    company, we were not subject to Federal or state corporate
    income taxes. Therefore, net income does not give effect to
    taxes for periods prior to the reorganization and initial public
    offering. For comparison purposes, we have presented pro forma
    net income, which reflects income taxes assuming we had been a
    corporation since the time of our formation and assuming tax
    rates equal to the rates that would have been in effect had we
    been required to report tax expense in such years.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Quarter of Fiscal 2010 Compared to First Quarter of Fiscal
    2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales.</I>&#160;&#160;For the first fiscal quarter of 2010,
    sales increased $0.2&#160;million, or 1.0%, to
    $24.0&#160;million from $23.8&#160;million for the first fiscal
    quarter of 2009. We implemented a price increase in the fourth
    quarter of 2009 which contributed to some of the growth and we
    are also starting to see more revenue generating activity from
    our customers. Within the first fiscal quarter of 2010, the
    sales trend was positive, with sales increases for each
    successive four-week accounting period as opposed to declining
    sequential period sales in the first fiscal quarter of 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the end of fiscal 2009, we were operating 58 branch locations
    compared with 54 at the end of fiscal 2008. In the first fiscal
    quarter of 2010 we opened four new branches; and we now operate
    through 62 branch locations. There were 58 branches that were in
    operation during both the first fiscal quarter of 2010 and first
    fiscal quarter of 2009, which experienced flat same-branch sales
    over the course of these two fiscal quarters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of sales.</I>&#160;&#160;For the first fiscal quarter of
    2010, cost of sales decreased $1.5&#160;million, or 20.0%, to
    $6.0&#160;million from $7.5&#160;million for the first fiscal
    quarter of 2009. Cost of sales as a percentage of sales
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    decreased to 25.0% in first fiscal quarter of 2010, from 31.6%,
    in the first fiscal quarter of 2009. We recorded costs of
    approximately $0.9&#160;million during the first fiscal quarter
    of 2009 that related to declining crude oil prices. These costs
    in the first fiscal quarter of 2009, reflect the decline in the
    value of virgin solvent inventory held at our locations for use
    in our service programs which is valued at the lower of cost or
    market. In the first fiscal quarter of 2010, we recorded a
    benefit of $0.3&#160;million to our cost of sales arising from
    increasing crude prices because we sold our reuse solvent at
    higher gross margins. The increase in crude prices during the
    first fiscal quarter of 2010 allowed us to sell reuse solvent at
    higher prices than the inventory value established at the end of
    2009 when crude price and associated solvent products were at
    lower levels. In addition, solvent products that we use in
    servicing our customers were valued higher at the end of the
    first fiscal quarter of 2010 as they were returned by our
    customers for recycling.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Operating costs.</I>&#160;&#160;For the first fiscal quarter
    of 2010, operating costs increased $0.3&#160;million, or 2.5%,
    to $12.5&#160;million from $12.2&#160;million for the first
    fiscal quarter of 2009. Cost cutting measures such as workforce
    efficiencies which were taken in fiscal 2009 to compensate for
    the decline in sales, continue to reduce our operating expenses;
    however the costs of diesel and transportation fuel surcharges
    were above the first fiscal quarter of 2009 levels.
    Additionally, we incurred branch labor, collection truck and
    facility costs in connection with new branches opened in the
    first fiscal quarter of 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling, general, &#038; administrative
    expenses.</I>&#160;&#160;For the first fiscal quarter of 2010,
    selling, general and administrative expenses increased
    $0.5&#160;million, or 13.3%, to $4.4&#160;million from
    $3.9&#160;million for the first fiscal quarter of 2009. The
    increase was due to specific accrual adjustments for property
    taxes in the first fiscal quarter of 2009 and expense related to
    a sales tax audit in the first fiscal quarter of 2010.
    Additionally, the allocation of the Management Incentive Plan
    &#147;MIP&#148; bonus pool was increased in the first quarter of
    2010 because it is aligned with the profitability of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest expense.</I>&#160;&#160;There was zero interest
    expense in both the first fiscal quarter of 2010 and 2009 due to
    no debt outstanding during the fiscal quarters ending
    March&#160;27, 2010 and March&#160;28, 2009, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Provision for income taxes.</I>&#160;&#160;For the first
    fiscal quarter of 2010, the provision for income taxes increased
    $0.4&#160;million, to $0.5&#160;million from $0.1&#160;million
    for the first fiscal quarter of 2009. The increase was a result
    in the increase in taxable income. Our effective tax rate in the
    first fiscal quarter of 2010 was 41.9%, compared to 40.5% in the
    first fiscal quarter of 2009. Our effective tax rate in the
    first fiscal quarter of 2010 was slightly elevated compared to
    the first fiscal quarter of 2009 due to a higher blended state
    income tax rate.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fiscal
    Year 2009 Compared to Fiscal 2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales.</I>&#160;&#160;For fiscal 2009, sales decreased
    $9.7&#160;million, or 9.0%, to $98.4&#160;million from
    $108.1&#160;million for fiscal 2008. Fiscal 2009 reported sales
    for 52&#160;weeks compared to fiscal 2008 which reported sales
    for 53&#160;weeks. The effect of the U.S.&#160;recession caused
    many of our customers to produce less waste and to put off
    deferrable services to a greater degree than we have seen in
    past recessions, and this eliminated our sales growth.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the end of fiscal 2009, we were operating 58 branch locations
    compared with 54 at the end of fiscal 2008. There were 54
    branches that were in operation during both the fiscal years of
    2009 and fiscal 2008, which experienced a decline in same-branch
    sales of $11.6&#160;million, or 10.7%. Excluding the 4 branches
    in this group that gave up customers to new branch openings, the
    remaining 50 branches experienced a decline in same-branch sales
    of $8.9&#160;million, or 9.1%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fuel surcharges decreased sales
    <FONT style="white-space: nowrap">year-over-year</FONT>
    by $1.1&#160;million in fiscal 2009. This decrease was a direct
    result of lower energy prices as compared to fiscal 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of sales.</I>&#160;&#160;For fiscal 2009, total cost of
    sales decreased $6.2&#160;million, or 19.2%, to
    $26.0&#160;million from $32.2&#160;million for fiscal 2008. Cost
    of sales as a percentage of sales decreased to 26.5%, from
    29.8%, in fiscal 2008. Although our cost structure has returned
    to levels seen prior to 2008, we recorded costs of approximately
    $1.0&#160;million during the first quarter of 2009 that was
    related to the decline in the price of crude oil. For the
    remainder of fiscal 2009, we were able to benefit from the sale
    of reuse solvent inventory that was marked down to market value
    at the end of fiscal 2008 due to the decline in reuse solvent
    values. This benefit,
</DIV>
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    34
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    however, was not as great as the benefit from the first three
    quarters of fiscal 2008 when we sold reuse solvent at prices in
    excess of their carrying inventory value. During the fourth
    fiscal quarter of 2008, the steep decline in solvent values led
    to reductions in the value of these solvent inventories. As a
    result, we incurred a $2.8&#160;million non-cash inventory
    impairment charge related to valuing our reuse solvent and used
    oil inventory which is held for sale to market value, as a
    result of the decline in crude oil prices. We also recorded
    unusually high solvent costs of approximately $1.7&#160;million
    during the fourth quarter of fiscal 2008 that were also related
    to the decline in crude oil prices. These increased costs
    reflect the revaluation of reuse solvent recovered from
    customers and virgin solvent inventory held at our locations for
    use in our service programs, both of which must be valued at the
    lower of cost or market. In total, declining inventory values in
    the fourth fiscal quarter of 2008 led us to incur approximately
    $4.5&#160;million of cost. Although there was an increase in
    energy prices in the first half of 2009, compared to last year,
    the volatility in solvent prices has been much less, with
    correspondingly smaller impact on our financial results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Operating costs.</I>&#160;&#160;For fiscal 2009, operating
    costs decreased $1.6&#160;million, or 3.0%, to
    $51.9&#160;million from $53.5&#160;million for fiscal 2008.
    Although certain cost cutting measures such as workforce
    efficiencies were taken earlier in fiscal 2009 to compensate for
    the decline in sales, operating costs as a percentage of sales
    increased 3.3% due to the reduced leveraging of fixed costs.
    Additionally, we incurred branch labor, collection truck and
    facility costs that are associated with new branches opened
    early in fiscal 2009. Diesel fuel decreased along with the
    reduction in energy prices in fiscal 2009 compared to fiscal
    2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling, general, &#038; administrative
    expenses.</I>&#160;&#160;For fiscal 2009, selling, general and
    administrative expenses decreased $3.1&#160;million, or 15.3%,
    to $17.1&#160;million from $20.2&#160;million for fiscal 2008.
    The decrease was due to $3.2&#160;million of expense for
    employee stock options which were granted at the time of our
    initial public offering in March 2008 and vested immediately
    along with the vesting of certain Key Employee Membership
    Interest Trust &#147;KEMIT&#148; units in fiscal 2008.
    Additionally, in fiscal 2009, the allocation of the Management
    Incentive Plan &#147;MIP&#148; bonus pool was reduced because it
    is aligned with the profitability of operations. This was
    partially offset by the fact that in fiscal 2009, we incurred a
    full year of public company costs compared to only three full
    quarters in fiscal 2008 along with the loss on disposal of fixed
    assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest expense&#160;&#151; net.</I>&#160;&#160;For fiscal
    2009, interest expense decreased by $0.4&#160;million, or 99.3%,
    to approximately zero from $0.4&#160;million for fiscal 2008.
    The decrease was due to the reduction in our total debt
    outstanding in connection with our initial public offering in
    March 2008 in which the proceeds were used to pay down debt.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Provision for income taxes.</I>&#160;&#160;For fiscal 2009,
    provision for income taxes decreased $1.3&#160;million, or
    50.0%, to $1.3&#160;million from $2.6&#160;million for fiscal
    2008. Our effective tax rate in fiscal 2009 was 42.5%, compared
    to 144.6% in fiscal 2008. In fiscal 2008, we incurred a one-time
    charge to earnings of $2.2&#160;million reflecting the net
    deferred tax assets and deferred tax liabilities at the time of
    the reorganization of the LLC to a &#145;C&#146; corporation as
    described above in &#147;&#151;&#160;Our History.&#148; This
    charge did not reoccur in fiscal 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our overall effective tax rate in fiscal 2009 was slightly
    elevated primarily due to a revised higher expected blended
    state income tax rate. The higher expected blended state income
    tax rate increased as a percentage of income due to some states
    that base their state tax rates primarily on gross receipts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fiscal
    2008 Compared to Fiscal 2007</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales.</I>&#160;&#160;For fiscal 2008, sales increased
    $18.4&#160;million, or 20.5%, to $108.1&#160;million from
    $89.7&#160;million for fiscal 2007. Fiscal 2008 reported sales
    for 53&#160;weeks compared to fiscal 2007 which reported sales
    for 52&#160;weeks. This is somewhat less than the sales growth
    we reported in prior quarters, and reflects the impact on our
    business of the start of the economic recession.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the end of fiscal 2008, we were operating 54 branch locations
    compared with 48 at the end of fiscal 2007. There were 47
    branches that were in operation during both the fiscal years of
    2008 and fiscal 2007, which experienced same-branch sales growth
    of $14.8&#160;million, or 18.1%. Excluding the 5 branches in
    this group that gave up customers to new branch openings, the
    remaining 42 branches experienced same-branch sales growth of
    18.3%.
</DIV>
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    <BR>
    35
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fuel surcharges increased sales
    <FONT style="white-space: nowrap">year-over-year</FONT>
    by $0.9&#160;million in fiscal 2008. These increases occurred
    primarily in the last half of fiscal 2008 to mitigate higher
    costs for virgin solvent, diesel fuel and transportation. Fuel
    and transportation costs decreased over the final months of the
    year as did surcharges billed to our customers. Solvent prices
    also declined, and we incurred charges to our cost of sales for
    inventory impairment on product held for sale as well as
    reductions to the lower cost on inventories used in operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of sales.</I>&#160;&#160;For fiscal 2008, total cost of
    sales increased $7.1&#160;million, or 28.3%, to
    $32.2&#160;million from $25.1&#160;million for fiscal 2007. Cost
    of sales as a percentage of sales increased in fiscal 2008 to
    29.8% from 28.0% in fiscal 2007. We incurred a $2.8&#160;million
    non-cash inventory impairment charge during fiscal 2008 related
    to valuing our reuse solvent and used fuel oil inventory which
    is held for sale to market value, as a result of the decline in
    crude oil prices. Beyond this inventory impairment charge, we
    also recorded unusually high solvent costs of approximately
    $1.7&#160;million during the fourth fiscal quarter of 2008 that
    were also related to the declining prices. These increased costs
    reflect the revaluation of solvent recovered from customers and
    virgin solvent inventory held at our locations, for use in our
    service programs, both of which must be valued at the lower of
    cost or market. During the fourth fiscal quarter of 2008, the
    steep decline in solvent values led to reductions in the value
    of these solvent inventories. In total, declining inventory
    values in the fourth fiscal quarter of 2008 led us to incur
    about $4.5&#160;million of cost.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Benefits we gained earlier in the first three quarters of fiscal
    2008 by selling reuse solvent at higher prices than lower,
    historical cost were more than offset by the lower cost of
    market adjustment of reuse solvent and used oil inventory in the
    fourth quarter of fiscal 2008. In the first quarter of fiscal
    2007, we received $3.0&#160;million from the termination of a
    contract for our used solvent with a customer who had failed to
    meet their volume purchase obligations in 2006. We recorded an
    impairment charge of $2.2&#160;million in fiscal 2007 to reduce
    solvent inventories to net realizable value in connection with
    this settlement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Operating costs.</I>&#160;&#160;For fiscal 2008, operating
    costs increased $9.9&#160;million, or 22.8%, to
    $53.5&#160;million from $43.6&#160;million for fiscal 2007.
    Operating costs, including branch labor and collection truck
    costs, increased as a percentage of sales as the improved
    efficiency in our branch network due to our gaining route
    density and scale in established markets was more than offset by
    increased diesel fuel and transportation costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling, general, &#038; administrative
    expenses.</I>&#160;&#160;For fiscal 2008, selling, general and
    administrative expense increased $4.6&#160;million, or 29.8%, to
    $20.2&#160;million from $15.6&#160;million for fiscal 2007.
    Selling, general and administrative expenses included employee
    share-based compensation charges of $3.2&#160;million related to
    employee stock options granted at the time of our initial public
    offering which vested immediately and also related to the
    vesting of certain Key Employee Membership Interest Trust
    &#147;KEMIT&#148; units and additional costs associated with
    being a public company which include among others, Board of
    Directors compensation and insurance, incremental legal and
    accounting fees and Sarbanes-Oxley consulting services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Proceeds from Contract Termination.</I>&#160;&#160;In the
    first quarter of fiscal 2007, we received $3.0&#160;million from
    the termination of a contract for our used solvent with a
    customer who had failed to meet their volume purchase
    obligations. We recorded cost of sales of $2.2&#160;million to
    reduce solvent inventories to net realizable value in connection
    with this settlement. Please refer to the above discussion
    related to cost of sales&#160;&#151; inventory impairment for
    more information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest expense&#160;&#151; net.</I>&#160;&#160;For fiscal
    2008, interest expense decreased by $1.0&#160;million, or 71.0%,
    to $0.4&#160;million from $1.4&#160;million for fiscal 2007. The
    decrease was due to our reduction of total debt outstanding
    using the cash proceeds received from our initial public
    offering in March 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Provision for income taxes.</I>&#160;&#160;In connection with
    our initial public offering, we reorganized our corporate legal
    structure from a limited liability company to a &#145;C&#146;
    corporation. As a limited liability company, we were not subject
    to federal or state corporate income taxes and as such had not
    incurred any historical taxes. For comparison purposes, we have
    presented pro forma net income, which reflects income taxes
    assuming we had been a corporation since the time of our
    formation and assuming tax rates equal to the rates that would
    have been in effect had we been required to report tax expense
    in such years. A one-time charge to earnings of
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    $2.2&#160;million was recorded in the first fiscal quarter of
    2008 reflecting the net deferred tax assets and deferred tax
    liabilities at the time of the reorganization of the LLC to a
    &#145;C&#146; corporation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quarterly
    Results</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our unaudited quarterly
    consolidated statement of operations data for the fiscal years
    2008 and 2009 and the first quarter of fiscal 2010. Our fiscal
    year ends the Saturday closest to December&#160;31. Fiscal year
    2008 consisted of 53&#160;weeks and fiscal year 2009 consisted
    of 52&#160;weeks. Our convention with respect to reporting
    periodic financial data is such that each of our first three
    fiscal quarters consist of twelve weeks while our last fiscal
    quarter consists of sixteen or seventeen weeks. The unaudited
    quarterly information has been prepared on the same basis as the
    annual financial information and, in management&#146;s opinion,
    includes all adjustments (consisting only of normal recurring
    adjustments) necessary to present fairly the information for the
    quarters presented. Historically, our sales and operating
    results have varied from quarter to quarter and are expected to
    continue to fluctuate in the future. These fluctuations have
    been due to a number of factors, including those identified in
    this prospectus under the caption &#147;Risk Factors.&#148; Our
    operating results for any historical quarter are not necessarily
    indicative of results for any future period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
</TR>
<!-- Table Width Row END -->
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<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal 2010</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>First<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Second<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Third<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fourth<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>First<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Second<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Third<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fourth<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>First<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Quarter</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="34" align="center" valign="bottom">
    <B>(Dollars in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>STATEMENT OF OPERATIONS DATA:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,997
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,838
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,646
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34,661
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,284
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,957
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Cost of sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,285
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,497
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,553
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,751
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Cost of sales&#160;&#151; inventory
    impairment<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,208
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,626
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,162
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Operating costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,601
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,523
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,857
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,094
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,772
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,836
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,495
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Selling, general, and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,852
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,471
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,364
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Operating income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,435
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,475
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,647
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    899
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,140
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Loss on disposal of fixed assets&#160;&#151; net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (588
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    428
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    453
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Net income
    (loss)<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,768
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,072
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    602
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Pro forma net income
    (loss)<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,638
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,072
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    602
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>OTHER OPERATING DATA:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Average sales per working day
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    390
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    393
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
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<DIV style="text-indent: -7pt; margin-left: 7pt">
    Number of branches at end of fiscal quarter
</DIV>
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</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects a seventeen week quarter.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects a sixteen week quarter.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
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    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    In the fourth quarter of fiscal 2008, we recorded an impairment
    charge, reducing the reuse solvent and used oil inventory value
    by $2.8&#160;million. This charge was due to a sharp decline in
    crude oil prices which resulted in the market value for our
    reuse solvent declining below the historic (FIFO) values.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    On March&#160;12, 2008, the date of our initial public offering,
    we reorganized our corporate legal structure from a limited
    liability company to a corporation. As a limited liability
    company, we were not subject to Federal or state corporate
    income taxes. Therefore, net income does not give effect to
    taxes for periods prior to the reorganization and initial public
    offering. For comparison purposes, we have presented pro forma
    net income, which reflects income taxes assuming we had been a
    corporation since the time of our formation and assuming tax
    rates equal to the rates that would have been in effect had we
    been required to report tax expense in such years.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidity
    and Capital Resources</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    and Cash Equivalents</FONT></I></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had $1.1&#160;million of cash and cash equivalents at the end
    of fiscal 2009 and $1.4&#160;million at the end of the first
    quarter of 2010. Our primary sources of liquidity are cash flows
    from operations and funds available to borrow under our bank
    credit facility. Prior to fiscal 2008, we had historically
    financed our operations primarily through the private placement
    of preferred equity securities, borrowings from banks and
    investors and through funds from operations. In March 2008, we
    raised net proceeds of $33.2&#160;million from an initial
</DIV>
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    <BR>
    37
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    public offering and concurrent direct placement. These net
    proceeds include offering costs of $0.9&#160;million paid prior
    to fiscal year end 2007 and include approximately
    $1.0&#160;million of offering costs paid subsequent the initial
    public offering. The proceeds were used to reduce borrowings
    under our bank credit facility, which included
    $10.9&#160;million borrowed in March 2008 used to pay preferred
    members for an accrued return on preferred units as part of the
    reorganization described above under &#147;Our History.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our bank credit facility provides for borrowings of up to
    $30.0&#160;million. On December&#160;14, 2009, we amended the
    bank credit facility to extend the maturity date of the bank
    credit facility to December&#160;14, 2012 and increased the
    available borrowings from $25.0&#160;million to
    $30.0&#160;million. Amounts borrowed under the bank credit
    facility are secured by a security interest in substantially all
    of our tangible and intangible assets. There is a maximum amount
    of $1.0&#160;million of standby letters of credit that can be
    issued and the issuance of the standby letters of credit reduces
    the amount of total borrowings available. As of March&#160;27,
    2010 and January&#160;2, 2010, $0.2&#160;million and
    $0.2&#160;million of standby letters of credit were outstanding,
    respectively. As of March&#160;27, 2010 and January&#160;2,
    2010, $29.8&#160;million and $29.8&#160;million were available
    under the bank credit facility, respectively. Under the terms of
    our bank credit facility, borrowings will bear interest at the
    prime rate plus 25&#160;basis points, unless the total leverage
    ratio is greater than or equal to 2.75 to 1. If the total
    leverage ratio is greater than or equal to 2.75 to 1, the rate
    would be the prime rate plus 50&#160;basis points. We also have
    the option to lock in a portion of our borrowing at the
    prevailing LIBOR rate plus a variable margin of between 2.0% and
    3.0% depending on our leverage ratio. The bank credit facility
    requires us to consult with the bank on certain acquisitions and
    includes a prohibition on the payment of dividends. In addition,
    our bank credit facility contains a number of financial
    covenants that are based on our EBITDA for the trailing fiscal
    year, including a maximum total leverage ratio of 3.25 and a
    minimum interest coverage ratio of 3.5. In addition, the bank
    credit facility requires that we maintain a minimum tangible net
    worth of an amount equal to $42.0&#160;million plus 75% of our
    aggregate net income after taxes earned each quarter subsequent
    to December&#160;14, 2009, taking into account certain
    additional calculations and limits our capital expenditures to
    $10.0&#160;million for any fiscal year. The weighted average
    effective interest rate for amounts outstanding was 3.25% and
    6.58% at January&#160;2, 2010 and January&#160;3, 2009,
    respectively. We did not have any amounts outstanding under our
    bank credit facility during the first quarter of fiscal 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the first quarter of 2010, we announced that we were planning
    to develop a used oil re-refinery. The re-refinery is being
    designed to process up to 50&#160;million gallons per year of
    used oil feedstock and produce up to 30&#160;million gallons per
    year of lubricating base oil. The estimated capital cost of the
    project is approximately $40&#160;million and we expect that the
    operation of the re-refinery will increase our working capital
    requirements by $5&#160;million to $10&#160;million. Our credit
    facility restricts our ability to incur or be obligated to make
    more than $10&#160;million of capital expenditures in a fiscal
    year, provided that, pursuant to an amendment dated May&#160;14,
    2010, $42&#160;million of capital expenditures with respect to
    the re-refinery would not be subject to this $10&#160;million
    limitation. The re-refinery is expected to begin operating at
    partial capacity during 2012. As of March&#160;27, 2010,
    $0.9&#160;million has been spent and capitalized in connection
    with our construction of the re-refinery. During fiscal 2010 and
    2011, we plan to roll out additional used oil collection routes
    to increase the volume of used oil that we collect and we
    estimate that we will incur roughly $1.0&#160;million to
    $1.5&#160;million of net expense, respectively, related to the
    roll out.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At January&#160;2, 2010, our working capital was
    $16.8&#160;million compared to $19.2&#160;million at
    January&#160;3, 2009. This decrease was mostly due to a decline
    in accounts receivable of approximately $2.7&#160;million and a
    decline in inventory of $0.8&#160;million. Also during the year,
    accounts payable declined by $1.0&#160;million, which was
    partially offset by the increase in cash of $0.8&#160;million.
    At March&#160;27, 2010, working capital was $17.2&#160;million.
    The increase is due to higher accounts receivable balances
    reflecting the increase in sales and higher inventory value due
    to rising crude oil prices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Capital expenditures and software costs for fiscal 2007, 2008,
    2009 and the first quarter of fiscal 2010 were
    $9.0&#160;million, $5.2&#160;million, $9.7&#160;million and
    $1.4&#160;million, respectively. In the first quarter of fiscal
    2010, $0.3&#160;million has been spent and capitalized in
    connection with our re-refining project. During fiscal 2009, we
    acquired the industrial real estate in which we were a tenant in
    Indianapolis, Indiana for $3.5&#160;million. Approximately
    $3.7&#160;million of the capital expenditures in fiscal 2009
    were for purchases of parts cleaning machines compared to
    $3.4&#160;million in fiscal 2008 and $3.5&#160;million in fiscal
    2007. The remaining $2.5&#160;million
</DIV>
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    38
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in fiscal 2009 was for other items including office equipment,
    leasehold improvements, software and intangible assets, compared
    to $1.8 million in fiscal 2008 and $0.7&#160;million in fiscal
    2007. The increase in fiscal 2009 compared to fiscal 2008 also
    includes $0.6&#160;million spent on the exploration and
    development of our proposed used oil re-refinery. Otherwise,
    capital expenditures in fiscal 2009 compared to fiscal 2008 and
    fiscal 2007 were mostly flat in our parts cleaning and
    containerized waste business. Fiscal 2007 capital expenditures
    include $4.8&#160;million for the completion of our solvent
    recycling tower.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by operations was $9.5&#160;million,
    $4.7&#160;million, $10.3&#160;million, $3.1&#160;million and
    $1.6&#160;million in fiscal 2007, fiscal 2008, fiscal 2009 and
    the first quarter of fiscal 2009 and 2010, respectively. The
    increased net cash provided reflects our increased net income
    and reductions of our accounts receivable and inventory
    balances, share-based compensation and prepaid and other current
    assets. The net cash provided by operations in fiscal 2007
    reflects the termination of a contract and one-time benefit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash used in investing activities was $9.0&#160;million,
    $5.2&#160;million, $9.7&#160;million, $1.3&#160;million and
    $1.4&#160;million in fiscal 2007, fiscal 2008, fiscal 2009 and
    the first quarter of fiscal 2009 and 2010, respectively. The
    increase in fiscal 2009 from fiscal 2008 was primarily due to
    the capital expenditures for our purchase of the industrial real
    estate in Indianapolis, Indiana and amounts spent on the
    exploration and development of our proposed used oil
    re-refinery. The decrease in fiscal 2008 compared to fiscal 2007
    was primarily due to the higher capital expenditures in fiscal
    2007 for our solvent recycling system.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by (used in) financing activities was
    $(0.4)&#160;million, $0.4&#160;million, $0.2&#160;million,
    $0.1&#160;million and $0.1&#160;million in fiscal 2007, fiscal
    2008 and fiscal 2009 and the first quarter of fiscal 2010,
    respectively. In March 2008, we raised net proceeds of
    $33.2&#160;million from an initial public offering and
    concurrent direct placement. These net proceeds included
    offering costs of $0.9&#160;million paid prior to fiscal year
    end 2007 and include approximately $1.0&#160;million of offering
    costs paid subsequent the initial public offering. The proceeds
    were used to reduce borrowings under our bank credit facility,
    which included $10.9&#160;million borrowed in March 2008 used to
    pay preferred members for an accrued return on preferred units
    as part of the reorganization.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that our existing cash, cash equivalents and
    available borrowings as well as net proceeds from this offering
    will be sufficient to meet our anticipated cash needs for
    working capital and capital expenditures for at least the next
    12&#160;months. We cannot assure you that this will be the case
    or that our assumptions regarding sales and expenses underlying
    this belief will be accurate, especially given the current
    economic conditions. If in the future, we require more liquidity
    than is available to us under our bank credit facility, we may
    need to raise additional funds through debt or equity offerings.
    Adequate funds may not be available when needed or may not be
    available on terms favorable to us, especially given the current
    tightening of the financial credit markets. If additional funds
    are raised by issuing equity securities, dilution to existing
    stockholders may result. If we raise additional funds by
    obtaining loans from third parties, the terms of those financing
    arrangements may include negative covenants or other
    restrictions on our business that could impair our operational
    flexibility, and would also require us to fund additional
    interest expense. If funding is insufficient at any time in the
    future, we may be unable to develop or enhance our products or
    services, take advantage of business opportunities or respond to
    competitive pressures, any of which could have a material
    adverse effect on our business, financial condition and results
    of operations. It is possible that we may delay or cancel the
    re-refinery project for one or more reasons including, without
    limitation, a significant drop in the price of oil or a
    determination that the re-refinery will not generate the
    benefits to our growth that we currently anticipate. If we delay
    or cancel the re-refinery project, we intend to use the net
    proceeds from the sale of our common stock in the offering for
    general corporate purposes, including to fund working capital
    and other capital expenditures as well as fund potential
    acquisitions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Contractual
    Obligations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our contractual commitments consist of operating leases and
    short-term purchasing commitments. We anticipate that we will
    experience an increase in our debt obligations, capital
    expenditures and lease commitments consistent with our
    anticipated entry into the used oil re-refining industry and
    growth in operations, infrastructure and personnel and
    additional resources devoted to building our network of hubs and
    branches.
</DIV>
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    <BR>
    39
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes our existing obligations as of
    March&#160;27, 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Payments
    Due by Fiscal Year<BR>
    (Dollars in thousands)</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <B>Contractual<BR>
    </B>
</TD>
<TD>
&nbsp;
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&nbsp;
</TD>
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
</TD>
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<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Obligations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2011</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2012</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2013</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2014</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Thereafter</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating lease
    obligations<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,579
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,779
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,629
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Purchase
    obligations<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,419
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,419
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,897
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,086
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,579
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,779
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,629
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    We lease office space, equipment and vehicles under
    noncancelable operating lease agreements which expire through
    2017.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Our purchase obligations are open purchase orders as of
    March&#160;27, 2010, and include capital expenditures relating
    to the construction of our used oil re-refinery and for solvent
    and machine purchases and disposal expense.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer a guarantee for our services. To date, costs relating
    to this guarantee have not been material.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Off-Balance
    Sheet Arrangements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the end of the first quarter of fiscal 2010, we had no
    off-balance sheet arrangements, other than operating leases
    reported above under &#147;&#151;&#160;Contractual
    Obligations.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quantitative
    and Qualitative Disclosures About Market Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are exposed to interest rate risks primarily through
    borrowings under our bank credit facility. Interest on these
    borrowings is based upon variable interest rates. Our weighted
    average borrowings under our bank credit facility during fiscal
    2009 were $0.1&#160;million and the annual effective interest
    rate for fiscal 2009 was 3.25%. We currently do not hedge
    against interest rate risk. Based on the foregoing, a
    hypothetical 1% increase or decrease in interest rates would
    have resulted in a $1,000 change to our interest expense in
    fiscal 2009.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BUSINESS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on revenues, we believe that we are the second largest
    provider of parts cleaning services in the U.S.&#160;and a
    leading provider of containerized waste services that focuses on
    small and mid-sized customers. Our services allow our customers
    to outsource their handling and disposal of parts cleaning
    solvents as well as other containerized waste. Many of these
    substances are subject to extensive and complex regulations, and
    mismanagement can result in citations, penalties, and
    substantial direct costs, both to the service provider and also
    to the generator. We allow our customers to focus more on their
    core business and devote fewer resources to industrial and
    hazardous waste management and, more specifically, the related
    administrative burdens.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer an integrated suite of industrial and hazardous waste
    services including parts cleaning, containerized waste
    management, used oil collection and vacuum truck services. In
    each of our services, we have adopted innovative approaches to
    minimize the regulatory burdens for our customers and have made
    &#147;ease of use&#148; of our services and products a priority.
    Our company has implemented two different programs whereby our
    customers&#146; used solvent may be excluded from the EPA&#146;s
    definition of hazardous waste. In our non-hazardous program, we
    provide our customers an alternative parts cleaning solvent not
    included in the definition of hazardous waste due to its
    increased flashpoint (the minimum temperature at which vapors
    from the solvent will ignite when tested under specified
    laboratory conditions). In our product reuse program, we sell
    used solvent as an ingredient for use in the manufacture of
    asphalt roofing materials.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate within the U.S.&#160;market for industrial and
    hazardous waste services, which we believe is an $8&#160;billion
    market. Specifically, we focus on the parts cleaning,
    containerized waste, used oil services and vacuum services areas
    of the industrial and hazardous waste services markets. We
    estimate the markets in which we currently participate represent
    a $6&#160;billion market opportunity, of which approximately
    $1&#160;billion represents the increase in the market potential
    if the used oil re-refining market is included. Based on
    U.S.&#160;Census Bureau 2007 Economic Census Data, there are
    800,000 establishments in the U.S.&#160;engaged in either
    manufacturing or vehicle maintenance. These establishments have
    a need to remove grease and dirt from machine and engine parts
    with solvent, and include businesses involved in vehicle
    maintenance operations, such as car dealerships, automotive
    repair shops and trucking firms, as well as small manufacturers,
    such as metal product fabricators and printers. These businesses
    also generate waste materials such as used oil or waste paint
    that generally cannot be discarded as municipal trash or poured
    down a standard drain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Parts cleaning machines and solvent are used by mechanics in
    industrial plants and automotive technicians in garages to clean
    dirty machine parts. Through use, the solvent becomes
    contaminated with oil and sediment and must be replaced,
    typically every 4 to 12&#160;weeks. This replacement of solvent
    is subject to environmental regulations prohibiting disposal
    with municipal trash or by pouring down the drain. Because the
    management of these wastes is subject to constantly changing
    regulatory requirements, most businesses need specialized
    knowledge to prepare required paperwork, maintain records and
    ensure compliance with environmental laws. While large
    businesses, which generate substantial volumes of industrial and
    hazardous wastes, generally find it more efficient to employ a
    staff of highly trained employees to manage this waste and
    ensure their compliance with the numerous federal, state and
    local regulations that surround the proper handling of these
    materials, small and mid-sized businesses that generate lesser
    quantities of waste often cannot justify such personnel
    investments. Small and mid-sized businesses typically prefer to
    outsource these services to providers that can assist them in
    their disposal of used solvent as well as other wastes,
    including used oil, waste paint, used oil filters, discarded
    fluorescent light tubes and other materials subject to
    regulations designed to protect the environment from pollution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the national market for industrial and hazardous
    waste services in which we compete continues to grow. We believe
    demand for our services is driven by stable demand for parts
    cleaning and containerized waste services, supported by
    potential growth in other services that result from new
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    41
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<P><HR noshade><P>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    environmental regulations or new product developments.
    Opportunities to take advantage of trends toward outsourcing
    specialized waste services continue to present themselves as
    businesses choose to use full-service third party vendors in
    order to focus their resources on their core business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Through our used oil collection services, we compete in the used
    oil collection market. Automotive shops generate used oil as a
    result of performing oil change activities on passenger cars and
    trucks. Industrial plants also generate used oil, often as a
    result of changing lubricants used in heavy machinery.
    Environmental regulations prohibit the disposal of used oil into
    sewers or landfills, so most commercial generators arrange to
    have their used oil picked up periodically by a used oil
    collector. We believe that there are approximately
    1.4&#160;billion gallons of used oil generated in the
    U.S.&#160;annually, of which approximately 1.0&#160;billion
    gallons are collected, with the difference being lost due to
    improper management and disposal. Roughly 80% of the
    1.0&#160;billion gallons that is collected is sold as fuel to
    asphalt plants, steel mills, and other energy users and is often
    sold at a discount to prices for other fuels such as natural
    gas. The remaining 20% of the 1.0&#160;billion gallons is
    processed by re-refiners and converted into lubricating oil that
    is typically sold for higher prices than used oil fuels.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the future, we intend to operate a used oil re-refinery and
    produce and sell lubricating base oil. Approximately
    2.5&#160;billion gallons of lubricating oils are sold in the
    U.S.&#160;annually, and lubricating base oil is the constituent
    that makes up the vast majority of this volume. Most lubricating
    base oil is produced at refineries that process crude oil, and
    lubricating base oil is just one of the products of the refining
    process along with gasoline, diesel fuel, jet fuel, asphalt, and
    other hydrocarbon products. Major refining companies such as
    Exxon and Shell produce a large share of the total
    U.S.&#160;base oil output, and they use some of this material in
    producing their own branded lubricant products and they also
    sell lubricating base oil to other firms that focus on the
    blending and packaging of lubricants. Historically, lubricating
    base oil has been sold for prices based on the market price of
    the crude oil feedstock plus a premium. Re-refined base oil is
    typically sold at a slight discount to virgin base oil.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Crystal Clean Solution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Through our network of 62 branches, we provide parts cleaning
    and industrial waste removal services to over 41,000 active
    customer locations. During fiscal 2009, we performed more than
    250,000 parts cleaning service calls. Our services allow our
    customers to outsource their handling and disposal of parts
    cleaning solvent and other wastes and related administrative
    responsibilities to us. We believe these services are highly
    attractive to customers, who value features such as assistance
    in preparing waste manifests and drum labels, and
    regularly-scheduled service visits to check inventories and
    remove accumulated waste. Our focus is to meet the service
    requirements of small and mid-sized clients, which we define as
    firms that generally spend less than $50,000 per year on
    industrial and hazardous waste services. Small and mid-sized
    clients have needs that are often highly differentiated from the
    needs of larger accounts. We believe that our company is
    structured to meet these particular needs. Our sales are
    generated primarily from providing parts cleaning and waste
    removal services for our clients, which accounted for
    approximately 94.6% of our sales for fiscal 2009. We also
    generate a minimal amount of sales from the sale of used oil we
    collect from our clients, which accounted for the remaining 5.4%
    of our fiscal 2009 sales.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the parts cleaning industry, used solvent generated by parts
    cleaning customers is typically classified as a &#147;hazardous
    waste&#148; (a term defined in the regulations of the United
    States Environmental Protection Agency or &#147;EPA&#148;), but
    our company has implemented two different programs whereby our
    customers&#146; used solvent may be excluded from the definition
    of hazardous waste. In our non-hazardous program, we provide our
    customers with an alternative solvent not included in the
    EPA&#146;s definition of hazardous waste due to its higher
    flashpoint (the minimum temperature at which vapors from the
    solvent will ignite when tested under specified laboratory
    conditions), and then we recycle that solvent using our
    <FONT style="white-space: nowrap">state-of-the-art</FONT>
    distillation column. In our product reuse program, we sell used
    solvent as an ingredient for use in the manufacture of asphalt
    roofing materials. These two programs not only simplify the
    management of used solvent generated by our customers, but also
    reduce the total volume of hazardous waste generated at many of
    our customers&#146; locations. This can allow the client to
    achieve a lower &#147;generator status&#148; with the EPA and
    thereby reduce its overall regulatory burden. For example, a
    customer who was previously a Large Quantity Generator under EPA
    regulations, after
</DIV>
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    switching to either our non-hazardous program or our reuse
    product program for parts cleaning, may become eligible to be
    reclassified as a Conditionally Exempt Small Quantity Generator,
    which could significantly reduce the number of required reports
    and inspections at its facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Through our used oil collection service, we collect the used oil
    generated by our customers when they replace used lubricating
    oil in vehicles and machinery. Most customers store the used oil
    that they generate in tanks, which must be emptied regularly to
    mitigate the risk of overflow or termination of their oil change
    activities. As a result, these customers have a greater need for
    timely used oil service than with most of our other programs. We
    have designed our services to deliver regularly-scheduled
    pickups and we also have the capability to respond to
    unscheduled requests on short notice. In the future, we intend
    to operate our own used oil re-refinery, and this will enable us
    to provide our customers with the satisfaction that their used
    oil is re-refined into new lubricants using the approach cited
    as preferred by the U.S.&#160;EPA, and will allow them to
    achieve waste minimization objectives more readily than if their
    used oil is burned for energy recovery.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competitive
    Strengths</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     Based on revenues, we believe that we are the second largest
    provider of parts cleaning services in the U.S. and a leading
    provider of containerized waste services targeting small and
    mid-sized customers. From our current base of 62 branch
    locations, we implement an organized and disciplined approach to
    increasing our market share, taking advantage of the following
    competitive strengths:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Large and Highly Diverse Customer Base.</I>&#160;&#160;Our
    focus on small and mid-sized businesses has enabled us to
    attract a variety of customers engaged in a range of businesses
    spread across the spectrum of the manufacturing, vehicle
    service, and transportation industries. Our customer base
    consists of over 41,000 active customer locations. In fiscal
    2009, our largest single customer represented less than 2% of
    our annual sales, and our largest ten customers represented
    approximately 6.2% of our annual sales. This diverse customer
    base helps insulate us from disruption caused by the possible
    loss of a single large account.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Innovative Services that Reduce Customers&#146; Regulatory
    Burdens.</I>&#160;&#160;We have designed our service programs to
    meet the needs of our target customers. In particular, these
    customers desire to minimize their regulatory compliance burdens
    and we have developed innovative methods to help our customers
    achieve this objective. For example, we have created two
    parts-cleaning service programs which each exempt our customers
    from certain hazardous waste regulations and filing requirements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Non-hazardous Program for Parts Cleaning. In our non-hazardous
    program for parts cleaning, we provide our customers with an
    alternative solvent that is not included in the EPA&#146;s
    definition of hazardous waste due to its increased flashpoint,
    and we educate each participating customer to prevent harmful
    contaminants from being added to the solvent during use. Because
    of the reduced solvent flammability, as long as the customer
    doesn&#146;t add toxic or flammable contaminants during use,
    neither the clean solvent that we supply nor the resulting used
    solvent generated by customers participating in our
    non-hazardous program for parts cleaning is classified as
    hazardous waste by the EPA and as a result can be managed as
    non-hazardous waste. After we collect the used solvent from
    customers participating in our non-hazardous program for parts
    cleaning, we recycle it via distillation for re-delivery to our
    parts cleaning customers, while at the same time minimizing the
    burdensome hazardous waste regulations faced by our customers.
    In order to most efficiently operate our non-hazardous program
    for parts cleaning, we have built a solvent recycling system at
    our Indianapolis hub capable of recycling up to 6&#160;million
    gallons per year of used solvent generated by customers
    participating in our non-hazardous program.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Product Reuse Program for Parts Cleaning. Rather than managing
    used solvent as a waste, we have developed a program that uses
    the solvent as an ingredient in the manufacture of asphalt
    roofing materials. Used solvent generated by customers
    participating in our product reuse program for parts cleaning is
    sold as a direct substitute for virgin solvent that is otherwise
    used in the asphalt manufacturing process. Because the used
    solvent is destined for reuse, it is not deemed a waste, and
    therefore it is not subject to hazardous waste regulations. To
    enhance the marketing of these programs, in the past
    20&#160;years we and our predecessor Heritage Environmental
    Services have voluntarily obtained concurrence letters from more
    than 30&#160;state environmental agencies to validate this
    approach.
</TD>
</TR>

</TABLE>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Excellent Customer Service.</I>&#160;&#160;Since our
    founding, we have instilled a standardized, sales-oriented
    approach to our customers across our branch network. Our branch
    personnel are focused on local sales and service delivery, and a
    significant portion of their compensation is linked to sales
    growth and new business development. In order to achieve this
    sales growth, our personnel understand that they must retain
    existing business, which is best achieved by providing a very
    high level of customer service. Our high quality service leads
    to high customer satisfaction, customer retention, cross-selling
    opportunities, and referrals to new prospects. During fiscal
    2009, approximately 88% of our sales were generated from
    customers that we also served during fiscal 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Experienced Management Team.</I>&#160;&#160;Our management
    team has substantial experience in the industry and possesses
    particular expertise in the small to mid-sized customer segment.
    The management team also has industry-leading experience in the
    used oil re-refining industry. Our senior managers have on
    average more than 20&#160;years of industry experience and our
    middle managers have on average more than 10&#160;years of
    experience. Many of our managers held key positions with
    Safety-Kleen between 1986 and 1998 during which time
    Safety-Kleen grew from $255&#160;million to over
    $1.0&#160;billion in annual revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost-Efficient Branch Rollout Model.</I>&#160;&#160;Our
    branch model allows us to consolidate operational and
    administrative functions not critical to sales and service at
    either a regional hub or our headquarters. This model has been
    the foundation for our new branch rollout during the past ten
    years, as we have expanded from 14 to 62 branches, and we expect
    to extend this model to new locations. Furthermore, as we grow
    within each branch, we improve our route density, which is an
    important contribution to profitability in our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Growth
    Strategies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to grow by providing environmental solutions that meet
    the needs of our customers. We have several different strategies
    to accomplish this and they include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Same-Branch Sales Growth.</I>&#160;&#160;We seek to generate
    <FONT style="white-space: nowrap">year-over-year</FONT>
    growth in existing markets by obtaining new customers and by
    cross-selling multiple services to existing customers. Our sales
    and marketing strategy includes providing significant incentives
    to our field sales and service personnel to find and secure new
    business. These incentives include commission compensation for
    individuals and managers, as well as prize awards and contests
    at the individual and team level. Our company culture is
    designed to consistently emphasize the importance of sales and
    service excellence, and to build and maintain enthusiasm that
    supports continued sales success. Additionally, we intend to
    drive profitability by leveraging fixed costs against
    incremental sales growth at our existing branches.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expanded Service Offerings.</I>&#160;&#160;All of our
    branches currently offer parts cleaning and containerized waste
    management services. Other services that we provide, including
    used oil collection services and vacuum truck services, are
    currently offered in less than half of our branch locations. As
    part of our effort to enter the used oil re-refining industry,
    we intend to accelerate the number of branches providing used
    oil collection services. As our business grows and we achieve
    sufficient market penetration, we expand the number of services
    offered at our branches. We also have other new business
    programs in various stages of development and these have the
    potential to be offered through our branch locations in the
    future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Geographic Expansion.</I>&#160;&#160;We currently operate
    from 62 branch locations that offer our parts cleaning and
    containerized waste management services to customers in
    39&#160;states and the District of Columbia. We have
    historically been able to install new branches at a relatively
    low cost. Within the contiguous United States, we believe that
    there are opportunities to open more branches and provide
    convenient local service to additional markets. In the future,
    we believe that there will be opportunities to offer our
    services in international markets as well.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selectively Pursue Acquisition
    Opportunities.</I>&#160;&#160;Our management team has
    significant experience in identifying and integrating
    acquisition targets. During the past nine years, we have
    successfully acquired the assets of several small competitors.
    Given the number of small competitors in our business, there are
    generally multiple acquisition opportunities available to us at
    any given time. Our growth plan is not dependent on
    acquisitions, but we will continue to pursue complementary
    acquisitions that leverage our established infrastructure.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Development
    of Used Oil Re-refinery</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have recently announced plans to develop a used oil
    re-refinery to convert used oil into re-refined lubricating base
    oil. We collect used oil from our customers as part of our core
    service offerings, and we typically sell the used oil we collect
    today as a fuel. Our development of a used oil re-refinery will
    enable us to increase the resale value of the used oil we
    collect, which we believe will improve our margins and provide
    us with a significant competitive advantage over most other used
    oil collectors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the development of a used oil re-refinery fits
    into our strategic growth plans for the following reasons:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We expect that the used oil we will collect from our customers
    will supply a significant portion of the used oil to be
    processed at the re-refinery because this service is needed by
    almost all of our current and target customers. Our network of
    62 branches provides us with an opportunity to efficiently
    collect used oil from a broad geographic area for re-refining.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We believe that a strong demand for re-refining capabilities
    exists since we estimate that only 20% of the one billion
    gallons of used oil collected in North America is routed to
    re-refining due to a lack of used oil re-refining capacity.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Re-refining is a preferred approach to used oil management based
    on a variety of environmental considerations, including resource
    recovery and reuse, energy efficiency and pollution prevention.
    Re-refining of used oil recovers more of the economic value of
    the resource than alternative methods such as burning for energy
    recovery.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We have extensive experience with the design, construction and
    operation of used oil re-refineries as several members of our
    management were significant contributors to the development of
    approximately 75% of the used oil re-refining capacity in North
    America while employed at Safety-Kleen, Inc.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The re-refining process has been used in the United States for
    decades to remove impurities from used oil and create
    lubricating base oil that can be re-used in place of virgin
    lubricating oil. The process generally consists of two steps:
    first, vacuum distillation to separate the base lubricating oil,
    followed by hydrotreating to remove impurities. We estimate that
    less than 10% of the base lubricating oil supply in the United
    States is currently supplied by re-refineries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe the three key components to a re-refining business
    are used oil supply, re-refining technology and lubricating oil
    product sales. Our goal is to collect enough used oil feedstock
    to eventually ensure self-sufficient plant operation, although
    used oil feedstock is also available for purchase from third
    party suppliers. We intend to leverage our used oil collection
    network to generate this supply. Production of marketable
    lubricating oil from feedstock requires complex processes,
    robust screening and testing programs, and advanced re-refining
    technology. We believe a management team with extensive
    experience with these processes and technologies is necessary to
    design, build and operate a successful plant. We expect that our
    re-refinery will produce high quality lubricating base oils.
    Based on our management team&#146;s prior experience with the
    design, construction and operation of used oil re-refineries, we
    have entered into preliminary discussions with several potential
    purchasers of re-refined lubricating base oil.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are designing our re-refinery to have an input capacity of
    approximately 50&#160;million gallons of used oil feedstock per
    year and expect to produce about 30&#160;million gallons of
    lubricating base oil per year. We plan to construct our
    re-refinery in Indiana. We estimate that the construction of the
    re-refinery will take approximately two years, allowing us to
    begin operations at partial capacity in 2012, and have a total
    capital cost of approximately $40&#160;million. We also
    anticipate that when the re-refinery starts operations, we will
    feed the re-refinery with a combination of used oil collected
    from our customers and used oil that we purchase from third
    parties. In 2009, we collected 4.3&#160;million gallons of used
    oil from our customers. During the construction period, we plan
    to roll out additional used oil collection routes to increase
    the volume of used oil we collect, and we estimate that during
    fiscal 2010 and 2011 we will incur roughly $1&#160;million and
    $1.5&#160;million of net expense, respectively, related to this
    roll out. We also expect that the operations of the re-refinery
    will increase our working capital requirements by approximately
    $5&#160;million to $10&#160;million.
</DIV>
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    The expected revenue and profitability of this project will
    depend on a large number of factors, some of which are beyond
    our control, such as crude oil and lubricating oil prices and
    the costs of operations, but based on market conditions and
    crude oil prices prevailing in March 2010, we estimate that when
    the re-refinery is operating at full capacity, it will generate
    approximately $90&#160;million of annual revenue and have
    operating margins of approximately 20%.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Services</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of our services are designed to cater to small to mid-sized
    clients whom we define as those customers who spend less than
    $50,000 per year on industrial and hazardous waste services. We
    have adopted innovative approaches to minimize the regulatory
    burdens associated with hazardous waste disposal for our
    customers and have made &#147;ease of use&#148; of our services
    and products a priority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Across our full range of services, we focus on reducing our
    customers&#146; burdens associated with their generation of
    <FONT style="white-space: nowrap">hard-to-handle</FONT>
    wastes. Many of these wastes are subject to extensive and
    complex regulations, and mismanagement can result in citations,
    penalties, and substantial direct costs, both to the service
    provider and the generator. Many customers are familiar with
    &#147;Superfund liability&#148; and the possibility that they
    will be required to pay for future cleanups if their waste is
    mismanaged in a way that leads to environmental damage. Our
    services allow customers to focus more on their core business
    and devote fewer resources to industrial and hazardous waste
    management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer an integrated suite of industrial and hazardous waste
    services including parts cleaning, containerized waste
    management, used oil collection and vacuum truck services. A
    significant majority of our customers use our parts cleaning
    <FONT style="white-space: nowrap">and/or</FONT> waste
    management services. Parts cleaning and containerized waste
    management represented substantially more than half of our sales
    in fiscal 2009 and are offered at all our branches. Because our
    efforts to expand our used oil collection and vacuum truck
    services have started more recently, these services are
    currently offered at less than half of our branches and we
    generate less sales from these services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our parts cleaning services, we provide customers with parts
    cleaning equipment and chemicals to remove oil and grease and
    other contaminants from engine parts and machine parts requiring
    cleaning. Most commonly, we provide a parts cleaning machine
    that contains a petroleum-based solvent in a reservoir. The
    customer activates a pump that circulates the solvent through a
    nozzle where it is used to clean parts. The solvent can be
    reused for a period of time, after which it becomes too dirty
    and needs replacement. We typically visit our customers every 4
    to 12&#160;weeks to remove the used solvent and replace it with
    clean solvent while at the same time also cleaning and checking
    the customers&#146; parts cleaning equipment to ensure that it
    is functioning properly and assisting our customers with
    relevant regulatory paperwork. We believe that the majority of
    parts cleaning services in the U.S.&#160;are structured as
    hazardous waste services, meaning that when the solvent has been
    used, it is managed as a regulated hazardous waste subject to
    numerous laws and regulatory filings. We reduce this burden for
    our customers by offering two alternative parts cleaning
    programs (our non-hazardous and reuse programs for parts
    cleaning) that do not subject the customer to the same hazardous
    waste regulations. These low-burden approaches help our
    customers achieve regulatory compliance while minimizing the
    paperwork and bureaucracy associated with hazardous waste
    management&#160;&#151; ultimately saving them time and money.
    For example, these programs currently enable many of our
    customers to reduce their generation of hazardous wastes below
    the 220 pounds per month maximum threshold for retaining the EPA
    generator status of Conditionally Exempt Small Quantity
    Generator (&#147;CESQG&#148;). For our customers, maintaining a
    CESQG status provides significant savings associated with not
    having to maintain an EPA identification number; prepare, track
    and file transportation manifests; or produce other reports
    related to the use, storage and disposal of used solvents. We
    offer more than a dozen different models of parts cleaning
    machines from which our customers may choose the machine that
    best fits their specific parts cleaning needs. While the
    majority of our customers are provided machines directly from us
    and in some cases are sold a machine, we also offer parts
    cleaning service for customers who purchase their parts cleaning
    machines from other sources. We offer a variety of petroleum
    solvents and water-based (aqueous) chemicals for use in parts
    cleaning machines. We also have a wide range of service
    schedules from weekly service visits to triannual service visits.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our containerized waste services, we collect drums, pails,
    boxes, and other containers of hazardous and non-hazardous waste
    materials from our customers. Typical wastes from vehicle
    maintenance include used antifreeze, used oil filters, waste
    paint, and used absorbent material. Typical wastes from
    manufacturing operations include waste paint and solvents, oily
    water wastes, used absorbents, and discarded fluorescent
    lighting tubes. We endeavor to find the lowest burden regulatory
    approach for managing each of these materials for our clients.
    In some cases, we can develop lower burden alternatives based on
    recycling materials for component recovery (oil filters) or by
    following the less onerous universal waste regulations
    (fluorescent tubes and waste paint). In other cases, the
    hazardous waste regulations may apply, in which case we assist
    customers with the complete hazardous waste disposal process,
    including analysis to characterize their waste, preparation of
    manifests and drum labels, and selection of the appropriate
    destination facility. As part of our full-service approach, we
    visit our customers periodically to check their inventory of
    used or waste materials, and remove full containers as
    appropriate. Because there are statutory limits on the amount of
    time that a customer can store these waste materials, these
    service visits are valuable to help the customer stay in
    compliance. To the extent that we can coordinate these service
    visits together with a regularly scheduled parts cleaning
    service, we are able to perform both tasks during the same
    visit, with the same truck and service employee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In selected branch locations (18 as of March&#160;27, 2010), we
    provide bulk used oil collection services. Although we manage
    some used oil through our containerized waste program, most
    customers who generate used oil (typically from vehicle engine
    oil changes) produce large quantities that are stored in bulk
    tanks, and these volumes are handled more efficiently via bulk
    tank trucks such as those that we utilize. We test the used oil
    to verify that there are no unwanted contaminants and pump the
    customer&#146;s material into our tank truck for proper
    management. Generally, the used oil that we collect is resold as
    an industrial fuel or as feedstock for a used oil recycling
    process. As with our other services, we offer to visit the
    customer on a regularly scheduled basis to arrange for the
    removal of their accumulated oil. This alleviates the
    customer&#146;s burden of periodically checking to see if they
    require service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In selected branch locations (26 as of March&#160;27, 2010), we
    provide vacuum truck services for the removal of mixtures of
    oil, water and sediment from wastewater pretreatment devices.
    Many shops and plants have floor drain systems that lead to
    pits, sumps, or separators that are designed to separate and
    retain oil and dirt, but allow clear water to flow out to a
    municipal sewer. Periodically, these drains and collection
    points accumulate excess oil or sediment that needs to be
    removed. Because some of the material is very thick, a
    specialized vacuum truck is utilized for efficient pumping. Our
    vacuum truck service includes the removal of the oil, water, and
    sediment so that the customer&#146;s equipment operates as
    intended. These services are also scheduled on a regular basis.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Customers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;27, 2010, we had over 41,000 active customer
    locations. Our business focuses on customers primarily in two
    industries. Our vehicle maintenance customers are primarily
    businesses that repair and maintain cars and trucks. Our
    manufacturing customers are businesses that produce goods for
    resale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within the vehicle maintenance group, customers include: car
    dealerships, automotive repair shops, car rental firms, quick
    lube operators, truck fleet operators, and equipment rental
    businesses. Many of the customers are familiar with and already
    use a parts cleaning service. In the case of vehicle maintenance
    customers, contact with the key decision-maker regarding
    selection of a parts cleaning service provider can be quite
    informal and a uniformed service representative may succeed in
    making an impromptu sales presentation without an advance
    appointment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within the manufacturing group, customers include small and
    mid-sized metalworking firms, printers, machine shops, and
    electrical shops. Often, these customers have a maintenance
    department that is responsible for the maintenance and repair of
    their production equipment and are therefore target customers
    for parts cleaning and other environmental services. In contrast
    to automotive customers, the typical manufacturing customer is
    relatively less familiar with parts cleaning, and the individual
    responsible for selecting a parts cleaning service provider is
    more difficult to identify and contact. Often, selling to these
    customers requires a more persistent sales approach from one of
    our more senior sales personnel with an advance appointment and
    a structured sales presentation.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During fiscal 2009, 88.4% of our sales were generated from
    customers that we also served during fiscal 2008. In addition,
    our largest client in fiscal 2009 represented less than 2% of
    sales, which reflects our diverse customer base. We generally do
    business with customers using our standard contract form, which
    allows for price increases and automatic renewal for successive
    one-year terms unless notice of termination is provided in
    specified time frames. Our standard agreement also requires the
    customer to properly disclose to us the materials that they
    generate and includes other terms that are customary to the
    environmental services industry.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Sales and
    Marketing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our mission and culture emphasize sales and service excellence
    and entrepreneurship. Our field sales employees are each
    assigned their own territory, with direct individual
    responsibility for serving customers on their route and growing
    their business in their territory.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our sales philosophy starts with the principle of &#147;sales
    through service.&#148; We require and encourage our
    sales&#160;&#038; service representatives, or SSRs, to grow
    their business on their route by delivering excellent service to
    existing customers. This helps our SSRs retain business, sell
    more services to satisfied customers, and obtain valued
    referrals to potential new customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the efforts of our SSRs, we employ a branch
    manager at each of our branches, and we also employ branch sales
    managers, all of whom have dedicated sales territories and
    responsibilities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate a network of 62 local branches. Most of our locations
    include an area to store drums, an inventory of parts cleaners
    and other supplies, an area to park trucks and trailers, and a
    small office space while others may only include an area to park
    trucks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain operating hubs in Indianapolis, Indiana; Shreveport,
    Louisiana; Philadelphia, Pennsylvania; and Atlanta, Georgia.
    These operating hubs are warehouse operations with the
    capability to receive and unload multiple trailers. Depending on
    whether the used solvent came from our non-hazardous program or
    our reuse program, the used solvent is then stored for future
    sale, shipped in bulk for reuse, or stored for future recycling
    at our solvent recycling system located at our Indianapolis hub.
    The drums of hazardous and non-hazardous waste are organized
    based on the destination facility. These drums are staged and
    loaded back into trailers for reshipment to recyclers,
    incinerators, landfills, and
    <FONT style="white-space: nowrap">waste-to-energy</FONT>
    facilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While we ship collected materials to third parties, we also
    recycle a portion of our used parts cleaning solvent with our
    non-hazardous solvent recycling system at our Indianapolis hub.
    This system, which was completed in late fiscal 2007, allows us
    to recycle used solvent generated by customers participating in
    our non-hazardous program for parts cleaning. To participate in
    this program, our customers must provide certification that no
    hazardous wastes have been added to the parts cleaning solvent.
    After being recycled to remove oil, water, and other impurities,
    the resulting solvent is suitable to be re-used by our customers
    for parts cleaning. This enables us to reduce the feedstock
    inventory available for recycling as well as reduce the amount
    of virgin product purchases. Our non-hazardous solvent recycling
    system is designed to process up to 6&#160;million gallons per
    year, which provides significant capacity in excess of our
    current requirements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Suppliers
    and Recycling/Disposal Facilities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We purchase goods such as parts cleaning machines, solvent
    (petroleum naptha mineral spirits), cleaning chemicals and
    absorbent from a limited group of suppliers. We also have
    arrangements with various firms that can recycle, burn, or
    dispose of the waste materials we collect from customers. These
    suppliers and disposal facilities are important to our business
    and we have identified backup suppliers in the event that our
    current suppliers and disposal facilities cannot satisfy our
    supply or disposal needs. Heritage Environmental Services, an
    affiliate of Heritage, which beneficially owns
    3,389,958&#160;shares of our common stock as of May&#160;17,
    2010, operates one of the largest privately-owned hazardous
    waste treatment businesses in the U.S.&#160;and we have used
    their hazardous waste services in the past and plan to continue
    some level of use in the future.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Competition</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The markets for parts cleaning, containerized waste management,
    used oil collection and vacuum truck services in which we
    participate are intensely competitive. While numerous small
    companies provide these services, our largest competitor,
    Safety-Kleen, has held substantial market share in the parts
    cleaning industry for the last four decades and has developed
    significant market share in used oil re-refining, used oil
    services and containerized waste management. Safety-Kleen
    operates throughout the continental U.S.,&#160;Puerto Rico and
    Canada through a network of approximately 166 branches. We
    believe that Safety-Kleen and some of our other competitors have
    substantially greater financial and other resources and greater
    name recognition than us. We estimate that in the parts cleaning
    business, Safety-Kleen is significantly larger than us, and that
    we are substantially larger than the next largest competitor.
    Other competitors tend to be smaller regional firms or parts
    cleaning companies operating in a single city only. Although
    many of our small competitors lack the resources to offer
    clients a full menu of services, they generally offer parts
    cleaning services ancillary to a primary line of business such
    as used oil collection, in order to present a more complete menu
    to customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The markets for containerized waste, used oil collection and
    vacuum truck services are highly fragmented and comprised of a
    variety of large and small competitors. In addition, companies
    involved in the waste management industry, including waste
    hauling, separation, recovery and recycling, may have the
    expertise, access to customers and financial resources that
    would encourage them to develop and market services and products
    competitive with those offered by us. We also face competition
    from alternative services that provide similar benefits to our
    customers as those provided by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Price, service quality and timeliness, breadth of service
    offering, reputation, financial strength, and compliance history
    are the principal competitive factors in the markets in which we
    compete. While we feel that most market competitors compete
    primarily on price, we believe that our competitive strength
    comes from our focus on customer service and our broad menu of
    services. Although we employ a pricing structure that allows
    only limited discounts, we are able to deliver a sound value
    proposition through the reduced regulatory burden achieved
    through our programs. We could lose a significant number of
    customers if Safety-Kleen, or other competitors, materially
    lower their prices, improve service quality, develop other more
    competitive product and service offerings or offer a
    non-hazardous or reuse program for parts cleaning more appealing
    to customers than ours.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Technology</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that automation and technology can enhance customer
    convenience, lower labor costs, improve cash management and
    increase overall profitability. We are constantly evaluating
    opportunities to develop technologies that can improve our sales
    and service processes. Our commitment to the application of
    technology has resulted in the creation of a custom web-based
    application for scheduling, tracking and management of customer
    services, billing, and collections. This application utilizes an
    Oracle
    <SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>

    database along with Microsoft
    <SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>

    web servers using standard development tools. This system has
    been used as an integral part of our business operations for
    more than six years. We believe that our standardized processes
    and controls enhance our ability to successfully add new
    branches and expand our operations into new markets. Handheld
    devices are used by our employees in the field to access
    customer service information through a mobile web interface.
    Statistics are gathered and reported on a daily and weekly basis
    through sales personnel and document processing. This provides
    timely, automated data measurement and compensation information
    for sales activities including incentives and contests that
    rapidly reward performance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;27, 2010, we employed 474 full time and 45 part
    time employees. None of our employees are represented by a labor
    union or covered by a collective bargaining agreement. We
    believe that our employee relations are good.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Regulation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Substantially all of our services and products involve the sale,
    transportation, storage, recycling
    <FONT style="white-space: nowrap">and/or</FONT>
    disposal of industrial and hazardous waste or hazardous
    materials, including solvents used in parts cleaners,
    containerized waste including used oil, waste paint, inks,
    adhesives, and used oil filters; and bulk waste including used
    oil and oily water. Our services are highly regulated by various
    governmental agencies at the federal, state, and local levels,
    including the Environmental Protection Agency (EPA); the
    Department of Transportation (DOT); the Department of Labor
    Occupation, Safety and Health Administration (OSHA); and the
    Equal Employment Opportunity Commission. The most significant
    federal environmental laws affecting us are the Resource
    Conservation and Recovery Act (RCRA), the Comprehensive
    Environmental Response Compensation and Liability Act of 1980,
    as amended, (CERCLA), the Clean Air Act (CAA), the Clean Water
    Act (CWA), and the Toxic Substances Control Act (TSCA), and the
    regulations promulgated thereunder. Our services and products
    require us to comply with these laws and regulations and to
    obtain federal, state, and local environmental permits or
    approvals for some of our operations. Some of these permits must
    be renewed periodically and governmental authorities have the
    ability to revoke, deny or modify these permits. Zoning, land
    use and siting restrictions also apply to our facilities.
    Regulations also govern matters such as the disposal of residual
    chemical wastes, operating procedures, storm water and
    wastewater discharges, fire protection, worker and community
    <FONT style="white-space: nowrap">right-to-know</FONT>
    and emergency response plans. Air and water pollution
    regulations govern certain operations at our facilities. OSHA
    safety standards are applicable to all of our operations.
    Governmental regulations apply to the vehicles used by us to
    transport the chemicals distribute to customers and the waste
    and other residuals collected from customers. These vehicle
    requirements include the licensing requirements for the vehicles
    and the drivers, vehicle safety requirements, vehicle weight
    limitations, shipping papers, and vehicle placarding
    requirements. Governmental authorities have the power to enforce
    compliance and violators are subject to civil and criminal
    penalties. Private individuals may also have the right to sue to
    enforce compliance with certain of the governmental requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to federal and state regulations governing
    hazardous and solid wastes. RCRA is the principal federal
    statute governing hazardous waste generation, treatment,
    transportation, storage and disposal. Under RCRA, the EPA has
    established comprehensive
    <FONT style="white-space: nowrap">&#147;cradle-to-grave&#148;</FONT>
    regulations for the management of a wide range of materials
    identified as hazardous or solid waste. The regulations impose
    technical and operating requirements that must be met by
    facilities used to store, treat, and dispose of these wastes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Federal hazardous and solid waste regulations impose
    requirements which must be met by facilities used to store,
    treat and dispose of these wastes. Our operations are governed
    by <FONT style="white-space: nowrap">10-day</FONT>
    transfer requirements and do not typically require a hazardous
    waste facility permit. Under RCRA, states are delegated to
    implement the regulatory programs through state regulations,
    which can be more stringent than those of the federal EPA. We
    have obtained a facility waste permit for our Baltimore,
    Maryland branch and are currently are pursuing waste permits in
    both Connecticut and New Hampshire because these states have
    more stringent programs and do not allow the typical
    non-permitted
    <FONT style="white-space: nowrap">10-day</FONT>
    transfer option. We operate 60
    <FONT style="white-space: nowrap">10-day</FONT>
    transfer operations in the U.S.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CERCLA regulates cleanup of inactive hazardous waste sites and
    imposes liability for the cleanup on &#147;responsible
    parties.&#148; CERCLA further provides for immediate response
    and removal actions coordinated by EPA to releases of hazardous
    substances into the environment, and authorizes the government
    to respond to the release or threatened release of hazardous
    substances or to order responsible persons to perform any
    necessary cleanup. CERCLA imposes strict liability on current or
    former owners and operators of facilities that release hazardous
    substances into the environment, as well as on businesses that
    generate those substances or transport them to the facilities.
    Responsible parties may be liable for substantial investigation
    and cleanup costs even if they operated their businesses
    properly and complied with applicable federal and state laws and
    regulations. Liability under CERCLA may be joint and several.
    Certain of our customers&#146; and third-party contractors&#146;
    facilities have been in operation for many years and, over time,
    the operators of these facilities may have generated, used,
    handled, and disposed of hazardous and other regulated wastes.
    Environmental liabilities could therefore exist under CERCLA,
    including cleanup obligations at these facilities or off-site
    locations where materials from our operations were disposed of.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Proceedings are currently pending involving a site where we were
    notified by the EPA that we are a potentially responsible party
    (&#147;PRP&#148;). We are participating in discussions with the
    parties and the government
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    at this site and a draft settlement agreement is pending. Our
    general liability insurance provider is currently defending this
    claim on our behalf. From time to time, the EPA requests
    information from us to ascertain if we may be a PRP at other
    sites.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to regulations under RCRA and CERCLA, the EPA has
    adopted regulations under the Clean Air Act and the Clean Water
    Act. The Clean Air Act regulates emissions of pollutants into
    the air and requires that permits be obtained for certain
    sources of air emissions, including parts cleaning units.
    Regulations under the Clean Water Act govern the discharge of
    pollutants into surface waters and sewers and require discharge
    permits and sampling and monitoring requirements.
    &#147;Pretreatment&#148; regulations establish pretreatment
    standards for introduction of pollutants into publicly owned
    treatment works.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our transportation fleet, truck drivers, and transportation of
    hazardous materials are also regulated by the
    U.S.&#160;Department of Transportation, as well as by the
    regulatory agencies of each state in which we operate or through
    which our vehicles pass. Health and safety standards under the
    Occupational Safety and Health Act are also applicable to our
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A number of states have regulatory programs governing the
    operations and permitting of hazardous and solid waste
    facilities. In addition, some states classify as hazardous some
    wastes that are not regulated under RCRA. Accordingly, we must
    comply with the state requirements for handling state regulated
    wastes. Similarly, our operations are regulated pursuant to
    state statutes, including those addressing clean water and clean
    air.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 1997, the South Coast Air Quality Management District
    in California (the &#147;SCAQMD&#148;), enacted Rule&#160;1171,
    which prohibits the use of types of solvents that we currently
    sell for parts cleaning operations. In the areas of California
    affected by this or similar regulations (including Los Angeles,
    San&#160;Francisco and Sacramento), aqueous parts cleaning is
    the primary substitute. Although other states have not passed
    regulations similar to Rule&#160;1171, we cannot predict if or
    when other state
    <FONT style="white-space: nowrap">and/or</FONT> local
    governments will promulgate similar regulations which may
    restrict or prevent the use of solvent for parts cleaning. We
    currently have one branch located in Los Angeles, California.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    More specifically to our parts cleaning services, federal and
    state laws and regulations dictate and restrict to varying
    degrees what types of cleaning solvents may be used, how a
    solvent may be stored, and the manner in which contaminated or
    used solvents may be handled, transported, disposed of, or
    recycled. These legal and regulatory mandates have been
    instrumental in shaping the parts cleaning industry. Any changes
    to, relaxation of, or repeal of federal or state laws and
    regulations affecting the parts cleaning industry may
    significantly affect the demand for our products as well as our
    competitive position in the market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Federal and state regulations have restricted the types of
    solvents that may be used in vehicle maintenance and industrial
    parts cleaning machines and used parts cleaning solvent is often
    classified as hazardous waste under the regulations. We have
    developed methods of managing solvent as non-hazardous so as to
    significantly reduce the regulatory burden on us and on our
    customers. In our product reuse program for parts cleaning, we
    have developed a use for used solvent as an ingredient in
    manufactured asphalt roofing materials. Because the solvent is
    used as a direct substitute for virgin solvent and is destined
    for reuse as an ingredient in the manufacturing process, it is
    not subject to hazardous waste regulations. In the past fifteen
    years, we and our predecessor Heritage Environmental Services
    have voluntarily obtained concurrence letters from more than
    30&#160;state environmental agencies to validate this approach.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our non-hazardous program for parts cleaning, we provide
    customers with solvents that do not exhibit the ignitability
    characteristic for liquid hazardous wastes as defined under RCRA
    and we work with our customers to reduce the likelihood that
    toxic or flammable materials are added to the solvent during
    use. When used in accordance with its intended purpose and
    instructions, this used solvent is not subject to regulation as
    a &#147;hazardous waste&#148; and we are able to manage the used
    solvent as RCRA non-hazardous.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The EPA has also promulgated regulations that govern the
    management of used oils. Although used oil is not classified as
    a hazardous waste under federal law, certain states do regulate
    used oil as state-regulated wastes. Our used oil collection
    services require compliance with both federal and state
    regulations. As with our parts cleaning services, we make use of
    various programs to reduce the administrative burden associated
    with our customers&#146; compliance with hazardous regulations
    for their used oils. EPA has recently proposed regulations
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    governing the burning of certain materials not previously
    regulated under combustion rules, including non-specification
    used oil. We do not anticipate any negative impacts from this
    pending court ordered regulation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The used oil re-refinery we plan to construct in Indiana will
    require construction permits, air permits and storm water
    management permits. Some of these permits are required prior to
    construction of the re-refinery and others are required for the
    re-refinery&#146;s operation.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Facilities</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our headquarters is based in a 23,100&#160;square foot leased
    facility in Elgin, Illinois. We have 4 hubs and 62 branches that
    vary in size. Depending on the maturity of our branches, our
    branch facilities range from small locations that only provide
    space to park a few vehicles to larger locations that provide
    office space and warehouse storage as well as additional
    parking. Three of our four hubs and all of our branch locations
    are leased with terms ranging from
    <FONT style="white-space: nowrap">month-to-month</FONT>
    up to 5&#160;years, and in some cases with options to extend the
    lease term for up to 15&#160;years. In fiscal 2009, we completed
    the purchase of the industrial real estate and equipment that we
    had been occupying as a tenant in Indianapolis, Indiana which is
    the location of our largest hub and the site of our solvent
    recycling tower.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following map sets forth the states in which we provide
    services:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="c58173c5817301.gif" alt="(MAP)">
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Legal
    Proceedings</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not currently party to any legal proceedings that we
    expect, either individually or in the aggregate, to have a
    material adverse effect on our business or financial condition.
    From time to time, we are involved in lawsuits that are brought
    against us in the normal course of business.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">U.S.
    Environmental Protection Agency vs. Heritage-Crystal Clean, LLC
    et al</FONT></I></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;7, 2006, Heritage-Crystal Clean was notified by
    the EPA that we were named as a potentially responsible party in
    the Hassan Barrel site CERCLA cleanup conducted by the EPA in
    Fort&#160;Wayne, Indiana. We were one of at approximately
    65&#160;companies that sent empty containers to Hassan Barrel
    for reconditioning or scrapping. Hassan Barrel subsequently
    abandoned their operation and left thousands of containers of
    drum reconditioning waste at their site. U.S.&#160;EPA performed
    a Superfund Removal Action to segregate and remove waste
    materials. EPA then pursued legal action against parties that
    paid Hassan to recondition drums. EPA pursued cost recovery for
    their activities and directed the potentially responsible
    parties to do a subsurface environmental study and subsequent
    soil removal. The Company and other responsible parties
    negotiated a settlement agreement with the EPA to implement a
    work plan to restore the site. The initial study and soil
    removal has been completed and EPA is reviewing results to
    determine if further action is required. We believe that we have
    insurance coverage for our exposure in this matter, including
    our legal costs, and our expenses to date have been paid for by
    our insurance carrier.
</DIV>
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    52
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Officers and Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following persons are our directors and executive officers
    as of the date of this prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="55%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Name</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Position</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joseph Chalhoub
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    64
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President, Chief Executive Officer and Director
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John Lucks
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    56
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Sales and Marketing
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory Ray
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    49
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Financial Officer, Vice President, Business Management and
    Secretary
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tom Hillstrom
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    50
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Operations
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fred Fehsenfeld, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    59
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Donald Brinckman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    79
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bruce Bruckmann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    56
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Carmine Falcone
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    63
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles E. Schalliol
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    62
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert W. Willmschen, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    62
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the following are key employees as of the date of
    this prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="55%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Name</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Position</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mike DeAngelis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    64
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Sales &#038; Service Division 1
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Glenn Jones
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    60
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Sales &#038; Service Division 2
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Joseph
    Chalhoub<BR>
    President, Chief Executive Officer and Director</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Chalhoub, founder of Heritage-Crystal Clean, LLC, has
    served as our President, Chief Executive Officer and director
    since the formation of the Company in 1999. He started his
    career with Shell Canada as a process engineer, and he then
    worked for several years at SNC, an engineering firm. In 1977 he
    founded Breslube Enterprises and built this into the largest
    used oil re-refiner in North America before selling a
    controlling interest to Safety-Kleen in 1987. Mr.&#160;Chalhoub
    then served as an executive of Safety-Kleen from 1987 to 1998
    and he was President of Safety-Kleen from 1997 to 1998.
    Mr.&#160;Chalhoub holds a Chemical Engineering degree with high
    distinction from &#201;cole Polytechnique, Montr&#233;al. The
    Board has concluded that Mr.&#160;Chalhoub should be a director
    for the Company because he is President and Chief Executive
    Officer. In addition, his significant stock ownership in our
    Company aligns his interests with those of other stockholders.
    We and the Board benefit from his prior experience and knowledge
    gained as a senior executive of both our Company and at
    Safety-Kleen.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">John
    Lucks<BR>
    Vice President of Sales and Marketing</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Lucks has served as our Vice President of Sales and
    Marketing since May&#160;6, 2010 and prior to that as our Vice
    President of Sales since 2000. From 1988 to 1997, Mr.&#160;Lucks
    served as the Vice President of Industrial Marketing and
    Business Management of Safety-Kleen, where he was in charge of
    and oversaw a $300&#160;million revenue business unit.
    Mr.&#160;Lucks also led the development of several lines of
    business, in particular the industrial parts cleaning and drum
    waste business which became the largest segment of Safety-Kleen.
    Mr.&#160;Lucks has over 30 of years experience in the industrial
    and hazardous waste services industry.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Gregory
    Ray<BR>
    Chief Financial Officer, Vice President, Business Management and
    Secretary</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Ray has served as our Vice President, Business
    Management since 1999. In addition, Mr.&#160;Ray has served as
    our Secretary since 2004, and as our Chief Financial Officer
    since June 2007. From 1998 to 1999, Mr.&#160;Ray served as the
    Vice President, Business Management of Safety-Kleen, where he
    was in charge of and oversaw a $700&#160;million revenue
    business unit. While in that position, Mr.&#160;Ray was
    responsible for managing and expanding the used oil collection
    service and establishing the first nationwide used oil program.
    From
</DIV>
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    <BR>
    53
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1983 to 1993, Mr.&#160;Ray helped establish the used oil
    recycling business of Evergreen Oil. Mr.&#160;Ray has over
    20&#160;years of experience in the industrial and hazardous
    waste services industry.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tom
    Hillstrom<BR>
    Vice President of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Hillstrom has served in various capacities since
    joining Heritage-Crystal Clean, LLC in 2002. He is currently our
    Vice President of Operations. From 1983 to 2000,
    Mr.&#160;Hillstrom served in various functions at Safety-Kleen.
    He was the Facility Manager for the East Chicago oil re-refinery
    during its
    <FONT style="white-space: nowrap">start-up</FONT> and
    first years of operation, and from 1996 to 1998, he was Director
    of Planning and Evaluation, where he was responsible for
    strategic planning and acquisitions. Mr.&#160;Hillstrom holds a
    chemical engineering degree from University of Notre Dame, South
    Bend, Indiana.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mike
    DeAngelis<BR>
    Vice President of Sales&#160;&#038; Service
    Division&#160;1</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;DeAngelis has served as our Vice President of
    Sales&#160;&#038; Service Division&#160;1 since 1999. From 1998
    to 1999, Mr.&#160;DeAngelis served as the Divisional Vice
    President (Central Division) of Safety-Kleen, where he was in
    charge of and oversaw a $400&#160;million sales division.
    Mr.&#160;DeAngelis has over 35&#160;years of experience in the
    industrial and hazardous waste services industry.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Glenn
    Jones<BR>
    Vice President of Sales&#160;&#038; Service
    Division&#160;2</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Jones has served as our Vice President of
    Sales&#160;&#038; Service Division&#160;2 since 2001. From 1994
    to 2000, Mr.&#160;Jones served as the Divisional Vice President
    (Western Division) of Safety-Kleen, where he was in charge of
    and oversaw a $300&#160;million sales division. Mr.&#160;Jones
    has over 25&#160;years of experience in the industrial and
    hazardous waste services industry.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fred
    Fehsenfeld, Jr.<BR>
    Director</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Fehsenfeld has served as a director on our Board since
    1999. Mr.&#160;Fehsenfeld is the general partner and has served
    as Chairman of the Board of Directors of Calumet Specialty
    Products Partners, L.P. (&#147;Calumet Partners&#148;) since
    2006. Mr.&#160;Fehsenfeld has served as the Vice Chairman of the
    Board of the predecessor to Calumet Partners since 1990.
    Mr.&#160;Fehsenfeld has worked for The Heritage Group in various
    capacities since 1977 and has served as its Managing Trustee
    since 1980. Mr.&#160;Fehsenfeld received his B.S. in Mechanical
    Engineering from Duke University and his M.S. in Management from
    the Massachusetts Institute of Technology Sloan School. The
    Board has concluded that Mr.&#160;Fehsenfeld should be a
    director and Chairman of our Board because of his significant
    executive experience referred to above, as well as the fact that
    his significant stock ownership in our Company aligns his
    interests with those of other stockholders.
    Mr.&#160;Fehsenfeld&#146;s engineering and management training
    and senior leadership roles in other companies also benefit our
    Company.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Donald
    Brinckman<BR>
    Director</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Brinckman has served as a director on our Board since
    2002. Mr.&#160;Brinckman was the founder of Safety-Kleen in
    1968. Mr.&#160;Brinckman served as President of Safety-Kleen
    from 1968 until 1998, excluding portions of
    <FONT style="white-space: nowrap">1990-1991</FONT>
    and
    <FONT style="white-space: nowrap">1993-1997,</FONT>
    and for most of the thirty-year period he also served as
    Safety-Kleen&#146;s Chief Executive Officer. Mr.&#160;Brinckman
    was appointed Chairman of Safety-Kleen&#146;s Board of Directors
    in August 1990 and served in that capacity until 1998.
    Mr.&#160;Brinckman has in the past served as a director of
    Johnson Outdoors Inc., Paychex, Inc. and Snap-On Inc. The Board
    has concluded that Mr.&#160;Brinckman should be a director of
    our Company because of his extensive industry experience,
    including being founder and former Chairman of the largest firm
    in the Company&#146;s industry. Additionally, his significant
    stock ownership in our Company aligns his interests with those
    of other stockholders.
</DIV>
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    <BR>
    54
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Bruce
    Bruckmann<BR>
    Director</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Bruckmann has served as a director on our Board since
    2004. Mr.&#160;Bruckmann has been a Managing Director of
    Bruckmann, Rosser, Sherrill&#160;&#038; Co., Inc., a private
    equity investment firm, since January 1995. From March 1994 to
    January 1995, Mr.&#160;Bruckmann served as Managing Director of
    Citicorp Venture Capital, Ltd. and as an executive officer of
    399 Venture Partners, Inc. (formerly Citicorp Investments,
    Inc.). From 1983 until March 1994, Mr.&#160;Bruckmann served as
    Vice President of Citicorp Venture Capital, Ltd.
    Mr.&#160;Bruckmann is also a director of Town Sports
    International, Inc., a fitness club operator, MWI Veterinary
    Products, Inc., a distributor of veterinary products, H&#038;E
    Equipment Services L.L.C., a renter and distributor of
    industrial and construction equipment, and Mohawk Industries,
    Inc., a floor covering manufacturer. Mr.&#160;Bruckmann also
    serves as director for a private company. The Board has
    concluded that Mr.&#160;Bruckmann should be a director of our
    Company because of his extensive experience in investing in and
    advising public and private companies, as well as the fact that
    his significant stock ownership in our Company aligns his
    interests with those of other stockholders. His broad exposure
    to financing and funding issues also benefits our Company.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carmine
    Falcone<BR>
    Director</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Falcone has served as a director on our Board since
    March 2008. Mr.&#160;Falcone served in various operating and
    executive positions with Shell Group from 1968 through 2004,
    including roles as Executive Vice&#160;President, Oil Products,
    Shell Canada, as Director&#160;&#151; Strategic Planning for
    Global Oil Products, Shell International, and from 1999 to 2004
    as Vice President Manufacturing and Supply, Shell Oil Products
    USA. Following his retirement from Shell in 2004,
    Mr.&#160;Falcone established CELICO Ventures LLC, a commercial
    real estate company, which he continues to operate.
    Mr.&#160;Falcone is currently Chairman of the Board of
    Integrative Energy of Houston (Upstream Oil&#160;&#038; Gas) and
    Chairman of the Board of The Plaza Group of Houston (Chemicals
    Marketing). Mr.&#160;Falcone was a director of Centurion Energy
    of Calgary from 2006 to 2007. Mr.&#160;Falcone holds a Chemical
    Engineering degree with honors from McGill University. The Board
    has concluded that Mr.&#160;Falcone should be a director of our
    Company because of his demonstrated skills in engineering and
    management with one of the world&#146;s largest and most
    preeminent diversified oil companies. Mr.&#160;Falcone&#146;s
    expertise is also helpful to our Company in evaluating growth
    opportunities.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Charles
    E. Schalliol<BR>
    Director</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Schalliol has served as a director on our Board since
    March 2008. Mr.&#160;Schalliol served as the Director, Office of
    Management and Budget, State of Indiana, from 2004 to 2007.
    Mr.&#160;Schalliol served as the President and CEO of
    BioCrossroads, Indiana&#146;s life science initiative, from 2003
    to 2004. Mr.&#160;Schalliol served in various executive
    positions, including strategic planning and investment banking,
    with Eli Lilly&#160;&#038; Company from 1978 to 2003.
    Mr.&#160;Schalliol has served as Chairman of the Board of
    Directors of First Merchant&#146;s Corporation since 2007 and as
    a director since 2004 and a director of four venture capital
    funds. Mr.&#160;Schalliol holds a business degree with high
    distinction from Indiana University and a law degree from Yale
    University. The Board has concluded that Mr.&#160;Schalliol
    should be a director of our Company because of his financial and
    executive experience with the above entities and other Board
    experience. His legal experience also benefits our Company.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Robert W.
    Willmschen, Jr.<BR>
    Director</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Willmschen has served as a director on our Board since
    March 2008. Mr.&#160;Willmschen served as Chief Financial
    Officer of Safety-Kleen from 1981 to 1997 and as Controller of
    Safety-Kleen from 1979 to 1981. He was Executive Vice President,
    Finance of ABC Rail Products Corporation for approximately one
    year in 1998. Since 1999, Mr.&#160;Willmschen has been engaged
    in managing his private investments. Mr.&#160;Willmschen also
    has nine years experience in public accounting, including Audit
    Manager with Arthur Andersen LLP. The Board has concluded that
    Mr.&#160;Willmschen should be a director of our Company because
    of his demonstrated financial experience in our industry area.
    His CPA and public accounting experience is also beneficial to
    us and he is a designated financial expert for the Board.
</DIV>
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    <BR>
    55
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRINCIPAL
    STOCKHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding the
    beneficial ownership of our common stock as of May&#160;17,
    2010, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each person or entity who is known by us to own beneficially
    more than 5% of any class of outstanding voting securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each named executive officer and each director;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all of our executive officers and directors as a group.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated below, to our knowledge, all persons
    listed below have sole voting and investment power with respect
    to their shares of common stock, except to the extent authority
    is shared by spouses under applicable law. Unless otherwise
    indicated below, each entity or person listed below maintains an
    address
    <FONT style="white-space: nowrap">c/o&#160;Heritage-Crystal</FONT>
    Clean, Inc., 2175 Point Boulevard, Suite&#160;375, Elgin,
    Illinois 60123.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of shares beneficially owned by each stockholder is
    determined under rules promulgated by the SEC. The information
    is not necessarily indicative of beneficial ownership for any
    other purpose. Under these rules, beneficial ownership includes
    any shares as to which the individual or entity has sole or
    shared voting or investment power and any shares as to which the
    individual or entity has the right to acquire beneficial
    ownership within 60&#160;days after May&#160;17, 2010 through
    the exercise of any stock option, warrant or other right. The
    inclusion in the following table of those shares, however, does
    not constitute an admission that the named stockholder is a
    direct or indirect beneficial owner. The table below is based on
    10,805,186 shares of common stock outstanding as of May&#160;17,
    2010.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="51%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beneficial<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ownership After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Beneficial<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering (Assuming<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Ownership After Offering (Assuming<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underwriters&#146; Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Beneficial Ownership<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>No Exercise of Over-<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>is Exercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Prior to Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Allotment Option)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>in Full)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percentage</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percentage</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percentage</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    The Heritage
    Group<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,389,958
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,252,727
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Joseph
    Chalhoub<SUP style="font-size: 85%; vertical-align: top">(2)(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,643,447
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,643,447
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Fred Fehsenfeld,
    Jr.<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,015,547
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,015,547
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Bruce
    Bruckmann<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,045,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,045,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Bruckmann, Rosser, Sherrill&#160;&#038; Co. II,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    951,816
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    951,816
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Donald
    Brinckman<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    553,021
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    553,021
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Royce&#160;&#038; Associates,
    LLC<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,074,447
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,074,447
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Carmine Falcone
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,871
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,871
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Charles E. Schalliol
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Robert W. Willmschen, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,871
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,871
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    John
    Lucks<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166,684
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166,684
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Gregory
    Ray<SUP style="font-size: 85%; vertical-align: top">(8)(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    325,007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    325,007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Tom
    Hillstrom<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    All directors and executive officers as a group (10&#160;persons)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,825,559
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,825,559
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">*&#160;
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Less than 1%
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Based on a Schedule&#160;13G/A
    filed with the SEC on January&#160;19, 2010. The Heritage Group
    is a general partnership formed under the laws of the State of
    Indiana. Thirty grantor trusts own all of the outstanding
    general partner interests in The Heritage Group. Five trustees,
    acting on behalf of each of these trusts, have the duty and have
    been empowered to carry out the purposes of the general
    partnership pursuant to the Articles of Partnership. The five
    trustees are Fred M. Fehsenfeld, Jr., James C. Fehsenfeld,
    Nicholas J. Rutigliano, William S. Fehsenfeld and Amy M.
    Schumacher. The address of The Heritage Group is 5400&#160;West
    86th Street, Indianapolis, Indiana 46268.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Amounts beneficially owned after
    the offering in the table above assume that Heritage elects to
    exercise its rights under the participation rights agreement to
    purchase an amount of common stock in the offering so that its
    ownership percentage in our company does not decrease. See
    &#147;Relationships and Transactions With Related
    Persons&#160;&#151; Transactions with Related Persons.&#148; If
    Heritage does not elect to exercise its participation right with
    respect to the offering, its ownership interest in our common
    stock will be 25% (or 24.3% if the underwriters exercise their
    option to purchase additional shares in full).
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Joseph Chalhoub has voting control
    over the shares held by the entity named J. Chalhoub Holdings,
    Ltd., but disclaims beneficial ownership, other than to the
    extent of his pecuniary interest therein.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Includes the following options to
    purchase shares of common stock exercisable within 60&#160;days
    after May&#160;17, 2010: Mr.&#160;Chalhoub: 436,027&#160;shares;
    Mr.&#160;Lucks: 130,869&#160;shares; Mr.&#160;Ray:
    130,222&#160;shares; and Mr.&#160;Hillstrom: 7,909&#160;shares.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    56
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Based on a Schedule&#160;13G/A
    filed with the SEC on January&#160;19, 2010. Includes
    10,000&#160;shares held by Mr.&#160;Fehsenfeld&#146;s family
    members (specifically, his spouse and two children). Does not
    include 125,000&#160;shares held by Frank Fehsenfeld,
    56,855&#160;shares held by the Maggie Fehsenfeld Trust or
    56,855&#160;shares held by the Frank S. Fehsenfeld Trust, for
    which Fred Fehsenfeld, Jr. serves as trustee. Fred Fehsenfeld,
    Jr. disclaims beneficial ownership of the shares of common stock
    owned by these family members except to the extent of his
    pecuniary interest therein. In addition, Mr.&#160;Fehsenfeld
    serves as one of five trustees who together are empowered to act
    on behalf of The Heritage Group. Mr.&#160;Fehsenfeld disclaims
    beneficial ownership of the shares of common stock owned by The
    Heritage Group except to the extent of his pecuniary interest
    therein, and none of the shares held by The Heritage Group are
    included in the shares listed in the table above as being
    beneficially owned by Mr.&#160;Fehsenfeld.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">We have agreed to direct the
    underwriters to reserve 257,807&#160;shares in the offering for
    certain related trusts for which Mr.&#160;Fehsenfeld serves as a
    trustee (the &#147;Related Trusts&#148;) in response to
    Mr.&#160;Fehsenfeld&#146;s request to participate on a pro rata
    basis in this offering on a basis similar to Heritage&#146;s
    participation rights described in footnote 1 above so that
    Mr.&#160;Fehsenfeld&#146;s ownership percentage in our company,
    after taking into account the shares purchase by the Related
    Trusts in the offering, remains at 9.4%. Based on preliminary
    indications from Mr.&#160;Fehsenfeld, the amounts beneficially
    owned by Mr.&#160;Fehsenfeld after the offering in the table do
    not include the shares to be purchased in the offering by the
    Related Trusts. Mr.&#160;Fehsenfeld disclaims beneficial
    ownership of all shares that may be purchased by the Related
    Trusts in the offering except to the extent of his pecuniary
    interest therein.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Based on Schedule&#160;13G filed
    with the SEC on February&#160;17, 2009, BRSE LLC is the general
    partner of Bruckmann, Rosser, Sherrill&#160;&#038; Co. II, L.P.
    (&#147;BRS II&#148; ) which holds 951,530&#160;shares.
    Bruckmann, Rosser, Sherrill &#038; Co., Inc. (&#147;BRS
    Inc.&#148;) is an affiliate of BRS II and holds 286&#160;shares.
    Bruce Bruckmann is a member and manager of BRSE LLC and a
    managing director of BRS Inc., and, together with Harold O.
    Rosser, Stephen C. Sherrill and Thomas J. Baldwin, shares the
    power to direct the voting or disposition of shares held by both
    BRS II and BRS Inc.; however, none of these persons individually
    has the power to direct or veto the voting or disposition of
    shares held by either BRS II or BRS Inc. BRSE LLC and
    Messrs.&#160;Bruckmann, Rosser, Sherrill and Baldwin expressly
    disclaim beneficial ownership of the shares held by BRS II and
    BRS Inc.. Shares beneficially owned, directly or indirectly, by
    BRS II and BRS Inc. have been included for purposes of the
    presentation of the beneficial ownership of our common stock by
    Bruce Bruckmann. The address of this stockholder is
    126&#160;East 56th Street, New York, NY 10022.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Consists of shares held in trust
    for which Mr.&#160;Brinckman has voting control.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Based on a Schedule&#160;13G/A
    filed with the SEC on April&#160;6, 2010. The address of this
    stockholder is 745&#160;Fifth Avenue, New York, New York 10151.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(8)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Includes shares held in trust for
    which Mr.&#160;Ray has voting control.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    57
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RELATIONSHIPS
    AND TRANSACTIONS WITH RELATED PERSONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Procedures
    for Approval of Related Party Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2009, our Board of Directors adopted written related
    party transaction policies and procedures which require that all
    &#147;interested transactions&#148; with &#147;related
    parties&#148; (each as defined below) be subject to approval or
    ratification by the audit committee in accordance with the
    procedures set forth therein. The audit committee reviews the
    material facts of all interested transactions and either
    approves or disapproves of the entry into the transaction. If
    advanced approval of an interested transaction is not feasible,
    the transaction is reviewed and, if the audit committee
    determines it to be appropriate, ratified at that
    committee&#146;s next scheduled meeting. In determining whether
    to approve or ratify an interested transaction, the audit
    committee takes into account, among other appropriate factors,
    the extent of the related party&#146;s interest in the
    transaction and whether the interested transaction is on terms
    no less favorable than terms generally available to unaffiliated
    third parties under similar circumstances. Directors may not
    participate in any discussion or approval of an interested
    transaction for which they are a related party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The audit committee has pre-approved or ratified the following
    categories of interested transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any employment by the Company of an executive officer if:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The related compensation is required to be reported in our Proxy
    Statement under the SEC&#146;s compensation disclosure
    requirements,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The executive officer is not an immediate family of another
    executive officer or director, the related compensation would be
    reported in our Proxy Statement under the SEC&#146;s
    compensation disclosure requirements if the executive officer
    was a named executive officer and the compensation committee
    approved (or recommended that the Board approve) such
    compensation;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any compensation paid to a director if the compensation is
    required to be reported in our Proxy Statement under the
    SEC&#146;s compensation disclosure requirements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any transaction with another company in which the related
    person&#146;s only relationship is as a non-executive employee,
    director or beneficial owner of less than 10% of that
    company&#146;s shares, if the amount involved does not exceed
    the greater of $1,000,000 or 2% of that company&#146;s total
    annual revenues;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any charitable contribution by us to a charitable organization,
    foundation or university at which a related person&#146;s only
    relationship is as a non-executive employee or director, if the
    amount involved does not exceed the lesser of $100,000 or 2% of
    the charitable organization&#146;s total annual receipts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any transaction where the related person&#146;s interest arises
    solely from the ownership of our common stock and all holders of
    common stock received the same benefit on a pro rata
    basis;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any transaction with a related party involving services as a
    bank depositary of funds, transfer agent, registrar, trustee
    under an indenture or similar services.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Board has delegated to the Chair of the audit
    committee the authority to pre-approve or ratify any interested
    transaction with a related party in which the aggregate amount
    is expected to be less than $1,000,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An &#147;interested transaction&#148; is any transaction,
    arrangement or relationship, or series of similar transactions,
    arrangements or relationships, in which:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The aggregate amount involved will or may be expected to exceed
    $120,000 in any calendar year;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We are a participant;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any &#147;related party&#148; has or will have a direct or
    indirect interest (other than solely as a result of being a
    director or less than 10% beneficial owner of another entity).
</TD>
</TR>

</TABLE>
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    <BR>
    58
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A &#147;related party&#148; covered by the policy is any:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Person who was or is (since the beginning of the last fiscal
    year for which we have filed an Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    or Proxy Statement) an executive officer, director or nominee
    for election as a director;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Greater than 5% beneficial owner of common stock;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Immediate family member of the foregoing, which includes a
    person&#146;s spouse, parents, stepparents, children,
    stepchildren, siblings, mothers- and
    <FONT style="white-space: nowrap">fathers-in-law,</FONT>
    sons- and
    <FONT style="white-space: nowrap">daughters-in-law,</FONT>
    and brothers- and sisters- in law and anyone residing in such
    person&#146;s home (other than tenants or employees).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transactions
    with Related Persons</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following transactions were reviewed and approved by our
    audit committee under the Related Party Transaction Policies and
    Procedures.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Relationship
    with The Heritage Group</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operating subsidiary, Heritage-Crystal Clean, LLC, was spun
    out of Heritage Environmental Services, an affiliate of
    Heritage, our largest stockholder, in 1999. Since 1999, we have
    had many transactions with affiliates of Heritage. In fiscal
    2009, we generated sales of $326,131 from product sales and
    services to Heritage Environmental Services and incurred
    expenses of $1,370,419 from waste transportation and disposal
    services, rent for facility use, and various advisory and
    administrative services performed by Heritage Environmental
    Services. In addition, in fiscal 2009, we generated sales of
    $1,110,608 and incurred expenses of $2,131,141 with other
    affiliates of Heritage. We believe that the aggregate price we
    pay and price we charge Heritage for services and revenue is
    approximately what we would pay and receive for such services
    from third parties in arms-length transactions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The employees of our operating subsidiary Heritage-Crystal
    Clean, LLC participate in a defined contribution 401(k) benefit
    plan sponsored by an affiliate of Heritage. Participants in this
    plan are allowed to contribute 1% to 70% of their pre-tax
    earnings up to relevant IRS limitations to the plan. We match
    100% of the first 3% contributed by the participant and 50% of
    the next 2% contributed by the participant for a maximum
    contribution of 4% per participant. The matching expense for
    this plan was $630,433 in fiscal 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Workers&#146;
    Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We participate in a workers&#146; compensation group insurance
    program with affiliates of Heritage. In connection with our
    insurance program for workers&#146; compensation, we contribute
    payments to an affiliate of Heritage. Payments under the group
    insurance program for workers&#146; compensation totaled
    $615,567 in fiscal 2009, $293,668 in fiscal 2008 and $324,439 in
    fiscal 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Employment
    of Frank S. Fehsenfeld</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Frank S. Fehsenfeld, the brother of Fred Fehsenfeld,&#160;Jr., a
    director, is employed by us as a Director of Sales&#160;&#151;
    Solvents and in such capacity earned approximately $130,000 in
    fiscal 2009 (including base salary, bonus and car allowance).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Heritage
    Participation Rights</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Simultaneous with the completion of the initial public offering
    in fiscal 2008, we entered into a participation rights agreement
    with Heritage, pursuant to which Heritage received the option to
    participate, pro rata based on its percentage ownership interest
    in our common stock, in any future equity offerings for cash
    consideration, including (i)&#160;contracts with parties for
    equity financing (including any debt financing with an equity
    component) and (ii)&#160;issuances of equity securities or
    securities convertible, exchangeable or exercisable
</DIV>
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    <BR>
    59
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    into or for equity securities (including debt securities with an
    equity component). If Heritage exercises its rights with respect
    to all future offerings, it will be able to maintain its
    percentage ownership interest in our common stock. The
    participation rights agreement does not have an expiration date.
    Heritage is not required to participate or exercise its right of
    participation with respect to any offerings. Heritage&#146;s
    right to participate will not apply to certain future offerings
    of securities that are not conducted to raise or obtain equity
    capital or cash such as stock issued as consideration in a
    merger or consolidation, in connection with strategic
    partnerships or joint ventures, or for the acquisition of a
    business, product, license or other assets by us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Reservation
    of Shares in the Offering</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At our direction, the underwriters have reserved for sale to
    Heritage and certain related trusts of Fred
    Fehsenfeld,&#160;Jr., the Chairman of our Board and an affiliate
    of Heritage, at the public offering price, up to
    1,120,576&#160;shares of common stock in this offering. Heritage
    will be offered 862,769&#160;shares and the related trusts of
    Mr.&#160;Fehsenfeld will be offered 257,807&#160;shares (not
    including amounts offered to them if the underwriters exercise
    their option to purchase additional shares), in each case
    representing the same percentage of shares being sold in this
    offering as each of Heritage and Mr.&#160;Fehsenfeld currently
    holds of our outstanding common stock. In the event the
    underwriters&#146; option to purchase additional shares is
    exercised, Heritage and the related trusts of
    Mr.&#160;Fehsenfeld will be offered 31.4%&#160;and 9.4%,
    respectively, of the total number of shares for which the option
    is exercised. These shares are being offered to Heritage
    pursuant to the participation rights agreement between us and
    Heritage which provides it the option to participate, pro rata
    based on its percentage ownership interest in our common stock,
    in any of our equity offerings for cash consideration.
    Mr.&#160;Fehsenfeld has requested a similar opportunity to
    participate on a pro rata basis in this offering, and we have
    agreed to direct the underwriters to reserve shares in this
    offering in response to Mr.&#160;Fehsenfeld&#146;s request.
    Purchases of these reserved shares would reduce the number of
    shares available for sale to the general public. If Heritage and
    Mr.&#160;Fehsenfeld or his related trusts purchase all of the
    shares reserved for sale to them, Heritage and
    Mr.&#160;Fehsenfeld, after taking into account the shares
    purchased by the related trusts in the offering, will maintain
    their respective 31.4% and 9.4% ownership interests in our
    common stock. See &#147;Principal Stockholders.&#148; The
    underwriters will offer any reserved shares which are not so
    purchased to the general public on the same terms as the other
    shares being sold in this offering.
</DIV>
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    <BR>
    60
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters named below have severally agreed, subject to
    the terms and conditions set forth in the underwriting agreement
    by and between us and William Blair&#160;&#038; Company, L.L.C.,
    as representative of the underwriters, to purchase from us the
    respective number of shares of common stock set forth opposite
    each underwriter&#146;s name in the table below. William
    Blair&#160;&#038; Company, L.L.C. is acting as Sole Book-Running
    Manager and Robert W. Baird&#160;&#038; Co. Incorporated and
    Needham&#160;&#038; Company, LLC are acting as Co-Managers for
    this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Underwriter</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William Blair&#160;&#038; Company, L.L.C.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert W. Baird&#160;&#038; Co. Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Needham&#160;&#038; Company, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This offering will be underwritten on a firm commitment basis.
    In the underwriting agreement, the underwriters have agreed,
    subject to the terms and conditions set forth therein, to
    purchase the shares of common stock being sold pursuant to this
    prospectus at a price per share equal to the public offering
    price less the underwriting discount specified on the cover page
    of this prospectus. According to the terms of the underwriting
    agreement, the underwriters either will purchase all of the
    shares or none of them. In the event of default by any
    underwriter, in certain circumstances, the purchase commitments
    of the non-defaulting underwriters may be increased or the
    underwriting agreement may be terminated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The representative of the underwriters has advised us that the
    underwriters propose to offer the common stock to the public
    initially at the public offering price set forth on the cover
    page of this prospectus and to selected dealers at such price
    less a concession of not more than
    $&#160;&#160;&#160;&#160;&#160; per share. The underwriters may
    allow, and such dealers may re-allow, a concession not in excess
    of $&#160;&#160;&#160;&#160;&#160; per share to certain other
    dealers. The underwriters will offer the shares subject to prior
    sale and subject to receipt and acceptance of the shares by the
    underwriters. The underwriters may reject any order to purchase
    shares in whole or in part. The underwriters expect that we will
    deliver the shares to the underwriters through the facilities of
    The Depository Trust&#160;Company in New York, New York on or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010. At that time, the underwriters will pay us for the shares
    in immediately available funds. After commencement of the public
    offering, the representative may change the offering price and
    other selling terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have granted the underwriters an option, exercisable within
    30&#160;days after the date of this prospectus, to purchase up
    to an aggregate of 412,500 additional shares of common stock
    from us at the same price per share to be paid by the
    underwriters for the other shares offered hereby. The
    underwriters may exercise this option if they sell more shares
    than the total number of shares set forth in the table above. If
    the underwriters purchase any such additional shares pursuant to
    this option, each of the underwriters will be committed to
    purchase such additional shares in approximately the same
    proportion as set forth in the table above. The underwriters
    will offer any additional shares that they purchase on the terms
    described in the preceding paragraph, subject to the reservation
    of shares described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At our direction, the underwriters have reserved for sale to
    Heritage and certain related trusts of Fred
    Fehsenfeld,&#160;Jr., the Chairman of our Board and an affiliate
    of Heritage, at the public offering price, up to
    1,120,576&#160;shares of common stock in this offering. Heritage
    will be offered 862,769&#160;shares and the related trusts of
    Mr.&#160;Fehsenfeld will be offered 257,807&#160;shares (not
    including amounts offered to them if the underwriters exercise
    their option to purchase additional shares), in each case
    representing the same percentage of shares being sold in this
    offering as each of Heritage and Mr.&#160;Fehsenfeld currently
    holds of our outstanding common stock. In the event the
    underwriters&#146; option to purchase additional shares is
    exercised, Heritage and the related trusts of
    Mr.&#160;Fehsenfeld will be offered 31.4% and 9.4%,
    respectively, of the total number of shares for which the option
    is exercised. These shares are being offered to Heritage
    pursuant to the participation rights agreement between us and
    Heritage which provides it the option to participate, pro rata
    based on its percentage ownership interest in our common stock,
    in any of our equity offerings for cash consideration. See
    &#147;Relationships and Transactions with Related Persons&#148;
    Mr.&#160;Fehsenfeld has requested a
</DIV>
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    <BR>
    61
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    similar opportunity to participate on a pro rata basis in this
    offering, and we have agreed to direct the underwriters to
    reserve shares in this offering in response to
    Mr.&#160;Fehsenfeld&#146;s request. Purchases of these reserved
    shares would reduce the number of shares available for sale to
    the general public. If Heritage and Mr.&#160;Fehsenfeld purchase
    all of the shares reserved for sale to them, Heritage and
    Mr.&#160;Fehsenfeld, after taking into account the shares
    purchased by the related trusts in the offering, will maintain
    their respective 31.4% and 9.4% ownership interests in our
    common stock. See &#147;Principal Stockholders.&#148; The
    underwriters will offer any reserved shares which are not so
    purchased to the general public on the same terms as the other
    shares being sold in this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters have further reserved for sale in a directed
    share program, at the initial public offering price, up to
    137,500&#160;shares of common stock in the offering for our
    employees, affiliates and current and potential customers.
    Purchases of these reserved shares would reduce the number of
    shares available for sale to the general public. The
    underwriters will offer any reserved shares which are not so
    purchased to the general public on the same terms as the other
    shares being sold in this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the compensation to be paid by us
    to the underwriters. This information assumes either no exercise
    or full exercise by the underwriters of their option to purchase
    additional shares:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Without<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>With<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercise</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercise</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discount paid by us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds, before expenses, to us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We estimate that our total expenses for this offering, excluding
    the underwriting discount, will be approximately
    $0.7&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, each of our directors and executive officers and Heritage
    have agreed, and each of the purchasers in the directed share
    program will agree, subject to limited exceptions described
    below, for a period of 90&#160;days after the date of this
    prospectus, not to, without the prior written consent of William
    Blair&#160;&#038; Company, L.L.C.:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    directly or indirectly, offer, sell (including &#147;short&#148;
    selling), assign, transfer, encumber, pledge, contract to sell,
    grant an option to purchase, establish an open &#147;put
    equivalent position&#148; within the meaning of
    <FONT style="white-space: nowrap">Rule&#160;16a-1(h)</FONT>
    under the Securities Exchange Act of 1934, or otherwise dispose
    of any shares of common stock or securities convertible or
    exchangeable into, or exercisable for, common stock held of
    record or beneficially owned (within the meaning of
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    under the Securities Exchange Act of 1934);&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any swap or other arrangement that transfers all or a
    portion of the economic consequences associated with the
    ownership of any common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The <FONT style="white-space: nowrap">lock-up</FONT>
    period will be extended if (1)&#160;we release earnings results
    or material news or a material event relating to our company
    occurs during the last 17&#160;days of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period, or (2)&#160;prior to the expiration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period, we announce that we will release earnings results during
    the <FONT style="white-space: nowrap">16-day</FONT>
    period beginning on the last day of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period. In either case, the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period will be extended for 18&#160;days after the date of the
    release of the earnings results or the occurrence of the
    material news or material event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These agreements do not extend to transfers or dispositions
    either during the holder&#146;s lifetime or on death (i)&#160;by
    will or intestacy or to the holder&#146;s immediate family or to
    a trust or limited partnership for their benefit or (ii)&#160;by
    bona fide gift or gifts to donee or donees, provided in each
    case that the recipient of those shares agrees to be bound by
    the foregoing restrictions for the duration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period. William Blair&#160;&#038; Company, L.L.C., in its sole
    discretion, may release the common stock and other securities
    subject to the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements described above in whole or in part at any time with
    or without notice. In determining whether to consent to a
    transaction prohibited by these restrictions, William
    Blair&#160;&#038; Company, L.L.C. will take into account various
    factors, including the number of shares requested to be sold,
    the anticipated manner and timing of sale, the potential impact
    of the sale on the market for the common stock, the restrictions
    on
</DIV>
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    <BR>
    62
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    publication of research reports that would be imposed by the
    rules of the Financial Industry Regulatory Authority and market
    conditions generally. We may issue up to 12,000&#160;shares of
    common stock under our Employee Stock Purchase Plan of 2008 and
    shares of common stock in connection with the exercise of any
    outstanding convertible securities or options during the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period. In addition, this agreement will not extend to planned
    selling under
    <FONT style="white-space: nowrap">Rule&#160;10b5-1</FONT>
    for Gregory Ray, our Chief Financial Officer, Vice President,
    Business Management and Secretary, pursuant to his
    <FONT style="white-space: nowrap">Rule&#160;10b5-1</FONT>
    trading plan dated October&#160;21, 2009 under which a maximum
    of 50,000&#160;shares of our common stock can be sold.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have agreed to indemnify the underwriters and their
    controlling persons against certain liabilities for
    misstatements in the registration statement of which this
    prospectus forms a part, including liabilities under the
    Securities Act of 1933, or to contribute to payments the
    underwriters may be required to make in respect thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The representative has informed us that the underwriters will
    not confirm, without client authorization, sales to their client
    accounts as to which they have discretionary authority. The
    representative has also informed us that the underwriters intend
    to deliver all copies of this prospectus via electronic means,
    via hand delivery or through mail or courier services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, the underwriters and other
    persons participating in this offering may engage in
    transactions which affect the market price of the common stock.
    These may include stabilizing and over-allotment transactions
    and purchases to cover syndicate short positions. Stabilizing
    transactions consist of bids or purchases for the purpose of
    pegging, fixing or maintaining the price of the common stock. An
    over-allotment, or short sale, involves selling more shares of
    common stock in this offering than are specified on the cover
    page of this prospectus, which results in a syndicate short
    position. The short position may be either a covered short
    position or a naked short position. In a covered short position,
    the number of shares over-allotted by the underwriters is not
    greater than the number of shares available in the
    underwriters&#146; option to purchase additional sales in the
    public offering. In a naked short position, the number of shares
    over-allotted is greater than the number of shares in the option
    to purchase additional shares. The underwriters may close out a
    covered short position by purchasing common stock in the open
    market or by exercising all or part of their option to purchase
    additional shares. In determining the source of shares to close
    out the covered short position, the underwriters will consider,
    among other things, the price of shares available for purchase
    in the open market as compared to the price at which they may
    purchase shares through the option to purchase additional
    shares. The underwriters must close out any naked short position
    by buying shares in the open market. A naked short position is
    more likely to be created if the underwriters are concerned that
    there could be downward pressure on the price of the shares in
    the open market after pricing that could adversely affect
    investors who purchase in the public offering. Similar to other
    purchase transactions, the underwriters&#146; purchases to cover
    the syndicate short sales may have the effect of raising or
    maintaining the market price of the issuer&#146;s stock or
    preventing or retarding a decline in the market price of
    issuer&#146;s stock. As a result, the price of the issuer&#146;s
    stock may be higher than the price that might otherwise exist in
    the open market. In addition, the representative may impose a
    penalty bid. This allows the representative to reclaim the
    selling concession allowed to an underwriter or selling group
    member if shares of common stock sold by such underwriter or
    selling group member in this offering are repurchased by the
    representative in stabilizing or syndicate short covering
    transactions. These transactions, which may be effected on The
    NASDAQ Global Market or otherwise, may stabilize, maintain or
    otherwise affect the market price of the common stock and could
    cause the price to be higher than it would be without these
    transactions. The underwriters and other participants in this
    offering are not required to engage in any of these activities
    and may discontinue any of these activities at any time without
    notice. We and the underwriters make no representation or
    prediction as to whether the underwriters will engage in such
    transactions or choose to discontinue any transactions engaged
    in or as to the direction or magnitude of any effect that these
    transactions may have on the price of the common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One or more of the underwriters currently act as a market maker
    for our common stock and may engage in &#147;passive market
    making&#148; in such securities on The NASDAQ Global Market in
    accordance with Rule&#160;103 of Regulation&#160;M under the
    Securities Exchange Act of 1934. Rule&#160;103 permits, upon the
    satisfaction of certain conditions, underwriters participating
    in a distribution that are also NASDAQ market makers in the
    security
</DIV>
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    <BR>
    63
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    being distributed to engage in limited market making
    transactions during the period when Regulation&#160;M would
    otherwise prohibit such activity. Rule&#160;103 prohibits
    underwriters engaged in passive market making generally from
    entering a bid or effecting a purchase price that exceeds the
    highest bid for those securities displayed on The NASDAQ Global
    Market by a market maker that is not participating in the
    distribution. Under Rule&#160;103, each underwriter engaged in
    passive market making is subject to a daily net purchase
    limitation equal to the greater of (i)&#160;30% of such
    entity&#146;s average daily trading volume during the two full
    calendar months immediately preceding, or any 60 consecutive
    calendar days ending within the ten calendar days preceding, the
    date of the filing of the registration statement under the
    Securities Act pertaining to the security to be distributed or
    (ii)&#160;200&#160;shares of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock is listed on The NASDAQ Global Market under the
    symbol &#147;HCCI.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the ordinary course of business, some of the underwriters and
    their affiliates may in the future provide investment banking,
    commercial banking and other services to us for which they may
    receive customary fees or other compensation.
</DIV>
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    <BR>
    64
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the issuance of the shares of common stock
    offered hereby has been passed upon for us by McDermott
    Will&#160;&#038; Emery LLP, Chicago, Illinois. Legal matters in
    connection with the offering will be passed upon for the
    underwriters by Sidley Austin LLP, Chicago, Illinois.
</DIV>

<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements for the years ended
    January&#160;2, 2010 and January&#160;3, 2009 and
    management&#146;s assessment of the effectiveness of internal
    control over financial reporting (which is included in
    Management&#146;s Report on Internal Control over Financial
    Reporting) for the year ended January&#160;2, 2010 incorporated
    in this prospectus by reference to our Annual Reports on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    have been so incorporated in reliance on the reports of Grant
    Thornton LLP, an independent registered public accounting firm,
    upon the authority of said firm as experts in auditing and
    accounting in giving said reports.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of Heritage-Crystal Clean,
    Inc. (formerly Heritage Crystal Clean, LLC)&#160;for the year
    ended December&#160;29, 2007, have been incorporated by
    reference herein in reliance upon the report of KPMG LLP,
    independent registered public accounting firm, incorporated by
    reference herein, and upon the authority of said firm as experts
    in auditing and accounting.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    65
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">2,750,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">Heritage-Crystal Clean,
    Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 36%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 36%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">William Blair&#160;&#038;
    Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">Baird</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">
    Needham&#160;&#038; Company, LLC</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    NOT REQUIRED IN PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;13.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Expenses of Issuance and Distribution</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth all the costs, other than
    underwriting discounts and placement fees, payable in connection
    with the issuance and distribution of the common stock being
    registered, all of which will be paid by the registrant. All
    amounts shown below are estimates, except the registration fee:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SEC registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,201
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FINRA filing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,587
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exchange additional listing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    275,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer agent fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Miscellaneous
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    280,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    690,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;14.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Directors and Officers</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;145 of the DGCL, provides, among other things, that
    a corporation may indemnify any person who was or is a party or
    is threatened to be made a party to any threatened, pending or
    completed action, suit or proceeding (other than an action by or
    in the right of the corporation) by reason of the fact that the
    person is or was a director, officer, employee or agent of the
    corporation, or is or was serving at the corporation&#146;s
    request as a director, officer, employee or agent of another
    corporation, partnership, joint venture, trust or other
    enterprise, against expenses, including attorneys&#146; fees,
    judgments, fines and amounts paid in settlement actually and
    reasonably incurred by the person in connection with the action,
    suit or proceeding. The power to indemnify applies (i)&#160;if
    such person is successful on the merits or otherwise in defense
    of any action, suit or proceeding or (ii)&#160;if such person
    acted in good faith and in a manner he reasonably believed to be
    in or not opposed to the best interests of the corporation, and
    with respect to any criminal action or proceeding, had no
    reasonable cause to believe his conduct was unlawful. The power
    to indemnify applies to actions brought by or in the right of
    the corporation as well, but only to the extent of defense
    expenses, (including attorneys&#146; fees but excluding amounts
    paid in settlement) actually and reasonably incurred and not to
    any satisfaction of judgment or settlement of the claim itself,
    and with the further limitation that in such actions no
    indemnification shall be made in the event of any adjudication
    of negligence or misconduct in the performance of his duties to
    the corporation, unless a court believes that in light of all
    the circumstances indemnification should apply.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation provides that we shall
    indemnify and hold harmless, to the fullest extent permitted by
    applicable law as it presently exists or may hereafter be
    amended, any person who was or is made or is threatened to be
    made a party or is otherwise involved in any action, suit or
    proceeding, whether civil, criminal, administrative or
    investigative, any or all of which may be referred to as a
    proceeding, by reason of the fact that he or she, or a person
    for whom he or she is the legal representative, is or was at any
    time a director or officer of the corporation or, while a
    director or officer of the corporation, is or was at any time
    serving at the written request of the corporation as a director,
    officer, employee or agent of another corporation or of a
    partnership, joint venture, trust, enterprise or nonprofit
    entity, including service with respect to employee benefit
    plans, against all liability and loss suffered and expenses
    (including attorneys&#146; fees) reasonably incurred by such
    person; provided, however, that we shall be required to
    indemnify a person in connection with a proceeding (or part
    thereof) initiated by such person only if the commencement of
    such proceeding (or part thereof) was authorized by our Board of
    Directors.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;102 of the DGCL permits the limitation of
    directors&#146; personal liability to the corporation or its
    stockholders for monetary damages for breach of fiduciary duties
    as a director except for (i)&#160;any breach of the
    director&#146;s duty of loyalty to the corporation or its
    stockholders, (ii)&#160;acts or omissions not in good faith or
    which involve intentional misconduct or a knowing violation of
    the law, (iii)&#160;breaches under section&#160;174 of the DGCL,
    which relates to unlawful payments of dividends or unlawful
    stock repurchase or redemptions, and (iv)&#160;any transaction
    from which the director derived an improper personal benefit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation limits the personal liability
    of our directors to the fullest extent permitted by
    section&#160;102 of the DGCL.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Insofar as indemnification for liabilities arising under the
    Securities Act may be permitted to directors, officers or
    persons controlling the registrant pursuant to the foregoing
    provisions, the registrant has been informed that in the opinion
    of the SEC such indemnification is against public policy as
    expressed in the Securities Act and is therefore unenforceable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain directors&#146; and officers&#146; liability
    insurance for our officers and directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Underwriting Agreement for the offering will provide that
    each underwriter severally agrees to indemnify and hold harmless
    Heritage-Crystal Clean, Inc., each of our directors, each of our
    officers who signs the registration statement, and each person
    who controls Heritage-Crystal Clean, Inc. within the meaning of
    the Securities Act but only with respect to certain information
    included in the registration statement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;15.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Recent
    Sales of Unregistered Securities</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not sold any unregistered securities in the last in the
    last three years prior to the offering other than the
    7,274,290&#160;shares of common stock that we issued in a
    private placement exempt under &#167;&#160;4(2) of the
    Securities Act to former members of Heritage-Crystal Clean, LLC
    in exchange for their common and preferred units of
    Heritage-Crystal Clean, LLC in our reorganization prior to the
    completion of our initial public offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits
    and Financial Statement Schedules</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Exhibits:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1(1)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Incorporation of Heritage-Crystal Clean, Inc.
    (Incorporated herein by reference to Exhibit&#160;3.1 of
    Amendment No.&#160;6 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1(2)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Certificate of Incorporation of Heritage-Crystal
    Clean, Inc. (Incorporated herein by reference to
    Exhibit&#160;3.1(2) to the Company&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on May&#160;17, 2010)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    By-Laws of Heritage-Crystal Clean, Inc. (Incorporated herein by
    reference to Exhibit&#160;3.2 of Amendment No.&#160;6 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Specimen Common Stock Certificate of Heritage-Crystal
    Clean, Inc. (Incorporated herein by reference to
    Exhibit&#160;4.1 of Amendment No.&#160;7 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of McDermott Will&#160;&#038; Emery LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Restated Operating Agreement for Heritage-Crystal Clean, LLC
    dated October&#160;26, 2004, as amended. (Incorporated herein by
    reference to Exhibit&#160;10.1 of Amendment No.&#160;1 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment No.&#160;6 to Operating Agreement for Heritage-Crystal
    Clean, LLC dated December&#160;28, 2007 (Incorporated herein by
    reference to Exhibit&#160;10.37 of Amendment No.&#160;4 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;1, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Agreement and Amendment No.&#160;7 to Operating
    Agreement for Heritage-Crystal Clean, LLC (Incorporated herein
    by reference to Exhibit&#160;10.38 of Amendment No.&#160;4 to
    the Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;1, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Third Amended and Restated Credit Agreement dated as of
    December&#160;14, 2009 between Heritage-Crystal Clean, LLC and
    Bank of America, N.A. (Incorporated herein by reference to
    Exhibit&#160;10.1 to the Company&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on December&#160;18, 2009)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment to Third Amended and Restated Credit Agreement
    dated as of May&#160;14, 2010 between Heritage-Crystal Clean,
    LLC and Bank of America, N.A. (Incorporated herein by reference
    to Exhibit&#160;10.5 to the Company&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on May&#160;18, 2010)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Intercreditor Agreement dated as of February&#160;24, 2004 among
    Heritage-Crystal Clean, LLC, Bruckmann, Rosser,
    Sherrill&#160;&#038; Co. II, L.P., Asphalt Refining Company and
    Donald Brinckman (Incorporated herein by reference to
    Exhibit&#160;10.3 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amended and Restated Promissory Note to Asphalt Refining
    Company dated December&#160;29, 2006 (Incorporated herein by
    reference to Exhibit&#160;10.6 of Amendment No.&#160;1 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Third Amended and Restated Note by Bank of America, N.A. dated
    April&#160;30, 2007 (Incorporated herein by reference to
    Exhibit&#160;10.7 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Participation Rights Agreement between Heritage-Crystal
    Clean, Inc. and The Heritage Group (Incorporated herein by
    reference to Exhibit&#160;10.9 of Amendment No.&#160;7 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement, dated as of August&#160;24, 1999 by and
    between Heritage-Crystal Clean, LLC and Joseph Chalhoub, as
    amended March&#160;1, 2000 (Incorporated herein by reference to
    Exhibit&#160;10.8 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement, dated as of March&#160;1, 2000 by and
    between Heritage-Crystal Clean, LLC and John Lucks (Incorporated
    herein by reference to Exhibit&#160;10.10 of Amendment
    No.&#160;1 to the Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement, dated as of November&#160;15, 1999 by and
    between Heritage-Crystal Clean, LLC and Gregory Ray
    (Incorporated herein by reference to Exhibit&#160;10.12 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement, dated as of September&#160;14, 2002 by and
    between Heritage-Crystal Clean, LLC and Tom Hillstrom
    (Incorporated herein by reference to Exhibit&#160;10.14 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement between Donald
    Brinckman and Heritage-Crystal Clean, LLC dated March&#160;22,
    2002 (Incorporated herein by reference to Exhibit&#160;10.16 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement between Joseph
    Chalhoub and Heritage-Crystal Clean, LLC dated August&#160;24,
    1999 (Incorporated herein by reference to Exhibit&#160;10.32 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement between Gregory Ray
    and Heritage Crystal Clean, LLC dated November&#160;15, 1999
    (Incorporated herein by reference to Exhibit&#160;10.33 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .17&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement between John Lucks
    and Heritage-Crystal Clean, LLC dated March&#160;1, 2000
    (Incorporated herein by reference to Exhibit&#160;10.34 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .18&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement among BRS-HCC
    Investment Co., Inc., Bruckmann, Rosser, Sherrill&#160;&#038;
    Co. II, L.P., Bruckmann, Rosser, Sherrill&#160;&#038; Co., Inc.,
    Bruce C. Bruckmann and Heritage-Crystal Clean, LLC dated
    February&#160;24, 2004 (Incorporated herein by reference to
    Exhibit&#160;10.35 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .19&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, LLC Key Employee Membership Interest
    Trust&#160;Agreement dated February&#160;1, 2002, as amended
    (Incorporated herein by reference to Exhibit&#160;10.18 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .20&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, Inc. Omnibus Incentive Plan
    (Incorporated herein by reference to Exhibit&#160;10.25 of
    Amendment No.&#160;6 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .21&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, Inc. Performance-Based Annual Incentive
    Plan (Incorporated herein by reference to Exhibit&#160;10.26 of
    Amendment No.&#160;6 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .22&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, Inc. Non-Qualified Deferred Compensation
    Plan (Incorporated herein by reference to Exhibit&#160;10.27 of
    Amendment No.&#160;7 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .23&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, LLC Form of Omnibus Incentive Plan of
    2008 Stock Option Grant Notice and Agreement (Incorporated
    herein by reference to Exhibit&#160;10.28 of Amendment
    No.&#160;6 to the Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .24&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, Inc. Employee Stock Purchase Plan of
    2008 (Incorporated herein by reference to Exhibit&#160;10.29 of
    Amendment No.&#160;7 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .25&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Indemnity Agreement (Incorporated herein by reference to
    Exhibit&#160;10.30 of Amendment No.&#160;7 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .26
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Multi-Story Office Building Lease between
    Heritage-Crystal-Clean, LLC and RP 2 Limited Partnership dated
    November&#160;28, 2005 (Incorporated herein by reference to
    Exhibit&#160;10.17 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .27
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Subscription Agreement entered into between
    Heritage-Crystal Clean, Inc. and the participants in the Direct
    Placement (Incorporated herein by reference to
    Exhibit&#160;10.36 of Amendment No.&#160;6 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .28
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Equity Exchange Agreement among Heritage-Crystal Clean,
    Inc., Heritage-Crystal Clean, LLC and each member of
    Heritage-Crystal Clean, LLC (Incorporated herein by reference to
    Exhibit&#160;10.39 of Amendment No.&#160;8 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;11, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .29
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Agreement and Plan of Merger among Heritage-Crystal
    Clean, Inc., BRS-HCC Investment Co., Inc. and each stockholder
    of BRS-HCC Investment Co., Inc. (Incorporated herein by
    reference to Exhibit&#160;10.40 of Amendment No.&#160;7 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .30
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Exchange Advisor and Placement Agent Agreement among
    Heritage-Crystal Clean, Inc., Heritage-Crystal Clean, LLC,
    William Blair&#160;&#038; Company, L.L.C. and Piper
    Jaffray&#160;&#038; Co. dated March&#160;3, 2008 (Incorporated
    herein by reference to Exhibit&#160;10.42 of Amendment
    No.&#160;7 to the Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .31
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Placement Agent Agreement among Heritage-Crystal Clean, Inc.,
    Heritage-Crystal Clean, LLC, William Blair&#160;&#038; Company,
    L.L.C. and Piper Jaffray&#160;&#038; Co. dated March&#160;3,
    2008 (Incorporated herein by reference to Exhibit&#160;10.43 of
    Amendment No.&#160;7 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Grant Thornton LLP, Independent Registered Public
    Account
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of KPMG LLP, Independent Registered Public Accountants
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of McDermott Will&#160;&#038; Emery LLP (contained in
    their opinion filed as Exhibit&#160;5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Powers of Attorney (included on signature page)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    &#134; </TD>
    <TD></TD>
    <TD valign="bottom">
    Indicates management contract or compensatory plan or
    arrangement.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    Filed herewith.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Financial Statement Schedules:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All financial statement schedules are omitted because they are
    not applicable or not required, or because the required
    information is provided in our consolidated financial statements
    or accompanying notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;17.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Undertakings</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned registrant hereby undertakes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;That, for the purpose of determining liability under
    the Securities Act of 1933 to any purchaser each prospectus
    filed pursuant to Rule&#160;424(b) as part of a registration
    statement relating to an offering, other than registration
    statements relying on Rule 430B or other than prospectuses filed
    in reliance on Rule&#160;430A, shall be deemed to be part of and
    included in the registration statement as of the date it is
    first used after effectiveness; provided, however, that no
    statement made in a registration statement or prospectus that is
    part of the registration statement or made in a document
    incorporated or deemed incorporated by reference into the
    registration statement or prospectus that is part of the
    registration statement will, as to a purchaser with a time of
    contract of sale prior to such first use, supersede or modify
    any statement that was made in the registration statement or
    prospectus that was part of the registration statement or made
    in any such document immediately prior to such date of first use.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;For purposes of determining any liability under the
    Securities Act of 1933, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule&#160;430A and contained in a form of
    prospectus filed by the registrant pursuant to
    Rule&#160;424(b)(1) or (4)&#160;or 497(h) under the Securities
    Act shall be deemed to be part of this registration statement as
    of the time it was declared effective.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;For the purpose of determining any liability under the
    Securities Act of 1933, each post-effective amendment that
    contains a form of prospectus shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Insofar as indemnification for liabilities arising under the
    Securities Act of 1933&#160;may be permitted to directors,
    officers and controlling persons of the registrant pursuant to
    the provisions described under Item&#160;14 above, or otherwise,
    the registrant has been advised that in the opinion of the SEC
    such indemnification is against public policy as expressed in
    the Securities Act of 1933 and, therefore, unenforceable. In the
    event a claim for indemnification against such liabilities
    (other than the payment by the registrant of expenses incurred
    or paid by a director, officer or controlling person of the
    registrant in the successful defense of any action, suit or
    proceeding) is asserted by such director, officer or controlling
    person in connection with the securities being registered, the
    registrant will, unless in the opinion of its counsel the matter
    has been settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Securities Act of 1933 and will be governed by the final
    adjudication of such issue.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, as
    amended, the registrant has duly caused this Registration
    Statement to be signed on its behalf by the undersigned,
    thereunto duly authorized, in the City of Elgin, State of
    Illinois, on this 18th&#160;day of May, 2010.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Heritage-Crystal Clean, Inc.<BR>
    </B>(Registrant)
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="center">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Joseph
    Chalhoub</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="center" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Joseph Chalhoub
</DIV>

<DIV align="center" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    President, Chief Executive Officer and Director
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    KNOW ALL PERSONS BY THESE PRESENTS, that each person whose
    signature appears below constitutes and appoints, Joseph
    Chalhoub and Gregory Ray, and each of them, his or her true and
    lawful attorneys-in-fact and agents, for him or her and in his
    or her name, place and stead in any and all capacities, to sign
    any and all amendments (including post-effective amendments and
    any registration statement for the same offering filed pursuant
    to Rule&#160;462 under the Securities Act) to this registration
    statement, and to file the same, with all exhibits thereto, and
    other documents in connection therewith, with the Securities and
    Exchange Commission and any other regulatory authority, granting
    unto said attorneys-in-fact and agents full power and authority
    to do and perform each and every act and thing requisite and
    necessary to be done in and about the premises, as fully to all
    intents and purposes as he or she might or could do in person,
    hereby ratifying and confirming all that said attorneys-in-fact
    and agents may lawfully do or cause to be done by virtue thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed by the following persons
    in the capacities indicated and on May&#160;18, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="9%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="49%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Joseph
    Chalhoub</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Joseph
    Chalhoub
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    President, Chief Executive Officer and Director (Principal
    Executive Officer of the Registrant)
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Gregory
    Ray</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Gregory
    Ray
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chief Financial Officer, Vice President, Business Management and
    Secretary<BR>
    (Principal Financial Officer of the Registrant)
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Ellie
    Chaves</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Ellie
    Chaves
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chief Accounting Officer of the Registrant
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Fred
    Fehsenfeld, Jr.&#160;</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Fred
    Fehsenfeld, Jr.&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Donald
    Brinckman</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Donald
    Brinckman
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Bruce
    Bruckmann</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Bruce
    Bruckmann
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="9%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="49%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Carmine
    Falcone</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Carmine
    Falcone
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Charles
    E. Schalliol</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Charles
    E. Schalliol
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Robert
    W. Willmschen, Jr.&#160;</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Robert
    W. Willmschen, Jr.&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></B>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1(1)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Incorporation of Heritage-Crystal Clean, Inc.
    (Incorporated herein by reference to Exhibit&#160;3.1 of
    Amendment No.&#160;6 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)&#160;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1(2)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Certificate of Incorporation of Heritage-Crystal
    Clean, Inc. (Incorporated herein by reference to
    Exhibit&#160;3.1(2) to the Company&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on May&#160;17, 2010)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    By-Laws of Heritage-Crystal Clean, Inc. (Incorporated herein by
    reference to Exhibit&#160;3.2 of Amendment No.&#160;6 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Specimen Common Stock Certificate of Heritage-Crystal
    Clean, Inc. (Incorporated herein by reference to
    Exhibit&#160;4.1 of Amendment No.&#160;7 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of McDermott Will&#160;&#038; Emery LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Restated Operating Agreement for Heritage-Crystal Clean, LLC
    dated October&#160;26, 2004, as amended. (Incorporated herein by
    reference to Exhibit&#160;10.1 of Amendment No.&#160;1 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment No.&#160;6 to Operating Agreement for Heritage-Crystal
    Clean, LLC dated December&#160;28, 2007 (Incorporated herein by
    reference to Exhibit&#160;10.37 of Amendment No.&#160;4 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;1, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Agreement and Amendment No.&#160;7 to Operating
    Agreement for Heritage-Crystal Clean, LLC (Incorporated herein
    by reference to Exhibit&#160;10.38 of Amendment No.&#160;4 to
    the Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;1, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Third Amended and Restated Credit Agreement dated as of
    December&#160;14, 2009 between Heritage-Crystal Clean, LLC and
    Bank of America, N.A. (Incorporated herein by reference to
    Exhibit&#160;10.1 to the Company&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on December&#160;18, 2009)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment to Third Amended and Restated Credit Agreement
    dated as of May&#160;14, 2010 between Heritage-Crystal Clean,
    LLC and Bank of America, N.A. (Incorporated herein by reference
    to Exhibit&#160;10.5 to the Company&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on May&#160;18, 2010)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Intercreditor Agreement dated as of February&#160;24, 2004 among
    Heritage-Crystal Clean, LLC, Bruckmann, Rosser,
    Sherrill&#160;&#038; Co. II, L.P., Asphalt Refining Company and
    Donald Brinckman (Incorporated herein by reference to
    Exhibit&#160;10.3 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amended and Restated Promissory Note to Asphalt Refining
    Company dated December&#160;29, 2006 (Incorporated herein by
    reference to Exhibit&#160;10.6 of Amendment No.&#160;1 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Third Amended and Restated Note by Bank of America, N.A. dated
    April&#160;30, 2007 (Incorporated herein by reference to
    Exhibit&#160;10.7 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Participation Rights Agreement between Heritage-Crystal
    Clean, Inc. and The Heritage Group (Incorporated herein by
    reference to Exhibit&#160;10.9 of Amendment No.&#160;7 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement, dated as of August&#160;24, 1999 by and
    between Heritage-Crystal Clean, LLC and Joseph Chalhoub, as
    amended March&#160;1, 2000 (Incorporated herein by reference to
    Exhibit&#160;10.8 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement, dated as of March&#160;1, 2000 by and
    between Heritage-Crystal Clean, LLC and John Lucks (Incorporated
    herein by reference to Exhibit&#160;10.10 of Amendment
    No.&#160;1 to the Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement, dated as of November&#160;15, 1999 by and
    between Heritage-Crystal Clean, LLC and Gregory Ray
    (Incorporated herein by reference to Exhibit&#160;10.12 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement, dated as of September&#160;14, 2002 by and
    between Heritage-Crystal Clean, LLC and Tom Hillstrom
    (Incorporated herein by reference to Exhibit&#160;10.14 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement between Donald
    Brinckman and Heritage-Crystal Clean, LLC dated March&#160;22,
    2002 (Incorporated herein by reference to Exhibit&#160;10.16 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement between Joseph
    Chalhoub and Heritage-Crystal Clean, LLC dated August&#160;24,
    1999 (Incorporated herein by reference to Exhibit&#160;10.32 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement between Gregory Ray
    and Heritage Crystal Clean, LLC dated November&#160;15, 1999
    (Incorporated herein by reference to Exhibit&#160;10.33 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .17&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement between John Lucks
    and Heritage-Crystal Clean, LLC dated March&#160;1, 2000
    (Incorporated herein by reference to Exhibit&#160;10.34 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .18&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Non-Competition and Non-Disclosure Agreement among BRS-HCC
    Investment Co., Inc., Bruckmann, Rosser, Sherrill&#160;&#038;
    Co. II, L.P., Bruckmann, Rosser, Sherrill&#160;&#038; Co., Inc.,
    Bruce C. Bruckmann and Heritage-Crystal Clean, LLC dated
    February&#160;24, 2004 (Incorporated herein by reference to
    Exhibit&#160;10.35 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .19&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, LLC Key Employee Membership Interest
    Trust&#160;Agreement dated February&#160;1, 2002, as amended
    (Incorporated herein by reference to Exhibit&#160;10.18 of
    Amendment No.&#160;1 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .20&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, Inc. Omnibus Incentive Plan
    (Incorporated herein by reference to Exhibit&#160;10.25 of
    Amendment No.&#160;6 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .21&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, Inc. Performance-Based Annual Incentive
    Plan (Incorporated herein by reference to Exhibit&#160;10.26 of
    Amendment No.&#160;6 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .22&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, Inc. Non-Qualified Deferred Compensation
    Plan (Incorporated herein by reference to Exhibit&#160;10.27 of
    Amendment No.&#160;7 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .23&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, LLC Form of Omnibus Incentive Plan of
    2008 Stock Option Grant Notice and Agreement (Incorporated
    herein by reference to Exhibit&#160;10.28 of Amendment
    No.&#160;6 to the Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .24&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Heritage-Crystal Clean, Inc. Employee Stock Purchase Plan of
    2008 (Incorporated herein by reference to Exhibit&#160;10.29 of
    Amendment No.&#160;7 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .25&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Indemnity Agreement (Incorporated herein by reference to
    Exhibit&#160;10.30 of Amendment No.&#160;7 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .26
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Multi-Story Office Building Lease between
    Heritage-Crystal-Clean, LLC and RP 2 Limited Partnership dated
    November&#160;28, 2005 (Incorporated herein by reference to
    Exhibit&#160;10.17 of Amendment No.&#160;1 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on August&#160;3, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .27
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Subscription Agreement entered into between
    Heritage-Crystal Clean, Inc. and the participants in the Direct
    Placement (Incorporated herein by reference to
    Exhibit&#160;10.36 of Amendment No.&#160;6 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on February&#160;25, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .28
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Equity Exchange Agreement among Heritage-Crystal Clean,
    Inc., Heritage-Crystal Clean, LLC and each member of
    Heritage-Crystal Clean, LLC (Incorporated herein by reference to
    Exhibit&#160;10.39 of Amendment No.&#160;8 to the Company&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;11, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .29
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Agreement and Plan of Merger among Heritage-Crystal
    Clean, Inc., BRS-HCC Investment Co., Inc. and each stockholder
    of BRS-HCC Investment Co., Inc. (Incorporated herein by
    reference to Exhibit&#160;10.40 of Amendment No.&#160;7 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .30
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Exchange Advisor and Placement Agent Agreement among
    Heritage-Crystal Clean, Inc., Heritage-Crystal Clean, LLC,
    William Blair&#160;&#038; Company, L.L.C. and Piper
    Jaffray&#160;&#038; Co. dated March&#160;3, 2008 (Incorporated
    herein by reference to Exhibit&#160;10.42 of Amendment
    No.&#160;7 to the Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .31
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Placement Agent Agreement among Heritage-Crystal Clean, Inc.,
    Heritage-Crystal Clean, LLC, William Blair&#160;&#038; Company,
    L.L.C. and Piper Jaffray&#160;&#038; Co. dated March&#160;3,
    2008 (Incorporated herein by reference to Exhibit&#160;10.43 of
    Amendment No.&#160;7 to the Company&#146;s Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-1438640)</FONT>
    filed with the SEC on March&#160;7, 2008)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Grant Thornton LLP, Independent Registered Public
    Account
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of KPMG LLP, Independent Registered Public Accountants
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of McDermott Will&#160;&#038; Emery LLP (contained in
    their opinion filed as Exhibit&#160;5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Powers of Attorney (included on signature page)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    &#134; </TD>
    <TD></TD>
    <TD valign="bottom">
    Indicates management contract or compensatory plan or
    arrangement.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    Filed herewith.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-11
</DIV><!-- END PAGE WIDTH -->
</BODY>
</HTML>
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sv1
Table of Contents
As filed with the Securities and
    Exchange Commission on May 18, 2010
Registration
No. 333-
UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
Washington, D.C.
    20549
Form S-1
REGISTRATION
    STATEMENT
UNDER
THE SECURITIES ACT OF
    1933
Heritage-Crystal Clean,
    Inc.
Delaware
4955
26-0351454
(State or other jurisdiction
    of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
2175 Point Boulevard,
Suite 375
Elgin, Illinois 60123
(847) 836-5670
(Address, including zip code,
    and telephone number,
including area code, of
    registrant's principal executive offices)
Joseph Chalhoub
President and Chief Executive
    Officer
Heritage-Crystal Clean,
    Inc.
2175 Point Boulevard,
    Suite 375
Elgin, Illinois 60123
(847) 836-5670
(Name, address, including zip
    code, and telephone number,
including area code, of agent
    for service)
Copies to:
Mark A. Harris
Heidi J. Steele
McDermott Will & Emery LLP
227 W. Monroe Street, Suite 4700
Chicago, Illinois 60606
Larry A. Barden
Robert L. Verigan
Sidley Austin LLP
1 S. Dearborn Street
Chicago, Illinois 60603
Approximate date of commencement of proposed sale to the
    public:
As soon as practicable after this
    Registration Statement becomes effective.
If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule 415 under the Securities Act of 1933, check the
    following
    box.
o
If this Form is filed to register additional securities for an
    offering pursuant to Rule 462(b) under the Securities Act,
    check the following box and list the Securities Act registration
    statement number of the earlier effective registration statement
    for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    "large accelerated filer," "accelerated
    filer" and "smaller reporting company" in
Rule 12b-2
of the Exchange Act. (Check one):
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
þ
Smaller reporting company
o
(Do not check if a
    smaller
reporting company)
CALCULATION
    OF REGISTRATION FEE
Proposed Maximum
Proposed Maximum
Amount of
Title of Each Class of
Amount to be
Offering Price
Aggregate Offering
Registration
Securities to be Registered
Registered
per Share
Price
Fee
Common Stock, par value $.01 per share
3,162,500 shares
(1
)
$
9.76
(2
)
$
30,866,000
(2
)
$
2,200.75
(3
)
(1)
Includes shares issuable upon
    exercise of the underwriters' option to purchase additional
    shares.
(2)
Estimated solely for purposes of
    calculating the registration fee pursuant to Rule 457(c)
    under the Securities Act, based upon $9.76 per share, which is
    the average of the high and low sales prices of the common stock
    reported on The Nasdaq Global Market on May 13, 2010.
(3)
The amount of filing fee equals
    $71.30 per million of the maximum aggregate offering price.
The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section 8(a)
    of the Securities Act of 1933, as amended, or until this
    Registration Statement shall become effective on such date as
    the Commission, acting pursuant to said Section 8(a), may
    determine.
Table of Contents
The information in
this preliminary prospectus is not complete and may be changed.
We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. This preliminary prospectus is not an offer to sell,
and we are not soliciting an offer to buy, these securities in
any state where the offer or sale is not permitted.
SUBJECT TO
    COMPLETION, DATED MAY 18, 2010
2,750,000 Shares
Heritage-Crystal Clean,
    Inc.
Common Stock
We are selling 2,750,000 shares of our common stock, par
    value $0.01 per share. Our common stock is traded on The NASDAQ
    Global Market under symbol "HCCI." On May 17,
    2010, the last reported sale price of our common stock on The
    NASDAQ Global Market was $9.72 per share.
Investing in our common stock involves a high degree of risk.
    See "Risk Factors" beginning on page 9 to read
    about factors you should consider before buying our common
    stock.
Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or passed upon the adequacy or accuracy of this
    prospectus. Any representation to the contrary is a criminal
    offense.
Per Share
Total
Public offering price
$
$
Underwriting discount
$
$
Proceeds to the Company (before expenses)
$
$
We have granted the underwriters an option for a period of
    30 days to purchase up to 412,500 additional shares of our
    common stock on the same terms and conditions set forth above.
    See the section of this prospectus entitled
    "Underwriting."
The underwriters expect to deliver the shares to purchasers on
    or
    about          ,
    2010.
William Blair &
    Company
Baird
Needham & Company, LLC
The date of this prospectus
    is          ,
    2010
Table
    of Contents
Page
Cautionary Statement Regarding Forward-Looking
    Statements
ii
About This Prospectus
iii
Where You Can Find More Information
iii
Prospectus Summary
1
Risk Factors
9
Use of Proceeds
22
Price Range of Common Stock
23
Dividend Policy
24
Capitalization
25
Selected Consolidated Financial Data
26
Management's Discussion and Analysis of
    Financial Condition and Results of Operations
29
Business
41
Management
53
Principal Stockholders
56
Relationships and Transactions With Related
    Persons
58
Underwriting
61
Legal Matters
65
Experts
65
EX-23.1
EX-23.2
You should rely only on the information contained or
    incorporated by reference in this prospectus or to which we have
    referred you. We have not authorized anyone to provide you with
    information that is different. Offers to sell, and solicitations
    of offers to buy, shares of our common stock are being made only
    in jurisdictions where offers and sales are permitted. The
    information contained in this prospectus is accurate only as of
    the date of this prospectus and the information in the documents
    incorporated or deemed to be incorporated by reference in this
    prospectus is accurate only as of the respective dates those
    documents were filed with the Securities & Exchange
    Commission, regardless of the time of delivery of this
    prospectus or any sale of our common stock.
i
Table of Contents
CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements that are
    based upon current management expectations. All statements other
    than statements of historical facts included in this prospectus,
    including statements regarding our future financial position,
    economic performance and results of operations, as well as our
    business strategy, budgets, and projected costs and plans and
    objectives of management are forward-looking statements.
    Generally, the words "aim," "anticipate,"
    "believe," "could," "estimate,"
    "expect," "intend," "may,"
    "plan," "project," "should,"
    "will be," "will continue," "will
    likely result," "would" and similar expressions
    identify forward-looking statements. These forward-looking
    statements are based on current expectations, estimates and
    projections, many of which are by their nature inherently
    uncertain and beyond our control and involve known and unknown
    risks, uncertainties and other important factors that could
    cause our actual results, performance or achievements or
    industry results to differ materially from any future results,
    performance or achievements expressed or implied by these
    forward-looking statements. These risks, uncertainties and other
    important factors are further described in "Risk
    Factors" and include, among others:
•
economic conditions including the recent recession and financial
    crisis; and downturns in the business cycles of automotive
    repair shops, industrial manufacturing businesses and small
    businesses in general;
•
increased solvent, fuel and energy costs and volatility in the
    price of crude oil;
•
our ability to build and operate our used oil re-refinery as
    anticipated;
•
we are unable to generate sufficient funds to build and support
    our used oil re-refinery;
•
the used oil re-refinery may not generate the operating results
    that we anticipate;
•
further consolidation
and/or
declines in the U.S. automotive repair and manufacturing
    industries;
•
the impact of extensive environmental, health and safety and
    employment laws and regulations on our business;
•
legislative or regulatory requirements or changes adversely
    affecting our business;
•
competition in our existing lines of business;
•
claims and involuntary shutdowns relating to our handling of
    hazardous substances;
•
the limited demand for our used solvent;
•
our dependency on key employees;
•
our ability to effectively manage our extended network of branch
    locations;
•
warranty expense and liability claims;
•
the control of The Heritage Group over our Company;
•
personal injury litigation;
•
dependency of suppliers; and
•
our ability to manage our growth.
Because forward-looking statements are subject to risks and
    uncertainties, actual results may differ materially from those
    expressed or implied by such statements. You are cautioned not
    to place undue reliance on such statements, which speak only as
    of the date of this prospectus. Actual results of the Company
    may differ materially from those expressed in these
    forward-looking statements. Many of the factors that will
    determine these results and values are beyond our ability to
    control or predict.
ii
Table of Contents
We urge investors to review carefully the section of this
    prospectus entitled "Risk Factors" in evaluating the
    forward-looking statements contained in this prospectus. The
    information in this release should be read in light of such
    risks and in conjunction with the consolidated financial
    statements and the notes thereto which are incorporated by
    reference. Unless required by law, we do not undertake any
    obligation to release publicly any revisions to such
    forward-looking statements to reflect events or circumstances
    after the date of this prospectus, to reflect the occurrence of
    unanticipated events or for any other reason.
ABOUT
    THIS PROSPECTUS
You should rely only on the information contained in this
    prospectus and information incorporated by reference not
    included within. We have not, and the underwriters have not,
    authorized any person to provide you with different or
    inconsistent information. If anyone provides you with different
    or inconsistent information, you should not rely on it. We are
    not, and the underwriters are not, making an offer to sell these
    securities in any jurisdiction where the offer or sale is not
    permitted. You should assume that the information appearing in
    this prospectus is accurate only as of the date of this
    prospectus, unless the information specifically indicates that
    another date applies. Our business, financial condition, results
    of operations and prospects may have changed since such dates.
Market data and certain industry forecasts used herein were
    obtained from internal surveys, market research, publicly
    available information and industry publications. While we
    believe that market research, publicly available information and
    industry publications we use are reliable, we have not
    independently verified market and industry data from third-party
    sources. Moreover, while we believe our internal surveys are
    reliable, they have not been verified by any independent source.
Unless otherwise indicated or unless the context requires
    otherwise, all references in this prospectus to
    "Heritage-Crystal Clean," the "Company,"
    "we," "us," "our," or similar
    references, mean Heritage-Crystal Clean, Inc. and its
    consolidated subsidiary, Heritage-Crystal Clean, LLC.
WHERE YOU
    CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, proxy statements
    and other information with the Securities and Exchange
    Commission, or the SEC. You may read and copy any document we
    file at the SEC's Public Reference Room at
    100 F Street, N.E., Washington, D.C. 20549. You
    may obtain information on the operation of the Public Reference
    Room by calling the SEC at
1-800-SEC-0330.
The SEC also maintains an Internet site that contains reports,
    proxy and information statements, and other information
    regarding issuers that file electronically with the SEC. The
    internet address of the SEC's website is www.sec.gov. Such
    reports and other information concerning Heritage-Crystal Clean
    can also be inspected at the offices of Heritage-Crystal Clean
    at 2175 Point Boulevard, Suite 375, Elgin, Illinois 60123
    and can also be retrieved by accessing our website at
    www.crystal-clean.com. Information on our website is not part of
    this prospectus.
This prospectus, which is a part of a registration statement on
Form S-1
that we have filed with the SEC under the Securities Act of
    1933, as amended, or the Securities Act, omits certain
    information set forth in the registration statement.
    Accordingly, for further information, you should refer to the
    registration statement and its exhibits on file with the SEC.
    Furthermore, statements contained in this prospectus concerning
    any document filed as an exhibit are not necessarily complete
    and, in each instance, we refer you to the copy of such document
    filed as an exhibit to the registration statement.
The SEC allows us to incorporate by reference information we
    file with it, which means that we can disclose important
    information to you by referring you to other documents. The
    information incorporated by reference is considered to be part
    of this prospectus. We incorporate by reference the documents
    listed below, except to the extent that any information
    contained in such filings is deemed "furnished" in
    accordance with SEC rules:
•
Our Annual Report on
Form 10-K
for the year ended January 2, 2010 and our Quarterly Report
    on
Form 10-Q
for the quarter ended March 27, 2010;
iii
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•
Our Definitive Proxy Statement on Schedule 14A filed with
    the SEC on April 5, 2010; and
•
Our Current Reports on
Form 8-K
filed with the SEC on May 13, 2010, May 17, 2010 and
    May 18, 2010.
We also intend to provide our stockholders with annual reports
    containing financial statements audited by our independent
    auditors.
We will provide each person to whom this prospectus is delivered
    a copy of any or all of the information that has been
    incorporated by reference in this prospectus but not delivered
    with this prospectus, upon written or oral request at no cost,
    by writing or telephoning us at the address set forth below.
Heritage-Crystal Clean, Inc.
Attention: Corporate Secretary
2175 Point Boulevard, Suite 375
Elgin, Illinois 60123
(847) 836-5670
iv
Table of Contents
PROSPECTUS
    SUMMARY
This summary highlights selected information contained
    elsewhere in this prospectus. Because this is only a summary, it
    does not contain all the information that you should consider
    before investing in our common stock. You should read the entire
    prospectus and the information incorporated by reference
    carefully, especially "Risk Factors" beginning on
    page 9 and our consolidated financial statements and
    related notes, which are incorporated herein by reference,
    before making an investment decision. Our fiscal year ends the
    Saturday closest to December 31. Accordingly, fiscal years
    2007, 2008 and 2009 ended December 29, 2007,
    January 3, 2009 and January 2, 2010, respectively.
    Fiscal years 2007 and 2009 each consisted of 52 weeks while
    Fiscal year 2008 consisted of 53 weeks. Our convention with
    respect to reporting periodic financial data is that each of our
    first three fiscal quarters consist of twelve weeks while our
    last fiscal quarter consists of sixteen or seventeen weeks.
Based on revenues, we believe that we are the second largest
    provider of parts cleaning services in the U.S. and a
    leading provider of containerized waste services targeting small
    and mid-sized customers. Within the industrial and hazardous
    waste services market, we focus on parts cleaning, containerized
    waste, used oil and vacuum services, and we have recently
    announced plans to develop a used oil re-refinery. We estimate
    these components together represent a $6 billion market
    opportunity, of which approximately $1 billion represents
    the increase in market potential if the used oil re-refining
    market is included. Through our network of 62 branches, we
    provide our services to more than 41,000 active customer
    locations. During fiscal 2009, we performed more than 250,000
    parts cleaning service calls.
Our customers frequently need to remove grease and dirt from
    machine and engine parts. Typical customers include businesses
    involved in vehicle maintenance operations, such as car
    dealerships, automotive repair shops and trucking firms, as well
    as small manufacturers, such as metal product fabricators and
    printers. Based on 2007 data from the U.S. Census Bureau,
    we estimate that there are more than 800,000 such firms in the
    U.S. Our services allow our customers to outsource their
    handling and disposal of parts cleaning solvents as well as
    other containerized waste. These materials are subject to
    extensive and complex regulations, and mismanagement can result
    in citations, penalties, and substantial direct costs. We allow
    our customers to focus more on their core business and devote
    fewer resources to industrial and hazardous waste management. We
    believe that these services are highly attractive to small and
    mid-sized customers, which we define as firms that generally
    spend less than $50,000 per year on industrial and hazardous
    waste services. These small and mid-sized customers typically
    have limited administrative infrastructure and have needs, such
    as assistance in preparing waste manifests and drum labels and
    regularly-scheduled service visits to check inventories and
    remove accumulated waste, that are often highly differentiated
    from the needs of larger accounts. We believe that our company
    is structured to meet these particular needs.
In each of our services, we have adopted innovative approaches
    to minimize the regulatory burdens for our customers, and we
    have designed our services to provide "ease of use" to
    our customers. Our company has pioneered two different programs
    whereby our customers' used parts cleaning solvent may be
    excluded from the U.S. Environmental Protection
    Agency's, or the EPA's, definition of hazardous waste.
    These two programs not only simplify the management of used
    solvent generated by our customers, but also reduce the total
    volume of hazardous waste generated at many of our
    customers' locations. This can allow the customer to
    achieve a lower "generator status" with the EPA and
    thereby reduce their overall regulatory burden, including
    reduced reporting obligations and inspections.
Competitive
    Strengths
From our current base of 62 branch locations, we implement an
    organized and disciplined approach to increasing our market
    share, taking advantage of the following competitive strengths:
Large and Highly Diverse Customer Base.
Our
    focus on small and mid-sized businesses has enabled us to
    attract a variety of customers engaged in a range of businesses
    spread across the spectrum of the manufacturing, vehicle
    service, and transportation industries. Our customer base
    consists of over 41,000 active customer locations. In fiscal
    2009, our largest single customer represented less than 2% of
    our annual sales,
1
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and our largest ten customers represented approximately 6.2% of
    our annual sales. This diverse customer base helps insulate us
    from disruption caused by the possible loss of a single large
    account.
Innovative Services that Reduce Customers' Regulatory
    Burdens.
We have designed our service programs to
    meet the needs of our target customers. In particular, these
    customers desire to minimize their regulatory compliance burdens
    and we have developed innovative methods to help our customers
    achieve this objective. For example, we have created two
    parts-cleaning service programs which each exempt our customers
    from certain hazardous waste regulations and filing requirements:
•
Non-hazardous Program for Parts Cleaning. In our non-hazardous
    program for parts cleaning, we provide our customers with an
    alternative solvent that is not included in the EPA's
    definition of hazardous waste due to its increased flashpoint,
    and we educate each participating customer to prevent harmful
    contaminants from being added to the solvent during use. Because
    of the reduced solvent flammability, as long as the customer
    doesn't add toxic or flammable contaminants during use,
    neither the clean solvent that we supply nor the resulting used
    solvent generated by customers participating in our
    non-hazardous program for parts cleaning is classified as
    hazardous waste by the EPA and as a result can be managed as
    non-hazardous waste. After we collect the used solvent from
    customers participating in our non-hazardous program for parts
    cleaning, we recycle it via distillation for re-delivery to our
    parts cleaning customers, while at the same time minimizing the
    burdensome hazardous waste regulations faced by our customers.
    In order to most efficiently operate our non-hazardous program
    for parts cleaning, we have built a solvent recycling system at
    our Indianapolis hub capable of recycling up to 6 million
    gallons per year of used solvent generated by customers
    participating in our non-hazardous program.
•
Product Reuse Program for Parts Cleaning. Rather than managing
    used solvent as a waste, we have developed a program that uses
    the solvent as an ingredient in the manufacture of asphalt
    roofing materials. Used solvent generated by customers
    participating in our product reuse program for parts cleaning is
    sold as a direct substitute for virgin solvent that is otherwise
    used in the asphalt manufacturing process. Because the used
    solvent is destined for reuse, it is not deemed a waste, and
    therefore it is not subject to hazardous waste regulations. To
    enhance the marketing of these programs, in the past
    20 years we and our predecessor Heritage Environmental
    Services have voluntarily obtained concurrence letters from more
    than 30 state environmental agencies to validate this
    approach.
Excellent Customer Service.
Since our
    founding, we have instilled a standardized, sales-oriented
    approach to our customers across our branch network. Our branch
    personnel are focused on local sales and service delivery, and a
    significant portion of their compensation is linked to sales
    growth and new business development. In order to achieve this
    sales growth, our personnel understand that they must retain
    existing business, which is best achieved by providing a very
    high level of customer service. Our high quality service leads
    to high customer satisfaction, customer retention, cross-selling
    opportunities, and referrals to new prospects. During fiscal
    2009, approximately 88% of our sales were generated from
    customers that we also served during fiscal 2008.
Experienced Management Team.
Our management
    team has substantial experience in the industry and possesses
    particular expertise in the small to mid-sized customer segment.
    The management team also has industry-leading experience in the
    used oil re-refining industry. Our senior managers have on
    average more than 20 years of industry experience and our
    middle managers have on average more than 10 years of
    experience. Many of our managers held key positions with
    Safety-Kleen, our largest competitor, between 1986 and 1998
    during which time Safety-Kleen grew from $255 million to
    over $1.0 billion in annual revenue.
Cost-Efficient Branch Rollout Model.
Our
    branch model allows us to consolidate operational and
    administrative functions not critical to sales and service at
    either a regional hub or our headquarters. This model has been
    the foundation for our new branch rollout during the past ten
    years, as we have expanded from 14 to 62 branches, and we expect
    to extend this model to new locations. Furthermore, as we grow
    within each branch, we improve our route density, which is an
    important contribution to profitability in our business.
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Table of Contents
Growth
    Strategies
We intend to grow by providing environmental solutions that meet
    the needs of our customers. We have several different strategies
    to accomplish this and they include:
Same-Branch Sales Growth.
We seek to generate
year-over-year
growth in existing markets by obtaining new customers and by
    cross-selling multiple services to existing customers. Our sales
    and marketing strategy includes providing significant incentives
    to our field sales and service personnel to find and secure new
    business. These incentives include commission compensation for
    individuals and managers, as well as prize awards and contests
    at the individual and team level. Our company culture is
    designed to consistently emphasize the importance of sales and
    service excellence, and to build and maintain enthusiasm that
    supports continued sales success. Additionally, we intend to
    drive profitability by leveraging fixed costs against
    incremental sales growth at our existing branches.
Expanded Service Offerings.
All of our
    branches currently offer parts cleaning and containerized waste
    management services. Other services that we provide, including
    used oil collection services and vacuum truck services, are
    currently offered in less than half of our branch locations. As
    part of our effort to enter the used oil re-refining industry,
    we intend to accelerate the number of branches providing used
    oil collection services. As our business grows and we achieve
    sufficient market penetration, we expand the number of services
    offered at our branches. We also have other new business
    programs in various stages of development and these have the
    potential to be offered through our branch locations in the
    future.
Geographic Expansion.
We currently operate
    from 62 branch locations that offer our parts cleaning and
    containerized waste management services to customers in
    39 states and the District of Columbia. We have
    historically been able to install new branches at a relatively
    low cost. Within the contiguous United States, we believe that
    there are opportunities to open more branches and provide
    convenient local service to additional markets. In the future,
    we believe that there will be opportunities to offer our
    services in international markets as well.
Selectively Pursue Acquisition
    Opportunities.
Our management team has
    significant experience in identifying and integrating
    acquisition targets. During the past nine years, we have
    successfully acquired the assets of several small competitors.
    Given the number of small competitors in our business, there are
    generally multiple acquisition opportunities available to us at
    any given time. Our growth plan is not dependent on
    acquisitions, but we will continue to pursue complementary
    acquisitions that leverage our established infrastructure.
Development
    of Used Oil Re-refinery
We have recently announced plans to develop a used oil
    re-refinery to convert used oil into re-refined lubricating base
    oil. We collect used oil from our customers as part of our core
    service offerings, and we typically sell the used oil we collect
    today as a fuel. Our development of a used oil re-refinery will
    enable us to increase the resale value of the used oil we
    collect, which we believe will improve our margins and provide
    us with a significant competitive advantage over most other used
    oil collectors.
We believe that the development of a used oil re-refinery fits
    into our strategic growth plans for the following reasons:
•
We expect that the used oil we will collect from our customers
    will supply a significant portion of the used oil to be
    processed at the re-refinery because this service is needed by
    almost all of our current and target customers. Our network of
    62 branches provides us with an opportunity to efficiently
    collect used oil from a broad geographic area for re-refining.
•
We believe that a strong demand for re-refining capabilities
    exists since we estimate that only 20% of the one billion
    gallons of used oil collected in North America is routed to
    re-refining due to a lack of used oil re-refining capacity.
•
Re-refining is a preferred approach to used oil management based
    on a variety of environmental considerations, including resource
    recovery and reuse, energy efficiency and pollution prevention.
    Re-
3
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refining of used oil recovers more of the economic value of the
    resource than alternative methods such as burning for energy
    recovery.
•
We have extensive experience with the design, construction and
    operation of used oil re-refineries as several members of our
    management were significant contributors to the development of
    approximately 75% of the used oil re-refining capacity in North
    America while employed at Safety-Kleen, Inc.
The re-refining process has been used in the United States for
    decades to remove impurities from used oil and create
    lubricating base oil that can be re-used in place of virgin
    lubricating oil. The process generally consists of two steps:
    first, vacuum distillation to separate the base lubricating oil,
    followed by hydrotreating to remove impurities. We estimate that
    less than 10% of the base lubricating oil supply in the United
    States is currently supplied by re-refineries.
We believe the three key components to a re-refining business
    are used oil supply, re-refining technology and lubricating oil
    product sales. Our goal is to collect enough used oil feedstock
    to eventually ensure self-sufficient plant operation, although
    used oil feedstock is also available for purchase from third
    party suppliers. We intend to leverage our used oil collection
    network to generate this supply. Production of marketable
    lubricating oil from feedstock requires complex processes,
    robust screening and testing programs, and advanced re-refining
    technology. We believe a management team with extensive
    experience with these processes and technologies is necessary to
    design, build and operate a successful plant. We expect that our
    re-refinery will produce high quality lubricating base oils.
    Based on our management team's prior experience with the
    design, construction and operation of used oil re-refineries, we
    have entered into preliminary discussions with several potential
    purchasers of our re-refined lubricating base oil.
We are designing our re-refinery to have an input capacity of
    approximately 50 million gallons of used oil feedstock per
    year and expect to produce about 30 million gallons of
    lubricating base oil per year. We plan to construct our
    re-refinery in Indiana. We estimate that the construction of the
    re-refinery will take approximately two years, allowing us to
    begin operations at partial capacity in 2012, and have a total
    capital cost of approximately $40 million. We also
    anticipate that when the re-refinery starts operations, we will
    feed the re-refinery with a combination of used oil collected
    from our customers and used oil that we purchase from third
    parties. In 2009, we collected 4.3 million gallons of used
    oil from our customers. During the construction period, we plan
    to roll out additional used oil collection routes to increase
    the volume of used oil we collect, and we estimate that during
    fiscal 2010 and 2011 we will incur roughly $1 million and
    $1.5 million of net expense, respectively, related to this
    roll out. We also expect that the operations of the re-refinery
    will increase our working capital requirements by approximately
    $5 million to $10 million.
The expected revenue and profitability of this project will
    depend on a large number of factors, some of which are beyond
    our control, such as crude oil and lubricating oil prices and
    the costs of operations, but based on market conditions and
    crude oil prices prevailing in March 2010, we estimate that when
    the re-refinery is operating at full capacity, it will generate
    approximately $90 million of annual revenue and have
    operating margins of approximately 20%.
Our
    Corporate Information
Our corporate and executive offices are located at 2175 Point
    Boulevard, Suite 375, Elgin, Illinois 60123, and our
    telephone number at that address is
(847) 836-5670.
Our website is located at
http://www.crystal-clean.com.
The information contained in our website is not a part of this
    prospectus.
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Table of Contents
The
    Offering
Common stock offered by us in the offering
2,750,000 shares
Common stock to be outstanding after the offering
13,555,186 shares
(1)
Use of proceeds
We estimate that our net proceeds from the offering will be
    approximately $24.4 million, based on an assumed public
    offering price per share of $9.72 (the last reported sale price
    of our common stock on The NASDAQ Global Market on May 17,
    2010). We currently intend to use the net proceeds from the
    offering to fund a portion of the construction costs for our
    used oil re-refinery facility in Indiana. See "Use of
    Proceeds."
Nasdaq Global Market symbol
"HCCI"
(1)
The number of shares of common stock to be outstanding after the
    offering is based on 10,805,186 shares outstanding as of
    May 17, 2010 and:
•
excludes 889,654 shares of common stock issuable upon the
    exercise of outstanding options at a weighted average strike
    price of $10.76; and
•
excludes 971,197 and 66,430 additional shares of common stock
    that are reserved for future grants, awards or sale under our
    2008 Omnibus Stock Incentive Plan and our Employee Stock
    Purchase Plan of 2008, respectively.
Unless otherwise indicated, the number of shares of common stock
    presented in this prospectus excludes 412,500 shares of
    common stock issuable pursuant to the exercise of the
    underwriter's option to purchase additional shares:
Of the 2,750,000 shares (not including amounts offered if
    the underwriters exercise their option to purchase additional
    shares) being offered under this prospectus, The Heritage Group,
    our largest stockholder ("Heritage"), will be offered
    862,769 shares in accordance with certain participation
    rights as described in "Relationships and Transactions with
    Related Persons" and certain related trusts of Fred
    Fehsenfeld, Jr., the Chairman of our Board and an affiliate
    of Heritage, will be offered 257,807 shares, in each case
    representing the same percentage of shares being sold in this
    offering as each of Heritage and Mr. Fehsenfeld currently
    holds of our outstanding common stock. In the event the
    underwriters' option to purchase additional shares is
    exercised, Heritage and related trusts of Mr. Fehsenfeld
    will be offered 31.4% and 9.4%, respectively, of the total
    number of shares for which the option is exercised. See the
    "Underwriting" section of this prospectus for more
    information.
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Table of Contents
Summary
    Consolidated Financial and Other Data
The following table presents a summary of our historical
    consolidated financial information. When you read this summary
    consolidated financial and other data, it is important that you
    read along with it our consolidated financial statements and the
    related notes, which are incorporated herein by reference, as
    well as the sections titled "Selected Consolidated
    Financial Data" and "Management's Discussion and
    Analysis of Financial Condition and Results of Operations,"
    included elsewhere in this prospectus.
Our fiscal year ends the Saturday closest to December 31.
    Accordingly, fiscal years 2007, 2008 and 2009 ended
    December 29, 2007, January 3, 2009 and January 2,
    2010, respectively. Fiscal years 2007 and 2009 each consisted of
    52 weeks and fiscal 2008 consisted of 53 weeks. Our
    results for the fiscal years ended December 29, 2007,
    January 3, 2009 and January 2, 2010 have been audited
    and the audit reports are incorporated herein by reference. We
    refer to the first twelve weeks of each fiscal year as the
    "first quarter." Accordingly, the first quarters of
    fiscal 2009 and 2010 ended March 28, 2009 and
    March 27, 2010, respectively.
First Quarter Ended
Fiscal Year
March 28,
March 27,
2007
2008
2009
2009
2010
(Unaudited)
(Dollars in thousands, except per share data)
STATEMENT OF OPERATIONS DATA:
Sales
$
89,734
$
108,143
$
98,398
$
23,756
$
24,005
Cost of sales
22,920
29,430
26,040
7,497
6,006
Cost of sales — inventory impairment
2,182
(1)
2,778
(2)
—
—
—
Gross profit
64,632
75,935
72,358
16,259
17,999
Operating costs
43,573
53,497
51,940
12,239
12,495
Selling, general, and administrative expenses
15,583
20,220
17,137
3,852
4,364
Proceeds from contract
    termination
(1)
(3,000
)
—
—
—
—
Operating income
8,476
2,218
3,281
168
1,140
Interest expense
1,408
408
3
—
—
Loss on disposal of fixed assets — net
—
—
159
—
—
Income before income taxes
7,068
1,810
3,119
168
1,140
Provision for income
    taxes
(3)
—
2,618
1,326
68
478
Net income (loss)
7,068
(808
)
1,793
100
662
Preferred return
1,691
339
—
—
—
Net income (loss) available to common stockholders
$
5,377
$
(1,147
)
$
1,793
$
100
$
662
Net income (loss) per share available to common stockholders:
Basic
$
0.75
$
(0.11
)
$
0.17
$
0.01
$
0.06
Diluted
$
0.74
$
(0.11
)
$
0.17
$
0.01
$
0.06
Weighted average shares outstanding (thousands):
Basic
7,178
(4)
9,985
10,700
10,685
10,713
Diluted
7,229
(4)
9,985
10,772
10,754
10,793
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Table of Contents
First Quarter Ended
Fiscal Year
March 28,
March 27,
2007
2008
2009
2009
2010
(Unaudited)
(Dollars in thousands, except per share data)
PRO FORMA DATA (UNAUDITED):
Net income (loss)
$
7,068
$
(808
)
$
1,793
$
100
$
662
Pro forma provision for income
    taxes
(3)
2,898
497
—
—
—
Return on preferred and mandatorily redeemable capital units
1,730
372
—
—
—
Pro forma net income (loss) available to common stockholders
$
2,440
$
(1,677
)
$
1,793
$
100
$
662
Pro forma net income (loss) per common share:
Basic
$
0.34
$
(0.17
)
$
0.17
$
0.01
$
0.06
Diluted
$
0.34
$
(0.17
)
$
0.17
$
0.01
$
0.06
OTHER OPERATING DATA (UNAUDITED):
EBITDA
(5)
$
11,350
$
5,848
$
7,430
$
1,045
$
2,169
Average sales per working day
$
356
$
422
$
388
$
395
$
399
Number of branches at end of fiscal period
48
54
58
58
62
As of March 27, 2010
Actual
As
    Adjusted
(6)
(Unaudited)
(Dollars in thousands)
BALANCE SHEET DATA:
Cash and cash equivalents
$
1,403
$
25,839
Total assets
55,655
80,091
Total debt
—
—
Total stockholders' equity
44,731
69,167
(1)
In fiscal 2007, we received $3.0 million from the
    termination of a contract with a customer of our used solvent
    who had failed to meet its volume purchase obligations. We
    recorded cost of sales of $2.2 million to reduce solvent
    inventories to net realizable value in connection with this
    settlement.
(2)
In fiscal 2008, we recorded an impairment charge, reducing the
    reuse solvent and used oil inventory value by $2.8 million.
    This charge was due to a sharp decline in crude oil prices which
    resulted in the market value for our reuse solvent declining
    below the historic (FIFO) values.
(3)
On March 12, 2008, the date of our initial public offering,
    we reorganized our corporate legal structure from a limited
    liability company to a corporation. As a limited liability
    company, we were not subject to Federal or state corporate
    income taxes. Therefore, net income did not give effect to taxes
    for periods prior to the reorganization and initial public
    offering. For comparison purposes, we have presented pro forma
    net income, which reflects income taxes assuming we had been a
    corporation since the time of our formation and assuming tax
    rates equal to the rates that would have been in effect had we
    been required to report tax expense in such years.
(4)
The weighted average common shares outstanding reflects the
500-for-1
exchange of common units for common stock and the issuance of
    1,217,390 shares of common stock in our reorganization that
    occurred prior to our initial public offering in March 2008. We
    have included the redeemable common capital units outstanding
    prior to the reorganization in the calculation of basic and
    diluted earnings per share as the effect of excluding them would
    have been anti-dilutive. In accordance with FASB guidance,
    shares of common stock that are mandatorily redeemable are
    excluded from the calculation of basic and diluted earnings per
    share. We have deducted earnings attributable to mandatorily
    redeemable units from income available to common unit holders.
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Table of Contents
(5)
EBITDA represents net income before income tax expense, interest
    income, interest expense, depreciation and amortization. We have
    presented EBITDA because we consider it an important
    supplemental measure of our performance and believe it is
    frequently used by analysts, investors, our lenders and other
    interested parties in the evaluation of companies in our
    industry. Management uses EBITDA as a measurement tool for
    evaluating our actual operating performance compared to budget
    and prior periods. Other companies in our industry may calculate
    EBITDA differently than we do. EBITDA is not a measure of
    performance under GAAP and should not be considered as a
    substitute for net income prepared in accordance with GAAP.
    EBITDA has limitations as an analytical tool, and you should not
    consider it in isolation or as a substitute for analysis of our
    results as reported under GAAP. Some of these limitations are:
•
EBITDA does not reflect our cash expenditures, or future
    requirements, for capital expenditures or contractual
    commitments;
•
EBITDA does not reflect interest expense or the cash
    requirements necessary to service interest or principal payments
    on our debt;
•
EBITDA does not reflect tax expense or the cash requirements
    necessary to pay for tax obligations; and
•
Although depreciation and amortization are non-cash charges, the
    assets being depreciated and amortized will often have to be
    replaced in the future, and EBITDA does not reflect any cash
    requirements for such replacements.
We compensate for these limitations by relying primarily on our
    GAAP results and using EBITDA only as a supplement.
The following table contains a reconciliation of our net income
    determined in accordance with GAAP to EBITDA:
First Quarter Ended
Fiscal Year
March 28,
March 27,
2007
2008
2009
2009
2010
(Dollars in thousands)
Net income
    (loss)
(a)
$
7,068
$
(808
)
$
1,793
$
100
$
662
Interest expense
1,408
408
3
—
—
Provision for income taxes
—
2,618
1,326
68
478
Depreciation and amortization
2,874
3,630
4,308
877
1,029
EBITDA
$
11,350
$
5,848
$
7,430
$
1,045
$
2,169
(a)
On March 12, 2008, the date of our initial public offering,
    we reorganized our corporate legal structure from a limited
    liability company to a corporation. As a limited liability
    company, we were not subject to Federal or state corporate
    income taxes. Therefore, net income does not give effect to
    taxes for periods prior to the reorganization and initial public
    offering.
(6)
The summary balance sheet data as of March 27, 2010 is
    presented on an as adjusted basis to give effect to the receipt
    by us of net proceeds from the sale of common stock offered by
    us in the public offering but before the application of the net
    proceeds, based on an assumed public offering price per share of
    $9.72 (the last reported sale price of our common stock on The
    NASDAQ Global Market on May 17, 2010).
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RISK
    FACTORS
Investing in our common stock involves a high degree of risk.
    You should carefully consider the following factors, as well as
    other information contained or incorporated by reference in this
    prospectus, before deciding to invest in shares of our common
    stock. The trading price of our common stock could decline due
    to any of these risks, and you may lose all or part of your
    investment in our common stock.
Risks
    Relating to Our Business
Our results of operations and financial condition have
    been and could in the future be materially adversely impacted by
    the economic downturn.
The economy has experienced a severe and prolonged downturn as a
    result of the deterioration in the capital markets and related
    financial crisis which has adversely impacted our customer base,
    which is primarily composed of companies in the automotive
    repair and manufacturing industries. The overall levels of
    demand for our parts cleaning products and supplies and other
    services are influenced by fluctuations in levels of end-user
    demand, which depend in large part on general macroeconomic
    conditions in the U.S. and the regional economic conditions
    affecting our branches. Many of our customers are heavily
    dependent on general economic conditions, including the
    availability of affordable energy sources, employment levels,
    interest rates, financial credit availability, consumer
    confidence and housing demand. Downturns in these general
    economic conditions can significantly affect the business of our
    customers, which in turn affects demand, volumes, pricing and
    operating margins for our services and products. Both our
    customers and suppliers have felt the impact of the economic
    downturn. During the recent economic downturn, our customers
    sought ways to reduce their costs which in turn have reduced
    their demand for our services. Our customers and suppliers may
    face severe financial difficulties causing them to cease some or
    all their business operations or to reduce the volume of
    products they purchase from us in the future. We may have
    accounts receivables owing from customers who may not be able to
    honor their obligations to us. Failure to collect a significant
    portion of amounts due on those receivables could have a
    material adverse effect on our results of operations and
    financial condition.
Adverse economic and financial markets conditions may cause our
    suppliers to be unable to provide materials and components to us
    or may cause suppliers to make changes in the credit terms they
    extend to us, such as shortening the required payment period for
    our amounts owing them or reducing the maximum amount of trade
    credit available to us. Such changes could adversely affect our
    liquidity and could have a material adverse effect on our
    results of operations and financial condition. If we are unable
    to successfully anticipate changing economic and financial
    market conditions, we could be adversely affected.
In addition, a substantial or prolonged material adverse impact
    on our results of operations and financial condition due to the
    recent economic downturn could affect our ability to satisfy the
    financial covenants in our bank credit facility, which could
    result in our having to seek amendments or waivers from our
    lenders to avoid the termination of commitments
and/or
the
    acceleration of the maturity of amounts that may be outstanding
    under our bank credit facility. The cost of our obtaining an
    amendment or waiver could be significant, and could
    substantially increase our cost of borrowing over the remaining
    term of our bank credit facility. Further, there can be no
    assurance that we would be able to obtain an amendment or
    waiver. If our lenders were unwilling to enter into an amendment
    or provide a waiver, all amounts outstanding under our bank
    credit facility would become immediately due and payable
Our operating margins and profitability may be negatively
    impacted by the volatility in crude oil, solvent, fuel and
    energy costs.
Our business is dependent on the widespread availability of
    certain crude oil products such as solvent and fuel for
    operating our fleet of trucks. Changes and volatility in the
    price of crude can adversely impact the prices for these
    products and therefore affect our operating results. The price
    and supply of fuel and solvent is unpredictable and fluctuates
    based on events beyond our control, including geopolitical
    developments, supply and demand for oil and gas, actions by OPEC
    and other oil and gas producers, war and unrest in oil producing
    countries, regional production patterns and environmental
    concerns.
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Increased costs of crude can significantly increase our
    operating costs. Because solvent is a product of crude oil, we
    are also susceptible to increases in solvent costs when crude
    oil costs increase. The market price of crude has been volatile
    and rose substantially from 2004 to 2008 before falling
    significantly in late 2008. During this period of rising crude
    costs, we experienced increases in the cost of fuel, solvent and
    other petroleum-based products. We have in the past been able
    mitigate the increased fuel and solvent costs through the
    imposition of price increases and energy surcharges on our
    invoices to customers. However, because of the competitive
    nature of the industry, the recent economic downturn and the
    terms of customer contracts, there can be no assurance that we
    will be able to pass on future price increases. Due to political
    instability in oil-producing countries, oil prices could
    increase significantly in the future. A significant increase in
    fuel or solvent costs could lower our operating margins and
    negatively impact our profitability. We currently do not use
    financial instruments to hedge against fluctuations in oil,
    solvent or energy prices. If this volatility continues, our
    operating results could also be volatile and adversely affected.
In addition, a significant portion of our inventory consists of
    new and used solvents. Volatility in the price of crude oil has
    in the past impacted and can significantly impact in the future
    the value of this inventory and our operating margins. For
    example, in the fourth quarter of fiscal 2008, we generally
    experienced a sharp decrease in the cost of crude oil and
    related commodities which caused a decline in the market value
    of our solvent and used oil inventory and we recorded a
    $2.8 million non-cash inventory impairment charge on that
    portion of the Company's solvent and oil inventory that is
    held for sale, reflecting the lower market value of such
    inventory. Additionally, we recorded $1.7 million in
    additional expense to reflect the lower value of the solvent
    inventory held for use in the Company's service programs.
    Further, because we apply a
first-in
first-out accounting method, volatility in solvent and oil
    prices can significantly impact our operating margins. If
    volatility in the price of crude oil continues, our operating
    results will be difficult to predict and could be adversely
    affected. Moreover, the impact of crude oil price volatility on
    our business and financial results will likely increase when we
    enter the used oil re-refining industry.
We may not be able to build and operate a used oil
    re-refinery as planned and it may cost more than anticipated
    which could harm our business.
We have recently announced plans to build a used oil
    re-refinery. The development of the re-refinery is in its early
    stages and we may be unable to construct the re-refinery on the
    current timetable or as currently contemplated. There can be no
    assurance that we will develop a commercially successful
    re-refinery or that unforeseen market conditions will not
    adversely impact the construction, operation or profitability of
    the re-refinery. The development of a used oil re-refinery is a
    new business for our company and requires a different employee
    base and skill set than that required for our current business.
    These new skill sets include chemical engineering, design and
    operational management of the re-refinery. Although our
    management team has operated re-refineries for other companies,
    we cannot assure you that we will have sufficient expertise to
    develop a re-refinery within the budget contemplated or that it
    will operate within the performance parameters currently
    contemplated for the re-refinery. Further, the development of
    the re-refinery will require time and resources, including the
    attention of our management, which could divert our management
    from other activities and may impair the operation of our
    existing business.
The development of the re-refinery could take longer than
    expected, cost more than expected or not perform as anticipated.
    For example, the use of subcontractors or the costs of materials
    such as steel to construct the facility may be more expensive
    than we anticipate leading to project cost overruns. In
    addition, the construction and operation of a re-refinery is
    highly regulated. We have not yet obtained all of the required
    permits to build the re-refinery and the permit process is
    ongoing. We may be subject to delays or even cancellation of the
    project if we are unable to obtain permits on terms acceptable
    to us.
We currently expect that the development and construction of the
    re-refinery will cost approximately $40 million. In
    addition, during our development of the re-refinery, we expect
    to expand our used oil collection services in preparation for
    servicing the re-refinery, and we estimate that during fiscal
    2010 and 2011 we will incur roughly $1 million and
    $1.5 million of net expense, respectively, related to this
    roll out. We currently expect to use the net proceeds from the
    offering to pay a portion of the costs needed to develop the
    re-refinery and expect to obtain the remaining funds needed from
    borrowings under our credit agreement.
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Alternatively, we may consider issuing additional equity as a
    source of financing. If we are not able to borrow sufficient
    funds or obtain other sources to complete the re-refinery, we
    may not be able to complete the re-refinery which could have a
    material adverse effect on our business. Even if we secure
    adequate financing, our investments in this project may limit
    our ability to pursue other opportunities in the future.
Even if we are able to build a used oil re-refinery, the
    used oil re-refinery may not generate the operating results that
    we anticipate and may lead to greater volatility in our revenue
    and earnings.
We may not be able to realize the expected benefits from
    developing and operating a used oil re-refinery. If we complete
    the construction of the re-refinery, the subsequent operation of
    the plant creates different and additional risks compared to our
    historic service businesses. We may experience difficulty
    securing sufficient used oil feedstock to run the re-refinery at
    anticipated rates and have to pay more for the feedstock or
    reduce our operating rates. We may also have difficulty selling
    all of the lubricating base oil that we produce. Our costs for
    used oil feedstock and the prices that we can sell the
    lubricating base oil and byproducts made by the re-refinery are
    determined by competitive market factors including the world
    price of crude oil, prices for natural gas, and the lubricating
    oil prices posted by major refiners, none of which we control.
    In addition, we may experience increased downward pricing
    pressure when compared to suppliers of virgin lubricating base
    oil, which has historically sold at a premium to re-refined
    lubricating base oil. Our estimates of revenue and profitability
    for the re-refinery could prove to be erroneous or could be
    impacted by changes in these market factors. In particular, if
    crude oil prices come down, we expect that we would experience a
    reduction in our margins from used oil re-refining as well as
    potential inventory charges related to material held for
    processing or sale. Even if prices decrease, the costs required
    to collect and process the used oil may not decrease. If crude
    oil prices rise, we expect that the feedstock prices for our
    re-refinery would also increase. If the prices we charge for our
    re-refined oil and the costs to collect and re-refine used oil
    do not move together or in similar magnitudes, our profitability
    may be materially and negatively impacted. Any volatility in the
    price of crude oil could also cause volatility in our operating
    results.
Our operation of a re-refinery exposes us to risks related to
    the potential adverse environmental impact of a spill or other
    release at the re-refinery, the loss of permits, the risk of
    explosion or fire or other hazards, the risk of injury to our
    employees or others, as well as the negative publicity due to
    public concerns regarding our operation. While these risks are
    in some respects similar to risks that we have experienced in
    our traditional service businesses, the magnitude of exposure
    may be greater due to the nature of the used oil re-refining
    industry and the greater volumes, temperatures and pressures
    involved. While we may maintain some insurance that covers
    portions of these exposures, in many cases the risks are
    uninsurable or we will not choose to procure insurance at levels
    that will cover any potential exposure.
Any problem or perception of a problem with our re-refining
    project could have a material adverse impact on our revenue and
    earnings and lead to a loss of stockholder
and/or
research analyst confidence in our business and could result in
    a sudden and significant reduction in our stock price.
Further consolidation and/or declines in the U.S.
    automotive repair and U.S. manufacturing industries could cause
    us to experience lower sales volumes which could materially
    affect our growth and financial performance.
Our business relies on continued demand for our parts cleaning
    and waste management services in the U.S. automotive repair
    and U.S. manufacturing industries, which may suffer from
    declining market size and number of locations, due in part to
    the current economic downturn, the potential bankruptcies of
    U.S. automobile manufacturers, international competition
    and consolidation in U.S. markets. Industry trends
    affecting our customers, including the continued trend of
    U.S. manufacturing moving offshore and the influx of
    inexpensive imported automotive aftermarket products, has caused
    our customers' business to contract which could reduce the
    demand for our parts cleaning and other services and products
    and have a material adverse impact on our business. As a result,
    we may not be able to continue to grow our business by
    increasing penetration into the industries which we serve, and
    our ability to retain our market share and base of sales could
    become more difficult.
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We conduct business in an industry that is highly
    regulated by environmental, health and safety, transportation,
    and employment laws and regulations. If we do not comply with
    these laws and regulations, we may be subject to involuntary
    shutdowns and/or significant financial penalties and negative
    response from our customers.
The sale, handling, transportation, storage, recycling and
    disposal of industrial and hazardous waste, including solvents
    used in parts cleaners, used oil and containerized waste are
    highly regulated by various legislative bodies and governmental
    agencies at the federal, state and local levels, including the
    EPA, the Department of Transportation, and the Occupational
    Safety and Health Administration, or OSHA. Any failure by us to
    maintain or achieve compliance with these laws and regulations
    or with the permits required for our operations could result in
    substantial operating costs and capital expenditures for
    equipment upgrades, fines, penalties, civil or criminal
    sanctions, third-party claims for property damage or personal
    injury, cleanup costs
and/or
involuntary temporary or permanent discontinuance of our
    operations. There currently exists a high level of public
    concern over hazardous waste operations, including with respect
    to the siting and operation of transfer, processing, storage and
    disposal facilities. Part of our business strategy described
    above is to increase our re-refining capacity through either the
    construction of a new facility or the expansion of existing
    facilities and branch operations in growth markets. Each of
    these efforts would require us to undergo an intensive
    regulatory approval process that could be time consuming and
    impact the success of our business strategy. Zoning, permit and
    licensing applications and proceedings, as well as regulatory
    enforcement proceedings, are all matters open to public scrutiny
    and comment. Accordingly, from time to time we have been, and
    may in the future be, subject to public opposition and publicity
    which may damage our reputation and delay or limit the expansion
    and development of our operating properties or impair our
    ability to renew existing permits which could prevent us from
    implementing our growth strategy and have a material adverse
    effect on our business, financial condition or results of
    operations.
If current environmental laws and regulations are changed,
    we may be forced to significantly alter our business model,
    which could have a material adverse effect on our financial
    performance.
A change in any of the environmental, employment, health and
    safety laws and regulations under which we operate could have a
    material adverse effect on our business and prospects. For
    example, the EPA currently excludes waste used as an ingredient
    in the production of a product from being defined as hazardous
    waste. Our product reuse program for parts cleaning operates
    under this exclusion and provides an advantage by excluding our
    customers' used solvent from being regulated as hazardous
    waste. Similarly, under our non-hazardous program for parts
    cleaning, we provide our customers with a different solvent that
    has a higher flashpoint than traditional solvents. The resulting
    used solvent is not considered to be hazardous waste so long as
    our customers ensure that no inappropriate contaminants were
    contributed to the used solvent.
If the EPA were to broaden the definition of hazardous waste to
    include used solvents generated by our customers under our
    product reuse
and/or
non-hazardous programs for parts cleaning, the value of our
    offerings may be significantly reduced which could have a
    material adverse effect on our financial performance. Examples
    of changes by the EPA that could adversely affect our services
    include, but are not limited to, the following:
•
elimination of the reuse exception to the definition of
    hazardous waste;
•
increase in the minimum flashpoint threshold at which solvent
    becomes included in the definition of hazardous waste;
•
increased requirements to test the used solvent that we pick up
    from our customers for the presence of toxic or more flammable
    contaminants; and
•
adoption of regulations similar to those enacted in some
    California air quality districts that prohibit the use of the
    solvents of the type that we sell for parts cleaning operations.
In addition, new laws and regulations, new interpretations of
    existing laws and regulations, increased governmental
    enforcement or other developments could require us to make
    additional unforeseen expenditures. We are not able to predict
    the impact of new or changed laws or regulations or changes in
    the ways that such
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laws or regulations are administered, interpreted or enforced.
    The requirements to be met, as well as the technology and length
    of time available to meet those requirements, continue to
    develop and change. To the extent that our costs associated with
    meeting any of these requirements are substantial and cannot
    adequately be passed through to our customers, our earnings and
    cash flows could suffer.
We face intense competition in the industrial and
    hazardous waste services industries.
The markets for parts cleaning, containerized waste management,
    used oil collection, and vacuum truck services are intensely
    competitive. While numerous small companies provide these
    services, Safety-Kleen, our largest competitor, has held
    substantial market share in the parts cleaning industry for the
    last four decades and has developed a significant market share
    in used oil services, including used oil re-refining, and
    containerized waste management. Safety-Kleen and some of our
    other competitors have substantially greater financial and other
    resources and greater name recognition than us. Our business
    growth, financial performance and prospects will be adversely
    affected if we cannot gain market share from these competitors,
    or if any of our competitors develop products or services
    superior to those offered by us. We could lose a significant
    number of customers if Safety-Kleen, or other competitors,
    materially lower their prices, improve service quality or
    develop more competitive product and service offerings.
In addition, companies involved in the waste management
    industry, including waste hauling, separation, recovery and
    recycling, may have the expertise, access to customers and
    financial resources that would encourage them to develop and
    market services and products competitive with those offered by
    us. We also face competition from alternative services that
    provide similar benefits to our customers as those provided by
    us. In addition, new technology regarding the treatment and
    recycling of used solvent and used oil may lead to functionally
    equivalent or superior products becoming available, which may
    decrease the demand for our services and products or cause our
    products and services to become obsolete.
We could be subject to involuntary shutdowns or be
    required to pay significant monetary damages if we are found to
    be a responsible party for the improper handling or the release
    of hazardous substances.
As a company engaged in the sale, handling, transportation,
    storage, recycling and disposal of materials that are or may be
    classified as hazardous by federal, state, or other regulatory
    agencies, we face risks of liability for environmental
    contamination. The federal Comprehensive Environmental Response,
    Compensation and Liability Act of 1980, as amended
    ("CERCLA"), and similar state laws impose strict
    liability on current or former owners and operators of
    facilities that release hazardous substances into the
    environment, as well as on the businesses that generate those
    substances or transport them to the facilities. As a potentially
    responsible party, or PRP, we may be liable under CERCLA for
    substantial investigation and cleanup costs even if we operate
    our business properly and comply with applicable federal and
    state laws and regulations. Liability under CERCLA may be joint
    and several, which means that if we were found to be a business
    with responsibility for a particular CERCLA site, we could be
    required to pay the entire cost of the investigation and
    cleanup, even though we were not the party responsible for the
    release of the hazardous substance and even though other
    companies might also be liable. Even if we were able to identify
    who the other responsible parties might be, we may not be able
    to compel them to contribute to the remediation costs, or they
    might be insolvent or unable to contribute due to lack of
    financial resources.
Our facilities and the facilities of our customers and third
    party contractors may have generated, used, handled
and/or
disposed of hazardous substances and other regulated wastes.
    Environmental liabilities could exist, including cleanup
    obligations at these facilities or at off-site locations where
    materials from our operations were disposed of, which could
    result in future expenditures that cannot be currently
    quantified and which could materially reduce our profits. Our
    pollution liability insurance excludes certain liabilities under
    CERCLA. Thus, if we were to incur liability under CERCLA that
    was not covered by our insurance and if we could not identify
    other parties responsible under the law whom we are able to
    compel to contribute to the liabilities, the cost to us could be
    substantial and could impair our profitability, reduce our
    liquidity and have a material adverse effect on our business.
    Although our customer service agreements typically provide that
    the customer is responsible for ensuring that only appropriate
    materials are disposed of, we could be exposed to third party
    claims if customers dispose of improper waste, and we might not
    be successful in recovering our damages from those customers. In
    addition, new services or products offered by us (such as the
    re-refining of
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used oil) could expose us to further environmental liabilities
    for which we have no historical experience and cannot estimate
    our potential exposure to liabilities.
Our fixed cost structure may result in a greater loss or
    reduced earnings.
Our North American network, including our facilities, fleet and
    personnel, subjects us to fixed costs, which makes our margins
    and earnings sensitive to changes in revenues. In periods of
    declining demand, our fixed cost structure may limit our ability
    to cut costs, which may put us at a competitive disadvantage to
    firms with lower cost structures, or may result in reduced
    operating margins and operating losses.
We carry inventory of used solvents generated by customers
    participating in our product reuse program for parts
    cleaning.
Our inventory of used solvent has fluctuated and it may continue
    to fluctuate. If we are unable to sell our reuse inventory, we
    may be required to take a charge to inventory and we may incur
    additional costs for storage
and/or
disposal which would adversely impact our operating results. In
    addition, while we sold enough used solvent to satisfy
    speculative accumulation requirements of the EPA for fiscal 2010
    and prior years, we may not in future years.
Our ability to achieve our business and financial
    objectives is subject to our ability to expand our non-hazardous
    programs for parts cleaning.
For our business to grow we may need to expand our non-hazardous
    program for parts cleaning. Unlike used solvent generated by
    customers participating in our product reuse program for parts
    cleaning (which must be resold for reuse as an ingredient), used
    solvent generated by customers participating in our
    non-hazardous program for parts cleaning can be recycled by
    third party recyclers or by us. We have constructed a solvent
    recycling system at our Indianapolis hub to recycle used solvent
    generated by customers participating in our non-hazardous
    program and we may also undertake similar projects in the
    future. Any unanticipated costs in operating our solvent
    recycling system could have a material adverse effect on our
    operating results and require us to seek an alternative means to
    recycle or dispose of used solvent.
The operation of our solvent recycling system may be considered
    inherently dangerous and injury to individuals or property may
    occur, potentially subjecting us to lawsuits. If we fail to
    operate our solvent recycling system as anticipated, our
    business and operating results could suffer. In addition, we may
    decide to alter or discontinue certain aspects of our business
    strategy at any time, or offer new product lines which may not
    be profitable and could materially and adversely affect our
    financial condition and results of operations.
We depend on the service of key individuals, the loss of
    whom could materially harm our business.
Our success will depend, in part, on the efforts of our
    executive officers and other key employees, including Joseph
    Chalhoub, our President and Chief Executive Officer, Gregory
    Ray, our Chief Financial Officer, Vice President, Business
    Management and Secretary, John Lucks, our Vice President of
    Sales, Tom Hillstrom, our Vice President of Operations and Glenn
    Casbourne, our Vice President of Engineering. These individuals
    possess extensive experience in our markets and are critical to
    the operation and growth of our business. If we lose or suffer
    an extended interruption in the services of one or more of our
    executive officers or other key employees, our business, results
    of operations and financial condition may be negatively
    impacted. Moreover, the market for qualified individuals is
    highly competitive and we may not be able to attract and retain
    qualified personnel to succeed members of our management team or
    other key employees, should the need arise. We do not maintain
    any key man life insurance policies. One of our key growth
    strategies is our construction of a used oil re-refinery. Given
    their past experience in the development of re-refinery
    facilities in the U.S., the retention of the members of our
    management team is particularly critical to our ability to
    develop the re-refinery as planned. The loss of any of these
    individuals could adversely impact our ability to compete and
    operate the re-refinery.
In addition, our operations and growth strategy rely on the
    expansion of our business through the creation and growth of new
    and existing branches. In order for us to create and grow new
    and existing branches properly, we must continually recruit and
    train a pool of hardworking and motivated sales &
    service representatives, or SSRs, to develop new customer leads,
    as well as support our existing customer base. If we
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are not able to retain and recruit a sufficient number of SSRs,
    or we experience an increase in the turnover of existing SSRs,
    we may not be able to support the continued growth of our
    business, which could have a material adverse impact on our
    financial performance.
We operate our business through many locations, and if we
    are unable to effectively oversee all of these locations, our
    business reputation and operating results could be materially
    adversely affected.
Because we rely on our extended network of 62 branch locations
    to operate independently to carry out our business plan, we are
    subject to risks related to our ability to oversee and control
    information reporting from these locations. If in the future we
    are unable to effectively oversee and control information
    reporting from our branch locations, our results of operations
    could be materially adversely affected, we could fail to comply
    with environmental regulations, we could lose customers, and our
    business could be materially adversely affected.
Our insurance policies do not cover all losses, costs or
    liabilities that we may experience.
We maintain insurance coverage, but these policies do not cover
    all of our potential losses, costs or liabilities. We could
    suffer losses for uninsurable or uninsured risks or in amounts
    in excess of our existing insurance coverage which would
    significantly affect our financial performance. For example, our
    pollution legal liability insurance excludes costs related to
    fines, penalties or assessments. Our insurance policies also
    have deductibles and self-retention limits that could expose us
    to significant financial expense. Our ability to obtain and
    maintain adequate insurance may be affected by conditions in the
    insurance market over which we have no control. The occurrence
    of an event that is not fully covered by insurance could have a
    material adverse effect on our business, financial condition and
    results of operations. In addition, our business requires that
    we maintain various types of insurance. If such insurance is not
    available or not available on economically acceptable terms, our
    business could be materially and adversely affected.
We are subject to potential warranty expense and liability
    claims relating to our services and products.
We offer our customers specific guarantees that we will be
    responsible for all expenses resulting from any spill that
    occurs while we are transporting, processing or disposing of
    customers' used solvent and other waste. Accordingly, we
    may be required to indemnify our customers for any liability
    under CERCLA or other environmental, employment, health and
    safety laws and regulations. We may also be exposed to product
    liability claims by our customers, users of our parts cleaning
    products or third parties claiming damages stemming from the
    mechanical failure of parts cleaned with solvents
and/or
equipment provided by us. Although we maintain product liability
    insurance coverage, if our insurance coverage proves inadequate
    or adequate insurance becomes unreasonably costly or otherwise
    unavailable, future claims may not be fully insured. An
    uninsured or partially insured successful claim against us could
    have a material adverse effect on our business, financial
    condition and results of operations.
Our focus on small business customers causes us to be
    subject to the trends and downturns impacting small businesses,
    which could adversely affect our business.
Our customer base is primarily composed of small companies in
    the automotive repair and manufacturing industries. The high
    concentration of our customers that are small businesses exposes
    us to some of the broad characteristics of small businesses
    across the U.S. Small businesses start, close, relocate,
    and get purchased or sold frequently. In addition, small
    businesses tend to be more significantly affected by economic
    recessions than larger businesses. This leads to a certain
    amount of ongoing turnover in the market. As a result, we must
    continually identify new customers and expand our business with
    existing customers in order to sustain our growth. If we
    experience a rise in levels of customer turnover, it may have a
    negative impact on the profitability of our business.
We obtain services from our largest stockholder, Heritage
    and its affiliates, which we refer to collectively herein as
    Heritage, and our inability to replace these services in the
    future on economically acceptable terms could materially
    adversely affect our business.
We obtain certain services from Heritage including disposal and
    product analytical services and workers' compensation
    insurance. Heritage beneficially owned 31.4% of our outstanding
    common stock as of May 17, 2010.
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If the services that we receive from Heritage become unavailable
    from Heritage, to the extent that we are unable to negotiate
    replacements of these services with similar terms, we could
    experience increases in our expenses.
Litigation related to personal injury from exposure to
    solvents and the operation of our business may result in
    significant liabilities and affect our profitability.
We have been and in the future may be involved in claims and
    litigation filed on behalf of persons alleging injury
    predominantly as a result of exposure to hazardous chemicals
    that are a part of the solvents that we provide. In addition,
    the hazards and risks associated with the use, transport,
    storage, and handling and disposal of our customers' waste
    by us and our customers (such as fires, natural disasters,
    explosions and accidents) and our customers' improper or
    negligent use or misuse of solvent to clean parts may also
    expose us to personal injury claims, property damage claims
and/or
products liability claims from our customers or third parties.
    As protection against such claims and operating hazards, we
    maintain insurance coverage against some, but not all, potential
    losses. However, we could sustain losses for uninsurable or
    uninsured risks, or in amounts in excess of existing insurance
    coverage. Due to the unpredictable nature of personal injury
    litigation, it is not possible to predict the ultimate outcome
    of these claims and lawsuits, and we may be held liable for
    significant personal injury or damage to property or third
    parties, or other losses, that are not fully covered by our
    insurance, which could have a material adverse effect on our
    business.
We are dependent on third parties to supply us with the
    necessary components and materials to service our customers. We
    are also dependent on third party transport, including rail,
    recycling and disposal contractors.
In the operation of our business, we supply a large amount of
    virgin solvent and parts cleaning equipment to our customers. We
    do not maintain extensive inventories for most of these
    products. If we become unable to obtain, or experience delays in
    the transportation of, adequate supplies and components in a
    timely
and/or
cost-effective manner, we may be unable to adequately provide
    sufficient quantities of our services and products to our
    customers, which could have a material adverse effect on our
    financial condition and results of operations.
We, and our third party transporters, ship used oil and
    containerized waste collected from our customers to a number of
    third party recycling and disposal facilities, including
    incinerators, landfill operators and
waste-to-energy
facilities. We generally do not have long-term fixed price
    contracts with our third party contractors, and if we are forced
    to seek alternative vendors to handle our third party recycling
    and disposal activities, we may not be able to find alternatives
    without significant additional expenses, or at all, which could
    result in a material adverse effect on our financial
    performance. In addition, we could be subject to significant
    environmental liabilities from claims relating to the transport,
    storage, processing, recycling and disposal of our
    customers' waste by our third party contractors and their
    subcontractors.
A system failure could delay or interrupt our ability to
    provide services and products and could increase our costs and
    reduce our sales.
Our operations are dependent upon our ability to support our
    branch infrastructure. Our business operates through 4 hubs that
    service our 62 local branches. Any damage or failure that causes
    interruptions in our operations could result in the loss of
    customers. To date, we have not experienced any significant
    interruptions or delays which have affected our ability to
    provide services and products to our customers. The occurrence
    of a natural disaster, technological, transportation or
    operational disruption or other unanticipated problem could
    cause interruptions in the services we provide and impair our
    ability to generate sales and achieve profits.
We may be unable to manage our growth.
In our first nine full years of operation, sales have increased
    at a compound annual growth rate of 24% from 1999 to 2009
    although we experienced a 9% decrease in our sales from 2008 to
    2009. Our growth to date has placed and may continue to place
    significant strain on our management and its operational and
    financial resources. We anticipate that continued growth, if
    any, as well as our plans to enter the used oil re-refining
    industry, will require us to recruit, hire and retain new
    managerial, finance, sales, marketing and operational personnel.
    We cannot be certain that we will be successful in recruiting,
    hiring or retaining those personnel. Our ability to compete
    effectively and to manage our future growth, if any, will depend
    on our
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ability to maintain and improve operational, financial and
    management information systems on a timely basis and to expand,
    train, motivate and manage our work force. If we continue to
    grow, we cannot be certain that our personnel, systems,
    procedures and controls will be adequate to support our
    operations.
Expansion of our business may result in unanticipated
    adverse consequences.
In the future, we may seek to grow our business by investing in
    new or existing facilities, making acquisitions, entering into
    partnerships and joint ventures or constructing new facilities
    such as the used oil re-refinery. Acquisitions, partnerships,
    joint ventures, investments or construction projects may require
    significant managerial attention, which may divert our
    management from our other activities and may impair the
    operation of our existing businesses. Any future acquisitions of
    businesses or facilities or the development of a new business
    line could entail a number of additional risks, including:
•
the failure to successfully integrate the acquired businesses or
    facilities into our operations;
•
the inability to maintain key pre-acquisition business
    relationships;
•
loss of key personnel of the acquired business or facility;
•
exposure to unanticipated liabilities; and
•
the failure to realize efficiencies, synergies and cost savings.
As a result of these and other factors, including the general
    economic risk associated with the industries in which we
    operate, we may not be able to realize the expected benefits
    from any recent or future acquisitions, new facility
    developments, partnerships, joint ventures or other investments.
Our business is subject to inclement weather and this may
    have a significant adverse effect on our financial
    performance.
A significant portion of our business includes periodic service
    visits to our customers. Inclement weather in the geographic
    areas in which our branches operate may result in a significant
    number of cancelled service visits, which may result in lost
    sales and profits.
We may not be able to protect our intellectual property
    adequately.
We rely upon know-how and technological innovation and other
    trade secrets to develop and maintain our competitive position.
    We rely, to a significant extent, on trade secrets,
    confidentiality agreements and other contractual provisions to
    protect our proprietary technology, and such agreements may not
    adequately protect us. Our competitors could gain knowledge of
    our know-how or trade secrets, either directly or through one or
    more of our employees or other third parties. Although we do not
    regard any single trade secret or component of our proprietary
    know-how to be material to our operations as a whole, if one or
    more of our competitors can use or independently develop such
    know-how or trade secrets, our market share, sales volumes and
    profit margins could be adversely affected.
In the event we become involved in defending or pursuing
    intellectual property litigation, such action may increase our
    costs and divert management's time and attention from our
    business. In addition, any potential intellectual property
    litigation could force us to take specific actions, including,
    but not limited to, the following:
•
cease selling products that use the challenged intellectual
    property;
•
obtain from the owner of the infringed intellectual property a
    license to sell or use the relevant technology, which license
    may not be available on reasonable terms, or at all; or
•
redesign those products that use infringing intellectual
    property.
Climate change laws or regulations restricting emissions
    of "greenhouse gases" could result in increased
    operating costs and a decreased demand for our services.
On June 26, 2009, the U.S. House of Representatives
    passed the American Clean Energy and Security Act of 2009
    ("ACESA"), which would establish an economy-wide
cap-and-trade
program to reduce U.S. emissions of carbon dioxide and
    other greenhouse gases ("GHG") that may contribute to
    warming of the
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earth's atmosphere and other climatic changes. ACESA would
    require a 17 percent reduction in GHG emissions from 2005
    levels by 2020 and just over an 80 percent reduction of
    such emissions by 2050. Under this legislation, the EPA would
    issue a capped and steadily declining number of tradable
    emissions allowances to certain major sources of GHG emissions
    so that such sources could continue to emit GHGs into the
    atmosphere. These allowances would be expected to escalate
    significantly in cost over time. The net effect of ACESA would
    be to impose increasing costs on the combustion of carbon-based
    fuels such as refined petroleum products, oil and natural gas.
    The U.S. Senate has begun work on its own legislation for
    restricting domestic GHG emissions and President Obama has
    indicated his support of legislation to reduce GHG emissions
    through an emission allowance system. Also, on December 15,
    2009, the EPA published its findings that emissions of GHGs
    present an endangerment to public health and the environment.
    These findings allow the EPA to adopt and implement regulations
    that would restrict emissions of GHGs under existing provisions
    of the federal Clean Air Act. Accordingly, the EPA has already
    proposed two sets of regulations that would require a reduction
    in emissions of GHGs from motor vehicles and, also, could
    trigger permit review for GHG emissions from certain stationary
    sources. In addition, on September 22, 2009, the EPA issued
    a final rule requiring the reporting of GHG emissions from
    specified large GHG emission sources in the United States,
    including petroleum refineries, on an annual basis, beginning in
    2011 for emissions occurring after January 1, 2010. The
    adoption and implementation of any regulations imposing GHG
    reporting obligations on, or limiting emissions of GHGs from,
    our equipment and operations could require us to incur costs to
    reduce emissions of GHGs associated with our operations.
Risks
    Related to our Common Stock
The price of our shares of common stock may be
    volatile.
The trading price of shares of our common stock may fluctuate
    substantially. In particular, it is possible that our operating
    results may be below the expectations of public market analysts
    and investors, including the results of our planned entry into
    the used oil re-refining industry, and, as a result of these and
    other factors, the price of our common stock may decline. These
    fluctuations could cause you to lose part or all of your
    investment in shares of our common stock. Factors that could
    cause fluctuations include, but are not limited to, the
    following:
•
variations in our operating results, including variations due to
    changes in the price of crude oil;
•
announcements by us, our competitors or others of significant
    business developments, changes in customer relationships,
    acquisitions or expansion plans;
•
analysts' earnings estimates, ratings and research reports;
•
the depth and liquidity of the market for our common stock;
•
speculation in the press;
•
strategic actions by us or our competitors, such as sales
    promotions or acquisitions;
•
actions by our large stockholders or by institutional and other
    stockholders;
•
conditions in the industrial and hazardous waste services
    industry as a whole and in the geographic markets served by our
    branches; and
•
domestic and international economic factors unrelated to our
    performance.
The stock markets, in general, periodically experience
    volatility that is sometimes unrelated to the operating
    performance of particular companies. These broad market
    fluctuations may cause the trading price of our common stock to
    decline.
The small public float for our shares may make it
    difficult to sell your shares and may cause volatility in our
    stock price.
A substantial portion of our shares of common stock are closely
    held by certain inside investors and our common stock has
    experienced limited trading volume since our initial public
    offering. As of May 17, 2010,
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Heritage beneficially owned 31.4% of our common stock, Fred
    Fehsenfeld, Jr., the Chairman of our Board and an affiliate
    of Heritage, beneficially owned 9.4% of our common stock and
    directors and executive officers beneficially owned 41.9% of our
    common stock. At our direction, the underwriters have reserved
    for sale to Heritage and the related trusts of
    Mr. Fehsenfeld, at the public offering price, shares
    representing the same percentage of shares being sold in the
    offering as each of Heritage and Mr. Fehsenfeld currently
    holds of our outstanding common stock. These shares are being
    offered to Heritage pursuant to the participation rights
    agreement between us and Heritage under which Heritage has a
    right to purchase shares in the offering so that its percentage
    ownership interest in our common stock does not decrease. See
    "Relationships and Transactions With Related
    Persons — Transactions with Related Persons."
    Mr. Fehsenfeld has requested a similar opportunity to
    participate in the offering, and we have agreed to direct the
    underwriters to reserve shares in response to
    Mr. Fehsenfeld's request. If Heritage and the related
    trusts of Mr. Fehsenfeld purchase all of the shares
    reserved for sale to them in the offering, Heritage and
    Mr. Fehsenfeld, after taking into account the shares
    purchased by the related trusts in the offering, will maintain
    their respective ownership interests in our common stock.
    Consequently, our public float is expected to remain small for a
    public company, the availability of our shares may be limited
    and you may encounter difficulty selling your shares or
    obtaining a suitable price at which to sell your shares. In
    addition, as a result of the small float, you could experience
    meaningful volatility in the trading price of our common stock.
If securities or industry analysts do not publish research
    or reports about our business or publish negative research, or
    our results are below analysts' estimates, our stock price
    and trading volume could decline.
The trading market for our common stock may depend on the
    research and reports that industry or securities analysts
    publish about us or our business. We do not have any control
    over these analysts. If one or more of the analysts who cover us
    downgrade our stock or our results are below analysts'
    estimates, our stock price would likely decline. If one or more
    of these analysts cease coverage of our company or fail to
    regularly publish reports on us, we could lose visibility in the
    financial markets, which in turn could cause our stock price or
    trading volume to decline.
Heritage and Mr. Fehsenfeld have significant
    influence over our company, and their control could delay or
    deter a change of control or other business combination or
    otherwise cause us to take actions with which you may
    disagree.
As of May 17, 2010, Heritage beneficially owned 31.4% of
    our outstanding common stock and Fred Fehsenfeld, Jr., the
    Chairman of our Board and an affiliate of Heritage, owned an
    additional 9.4% of our outstanding common stock. If Heritage and
    the related trusts of Mr. Fehsenfeld purchase all of the
    shares reserved for sale to them in the offering, Heritage and
    Mr. Fehsenfeld, after taking into account the shares
    purchased by the related trusts in the offering, will maintain
    their respective ownership interests in our common stock. As a
    result, Heritage and Mr. Fehsenfeld will continue to have
    significant influence over our decision to enter into any
    corporate transaction and with respect to any transaction that
    requires the approval of stockholders, regardless of whether
    other stockholders believe that the transaction is in their own
    best interests. This concentration of voting power could have
    the effect of delaying, deterring or preventing a change of
    control or other business combination that might otherwise be
    beneficial to our stockholders.
We are required to evaluate our internal control under
    Section 404 of the Sarbanes-Oxley Act of 2002 and any
    adverse results from such evaluation could result in a loss of
    investor confidence in our financial reports and could have an
    adverse effect on our stock price.
Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002,
    we are required to furnish a report by our management on our
    internal control over financial reporting. Such report contains,
    among other matters, an assessment of the effectiveness of our
    internal control over financial reporting as of the end of our
    fiscal year, including a statement as to whether or not our
    internal control over financial reporting is effective. This
    assessment must include disclosure of any material weaknesses in
    our internal control over financial reporting identified by
    management. Each year we must prepare or update the process
    documentation and perform the evaluation needed to comply with
    Section 404. During this process, if our management
    identifies one or more material weaknesses in our internal
    control over financial reporting, we will be unable to assert
    such internal control is effective. Ensuring that we have
    adequate internal financial and accounting controls and
    procedures
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in place is a costly and time-consuming effort that needs to be
    re-evaluated frequently. We and our independent auditors may in
    the future discover areas of our internal controls that need
    further attention and improvement, particularly with respect to
    any businesses that we decide to acquire in the future.
    Implementing any appropriate changes to our internal controls
    may require specific compliance training of our directors,
    officers and employees, entail substantial costs in order to
    modify our existing accounting systems and take a significant
    period of time to complete. Such changes may not, however, be
    effective in maintaining the adequacy of our internal controls,
    and any failure to maintain that adequacy, or consequent
    inability to produce accurate financial statements on a timely
    basis, could increase our operating costs and could harm our
    ability to operate our business. Any failure to implement
    required new or improved controls, or difficulties encountered
    in their implementation, could harm our operating results or
    cause us to fail to meet our reporting obligations. Investor
    perception that our internal controls are inadequate or that we
    are unable to produce accurate financial statements on a timely,
    consistent basis may adversely affect our stock price. Failure
    to comply with Section 404 could also potentially subject
    us to sanctions or investigations by the Securities and Exchange
    Commission, or SEC, NASDAQ or other regulatory authorities.
We have incurred and will continue to incur increased
    costs as a result of being a public company.
As a public company, we have incurred significant legal,
    accounting and other expenses that we did not incur as a private
    company. We incur costs associated with our public company
    reporting requirements. We have incurred costs associated with
    corporate governance requirements, including requirements under
    Sarbanes-Oxley, as well as rules implemented by the SEC and
    NASDAQ. These rules and regulations have increased our legal and
    financial compliance costs and made some activities more
    time-consuming and costly. Further, we may need to hire
    additional accounting, financial and compliance staff with
    appropriate public company experience and technical accounting
    knowledge. We cannot predict or estimate the amount of
    additional costs we may incur or the timing of such costs. Any
    of these expenses could harm our business, operating results and
    financial condition.
We do not currently intend to pay cash dividends on our
    common stock to our stockholders and any determination to pay
    cash dividends in the future will be at the discretion of our
    Board of Directors.
We currently intend to retain any profits to provide capacity
    for general corporate uses and growth of our business. Our Board
    of Directors does not intend to declare cash dividends in the
    foreseeable future. Any determination to pay dividends to our
    stockholders in the future will be at the discretion of our
    Board of Directors and will depend on our results of operations,
    financial condition and other factors deemed relevant by our
    Board of Directors. Consequently, it is uncertain when, if ever,
    we will declare dividends to our stockholders. If we do not pay
    dividends, investors will only obtain a return on their
    investment if the value of our shares of common stock
    appreciates. In addition, the terms of our existing or future
    borrowing arrangements may limit our ability to declare and pay
    dividends.
Provisions in our certificate of incorporation and bylaws
    and under Delaware law could prevent or delay transactions that
    stockholders may favor.
Our company is incorporated in Delaware. Our certificate of
    incorporation and bylaws, as well as Delaware corporate law,
    contain provisions that could delay or prevent a change of
    control or changes in our management that a stockholder might
    consider favorable, including a provision that authorizes our
    Board of Directors to issue preferred stock with such voting
    rights, dividend rates, liquidation, redemption, conversion and
    other rights as our Board of Directors may fix and without
    further stockholder action. The issuance of preferred stock with
    voting rights could make it more difficult for a third party to
    acquire a majority of our outstanding voting stock. This could
    frustrate a change in the composition of our Board of Directors,
    which could result in entrenchment of current management.
    Takeover attempts generally include offering stockholders a
    premium for their stock. Therefore, preventing a takeover
    attempt may cause you to lose an opportunity to sell your shares
    at a premium. If a change of control or change in management is
    delayed or prevented, the market price of our common stock could
    decline.
Delaware law also prohibits a corporation from engaging in a
    business combination with any holder of 15% or more of its
    capital stock until the holder has held the stock for three
    years unless, among other
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possibilities, the Board of Directors approves the transaction.
    This provision may prevent changes in our management or
    corporate structure. Also, under applicable Delaware law, our
    Board of Directors is permitted to and may adopt additional
    anti-takeover measures in the future.
Our certificate of incorporation provides that the affirmative
    vote of at least seventy-five percent (75%) of our total voting
    power is required to amend our certificate of incorporation or
    to approve mergers, consolidations, conversions or the sale of
    all or substantially all of our assets. Given the voting power
    of Heritage, we would need the approval of Heritage for any of
    these transactions to occur.
Our bylaws provide for the division of our Board of Directors
    into three classes with staggered three year terms. The
    classification of our Board of Directors could have the effect
    of making it more difficult for a third party to acquire, or
    discourage a third party from attempting to acquire, control of
    us.
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USE OF
    PROCEEDS
We estimate that our net proceeds from the sale of our common
    stock in the offering will be approximately $24.4 million,
    or $28.2 million if the underwriters exercise their option
    to purchase additional shares in full, based on an assumed
    public offering price per share of $9.72 (the last reported sale
    price of our common stock on The NASDAQ Global Market on
    May 17, 2010), after deducting the underwriting discount
    and $0.7 million of estimated offering expenses payable by
    us.
We currently intend to use the net proceeds from the offering to
    fund a portion of the costs required to develop and construct
    our used oil re-refinery facility in Indiana. We believe that
    additional capital of approximately $15.6 million will be
    needed for capital expenditure to complete the re-refinery, or
    $11.8 million if the underwriters exercise their option to
    purchase additional shares in full, based on an assumed public
    offering price per share of $9.72 (the last reported sale price
    of our common stock on The NASDAQ Global Market on May 17,
    2010). We expect to obtain this additional capital from our
    existing bank credit facility as well as from cash flow from our
    operations. Our credit facility currently restricts our ability
    to incur or be obligated to make more than $10 million of
    capital expenditures in a fiscal year, provided that, pursuant
    to an amendment dated May 14, 2010, $42 million of
    capital expenditures with respect to the re-refinery would not
    be subject to this $10 million limitation.
It is possible that we may delay or cancel the re-refinery
    project for one or more reasons including, without limitation, a
    significant drop in the price of oil or a determination that the
    re-refinery will not generate the benefits to our growth that we
    currently anticipate. If we delay or cancel the re-refinery
    project, we intend to use the net proceeds from the sale of our
    common stock in the offering for general corporate purposes,
    including to fund working capital and other capital expenditures
    as well as fund potential acquisitions.
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PRICE
    RANGE OF COMMON STOCK
The common stock of Heritage-Crystal Clean began trading on The
    NASDAQ Global Market under the symbol "HCCI" on
    March 12, 2008. Prior to our initial public offering of our
    common stock on March 12, 2008, there was no public market
    for our common stock . The information in the following table
    indicates the high and low sales prices for Heritage-Crystal
    Clean's common stock from March 12, 2008, the date of
    our initial public offering, to May 17, 2010, as reported
    by NASDAQ.
High
Low
2008
First Quarter (commencing March 12, 2008)
$
16.51
$
13.00
Second Quarter
18.69
13.01
Third Quarter
15.43
11.45
Fourth Quarter
14.75
8.40
High
Low
2009
First Quarter
$
13.99
$
6.51
Second Quarter
10.49
7.00
Third Quarter
13.80
10.00
Fourth Quarter
13.50
9.51
High
Low
2010
First Quarter
$
12.39
$
8.19
Second Quarter through May 17, 2010
12.05
9.09
On May 17, 2010, the closing price of our common stock on
    the NASDAQ Global Select Market was $9.72 per share. On
    May 17, 2010, there were 196 stockholders of record of our
    common stock. Several brokerage firms, banks and other
    institutions ("nominees") are listed once on the
    stockholders of record listing. However, in most cases, the
    nominees' holdings represent blocks of our common stock
    held in brokerage accounts for a number of individual
    stockholders. As such, our actual number of stockholders would
    be higher than the number of registered stockholders of record.
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DIVIDEND
    POLICY
Our Board of Directors sets our dividend policy. Our Board of
    Directors does not intend to declare cash dividends on our
    common stock in the foreseeable future. We currently intend to
    retain all available funds and any future earnings for use in
    the operation and expansion of our business, but we may
    determine in the future to declare or pay cash dividends on our
    common stock. Any future determination as to the declaration and
    payment of dividends will be at the discretion of our Board of
    Directors and will be dependent upon our results of operations
    and cash flows, our financial position and capital requirements,
    general business conditions, legal, tax, regulatory and any
    contractual restrictions on the payment of dividends, including
    the restrictions contained in the agreements governing our then
    outstanding indebtedness and any other factors our Board of
    Directors deems relevant. Our bank credit facility currently
    restricts the payment of dividends by us.
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CAPITALIZATION
The following table sets forth our capitalization as of
    March 27, 2010:
•
on an actual basis;
•
as adjusted to give effect to the receipt by us of net proceeds
    from the sale of common stock offered by us in the offering,
    based on an assumed public offering price per share of $9.72
    (the last reported sale price of our common stock on The NASDAQ
    Global Market on May 17, 2010), and the increase in the
    number of authorized shares of our common stock which occurred
    May 14, 2010 but before the application of the net proceeds.
You should read the data set forth below in conjunction with
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations" and the consolidated
    financial statements and accompanying notes appearing elsewhere
    in this prospectus and incorporated herein by reference.
As of March 27, 2010
Actual
As
    Adjusted
(1)
(Unaudited)
(Dollars in thousands)
Debt:
Bank
    debt
(2)
$
—
$
—
Total
    debt
(2)
—
—
Stockholders' equity:
Preferred stock, $0.01 par value per share:
    500,000 shares authorized; none issued and outstanding, as
    adjusted; none issued and outstanding
—
—
Common stock, $0.01 par value per share:
    15,000,000 shares authorized; 18,000,000 shares
    authorized, as adjusted; 10,713,086 shares issued and
    outstanding; and 13,463,086 shares issued and outstanding,
    as adjusted
$
107
$
135
Additional paid-in capital
43,363
67,772
Retained earnings
1,261
1,261
Total stockholders' equity
44,731
69,168
Total capitalization
$
44,731
$
69,168
(1)
If the underwriters' option to purchase additional shares
    is exercised in full:
•
an additional 412,500 shares would be issued and we would
    receive $3.8 million in additional net proceeds;
•
total stockholders' equity would increase by
    $3.8 million; and
•
total capitalization would increase by $3.8 million.
(2)
Does not include the $15.6 million that we anticipate
    borrowing in connection with the development and construction of
    our used oil re-refinery (or $11.8 million if the
    underwriters' option to purchase additional shares is
    exercised in full) See "Prospectus Summary —
    Development of Used Oil Re-refinery."
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SELECTED
    CONSOLIDATED FINANCIAL DATA
You should read the following selected consolidated financial
    information together with our consolidated financial statements
    and the related notes incorporated herein by reference and the
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations" appearing elsewhere in
    this prospectus. We refer to the first twelve weeks of each
    fiscal year as the "first quarter." Accordingly, the
    first quarters of fiscal 2009 and 2010 ended March 28, 2009
    and March 27, 2010, respectively. Our results for the first
    quarters ended March 28, 2009 and March 27 and balance
    sheet data as of March 27, 2010 are unaudited. We have
    derived the statement of operations data for each of the years
    ended December 29, 2007, January 3, 2009 and
    January 2, 2010 and the balance sheet data at
    January 3, 2009 and January 2, 2010 from our audited
    financial statements incorporated herein by reference. We have
    derived the statement of operations data for each of the years
    ended December 31, 2005 and December 30, 2006 and the
    balance sheet data at December 31, 2005, December 30,
    2006 and December 29, 2007 from our audited consolidated
    financial statements not included in this prospectus.
Fiscal Year
First Quarter Ended
March 28,
March 27,
2005
2006
2007
2008
2009
2009
2010
(Dollars in thousands, except per share data)
(Unaudited)
STATEMENT OF OPERATIONS DATA:
Sales
$
59,221
$
73,717
$
89,734
$
108,143
$
98,398
$
23,756
$
24,005
Cost of sales
14,061
18,823
22,920
29,430
26,040
7,497
6,006
Cost of sales — inventory
    impairment
(1)(2)
—
—
2,182
2,778
—
—
—
Gross profit
45,160
54,894
64,632
75,935
72,358
16,259
17,999
Operating costs
31,677
36,837
43,573
53,497
51,940
12,239
12,495
Selling, general, and administrative expenses
10,481
12,355
15,583
20,220
17,137
3,852
4,364
Proceeds from contract
    termination
(1)
—
—
(3,000
)
—
—
—
—
Operating income
3,002
5,702
8,476
2,218
3,281
168
1,140
Interest expense
967
1,415
1,408
408
3
—
—
Loss on disposal of fixed assets — net
—
—
—
—
159
—
—
Income before income taxes
2,035
4,287
7,068
1,810
3,119
168
1,140
Provision for income
    taxes
(3)
—
—
—
2,618
1,326
68
478
Net income (loss)
2,035
4,287
7,068
(808
)
1,793
100
662
Preferred return
1,696
1,691
1,691
339
—
—
—
Net income (loss) available to common stockholders
$
339
$
2,596
$
5,377
$
(1,147
)
$
1,793
$
100
$
662
Net income (loss) per share available to common stockholders:
    basic
$
0.05
$
0.36
$
0.75
$
(0.11
)
$
0.17
$
0.01
$
0.06
Net income (loss) per share available to common stockholders:
    diluted
$
0.05
$
0.36
$
0.74
$
(0.11
)
$
0.17
$
0.01
$
0.06
Number of weighted average common shares
    outstanding
(4)
:
Basic
7,099
7,114
7,178
9,985
10,700
10,685
10,713
Diluted
7,099
7,114
7,229
9,985
10,772
10,754
10,793
Cash dividends per common share
$
—
$
—
$
—
$
—
$
—
$
—
$
—
PRO FORMA DATA (UNAUDITED):
Net income (loss)
$
2,035
$
4,287
$
7,068
$
(808
)
$
1,793
$
100
$
662
Pro forma provision for income
    taxes
(3)
913
1,791
2,898
497
—
—
—
Return on preferred and mandatorily redeemable capital units
1,691
1,700
1,730
372
—
—
—
Pro forma net income (loss) available to common stockholders
$
(569
)
$
796
$
2,440
$
(1,677
)
1,793
$
100
$
662
Pro forma net income (loss) per share: basic
$
(0.08
)
$
0.11
$
0.34
$
(0.17
)
$
0.17
$
0.01
$
0.06
Pro forma net income (loss) per share: diluted
$
(0.08
)
$
0.11
$
0.34
$
(0.17
)
$
0.17
$
0.01
$
0.06
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Table of Contents
Fiscal Year
First Quarter Ended
March 28,
March 27,
2005
2006
2007
2008
2009
2009
2010
(Dollars in thousands, except per share data)
(Unaudited)
OTHER OPERATING DATA (UNAUDITED):
EBITDA
(5)
$
4,696
$
8,055
$
11,350
$
5,848
$
7,430
$
1,045
$
2,169
Average sales per working day
$
233
$
291
$
356
$
422
$
388
$
395
$
399
Number of branches at end of fiscal period
41
47
48
54
58
58
62
At
At Fiscal Year End
March 27,
2005
2006
2007
2008
2009
2010
(Dollars in thousands)
(Unaudited)
BALANCE SHEET DATA:
Cash and cash equivalents
$
758
$
271
$
479
$
327
$
1,090
$
1,403
Total assets
28,509
36,387
47,984
52,016
53,987
55,655
Total debt
14,100
18,130
22,045
20
—
—
Redeemable capital units
2,261
2,261
2,261
—
—
—
Total members' capital/stockholders' equity
6,630
8,776
12,707
41,556
43,925
44,731
(1)
In fiscal 2007, we received
    $3.0 million from the termination of a contract with a
    customer of our used solvent who had failed to meet its volume
    purchase obligations. We recorded cost of sales of
    $2.2 million to reduce solvent inventories to net
    realizable value in connection with this settlement.
(2)
In fiscal 2008, we recorded an
    impairment charge, reducing the reuse solvent and used oil
    inventory value by $2.8 million. This charge was due to a
    sharp decline in crude oil prices which resulted in the market
    value for our reuse solvent declining below the historic (FIFO)
    values.
(3)
On March 12, 2008, the date of
    our initial public offering, we reorganized our corporate legal
    structure from a limited liability company to a corporation. As
    a limited liability company, we were not subject to Federal or
    state corporate income taxes. Therefore, net income does not
    give effect to taxes for periods prior to the reorganization and
    initial public offering. For comparison purposes, we have
    presented pro forma net income, which reflects income taxes
    assuming we had been a corporation since the time of our
    formation and assuming tax rates equal to the rates that would
    have been in effect had we been required to report tax expense
    in such years.
(4)
The weighted average common shares
    outstanding reflects the
500-for-1
exchange of common units for common stock and the issuance of
    1,217,390 shares of common stock in our reorganization that
    occurred prior to our initial public offering in March 2008. We
    have included the redeemable common capital units outstanding
    prior to the reorganization in the calculation of basic and
    diluted earnings per share as the effect of excluding them would
    have been anti-dilutive. In accordance with FASB guidance,
    shares of common stock that are mandatorily redeemable are
    excluded from the calculation of basic and diluted earnings per
    share. We have deducted earnings attributable to mandatorily
    redeemable units from income available to common unit holders.
(5)
EBITDA represents net income before
    income tax expense, interest income, interest expense,
    depreciation and amortization. We have presented EBITDA because
    we consider it an important supplemental measure of our
    performance and believe it is frequently used by analysts,
    investors, our lenders and other interested parties in the
    evaluation of companies in our industry. Management uses EBITDA
    as a measurement tool for evaluating our actual operating
    performance compared to budget and prior periods. Other
    companies in our industry may calculate EBITDA differently than
    we do. EBITDA is not a measure of performance under GAAP and
    should not be considered as a substitute for net income prepared
    in accordance with GAAP. EBITDA has limitations as an analytical
    tool, and you should not consider it in isolation or as a
    substitute for analysis of our results as reported under GAAP.
    Some of these limitations are:
• EBITDA does not reflect
    our cash expenditures, or future requirements, for capital
    expenditures or contractual commitments;
• EBITDA does not reflect
    interest expense or the cash requirements necessary to service
    interest or principal payments on our debt;
• EBITDA does not reflect
    tax expense or the cash requirements necessary to pay for tax
    obligations; and
• Although depreciation
    and amortization are non-cash charges, the assets being
    depreciated and amortized will often have to be replaced in the
    future, and EBITDA does not reflect any cash requirements for
    such replacements.
We compensate for these limitations
    by relying primarily on our GAAP results and using EBITDA only
    as a supplement.
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The following table contains a
    reconciliation of our net income determined in accordance with
    GAAP to EBITDA:
Fiscal Year
First Quarter Ended
March 28,
March 27,
2005
2006
2007
2008
2009
2009
2010
(Dollars in thousands)
Net
    income(loss)
(a)
$
2,035
$
4,287
$
7,068
$
(808
)
$
1,793
$
100
$
662
Interest expense
967
1,415
1,408
408
3
—
—
Provision for income taxes
—
—
—
2,618
1,326
68
478
Depreciation and amortization
1,694
2,353
2,874
3,630
4,308
877
1,029
EBITDA
$
4,696
$
8,055
$
11,350
$
5,848
$
7,430
$
1,045
$
2,169
(a)
On March 12, 2008, the date of
    our initial public offering, we reorganized our corporate legal
    structure from a limited liability company to a corporation. As
    a limited liability company, we were not subject to Federal or
    state corporate income taxes. Therefore, net income does not
    give effect to taxes for periods prior to the reorganization and
    initial public offering.
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Table of Contents
MANAGEMENT'S
    DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion in conjunction with
    our consolidated financial statements and related notes included
    elsewhere and incorporated by reference in this prospectus. In
    addition to historical information, this discussion contains
    forward-looking statements that involve risks, uncertainties and
    assumptions that could cause actual results to differ materially
    from our expectations. We undertake no obligation to update any
    of the forward looking statement. Factors that could cause such
    differences include those described in "Risk Factors"
    and elsewhere in this prospectus. Certain tabular information
    may not foot due to rounding.
Overview
We are a leading provider of industrial and hazardous waste
    services to small and mid-sized customers who are engaged in
    vehicle maintenance or manufacturing activities. We offer a
    broad range of services desired by these customers including
    parts cleaning solvent management, and the removal and
    management of a variety of regulated wastes. We operate from a
    network of 62 branch facilities providing service to customers
    in 39 states.
Our sales are generated primarily from providing parts cleaning
    and waste removal services for our clients, which accounted for
    approximately 94.6% of our sales for fiscal 2009. We also
    generate a minimal amount of sales from the sale of used oil,
    which accounted for the remaining 5.4% of our fiscal 2009 sales.
    The sale of used solvent generated by customers participating in
    our product reuse program for parts cleaning is not accounted
    for as sales, but rather as a reduction in our net cost of
    solvent under cost of sales. We define and measure same-branch
    sales for a given period as the subset of all our branches that
    have been open and operating throughout and between the periods
    being compared, and we refer to these as established branches.
    We calculate average sales per working day by dividing our sales
    by the number of non-holiday weekdays in the applicable fiscal
    year or fiscal quarter.
We have established prices for our services, based on the
    relevant business variables for each service. With respect to
    our parts cleaning services, our pricing reflects the type of
    parts cleaning machine we provide (if any), the frequency of
    service visits, and the quantity and grade of solvent or other
    cleaning chemistry required. For our other services, our pricing
    typically reflects the nature and quality of the waste materials
    removed. Our customer agreements typically provide for annual
    renewal and price increases.
Our cost of sales includes the costs of the materials we use in
    our services, such as solvent and other chemicals, depreciation
    on the parts cleaning machines we own and provide to customers,
    transportation of solvents and waste, and our payments to other
    parties to recycle or dispose of the waste materials that we
    collect. The used solvent that we retrieve from customers in our
    product reuse program is accounted for as a reduction in our net
    cost of solvent under cost of sales, whether placed in inventory
    or sold to a purchaser for reuse. Increased costs of crude oil,
    a component of solvent, can increase cost of sales, although we
    attempt to offset such increases with increased prices for our
    services.
Our operating costs include the costs of operating our branch
    system and hubs, including personnel costs (including
    commissions), and facility rent, truck leases, fuel and
    maintenance. Our operating costs as a percentage of sales
    generally increase in relation to the number of new branch
    openings. As new branches achieve route density and scale
    efficiencies, our operating costs as a percentage of sales
    generally decrease.
Our selling, general, and administrative expenses include the
    costs of performing centralized business functions, including
    sales management at or above the regional level, billing,
    receivables management, accounting and finance, information
    technology, environmental health and safety and legal. Our
    selling, general, and administrative expenses have increased as
    a result of the ongoing costs of being a public company.
In the first quarter of 2010, we announced our plans to develop
    a used oil re-refinery. The re-refinery is being designed to
    process up to 50 million gallons per year of used oil
    feedstock and produce up to 30 million
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Table of Contents
gallons per year of lubricating base oil. The estimated capital
    cost of the project is approximately $40 million and the
    re-refinery is expected to begin operating at partial capacity
    during 2012.
Our
    History
The history of our business activity dates back to the late
    1980s, when Heritage Environmental Services established a
    division to concentrate on the service needs of smaller
    customers. This division, known as Crystal Clean, began
    providing parts cleaning and used oil collection services to
    customers in Indianapolis, Indiana, and gradually expanded to
    several other cities in the Midwest. During the 1990s, the
    Crystal Clean division expanded into markets in Texas and
    Louisiana as the result of a business venture with a major
    branded motor oil company. By the late 1990s, the Crystal Clean
    division was offering services to small to mid-sized customers
    in roughly a dozen metropolitan areas. In 1999, the parent of
    Heritage Environmental Services and Joseph Chalhoub, our current
    Chief Executive Officer, agreed to form a new company,
    Heritage-Crystal Clean, LLC, and to contribute the business
    assets of the Crystal Clean division to this new company.
    Mr. Chalhoub invested in the new Company and recruited a
    team of seasoned industry professionals to join our company and
    implement plans for growth.
On March 11, 2008, we completed a reorganization, initial
    public offering and direct placement. In connection with the
    reorganization, initial public offering and direct placement we:
•
Became a 'C' corporation through the reorganization of
    Heritage-Crystal Clean, LLC and a merger of BRS-HCC Investment
    Co., Inc. with and into Heritage-Crystal Clean, Inc.;
•
Issued an aggregate total of 7,274,290 shares of common
    stock as part of the exchange of common and preferred units of
    Heritage-Crystal Clean, LLC into common stock of
    Heritage-Crystal Clean, Inc. in the reorganization;
•
Sold an aggregate total of 3,401,100 shares of common stock
    in the initial public offering and concurrent direct placement,
    at $11.50 per share, raising approximately $33.2 million
    after underwriting discounts and transaction costs;
•
Repaid approximately $22.3 million of indebtedness with the
    proceeds raised in the initial public offering and direct
    placement;
•
Paid distributions of $10.9 million to preferred unit
    holders of Heritage-Crystal Clean, LLC as part of the
    reorganization relating to an accrued return through
    March 11, 2008; and
•
Recorded a cumulative net deferred tax liability of
    $2.2 million and a corresponding charge to our provision
    for income taxes upon becoming taxable as a 'C'
    corporation.
Critical
    Accounting Policies
Critical accounting policies are those that both are important
    to the accurate portrayal of a company's financial
    condition and results, and require subjective or complex
    judgments, often as a result of the need to make estimates about
    the effect of matters that are inherently uncertain.
In order to prepare financial statements that conform to
    accounting principles generally accepted in the United States,
    commonly referred to as GAAP, we make estimates and assumptions
    that affect the amounts reported in our financial statements and
    accompanying notes. Certain estimates are particularly sensitive
    due to their significance to the financial statements and the
    possibility that future events may be significantly different
    from our expectations.
We have identified the following accounting policies as those
    that require us to make the most subjective or complex judgments
    in order to fairly present our consolidated financial position
    and results of operations. Actual results in these areas could
    differ materially from management's estimates under
    different assumptions and conditions.
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Accounts
    Receivable and Allowance for Doubtful Accounts
Trade accounts receivable are recorded at the invoiced amount
    and do not bear interest. Consistent with industry practices, we
    require payment from most customers within 30 days of
    invoice date. The allowance for doubtful accounts is our best
    estimate of the amount of probable credit losses in our existing
    accounts receivable. We determine the allowance based on
    analysis of customer creditworthiness, historical losses and
    general economic trends and conditions. We perform periodic
    credit evaluations of our customers and typically do not require
    collateral. We have an estimation procedure, based on historical
    data and recent changes in the aging of these receivables that
    we use to record reserves throughout the year. In the last eight
    years, our provisions for doubtful accounts have averaged less
    than 0.8% of sales. We do not have any off-balance sheet credit
    exposure related to our customers.
Inventory
Inventory consists primarily of new and used solvents, new and
    refurbished parts cleaning machines, absorbents, accessories,
    repair parts and used oil. Inventories are valued at the lower
    of
first-in,
first-out (FIFO) cost or market, net of any reserves for excess,
    obsolete or unsalable inventory. In the first quarter of fiscal
    2007 we reported an impairment charge and reserved an associated
    excess reserve, reducing the reuse solvent inventory by
    $2.2 million. This was due to the supply contract
    termination as described in more detail below in our Results of
    Operations section. In the fourth quarter of fiscal 2008, we
    reported an impairment charge, reducing the reuse solvent and
    used oil inventory by $2.8 million. This was due to a sharp
    decline in crude oil prices which resulted in the market value
    for our reuse solvent declining below the historic (FIFO)
    values. In fiscal 2009, we depleted our excess inventory of
    reuse solvent and correspondingly eliminated the reserve. We
    continually monitor our inventory levels at each of our
    distribution locations and evaluate inventories for excess or
    slow-moving items. If circumstances indicate the cost of
    inventories exceed their recoverable value, inventories are
    reduced to net realizable value.
Share
    Based Compensation
We follow Financial Accounting Standards Board
    ("FASB") guidance that requires that all stock-based
    compensation be recognized as an expense in the financial
    statements and that such cost be measured at the fair value of
    the award. This statement was adopted using the prospective
    method of application, which requires us to recognize
    compensation cost on a prospective basis. For share-based awards
    granted after January 1, 2006, we recognized compensation
    expense based on estimated grant date fair value. See
    "Fiscal 2009 versus Fiscal 2008 and Fiscal 2008 versus
    Fiscal 2007 — Selling, general, & administrative
    expenses" for a description of compensation expenses
    related to the stock options that were granted and which vested
    in connection with the offerings and the acceleration of vesting
    of common units granted to employees under our Key Employee
    Membership Interest Trust.
Impairment
    of Long-Lived Assets
Long-lived assets, such as property and equipment and purchased
    intangibles subject to amortization, are reviewed for impairment
    whenever events or changes in circumstances indicate that the
    carrying amount of an asset may not be recoverable.
    Recoverability of assets to be held and used is measured by a
    comparison of the carrying amount of an asset to estimated
    undiscounted future cash flows expected to be generated by the
    asset. If the carrying amount of an asset exceeds its estimated
    future cash flows, an impairment charge is recognized as the
    amount by which the carrying amount of the asset exceeds the
    fair value of the asset. Assets to be disposed of would be
    separately presented in the balance sheet and reported at the
    lower of the carrying amount or fair value less costs to sell,
    and would no longer be depreciated. No triggering events
    occurred during fiscal 2009 or the first quarter of 2010 and
    therefore impairment has not been tested.
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New
    Accounting Pronouncements
Revenue
    Arrangements with Multiple Deliverables
In September 2009, the FASB ratified guidance for revenue
    arrangements with multiple deliverables. In absence of
    vendor-specific objective evidence ("VSOE") or other
    third party evidence ("TPE") of the selling price for
    the deliverables in a multiple-element arrangement, it requires
    companies to use an estimated selling price ("ESP")
    for the individual deliverables. Companies shall apply the
    relative-selling price model for allocating an
    arrangement's total consideration to its individual
    elements. Under this model, the ESP is used for both the
    delivered and undelivered elements that do not have VSOE or TPE
    of the selling price. The proposed effective date of the draft
    abstract is for fiscal years beginning on or after June 15,
    2010, and will be applied prospectively to revenue arrangements
    entered into or materially modified after the effective date.
    Since we will apply the requirements of this guidance on a
    prospective basis, we are continuing to evaluate its effect on
    our consolidated financial statements.
Fair
    Value Measurements and Disclosures
In January 2010, the FASB issued revised guidance which requires
    additional disclosures about items transferring into and out of
    Levels 1 and 2 in the fair value hierarchy. The revised
    guidance also requires additional separate disclosures about
    purchases, sales, issuances, and settlements relative to
    Level 3 measurements, and clarifies, among other things,
    the existing fair value disclosures about the level of
    disaggregation. This pronouncement is effective for interim and
    annual financial periods beginning after December 15, 2009,
    except for the disclosures about purchases, sales, issuances,
    and settlements relative to Level 3 measurements, which are
    effective for interim and annual financial periods beginning
    after December 15, 2010. We adopted these amendments in the
    first quarter of 2010 and the adoption did not have a material
    impact on the disclosures of our consolidated financial
    statements.
Subsequent
    Events
In February 2010, the FASB issued amended guidance regarding
    subsequent events. Under this amended guidance, SEC filers are
    no longer required to disclose the date through which subsequent
    events have been evaluated in originally issued and revised
    financial statements. This guidance was effective immediately
    and we adopted these new requirements upon issuance of this
    guidance.
On May 6, 2010, our shareholders voted and approved at our
    annual meeting an amendment to the Amended and Restated
    Certificate of Incorporation to increase the number of
    authorized shares of Common Stock from 15,000,000 to 18,000,000.
    The amendment to the Amended and Restated Certificate of
    Incorporation was filed on May 14, 2010.
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Results
    of Operations
General
The following table sets forth certain operating data as a
    percentage of sales for the periods indicated:
Fiscal Year
First Quarter Ended
March 28,
March 27,
2007
2008
2009
2009
2010
Sales
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
Cost of sales
25.5
%
27.2
%
26.5
%
31.6
%
25.0
%
Cost of sales — inventory impairment
2.4
%
(1)
2.6
%
(2)
—
—
—
Gross profit
72.0
%
70.2
%
73.5
%
68.4
%
75.0
%
Operating costs
48.6
%
49.5
%
52.8
%
51.5
%
52.1
%
Selling, general, and administrative expenses
17.3
%
18.7
%
17.4
%
16.2
%
18.2
%
Proceeds from contract termination
(3.3
)%
—
—
—
—
Operating income
9.4
%
2.1
%
3.3
%
0.7
%
4.7
%
Interest expense
1.6
%
0.4
%
0.0
%
0.0
%
—
Loss on disposal of fixed assets
—
—
0.2
%
—
—
Income before income taxes
7.9
%
1.7
%
3.2
%
0.7
%
4.7
%
Provision for income taxes
—
2.4
%
1.3
%
0.3
%
2.0
%
Net
    income(loss)
(3)
7.9
%
(0.7
)%
1.8
%
0.4
%
2.8
%
Pro forma net
    income(loss)
(3)
4.6
%
(1.0
)%
1.8
%
0.4
%
2.8
%
(1)
In fiscal 2007, we received $3.0 million from the
    termination of a contract with a customer of our used solvent
    who had failed to meet its volume purchase obligations. We
    recorded cost of sales of $2.2 million to reduce solvent
    inventories to net realizable value in connection with this
    settlement.
(2)
In fiscal 2008, we recorded an impairment charge, reducing the
    reuse solvent and used oil inventory value by $2.8 million.
    This charge was due to a sharp decline in crude oil prices which
    resulted in the market value for our reuse solvent declining
    below the historic (FIFO) values.
(3)
On March 12, 2008, the date of our initial public offering,
    we reorganized our corporate legal structure from a limited
    liability company to a corporation. As a limited liability
    company, we were not subject to Federal or state corporate
    income taxes. Therefore, net income does not give effect to
    taxes for periods prior to the reorganization and initial public
    offering. For comparison purposes, we have presented pro forma
    net income, which reflects income taxes assuming we had been a
    corporation since the time of our formation and assuming tax
    rates equal to the rates that would have been in effect had we
    been required to report tax expense in such years.
First
    Quarter of Fiscal 2010 Compared to First Quarter of Fiscal
    2009
Sales.
For the first fiscal quarter of 2010,
    sales increased $0.2 million, or 1.0%, to
    $24.0 million from $23.8 million for the first fiscal
    quarter of 2009. We implemented a price increase in the fourth
    quarter of 2009 which contributed to some of the growth and we
    are also starting to see more revenue generating activity from
    our customers. Within the first fiscal quarter of 2010, the
    sales trend was positive, with sales increases for each
    successive four-week accounting period as opposed to declining
    sequential period sales in the first fiscal quarter of 2009.
At the end of fiscal 2009, we were operating 58 branch locations
    compared with 54 at the end of fiscal 2008. In the first fiscal
    quarter of 2010 we opened four new branches; and we now operate
    through 62 branch locations. There were 58 branches that were in
    operation during both the first fiscal quarter of 2010 and first
    fiscal quarter of 2009, which experienced flat same-branch sales
    over the course of these two fiscal quarters.
Cost of sales.
For the first fiscal quarter of
    2010, cost of sales decreased $1.5 million, or 20.0%, to
    $6.0 million from $7.5 million for the first fiscal
    quarter of 2009. Cost of sales as a percentage of sales
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decreased to 25.0% in first fiscal quarter of 2010, from 31.6%,
    in the first fiscal quarter of 2009. We recorded costs of
    approximately $0.9 million during the first fiscal quarter
    of 2009 that related to declining crude oil prices. These costs
    in the first fiscal quarter of 2009, reflect the decline in the
    value of virgin solvent inventory held at our locations for use
    in our service programs which is valued at the lower of cost or
    market. In the first fiscal quarter of 2010, we recorded a
    benefit of $0.3 million to our cost of sales arising from
    increasing crude prices because we sold our reuse solvent at
    higher gross margins. The increase in crude prices during the
    first fiscal quarter of 2010 allowed us to sell reuse solvent at
    higher prices than the inventory value established at the end of
    2009 when crude price and associated solvent products were at
    lower levels. In addition, solvent products that we use in
    servicing our customers were valued higher at the end of the
    first fiscal quarter of 2010 as they were returned by our
    customers for recycling.
Operating costs.
For the first fiscal quarter
    of 2010, operating costs increased $0.3 million, or 2.5%,
    to $12.5 million from $12.2 million for the first
    fiscal quarter of 2009. Cost cutting measures such as workforce
    efficiencies which were taken in fiscal 2009 to compensate for
    the decline in sales, continue to reduce our operating expenses;
    however the costs of diesel and transportation fuel surcharges
    were above the first fiscal quarter of 2009 levels.
    Additionally, we incurred branch labor, collection truck and
    facility costs in connection with new branches opened in the
    first fiscal quarter of 2010.
Selling, general, & administrative
    expenses.
For the first fiscal quarter of 2010,
    selling, general and administrative expenses increased
    $0.5 million, or 13.3%, to $4.4 million from
    $3.9 million for the first fiscal quarter of 2009. The
    increase was due to specific accrual adjustments for property
    taxes in the first fiscal quarter of 2009 and expense related to
    a sales tax audit in the first fiscal quarter of 2010.
    Additionally, the allocation of the Management Incentive Plan
    "MIP" bonus pool was increased in the first quarter of
    2010 because it is aligned with the profitability of operations.
Interest expense.
There was zero interest
    expense in both the first fiscal quarter of 2010 and 2009 due to
    no debt outstanding during the fiscal quarters ending
    March 27, 2010 and March 28, 2009, respectively.
Provision for income taxes.
For the first
    fiscal quarter of 2010, the provision for income taxes increased
    $0.4 million, to $0.5 million from $0.1 million
    for the first fiscal quarter of 2009. The increase was a result
    in the increase in taxable income. Our effective tax rate in the
    first fiscal quarter of 2010 was 41.9%, compared to 40.5% in the
    first fiscal quarter of 2009. Our effective tax rate in the
    first fiscal quarter of 2010 was slightly elevated compared to
    the first fiscal quarter of 2009 due to a higher blended state
    income tax rate.
Fiscal
    Year 2009 Compared to Fiscal 2008
Sales.
For fiscal 2009, sales decreased
    $9.7 million, or 9.0%, to $98.4 million from
    $108.1 million for fiscal 2008. Fiscal 2009 reported sales
    for 52 weeks compared to fiscal 2008 which reported sales
    for 53 weeks. The effect of the U.S. recession caused
    many of our customers to produce less waste and to put off
    deferrable services to a greater degree than we have seen in
    past recessions, and this eliminated our sales growth.
At the end of fiscal 2009, we were operating 58 branch locations
    compared with 54 at the end of fiscal 2008. There were 54
    branches that were in operation during both the fiscal years of
    2009 and fiscal 2008, which experienced a decline in same-branch
    sales of $11.6 million, or 10.7%. Excluding the 4 branches
    in this group that gave up customers to new branch openings, the
    remaining 50 branches experienced a decline in same-branch sales
    of $8.9 million, or 9.1%.
Fuel surcharges decreased sales
year-over-year
by $1.1 million in fiscal 2009. This decrease was a direct
    result of lower energy prices as compared to fiscal 2008.
Cost of sales.
For fiscal 2009, total cost of
    sales decreased $6.2 million, or 19.2%, to
    $26.0 million from $32.2 million for fiscal 2008. Cost
    of sales as a percentage of sales decreased to 26.5%, from
    29.8%, in fiscal 2008. Although our cost structure has returned
    to levels seen prior to 2008, we recorded costs of approximately
    $1.0 million during the first quarter of 2009 that was
    related to the decline in the price of crude oil. For the
    remainder of fiscal 2009, we were able to benefit from the sale
    of reuse solvent inventory that was marked down to market value
    at the end of fiscal 2008 due to the decline in reuse solvent
    values. This benefit,
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however, was not as great as the benefit from the first three
    quarters of fiscal 2008 when we sold reuse solvent at prices in
    excess of their carrying inventory value. During the fourth
    fiscal quarter of 2008, the steep decline in solvent values led
    to reductions in the value of these solvent inventories. As a
    result, we incurred a $2.8 million non-cash inventory
    impairment charge related to valuing our reuse solvent and used
    oil inventory which is held for sale to market value, as a
    result of the decline in crude oil prices. We also recorded
    unusually high solvent costs of approximately $1.7 million
    during the fourth quarter of fiscal 2008 that were also related
    to the decline in crude oil prices. These increased costs
    reflect the revaluation of reuse solvent recovered from
    customers and virgin solvent inventory held at our locations for
    use in our service programs, both of which must be valued at the
    lower of cost or market. In total, declining inventory values in
    the fourth fiscal quarter of 2008 led us to incur approximately
    $4.5 million of cost. Although there was an increase in
    energy prices in the first half of 2009, compared to last year,
    the volatility in solvent prices has been much less, with
    correspondingly smaller impact on our financial results.
Operating costs.
For fiscal 2009, operating
    costs decreased $1.6 million, or 3.0%, to
    $51.9 million from $53.5 million for fiscal 2008.
    Although certain cost cutting measures such as workforce
    efficiencies were taken earlier in fiscal 2009 to compensate for
    the decline in sales, operating costs as a percentage of sales
    increased 3.3% due to the reduced leveraging of fixed costs.
    Additionally, we incurred branch labor, collection truck and
    facility costs that are associated with new branches opened
    early in fiscal 2009. Diesel fuel decreased along with the
    reduction in energy prices in fiscal 2009 compared to fiscal
    2008.
Selling, general, & administrative
    expenses.
For fiscal 2009, selling, general and
    administrative expenses decreased $3.1 million, or 15.3%,
    to $17.1 million from $20.2 million for fiscal 2008.
    The decrease was due to $3.2 million of expense for
    employee stock options which were granted at the time of our
    initial public offering in March 2008 and vested immediately
    along with the vesting of certain Key Employee Membership
    Interest Trust "KEMIT" units in fiscal 2008.
    Additionally, in fiscal 2009, the allocation of the Management
    Incentive Plan "MIP" bonus pool was reduced because it
    is aligned with the profitability of operations. This was
    partially offset by the fact that in fiscal 2009, we incurred a
    full year of public company costs compared to only three full
    quarters in fiscal 2008 along with the loss on disposal of fixed
    assets.
Interest expense — net.
For fiscal
    2009, interest expense decreased by $0.4 million, or 99.3%,
    to approximately zero from $0.4 million for fiscal 2008.
    The decrease was due to the reduction in our total debt
    outstanding in connection with our initial public offering in
    March 2008 in which the proceeds were used to pay down debt.
Provision for income taxes.
For fiscal 2009,
    provision for income taxes decreased $1.3 million, or
    50.0%, to $1.3 million from $2.6 million for fiscal
    2008. Our effective tax rate in fiscal 2009 was 42.5%, compared
    to 144.6% in fiscal 2008. In fiscal 2008, we incurred a one-time
    charge to earnings of $2.2 million reflecting the net
    deferred tax assets and deferred tax liabilities at the time of
    the reorganization of the LLC to a 'C' corporation as
    described above in "— Our History." This
    charge did not reoccur in fiscal 2009.
Our overall effective tax rate in fiscal 2009 was slightly
    elevated primarily due to a revised higher expected blended
    state income tax rate. The higher expected blended state income
    tax rate increased as a percentage of income due to some states
    that base their state tax rates primarily on gross receipts.
Fiscal
    2008 Compared to Fiscal 2007
Sales.
For fiscal 2008, sales increased
    $18.4 million, or 20.5%, to $108.1 million from
    $89.7 million for fiscal 2007. Fiscal 2008 reported sales
    for 53 weeks compared to fiscal 2007 which reported sales
    for 52 weeks. This is somewhat less than the sales growth
    we reported in prior quarters, and reflects the impact on our
    business of the start of the economic recession.
At the end of fiscal 2008, we were operating 54 branch locations
    compared with 48 at the end of fiscal 2007. There were 47
    branches that were in operation during both the fiscal years of
    2008 and fiscal 2007, which experienced same-branch sales growth
    of $14.8 million, or 18.1%. Excluding the 5 branches in
    this group that gave up customers to new branch openings, the
    remaining 42 branches experienced same-branch sales growth of
    18.3%.
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Fuel surcharges increased sales
year-over-year
by $0.9 million in fiscal 2008. These increases occurred
    primarily in the last half of fiscal 2008 to mitigate higher
    costs for virgin solvent, diesel fuel and transportation. Fuel
    and transportation costs decreased over the final months of the
    year as did surcharges billed to our customers. Solvent prices
    also declined, and we incurred charges to our cost of sales for
    inventory impairment on product held for sale as well as
    reductions to the lower cost on inventories used in operations.
Cost of sales.
For fiscal 2008, total cost of
    sales increased $7.1 million, or 28.3%, to
    $32.2 million from $25.1 million for fiscal 2007. Cost
    of sales as a percentage of sales increased in fiscal 2008 to
    29.8% from 28.0% in fiscal 2007. We incurred a $2.8 million
    non-cash inventory impairment charge during fiscal 2008 related
    to valuing our reuse solvent and used fuel oil inventory which
    is held for sale to market value, as a result of the decline in
    crude oil prices. Beyond this inventory impairment charge, we
    also recorded unusually high solvent costs of approximately
    $1.7 million during the fourth fiscal quarter of 2008 that
    were also related to the declining prices. These increased costs
    reflect the revaluation of solvent recovered from customers and
    virgin solvent inventory held at our locations, for use in our
    service programs, both of which must be valued at the lower of
    cost or market. During the fourth fiscal quarter of 2008, the
    steep decline in solvent values led to reductions in the value
    of these solvent inventories. In total, declining inventory
    values in the fourth fiscal quarter of 2008 led us to incur
    about $4.5 million of cost.
Benefits we gained earlier in the first three quarters of fiscal
    2008 by selling reuse solvent at higher prices than lower,
    historical cost were more than offset by the lower cost of
    market adjustment of reuse solvent and used oil inventory in the
    fourth quarter of fiscal 2008. In the first quarter of fiscal
    2007, we received $3.0 million from the termination of a
    contract for our used solvent with a customer who had failed to
    meet their volume purchase obligations in 2006. We recorded an
    impairment charge of $2.2 million in fiscal 2007 to reduce
    solvent inventories to net realizable value in connection with
    this settlement.
Operating costs.
For fiscal 2008, operating
    costs increased $9.9 million, or 22.8%, to
    $53.5 million from $43.6 million for fiscal 2007.
    Operating costs, including branch labor and collection truck
    costs, increased as a percentage of sales as the improved
    efficiency in our branch network due to our gaining route
    density and scale in established markets was more than offset by
    increased diesel fuel and transportation costs.
Selling, general, & administrative
    expenses.
For fiscal 2008, selling, general and
    administrative expense increased $4.6 million, or 29.8%, to
    $20.2 million from $15.6 million for fiscal 2007.
    Selling, general and administrative expenses included employee
    share-based compensation charges of $3.2 million related to
    employee stock options granted at the time of our initial public
    offering which vested immediately and also related to the
    vesting of certain Key Employee Membership Interest Trust
    "KEMIT" units and additional costs associated with
    being a public company which include among others, Board of
    Directors compensation and insurance, incremental legal and
    accounting fees and Sarbanes-Oxley consulting services.
Proceeds from Contract Termination.
In the
    first quarter of fiscal 2007, we received $3.0 million from
    the termination of a contract for our used solvent with a
    customer who had failed to meet their volume purchase
    obligations. We recorded cost of sales of $2.2 million to
    reduce solvent inventories to net realizable value in connection
    with this settlement. Please refer to the above discussion
    related to cost of sales — inventory impairment for
    more information.
Interest expense — net.
For fiscal
    2008, interest expense decreased by $1.0 million, or 71.0%,
    to $0.4 million from $1.4 million for fiscal 2007. The
    decrease was due to our reduction of total debt outstanding
    using the cash proceeds received from our initial public
    offering in March 2008.
Provision for income taxes.
In connection with
    our initial public offering, we reorganized our corporate legal
    structure from a limited liability company to a 'C'
    corporation. As a limited liability company, we were not subject
    to federal or state corporate income taxes and as such had not
    incurred any historical taxes. For comparison purposes, we have
    presented pro forma net income, which reflects income taxes
    assuming we had been a corporation since the time of our
    formation and assuming tax rates equal to the rates that would
    have been in effect had we been required to report tax expense
    in such years. A one-time charge to earnings of
36
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$2.2 million was recorded in the first fiscal quarter of
    2008 reflecting the net deferred tax assets and deferred tax
    liabilities at the time of the reorganization of the LLC to a
    'C' corporation.
Quarterly
    Results
The following table sets forth our unaudited quarterly
    consolidated statement of operations data for the fiscal years
    2008 and 2009 and the first quarter of fiscal 2010. Our fiscal
    year ends the Saturday closest to December 31. Fiscal year
    2008 consisted of 53 weeks and fiscal year 2009 consisted
    of 52 weeks. Our convention with respect to reporting
    periodic financial data is such that each of our first three
    fiscal quarters consist of twelve weeks while our last fiscal
    quarter consists of sixteen or seventeen weeks. The unaudited
    quarterly information has been prepared on the same basis as the
    annual financial information and, in management's opinion,
    includes all adjustments (consisting only of normal recurring
    adjustments) necessary to present fairly the information for the
    quarters presented. Historically, our sales and operating
    results have varied from quarter to quarter and are expected to
    continue to fluctuate in the future. These fluctuations have
    been due to a number of factors, including those identified in
    this prospectus under the caption "Risk Factors." Our
    operating results for any historical quarter are not necessarily
    indicative of results for any future period.
Fiscal 2008
Fiscal 2009
Fiscal 2010
First
Second
Third
Fourth
First
Second
Third
Fourth
First
Quarter
Quarter
Quarter
Quarter
(1)
Quarter
Quarter
Quarter
Quarter
(2)
Quarter
(Dollars in thousands)
STATEMENT OF OPERATIONS DATA:
Sales
$
22,997
$
24,838
$
25,646
$
34,661
$
23,756
$
22,401
$
22,284
$
29,957
$
24,005
Cost of sales
6,285
5,630
6,020
11,494
7,497
5,239
5,553
7,751
6,006
Cost of sales — inventory
    impairment
(3)
—
—
—
2,778
—
—
—
—
—
Gross profit
16,712
19,208
19,626
20,389
16,259
17,162
16,731
22,206
17,999
Operating costs
11,516
12,601
12,523
16,857
12,239
12,094
11,772
15,836
12,495
Selling, general, and administrative expenses
6,631
4,132
4,278
5,179
3,852
3,979
3,834
5,471
4,364
Operating income
(1,435
)
2,475
2,825
(1,647
)
168
1,089
1,125
899
1,140
Interest expense
353
19
24
13
—
—
3
—
—
Loss on disposal of fixed assets — net
—
—
—
—
—
59
100
—
—
Provision for income taxes
980
(4)
1,047
1,179
(588
)
68
428
453
377
478
Net income
    (loss)
(4)
$
(2,768
)
$
1,409
$
1,622
$
(1,072
)
$
100
$
602
$
569
$
522
$
662
Pro forma net income
    (loss)
(4)
$
(3,638
)
$
1,409
$
1,622
$
(1,072
)
$
100
$
602
$
569
$
522
$
662
OTHER OPERATING DATA:
Average sales per working day
$
390
$
421
$
442
$
433
$
395
$
379
$
382
$
393
$
400
Number of branches at end of fiscal quarter
54
54
54
54
58
58
58
58
62
(1)
Reflects a seventeen week quarter.
(2)
Reflects a sixteen week quarter.
(3)
In the fourth quarter of fiscal 2008, we recorded an impairment
    charge, reducing the reuse solvent and used oil inventory value
    by $2.8 million. This charge was due to a sharp decline in
    crude oil prices which resulted in the market value for our
    reuse solvent declining below the historic (FIFO) values.
(4)
On March 12, 2008, the date of our initial public offering,
    we reorganized our corporate legal structure from a limited
    liability company to a corporation. As a limited liability
    company, we were not subject to Federal or state corporate
    income taxes. Therefore, net income does not give effect to
    taxes for periods prior to the reorganization and initial public
    offering. For comparison purposes, we have presented pro forma
    net income, which reflects income taxes assuming we had been a
    corporation since the time of our formation and assuming tax
    rates equal to the rates that would have been in effect had we
    been required to report tax expense in such years.
Liquidity
    and Capital Resources
Cash
    and Cash Equivalents
We had $1.1 million of cash and cash equivalents at the end
    of fiscal 2009 and $1.4 million at the end of the first
    quarter of 2010. Our primary sources of liquidity are cash flows
    from operations and funds available to borrow under our bank
    credit facility. Prior to fiscal 2008, we had historically
    financed our operations primarily through the private placement
    of preferred equity securities, borrowings from banks and
    investors and through funds from operations. In March 2008, we
    raised net proceeds of $33.2 million from an initial
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Table of Contents
public offering and concurrent direct placement. These net
    proceeds include offering costs of $0.9 million paid prior
    to fiscal year end 2007 and include approximately
    $1.0 million of offering costs paid subsequent the initial
    public offering. The proceeds were used to reduce borrowings
    under our bank credit facility, which included
    $10.9 million borrowed in March 2008 used to pay preferred
    members for an accrued return on preferred units as part of the
    reorganization described above under "Our History."
Our bank credit facility provides for borrowings of up to
    $30.0 million. On December 14, 2009, we amended the
    bank credit facility to extend the maturity date of the bank
    credit facility to December 14, 2012 and increased the
    available borrowings from $25.0 million to
    $30.0 million. Amounts borrowed under the bank credit
    facility are secured by a security interest in substantially all
    of our tangible and intangible assets. There is a maximum amount
    of $1.0 million of standby letters of credit that can be
    issued and the issuance of the standby letters of credit reduces
    the amount of total borrowings available. As of March 27,
    2010 and January 2, 2010, $0.2 million and
    $0.2 million of standby letters of credit were outstanding,
    respectively. As of March 27, 2010 and January 2,
    2010, $29.8 million and $29.8 million were available
    under the bank credit facility, respectively. Under the terms of
    our bank credit facility, borrowings will bear interest at the
    prime rate plus 25 basis points, unless the total leverage
    ratio is greater than or equal to 2.75 to 1. If the total
    leverage ratio is greater than or equal to 2.75 to 1, the rate
    would be the prime rate plus 50 basis points. We also have
    the option to lock in a portion of our borrowing at the
    prevailing LIBOR rate plus a variable margin of between 2.0% and
    3.0% depending on our leverage ratio. The bank credit facility
    requires us to consult with the bank on certain acquisitions and
    includes a prohibition on the payment of dividends. In addition,
    our bank credit facility contains a number of financial
    covenants that are based on our EBITDA for the trailing fiscal
    year, including a maximum total leverage ratio of 3.25 and a
    minimum interest coverage ratio of 3.5. In addition, the bank
    credit facility requires that we maintain a minimum tangible net
    worth of an amount equal to $42.0 million plus 75% of our
    aggregate net income after taxes earned each quarter subsequent
    to December 14, 2009, taking into account certain
    additional calculations and limits our capital expenditures to
    $10.0 million for any fiscal year. The weighted average
    effective interest rate for amounts outstanding was 3.25% and
    6.58% at January 2, 2010 and January 3, 2009,
    respectively. We did not have any amounts outstanding under our
    bank credit facility during the first quarter of fiscal 2010.
In the first quarter of 2010, we announced that we were planning
    to develop a used oil re-refinery. The re-refinery is being
    designed to process up to 50 million gallons per year of
    used oil feedstock and produce up to 30 million gallons per
    year of lubricating base oil. The estimated capital cost of the
    project is approximately $40 million and we expect that the
    operation of the re-refinery will increase our working capital
    requirements by $5 million to $10 million. Our credit
    facility restricts our ability to incur or be obligated to make
    more than $10 million of capital expenditures in a fiscal
    year, provided that, pursuant to an amendment dated May 14,
    2010, $42 million of capital expenditures with respect to
    the re-refinery would not be subject to this $10 million
    limitation. The re-refinery is expected to begin operating at
    partial capacity during 2012. As of March 27, 2010,
    $0.9 million has been spent and capitalized in connection
    with our construction of the re-refinery. During fiscal 2010 and
    2011, we plan to roll out additional used oil collection routes
    to increase the volume of used oil that we collect and we
    estimate that we will incur roughly $1.0 million to
    $1.5 million of net expense, respectively, related to the
    roll out.
At January 2, 2010, our working capital was
    $16.8 million compared to $19.2 million at
    January 3, 2009. This decrease was mostly due to a decline
    in accounts receivable of approximately $2.7 million and a
    decline in inventory of $0.8 million. Also during the year,
    accounts payable declined by $1.0 million, which was
    partially offset by the increase in cash of $0.8 million.
    At March 27, 2010, working capital was $17.2 million.
    The increase is due to higher accounts receivable balances
    reflecting the increase in sales and higher inventory value due
    to rising crude oil prices.
Capital expenditures and software costs for fiscal 2007, 2008,
    2009 and the first quarter of fiscal 2010 were
    $9.0 million, $5.2 million, $9.7 million and
    $1.4 million, respectively. In the first quarter of fiscal
    2010, $0.3 million has been spent and capitalized in
    connection with our re-refining project. During fiscal 2009, we
    acquired the industrial real estate in which we were a tenant in
    Indianapolis, Indiana for $3.5 million. Approximately
    $3.7 million of the capital expenditures in fiscal 2009
    were for purchases of parts cleaning machines compared to
    $3.4 million in fiscal 2008 and $3.5 million in fiscal
    2007. The remaining $2.5 million
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in fiscal 2009 was for other items including office equipment,
    leasehold improvements, software and intangible assets, compared
    to $1.8 million in fiscal 2008 and $0.7 million in fiscal
    2007. The increase in fiscal 2009 compared to fiscal 2008 also
    includes $0.6 million spent on the exploration and
    development of our proposed used oil re-refinery. Otherwise,
    capital expenditures in fiscal 2009 compared to fiscal 2008 and
    fiscal 2007 were mostly flat in our parts cleaning and
    containerized waste business. Fiscal 2007 capital expenditures
    include $4.8 million for the completion of our solvent
    recycling tower.
Net cash provided by operations was $9.5 million,
    $4.7 million, $10.3 million, $3.1 million and
    $1.6 million in fiscal 2007, fiscal 2008, fiscal 2009 and
    the first quarter of fiscal 2009 and 2010, respectively. The
    increased net cash provided reflects our increased net income
    and reductions of our accounts receivable and inventory
    balances, share-based compensation and prepaid and other current
    assets. The net cash provided by operations in fiscal 2007
    reflects the termination of a contract and one-time benefit.
Net cash used in investing activities was $9.0 million,
    $5.2 million, $9.7 million, $1.3 million and
    $1.4 million in fiscal 2007, fiscal 2008, fiscal 2009 and
    the first quarter of fiscal 2009 and 2010, respectively. The
    increase in fiscal 2009 from fiscal 2008 was primarily due to
    the capital expenditures for our purchase of the industrial real
    estate in Indianapolis, Indiana and amounts spent on the
    exploration and development of our proposed used oil
    re-refinery. The decrease in fiscal 2008 compared to fiscal 2007
    was primarily due to the higher capital expenditures in fiscal
    2007 for our solvent recycling system.
Net cash provided by (used in) financing activities was
    $(0.4) million, $0.4 million, $0.2 million,
    $0.1 million and $0.1 million in fiscal 2007, fiscal
    2008 and fiscal 2009 and the first quarter of fiscal 2010,
    respectively. In March 2008, we raised net proceeds of
    $33.2 million from an initial public offering and
    concurrent direct placement. These net proceeds included
    offering costs of $0.9 million paid prior to fiscal year
    end 2007 and include approximately $1.0 million of offering
    costs paid subsequent the initial public offering. The proceeds
    were used to reduce borrowings under our bank credit facility,
    which included $10.9 million borrowed in March 2008 used to
    pay preferred members for an accrued return on preferred units
    as part of the reorganization.
We believe that our existing cash, cash equivalents and
    available borrowings as well as net proceeds from this offering
    will be sufficient to meet our anticipated cash needs for
    working capital and capital expenditures for at least the next
    12 months. We cannot assure you that this will be the case
    or that our assumptions regarding sales and expenses underlying
    this belief will be accurate, especially given the current
    economic conditions. If in the future, we require more liquidity
    than is available to us under our bank credit facility, we may
    need to raise additional funds through debt or equity offerings.
    Adequate funds may not be available when needed or may not be
    available on terms favorable to us, especially given the current
    tightening of the financial credit markets. If additional funds
    are raised by issuing equity securities, dilution to existing
    stockholders may result. If we raise additional funds by
    obtaining loans from third parties, the terms of those financing
    arrangements may include negative covenants or other
    restrictions on our business that could impair our operational
    flexibility, and would also require us to fund additional
    interest expense. If funding is insufficient at any time in the
    future, we may be unable to develop or enhance our products or
    services, take advantage of business opportunities or respond to
    competitive pressures, any of which could have a material
    adverse effect on our business, financial condition and results
    of operations. It is possible that we may delay or cancel the
    re-refinery project for one or more reasons including, without
    limitation, a significant drop in the price of oil or a
    determination that the re-refinery will not generate the
    benefits to our growth that we currently anticipate. If we delay
    or cancel the re-refinery project, we intend to use the net
    proceeds from the sale of our common stock in the offering for
    general corporate purposes, including to fund working capital
    and other capital expenditures as well as fund potential
    acquisitions.
Contractual
    Obligations
Our contractual commitments consist of operating leases and
    short-term purchasing commitments. We anticipate that we will
    experience an increase in our debt obligations, capital
    expenditures and lease commitments consistent with our
    anticipated entry into the used oil re-refining industry and
    growth in operations, infrastructure and personnel and
    additional resources devoted to building our network of hubs and
    branches.
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The following table summarizes our existing obligations as of
    March 27, 2010.
Payments
    Due by Fiscal Year
(Dollars in thousands)
Contractual
Obligations
Total
2010
2011
2012
2013
2014
Thereafter
Operating lease
    obligations
(1)
$
27,478
$
7,667
$
6,579
$
5,483
$
3,779
$
2,341
$
1,629
Purchase
    obligations
(2)
$
5,419
$
5,419
—
—
—
—
—
Total
$
32,897
$
13,086
$
6,579
$
5,483
$
3,779
$
2,341
$
1,629
(1)
We lease office space, equipment and vehicles under
    noncancelable operating lease agreements which expire through
    2017.
(2)
Our purchase obligations are open purchase orders as of
    March 27, 2010, and include capital expenditures relating
    to the construction of our used oil re-refinery and for solvent
    and machine purchases and disposal expense.
We offer a guarantee for our services. To date, costs relating
    to this guarantee have not been material.
Off-Balance
    Sheet Arrangements
As of the end of the first quarter of fiscal 2010, we had no
    off-balance sheet arrangements, other than operating leases
    reported above under "— Contractual
    Obligations."
Quantitative
    and Qualitative Disclosures About Market Risk
We are exposed to interest rate risks primarily through
    borrowings under our bank credit facility. Interest on these
    borrowings is based upon variable interest rates. Our weighted
    average borrowings under our bank credit facility during fiscal
    2009 were $0.1 million and the annual effective interest
    rate for fiscal 2009 was 3.25%. We currently do not hedge
    against interest rate risk. Based on the foregoing, a
    hypothetical 1% increase or decrease in interest rates would
    have resulted in a $1,000 change to our interest expense in
    fiscal 2009.
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BUSINESS
Overview
Based on revenues, we believe that we are the second largest
    provider of parts cleaning services in the U.S. and a
    leading provider of containerized waste services that focuses on
    small and mid-sized customers. Our services allow our customers
    to outsource their handling and disposal of parts cleaning
    solvents as well as other containerized waste. Many of these
    substances are subject to extensive and complex regulations, and
    mismanagement can result in citations, penalties, and
    substantial direct costs, both to the service provider and also
    to the generator. We allow our customers to focus more on their
    core business and devote fewer resources to industrial and
    hazardous waste management and, more specifically, the related
    administrative burdens.
We offer an integrated suite of industrial and hazardous waste
    services including parts cleaning, containerized waste
    management, used oil collection and vacuum truck services. In
    each of our services, we have adopted innovative approaches to
    minimize the regulatory burdens for our customers and have made
    "ease of use" of our services and products a priority.
    Our company has implemented two different programs whereby our
    customers' used solvent may be excluded from the EPA's
    definition of hazardous waste. In our non-hazardous program, we
    provide our customers an alternative parts cleaning solvent not
    included in the definition of hazardous waste due to its
    increased flashpoint (the minimum temperature at which vapors
    from the solvent will ignite when tested under specified
    laboratory conditions). In our product reuse program, we sell
    used solvent as an ingredient for use in the manufacture of
    asphalt roofing materials.
Industry
    Overview
We operate within the U.S. market for industrial and
    hazardous waste services, which we believe is an $8 billion
    market. Specifically, we focus on the parts cleaning,
    containerized waste, used oil services and vacuum services areas
    of the industrial and hazardous waste services markets. We
    estimate the markets in which we currently participate represent
    a $6 billion market opportunity, of which approximately
    $1 billion represents the increase in the market potential
    if the used oil re-refining market is included. Based on
    U.S. Census Bureau 2007 Economic Census Data, there are
    800,000 establishments in the U.S. engaged in either
    manufacturing or vehicle maintenance. These establishments have
    a need to remove grease and dirt from machine and engine parts
    with solvent, and include businesses involved in vehicle
    maintenance operations, such as car dealerships, automotive
    repair shops and trucking firms, as well as small manufacturers,
    such as metal product fabricators and printers. These businesses
    also generate waste materials such as used oil or waste paint
    that generally cannot be discarded as municipal trash or poured
    down a standard drain.
Parts cleaning machines and solvent are used by mechanics in
    industrial plants and automotive technicians in garages to clean
    dirty machine parts. Through use, the solvent becomes
    contaminated with oil and sediment and must be replaced,
    typically every 4 to 12 weeks. This replacement of solvent
    is subject to environmental regulations prohibiting disposal
    with municipal trash or by pouring down the drain. Because the
    management of these wastes is subject to constantly changing
    regulatory requirements, most businesses need specialized
    knowledge to prepare required paperwork, maintain records and
    ensure compliance with environmental laws. While large
    businesses, which generate substantial volumes of industrial and
    hazardous wastes, generally find it more efficient to employ a
    staff of highly trained employees to manage this waste and
    ensure their compliance with the numerous federal, state and
    local regulations that surround the proper handling of these
    materials, small and mid-sized businesses that generate lesser
    quantities of waste often cannot justify such personnel
    investments. Small and mid-sized businesses typically prefer to
    outsource these services to providers that can assist them in
    their disposal of used solvent as well as other wastes,
    including used oil, waste paint, used oil filters, discarded
    fluorescent light tubes and other materials subject to
    regulations designed to protect the environment from pollution.
We believe that the national market for industrial and hazardous
    waste services in which we compete continues to grow. We believe
    demand for our services is driven by stable demand for parts
    cleaning and containerized waste services, supported by
    potential growth in other services that result from new
41
Table of Contents
environmental regulations or new product developments.
    Opportunities to take advantage of trends toward outsourcing
    specialized waste services continue to present themselves as
    businesses choose to use full-service third party vendors in
    order to focus their resources on their core business.
Through our used oil collection services, we compete in the used
    oil collection market. Automotive shops generate used oil as a
    result of performing oil change activities on passenger cars and
    trucks. Industrial plants also generate used oil, often as a
    result of changing lubricants used in heavy machinery.
    Environmental regulations prohibit the disposal of used oil into
    sewers or landfills, so most commercial generators arrange to
    have their used oil picked up periodically by a used oil
    collector. We believe that there are approximately
    1.4 billion gallons of used oil generated in the
    U.S. annually, of which approximately 1.0 billion
    gallons are collected, with the difference being lost due to
    improper management and disposal. Roughly 80% of the
    1.0 billion gallons that is collected is sold as fuel to
    asphalt plants, steel mills, and other energy users and is often
    sold at a discount to prices for other fuels such as natural
    gas. The remaining 20% of the 1.0 billion gallons is
    processed by re-refiners and converted into lubricating oil that
    is typically sold for higher prices than used oil fuels.
In the future, we intend to operate a used oil re-refinery and
    produce and sell lubricating base oil. Approximately
    2.5 billion gallons of lubricating oils are sold in the
    U.S. annually, and lubricating base oil is the constituent
    that makes up the vast majority of this volume. Most lubricating
    base oil is produced at refineries that process crude oil, and
    lubricating base oil is just one of the products of the refining
    process along with gasoline, diesel fuel, jet fuel, asphalt, and
    other hydrocarbon products. Major refining companies such as
    Exxon and Shell produce a large share of the total
    U.S. base oil output, and they use some of this material in
    producing their own branded lubricant products and they also
    sell lubricating base oil to other firms that focus on the
    blending and packaging of lubricants. Historically, lubricating
    base oil has been sold for prices based on the market price of
    the crude oil feedstock plus a premium. Re-refined base oil is
    typically sold at a slight discount to virgin base oil.
The
    Crystal Clean Solution
Through our network of 62 branches, we provide parts cleaning
    and industrial waste removal services to over 41,000 active
    customer locations. During fiscal 2009, we performed more than
    250,000 parts cleaning service calls. Our services allow our
    customers to outsource their handling and disposal of parts
    cleaning solvent and other wastes and related administrative
    responsibilities to us. We believe these services are highly
    attractive to customers, who value features such as assistance
    in preparing waste manifests and drum labels, and
    regularly-scheduled service visits to check inventories and
    remove accumulated waste. Our focus is to meet the service
    requirements of small and mid-sized clients, which we define as
    firms that generally spend less than $50,000 per year on
    industrial and hazardous waste services. Small and mid-sized
    clients have needs that are often highly differentiated from the
    needs of larger accounts. We believe that our company is
    structured to meet these particular needs. Our sales are
    generated primarily from providing parts cleaning and waste
    removal services for our clients, which accounted for
    approximately 94.6% of our sales for fiscal 2009. We also
    generate a minimal amount of sales from the sale of used oil we
    collect from our clients, which accounted for the remaining 5.4%
    of our fiscal 2009 sales.
In the parts cleaning industry, used solvent generated by parts
    cleaning customers is typically classified as a "hazardous
    waste" (a term defined in the regulations of the United
    States Environmental Protection Agency or "EPA"), but
    our company has implemented two different programs whereby our
    customers' used solvent may be excluded from the definition
    of hazardous waste. In our non-hazardous program, we provide our
    customers with an alternative solvent not included in the
    EPA's definition of hazardous waste due to its higher
    flashpoint (the minimum temperature at which vapors from the
    solvent will ignite when tested under specified laboratory
    conditions), and then we recycle that solvent using our
state-of-the-art
distillation column. In our product reuse program, we sell used
    solvent as an ingredient for use in the manufacture of asphalt
    roofing materials. These two programs not only simplify the
    management of used solvent generated by our customers, but also
    reduce the total volume of hazardous waste generated at many of
    our customers' locations. This can allow the client to
    achieve a lower "generator status" with the EPA and
    thereby reduce its overall regulatory burden. For example, a
    customer who was previously a Large Quantity Generator under EPA
    regulations, after
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Table of Contents
switching to either our non-hazardous program or our reuse
    product program for parts cleaning, may become eligible to be
    reclassified as a Conditionally Exempt Small Quantity Generator,
    which could significantly reduce the number of required reports
    and inspections at its facility.
Through our used oil collection service, we collect the used oil
    generated by our customers when they replace used lubricating
    oil in vehicles and machinery. Most customers store the used oil
    that they generate in tanks, which must be emptied regularly to
    mitigate the risk of overflow or termination of their oil change
    activities. As a result, these customers have a greater need for
    timely used oil service than with most of our other programs. We
    have designed our services to deliver regularly-scheduled
    pickups and we also have the capability to respond to
    unscheduled requests on short notice. In the future, we intend
    to operate our own used oil re-refinery, and this will enable us
    to provide our customers with the satisfaction that their used
    oil is re-refined into new lubricants using the approach cited
    as preferred by the U.S. EPA, and will allow them to
    achieve waste minimization objectives more readily than if their
    used oil is burned for energy recovery.
Competitive
    Strengths
Based on revenues, we believe that we are the second largest
    provider of parts cleaning services in the U.S. and a leading
    provider of containerized waste services targeting small and
    mid-sized customers. From our current base of 62 branch
    locations, we implement an organized and disciplined approach to
    increasing our market share, taking advantage of the following
    competitive strengths:
Large and Highly Diverse Customer Base.
Our
    focus on small and mid-sized businesses has enabled us to
    attract a variety of customers engaged in a range of businesses
    spread across the spectrum of the manufacturing, vehicle
    service, and transportation industries. Our customer base
    consists of over 41,000 active customer locations. In fiscal
    2009, our largest single customer represented less than 2% of
    our annual sales, and our largest ten customers represented
    approximately 6.2% of our annual sales. This diverse customer
    base helps insulate us from disruption caused by the possible
    loss of a single large account.
Innovative Services that Reduce Customers' Regulatory
    Burdens.
We have designed our service programs to
    meet the needs of our target customers. In particular, these
    customers desire to minimize their regulatory compliance burdens
    and we have developed innovative methods to help our customers
    achieve this objective. For example, we have created two
    parts-cleaning service programs which each exempt our customers
    from certain hazardous waste regulations and filing requirements:
•
Non-hazardous Program for Parts Cleaning. In our non-hazardous
    program for parts cleaning, we provide our customers with an
    alternative solvent that is not included in the EPA's
    definition of hazardous waste due to its increased flashpoint,
    and we educate each participating customer to prevent harmful
    contaminants from being added to the solvent during use. Because
    of the reduced solvent flammability, as long as the customer
    doesn't add toxic or flammable contaminants during use,
    neither the clean solvent that we supply nor the resulting used
    solvent generated by customers participating in our
    non-hazardous program for parts cleaning is classified as
    hazardous waste by the EPA and as a result can be managed as
    non-hazardous waste. After we collect the used solvent from
    customers participating in our non-hazardous program for parts
    cleaning, we recycle it via distillation for re-delivery to our
    parts cleaning customers, while at the same time minimizing the
    burdensome hazardous waste regulations faced by our customers.
    In order to most efficiently operate our non-hazardous program
    for parts cleaning, we have built a solvent recycling system at
    our Indianapolis hub capable of recycling up to 6 million
    gallons per year of used solvent generated by customers
    participating in our non-hazardous program.
•
Product Reuse Program for Parts Cleaning. Rather than managing
    used solvent as a waste, we have developed a program that uses
    the solvent as an ingredient in the manufacture of asphalt
    roofing materials. Used solvent generated by customers
    participating in our product reuse program for parts cleaning is
    sold as a direct substitute for virgin solvent that is otherwise
    used in the asphalt manufacturing process. Because the used
    solvent is destined for reuse, it is not deemed a waste, and
    therefore it is not subject to hazardous waste regulations. To
    enhance the marketing of these programs, in the past
    20 years we and our predecessor Heritage Environmental
    Services have voluntarily obtained concurrence letters from more
    than 30 state environmental agencies to validate this
    approach.
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Excellent Customer Service.
Since our
    founding, we have instilled a standardized, sales-oriented
    approach to our customers across our branch network. Our branch
    personnel are focused on local sales and service delivery, and a
    significant portion of their compensation is linked to sales
    growth and new business development. In order to achieve this
    sales growth, our personnel understand that they must retain
    existing business, which is best achieved by providing a very
    high level of customer service. Our high quality service leads
    to high customer satisfaction, customer retention, cross-selling
    opportunities, and referrals to new prospects. During fiscal
    2009, approximately 88% of our sales were generated from
    customers that we also served during fiscal 2008.
Experienced Management Team.
Our management
    team has substantial experience in the industry and possesses
    particular expertise in the small to mid-sized customer segment.
    The management team also has industry-leading experience in the
    used oil re-refining industry. Our senior managers have on
    average more than 20 years of industry experience and our
    middle managers have on average more than 10 years of
    experience. Many of our managers held key positions with
    Safety-Kleen between 1986 and 1998 during which time
    Safety-Kleen grew from $255 million to over
    $1.0 billion in annual revenue.
Cost-Efficient Branch Rollout Model.
Our
    branch model allows us to consolidate operational and
    administrative functions not critical to sales and service at
    either a regional hub or our headquarters. This model has been
    the foundation for our new branch rollout during the past ten
    years, as we have expanded from 14 to 62 branches, and we expect
    to extend this model to new locations. Furthermore, as we grow
    within each branch, we improve our route density, which is an
    important contribution to profitability in our business.
Growth
    Strategies
We intend to grow by providing environmental solutions that meet
    the needs of our customers. We have several different strategies
    to accomplish this and they include:
Same-Branch Sales Growth.
We seek to generate
year-over-year
growth in existing markets by obtaining new customers and by
    cross-selling multiple services to existing customers. Our sales
    and marketing strategy includes providing significant incentives
    to our field sales and service personnel to find and secure new
    business. These incentives include commission compensation for
    individuals and managers, as well as prize awards and contests
    at the individual and team level. Our company culture is
    designed to consistently emphasize the importance of sales and
    service excellence, and to build and maintain enthusiasm that
    supports continued sales success. Additionally, we intend to
    drive profitability by leveraging fixed costs against
    incremental sales growth at our existing branches.
Expanded Service Offerings.
All of our
    branches currently offer parts cleaning and containerized waste
    management services. Other services that we provide, including
    used oil collection services and vacuum truck services, are
    currently offered in less than half of our branch locations. As
    part of our effort to enter the used oil re-refining industry,
    we intend to accelerate the number of branches providing used
    oil collection services. As our business grows and we achieve
    sufficient market penetration, we expand the number of services
    offered at our branches. We also have other new business
    programs in various stages of development and these have the
    potential to be offered through our branch locations in the
    future.
Geographic Expansion.
We currently operate
    from 62 branch locations that offer our parts cleaning and
    containerized waste management services to customers in
    39 states and the District of Columbia. We have
    historically been able to install new branches at a relatively
    low cost. Within the contiguous United States, we believe that
    there are opportunities to open more branches and provide
    convenient local service to additional markets. In the future,
    we believe that there will be opportunities to offer our
    services in international markets as well.
Selectively Pursue Acquisition
    Opportunities.
Our management team has
    significant experience in identifying and integrating
    acquisition targets. During the past nine years, we have
    successfully acquired the assets of several small competitors.
    Given the number of small competitors in our business, there are
    generally multiple acquisition opportunities available to us at
    any given time. Our growth plan is not dependent on
    acquisitions, but we will continue to pursue complementary
    acquisitions that leverage our established infrastructure.
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Development
    of Used Oil Re-refinery
We have recently announced plans to develop a used oil
    re-refinery to convert used oil into re-refined lubricating base
    oil. We collect used oil from our customers as part of our core
    service offerings, and we typically sell the used oil we collect
    today as a fuel. Our development of a used oil re-refinery will
    enable us to increase the resale value of the used oil we
    collect, which we believe will improve our margins and provide
    us with a significant competitive advantage over most other used
    oil collectors.
We believe that the development of a used oil re-refinery fits
    into our strategic growth plans for the following reasons:
•
We expect that the used oil we will collect from our customers
    will supply a significant portion of the used oil to be
    processed at the re-refinery because this service is needed by
    almost all of our current and target customers. Our network of
    62 branches provides us with an opportunity to efficiently
    collect used oil from a broad geographic area for re-refining.
•
We believe that a strong demand for re-refining capabilities
    exists since we estimate that only 20% of the one billion
    gallons of used oil collected in North America is routed to
    re-refining due to a lack of used oil re-refining capacity.
•
Re-refining is a preferred approach to used oil management based
    on a variety of environmental considerations, including resource
    recovery and reuse, energy efficiency and pollution prevention.
    Re-refining of used oil recovers more of the economic value of
    the resource than alternative methods such as burning for energy
    recovery.
•
We have extensive experience with the design, construction and
    operation of used oil re-refineries as several members of our
    management were significant contributors to the development of
    approximately 75% of the used oil re-refining capacity in North
    America while employed at Safety-Kleen, Inc.
The re-refining process has been used in the United States for
    decades to remove impurities from used oil and create
    lubricating base oil that can be re-used in place of virgin
    lubricating oil. The process generally consists of two steps:
    first, vacuum distillation to separate the base lubricating oil,
    followed by hydrotreating to remove impurities. We estimate that
    less than 10% of the base lubricating oil supply in the United
    States is currently supplied by re-refineries.
We believe the three key components to a re-refining business
    are used oil supply, re-refining technology and lubricating oil
    product sales. Our goal is to collect enough used oil feedstock
    to eventually ensure self-sufficient plant operation, although
    used oil feedstock is also available for purchase from third
    party suppliers. We intend to leverage our used oil collection
    network to generate this supply. Production of marketable
    lubricating oil from feedstock requires complex processes,
    robust screening and testing programs, and advanced re-refining
    technology. We believe a management team with extensive
    experience with these processes and technologies is necessary to
    design, build and operate a successful plant. We expect that our
    re-refinery will produce high quality lubricating base oils.
    Based on our management team's prior experience with the
    design, construction and operation of used oil re-refineries, we
    have entered into preliminary discussions with several potential
    purchasers of re-refined lubricating base oil.
We are designing our re-refinery to have an input capacity of
    approximately 50 million gallons of used oil feedstock per
    year and expect to produce about 30 million gallons of
    lubricating base oil per year. We plan to construct our
    re-refinery in Indiana. We estimate that the construction of the
    re-refinery will take approximately two years, allowing us to
    begin operations at partial capacity in 2012, and have a total
    capital cost of approximately $40 million. We also
    anticipate that when the re-refinery starts operations, we will
    feed the re-refinery with a combination of used oil collected
    from our customers and used oil that we purchase from third
    parties. In 2009, we collected 4.3 million gallons of used
    oil from our customers. During the construction period, we plan
    to roll out additional used oil collection routes to increase
    the volume of used oil we collect, and we estimate that during
    fiscal 2010 and 2011 we will incur roughly $1 million and
    $1.5 million of net expense, respectively, related to this
    roll out. We also expect that the operations of the re-refinery
    will increase our working capital requirements by approximately
    $5 million to $10 million.
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The expected revenue and profitability of this project will
    depend on a large number of factors, some of which are beyond
    our control, such as crude oil and lubricating oil prices and
    the costs of operations, but based on market conditions and
    crude oil prices prevailing in March 2010, we estimate that when
    the re-refinery is operating at full capacity, it will generate
    approximately $90 million of annual revenue and have
    operating margins of approximately 20%.
Services
All of our services are designed to cater to small to mid-sized
    clients whom we define as those customers who spend less than
    $50,000 per year on industrial and hazardous waste services. We
    have adopted innovative approaches to minimize the regulatory
    burdens associated with hazardous waste disposal for our
    customers and have made "ease of use" of our services
    and products a priority.
Across our full range of services, we focus on reducing our
    customers' burdens associated with their generation of
hard-to-handle
wastes. Many of these wastes are subject to extensive and
    complex regulations, and mismanagement can result in citations,
    penalties, and substantial direct costs, both to the service
    provider and the generator. Many customers are familiar with
    "Superfund liability" and the possibility that they
    will be required to pay for future cleanups if their waste is
    mismanaged in a way that leads to environmental damage. Our
    services allow customers to focus more on their core business
    and devote fewer resources to industrial and hazardous waste
    management.
We offer an integrated suite of industrial and hazardous waste
    services including parts cleaning, containerized waste
    management, used oil collection and vacuum truck services. A
    significant majority of our customers use our parts cleaning
and/or
waste
    management services. Parts cleaning and containerized waste
    management represented substantially more than half of our sales
    in fiscal 2009 and are offered at all our branches. Because our
    efforts to expand our used oil collection and vacuum truck
    services have started more recently, these services are
    currently offered at less than half of our branches and we
    generate less sales from these services.
In our parts cleaning services, we provide customers with parts
    cleaning equipment and chemicals to remove oil and grease and
    other contaminants from engine parts and machine parts requiring
    cleaning. Most commonly, we provide a parts cleaning machine
    that contains a petroleum-based solvent in a reservoir. The
    customer activates a pump that circulates the solvent through a
    nozzle where it is used to clean parts. The solvent can be
    reused for a period of time, after which it becomes too dirty
    and needs replacement. We typically visit our customers every 4
    to 12 weeks to remove the used solvent and replace it with
    clean solvent while at the same time also cleaning and checking
    the customers' parts cleaning equipment to ensure that it
    is functioning properly and assisting our customers with
    relevant regulatory paperwork. We believe that the majority of
    parts cleaning services in the U.S. are structured as
    hazardous waste services, meaning that when the solvent has been
    used, it is managed as a regulated hazardous waste subject to
    numerous laws and regulatory filings. We reduce this burden for
    our customers by offering two alternative parts cleaning
    programs (our non-hazardous and reuse programs for parts
    cleaning) that do not subject the customer to the same hazardous
    waste regulations. These low-burden approaches help our
    customers achieve regulatory compliance while minimizing the
    paperwork and bureaucracy associated with hazardous waste
    management — ultimately saving them time and money.
    For example, these programs currently enable many of our
    customers to reduce their generation of hazardous wastes below
    the 220 pounds per month maximum threshold for retaining the EPA
    generator status of Conditionally Exempt Small Quantity
    Generator ("CESQG"). For our customers, maintaining a
    CESQG status provides significant savings associated with not
    having to maintain an EPA identification number; prepare, track
    and file transportation manifests; or produce other reports
    related to the use, storage and disposal of used solvents. We
    offer more than a dozen different models of parts cleaning
    machines from which our customers may choose the machine that
    best fits their specific parts cleaning needs. While the
    majority of our customers are provided machines directly from us
    and in some cases are sold a machine, we also offer parts
    cleaning service for customers who purchase their parts cleaning
    machines from other sources. We offer a variety of petroleum
    solvents and water-based (aqueous) chemicals for use in parts
    cleaning machines. We also have a wide range of service
    schedules from weekly service visits to triannual service visits.
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In our containerized waste services, we collect drums, pails,
    boxes, and other containers of hazardous and non-hazardous waste
    materials from our customers. Typical wastes from vehicle
    maintenance include used antifreeze, used oil filters, waste
    paint, and used absorbent material. Typical wastes from
    manufacturing operations include waste paint and solvents, oily
    water wastes, used absorbents, and discarded fluorescent
    lighting tubes. We endeavor to find the lowest burden regulatory
    approach for managing each of these materials for our clients.
    In some cases, we can develop lower burden alternatives based on
    recycling materials for component recovery (oil filters) or by
    following the less onerous universal waste regulations
    (fluorescent tubes and waste paint). In other cases, the
    hazardous waste regulations may apply, in which case we assist
    customers with the complete hazardous waste disposal process,
    including analysis to characterize their waste, preparation of
    manifests and drum labels, and selection of the appropriate
    destination facility. As part of our full-service approach, we
    visit our customers periodically to check their inventory of
    used or waste materials, and remove full containers as
    appropriate. Because there are statutory limits on the amount of
    time that a customer can store these waste materials, these
    service visits are valuable to help the customer stay in
    compliance. To the extent that we can coordinate these service
    visits together with a regularly scheduled parts cleaning
    service, we are able to perform both tasks during the same
    visit, with the same truck and service employee.
In selected branch locations (18 as of March 27, 2010), we
    provide bulk used oil collection services. Although we manage
    some used oil through our containerized waste program, most
    customers who generate used oil (typically from vehicle engine
    oil changes) produce large quantities that are stored in bulk
    tanks, and these volumes are handled more efficiently via bulk
    tank trucks such as those that we utilize. We test the used oil
    to verify that there are no unwanted contaminants and pump the
    customer's material into our tank truck for proper
    management. Generally, the used oil that we collect is resold as
    an industrial fuel or as feedstock for a used oil recycling
    process. As with our other services, we offer to visit the
    customer on a regularly scheduled basis to arrange for the
    removal of their accumulated oil. This alleviates the
    customer's burden of periodically checking to see if they
    require service.
In selected branch locations (26 as of March 27, 2010), we
    provide vacuum truck services for the removal of mixtures of
    oil, water and sediment from wastewater pretreatment devices.
    Many shops and plants have floor drain systems that lead to
    pits, sumps, or separators that are designed to separate and
    retain oil and dirt, but allow clear water to flow out to a
    municipal sewer. Periodically, these drains and collection
    points accumulate excess oil or sediment that needs to be
    removed. Because some of the material is very thick, a
    specialized vacuum truck is utilized for efficient pumping. Our
    vacuum truck service includes the removal of the oil, water, and
    sediment so that the customer's equipment operates as
    intended. These services are also scheduled on a regular basis.
Customers
As of March 27, 2010, we had over 41,000 active customer
    locations. Our business focuses on customers primarily in two
    industries. Our vehicle maintenance customers are primarily
    businesses that repair and maintain cars and trucks. Our
    manufacturing customers are businesses that produce goods for
    resale.
Within the vehicle maintenance group, customers include: car
    dealerships, automotive repair shops, car rental firms, quick
    lube operators, truck fleet operators, and equipment rental
    businesses. Many of the customers are familiar with and already
    use a parts cleaning service. In the case of vehicle maintenance
    customers, contact with the key decision-maker regarding
    selection of a parts cleaning service provider can be quite
    informal and a uniformed service representative may succeed in
    making an impromptu sales presentation without an advance
    appointment.
Within the manufacturing group, customers include small and
    mid-sized metalworking firms, printers, machine shops, and
    electrical shops. Often, these customers have a maintenance
    department that is responsible for the maintenance and repair of
    their production equipment and are therefore target customers
    for parts cleaning and other environmental services. In contrast
    to automotive customers, the typical manufacturing customer is
    relatively less familiar with parts cleaning, and the individual
    responsible for selecting a parts cleaning service provider is
    more difficult to identify and contact. Often, selling to these
    customers requires a more persistent sales approach from one of
    our more senior sales personnel with an advance appointment and
    a structured sales presentation.
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During fiscal 2009, 88.4% of our sales were generated from
    customers that we also served during fiscal 2008. In addition,
    our largest client in fiscal 2009 represented less than 2% of
    sales, which reflects our diverse customer base. We generally do
    business with customers using our standard contract form, which
    allows for price increases and automatic renewal for successive
    one-year terms unless notice of termination is provided in
    specified time frames. Our standard agreement also requires the
    customer to properly disclose to us the materials that they
    generate and includes other terms that are customary to the
    environmental services industry.
Sales and
    Marketing
Our mission and culture emphasize sales and service excellence
    and entrepreneurship. Our field sales employees are each
    assigned their own territory, with direct individual
    responsibility for serving customers on their route and growing
    their business in their territory.
Our sales philosophy starts with the principle of "sales
    through service." We require and encourage our
    sales & service representatives, or SSRs, to grow
    their business on their route by delivering excellent service to
    existing customers. This helps our SSRs retain business, sell
    more services to satisfied customers, and obtain valued
    referrals to potential new customers.
In addition to the efforts of our SSRs, we employ a branch
    manager at each of our branches, and we also employ branch sales
    managers, all of whom have dedicated sales territories and
    responsibilities.
Operations
We operate a network of 62 local branches. Most of our locations
    include an area to store drums, an inventory of parts cleaners
    and other supplies, an area to park trucks and trailers, and a
    small office space while others may only include an area to park
    trucks.
We maintain operating hubs in Indianapolis, Indiana; Shreveport,
    Louisiana; Philadelphia, Pennsylvania; and Atlanta, Georgia.
    These operating hubs are warehouse operations with the
    capability to receive and unload multiple trailers. Depending on
    whether the used solvent came from our non-hazardous program or
    our reuse program, the used solvent is then stored for future
    sale, shipped in bulk for reuse, or stored for future recycling
    at our solvent recycling system located at our Indianapolis hub.
    The drums of hazardous and non-hazardous waste are organized
    based on the destination facility. These drums are staged and
    loaded back into trailers for reshipment to recyclers,
    incinerators, landfills, and
waste-to-energy
facilities.
While we ship collected materials to third parties, we also
    recycle a portion of our used parts cleaning solvent with our
    non-hazardous solvent recycling system at our Indianapolis hub.
    This system, which was completed in late fiscal 2007, allows us
    to recycle used solvent generated by customers participating in
    our non-hazardous program for parts cleaning. To participate in
    this program, our customers must provide certification that no
    hazardous wastes have been added to the parts cleaning solvent.
    After being recycled to remove oil, water, and other impurities,
    the resulting solvent is suitable to be re-used by our customers
    for parts cleaning. This enables us to reduce the feedstock
    inventory available for recycling as well as reduce the amount
    of virgin product purchases. Our non-hazardous solvent recycling
    system is designed to process up to 6 million gallons per
    year, which provides significant capacity in excess of our
    current requirements.
Suppliers
    and Recycling/Disposal Facilities
We purchase goods such as parts cleaning machines, solvent
    (petroleum naptha mineral spirits), cleaning chemicals and
    absorbent from a limited group of suppliers. We also have
    arrangements with various firms that can recycle, burn, or
    dispose of the waste materials we collect from customers. These
    suppliers and disposal facilities are important to our business
    and we have identified backup suppliers in the event that our
    current suppliers and disposal facilities cannot satisfy our
    supply or disposal needs. Heritage Environmental Services, an
    affiliate of Heritage, which beneficially owns
    3,389,958 shares of our common stock as of May 17,
    2010, operates one of the largest privately-owned hazardous
    waste treatment businesses in the U.S. and we have used
    their hazardous waste services in the past and plan to continue
    some level of use in the future.
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Competition
The markets for parts cleaning, containerized waste management,
    used oil collection and vacuum truck services in which we
    participate are intensely competitive. While numerous small
    companies provide these services, our largest competitor,
    Safety-Kleen, has held substantial market share in the parts
    cleaning industry for the last four decades and has developed
    significant market share in used oil re-refining, used oil
    services and containerized waste management. Safety-Kleen
    operates throughout the continental U.S., Puerto Rico and
    Canada through a network of approximately 166 branches. We
    believe that Safety-Kleen and some of our other competitors have
    substantially greater financial and other resources and greater
    name recognition than us. We estimate that in the parts cleaning
    business, Safety-Kleen is significantly larger than us, and that
    we are substantially larger than the next largest competitor.
    Other competitors tend to be smaller regional firms or parts
    cleaning companies operating in a single city only. Although
    many of our small competitors lack the resources to offer
    clients a full menu of services, they generally offer parts
    cleaning services ancillary to a primary line of business such
    as used oil collection, in order to present a more complete menu
    to customers.
The markets for containerized waste, used oil collection and
    vacuum truck services are highly fragmented and comprised of a
    variety of large and small competitors. In addition, companies
    involved in the waste management industry, including waste
    hauling, separation, recovery and recycling, may have the
    expertise, access to customers and financial resources that
    would encourage them to develop and market services and products
    competitive with those offered by us. We also face competition
    from alternative services that provide similar benefits to our
    customers as those provided by us.
Price, service quality and timeliness, breadth of service
    offering, reputation, financial strength, and compliance history
    are the principal competitive factors in the markets in which we
    compete. While we feel that most market competitors compete
    primarily on price, we believe that our competitive strength
    comes from our focus on customer service and our broad menu of
    services. Although we employ a pricing structure that allows
    only limited discounts, we are able to deliver a sound value
    proposition through the reduced regulatory burden achieved
    through our programs. We could lose a significant number of
    customers if Safety-Kleen, or other competitors, materially
    lower their prices, improve service quality, develop other more
    competitive product and service offerings or offer a
    non-hazardous or reuse program for parts cleaning more appealing
    to customers than ours.
Information
    Technology
We believe that automation and technology can enhance customer
    convenience, lower labor costs, improve cash management and
    increase overall profitability. We are constantly evaluating
    opportunities to develop technologies that can improve our sales
    and service processes. Our commitment to the application of
    technology has resulted in the creation of a custom web-based
    application for scheduling, tracking and management of customer
    services, billing, and collections. This application utilizes an
    Oracle
tm
database along with Microsoft
tm
web servers using standard development tools. This system has
    been used as an integral part of our business operations for
    more than six years. We believe that our standardized processes
    and controls enhance our ability to successfully add new
    branches and expand our operations into new markets. Handheld
    devices are used by our employees in the field to access
    customer service information through a mobile web interface.
    Statistics are gathered and reported on a daily and weekly basis
    through sales personnel and document processing. This provides
    timely, automated data measurement and compensation information
    for sales activities including incentives and contests that
    rapidly reward performance.
Employees
As of March 27, 2010, we employed 474 full time and 45 part
    time employees. None of our employees are represented by a labor
    union or covered by a collective bargaining agreement. We
    believe that our employee relations are good.
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Regulation
Substantially all of our services and products involve the sale,
    transportation, storage, recycling
and/or
disposal of industrial and hazardous waste or hazardous
    materials, including solvents used in parts cleaners,
    containerized waste including used oil, waste paint, inks,
    adhesives, and used oil filters; and bulk waste including used
    oil and oily water. Our services are highly regulated by various
    governmental agencies at the federal, state, and local levels,
    including the Environmental Protection Agency (EPA); the
    Department of Transportation (DOT); the Department of Labor
    Occupation, Safety and Health Administration (OSHA); and the
    Equal Employment Opportunity Commission. The most significant
    federal environmental laws affecting us are the Resource
    Conservation and Recovery Act (RCRA), the Comprehensive
    Environmental Response Compensation and Liability Act of 1980,
    as amended, (CERCLA), the Clean Air Act (CAA), the Clean Water
    Act (CWA), and the Toxic Substances Control Act (TSCA), and the
    regulations promulgated thereunder. Our services and products
    require us to comply with these laws and regulations and to
    obtain federal, state, and local environmental permits or
    approvals for some of our operations. Some of these permits must
    be renewed periodically and governmental authorities have the
    ability to revoke, deny or modify these permits. Zoning, land
    use and siting restrictions also apply to our facilities.
    Regulations also govern matters such as the disposal of residual
    chemical wastes, operating procedures, storm water and
    wastewater discharges, fire protection, worker and community
right-to-know
and emergency response plans. Air and water pollution
    regulations govern certain operations at our facilities. OSHA
    safety standards are applicable to all of our operations.
    Governmental regulations apply to the vehicles used by us to
    transport the chemicals distribute to customers and the waste
    and other residuals collected from customers. These vehicle
    requirements include the licensing requirements for the vehicles
    and the drivers, vehicle safety requirements, vehicle weight
    limitations, shipping papers, and vehicle placarding
    requirements. Governmental authorities have the power to enforce
    compliance and violators are subject to civil and criminal
    penalties. Private individuals may also have the right to sue to
    enforce compliance with certain of the governmental requirements.
We are subject to federal and state regulations governing
    hazardous and solid wastes. RCRA is the principal federal
    statute governing hazardous waste generation, treatment,
    transportation, storage and disposal. Under RCRA, the EPA has
    established comprehensive
"cradle-to-grave"
regulations for the management of a wide range of materials
    identified as hazardous or solid waste. The regulations impose
    technical and operating requirements that must be met by
    facilities used to store, treat, and dispose of these wastes.
Federal hazardous and solid waste regulations impose
    requirements which must be met by facilities used to store,
    treat and dispose of these wastes. Our operations are governed
    by
10-day
transfer requirements and do not typically require a hazardous
    waste facility permit. Under RCRA, states are delegated to
    implement the regulatory programs through state regulations,
    which can be more stringent than those of the federal EPA. We
    have obtained a facility waste permit for our Baltimore,
    Maryland branch and are currently are pursuing waste permits in
    both Connecticut and New Hampshire because these states have
    more stringent programs and do not allow the typical
    non-permitted
10-day
transfer option. We operate 60
10-day
transfer operations in the U.S.
CERCLA regulates cleanup of inactive hazardous waste sites and
    imposes liability for the cleanup on "responsible
    parties." CERCLA further provides for immediate response
    and removal actions coordinated by EPA to releases of hazardous
    substances into the environment, and authorizes the government
    to respond to the release or threatened release of hazardous
    substances or to order responsible persons to perform any
    necessary cleanup. CERCLA imposes strict liability on current or
    former owners and operators of facilities that release hazardous
    substances into the environment, as well as on businesses that
    generate those substances or transport them to the facilities.
    Responsible parties may be liable for substantial investigation
    and cleanup costs even if they operated their businesses
    properly and complied with applicable federal and state laws and
    regulations. Liability under CERCLA may be joint and several.
    Certain of our customers' and third-party contractors'
    facilities have been in operation for many years and, over time,
    the operators of these facilities may have generated, used,
    handled, and disposed of hazardous and other regulated wastes.
    Environmental liabilities could therefore exist under CERCLA,
    including cleanup obligations at these facilities or off-site
    locations where materials from our operations were disposed of.
Proceedings are currently pending involving a site where we were
    notified by the EPA that we are a potentially responsible party
    ("PRP"). We are participating in discussions with the
    parties and the government
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at this site and a draft settlement agreement is pending. Our
    general liability insurance provider is currently defending this
    claim on our behalf. From time to time, the EPA requests
    information from us to ascertain if we may be a PRP at other
    sites.
In addition to regulations under RCRA and CERCLA, the EPA has
    adopted regulations under the Clean Air Act and the Clean Water
    Act. The Clean Air Act regulates emissions of pollutants into
    the air and requires that permits be obtained for certain
    sources of air emissions, including parts cleaning units.
    Regulations under the Clean Water Act govern the discharge of
    pollutants into surface waters and sewers and require discharge
    permits and sampling and monitoring requirements.
    "Pretreatment" regulations establish pretreatment
    standards for introduction of pollutants into publicly owned
    treatment works.
Our transportation fleet, truck drivers, and transportation of
    hazardous materials are also regulated by the
    U.S. Department of Transportation, as well as by the
    regulatory agencies of each state in which we operate or through
    which our vehicles pass. Health and safety standards under the
    Occupational Safety and Health Act are also applicable to our
    operations.
A number of states have regulatory programs governing the
    operations and permitting of hazardous and solid waste
    facilities. In addition, some states classify as hazardous some
    wastes that are not regulated under RCRA. Accordingly, we must
    comply with the state requirements for handling state regulated
    wastes. Similarly, our operations are regulated pursuant to
    state statutes, including those addressing clean water and clean
    air.
In August 1997, the South Coast Air Quality Management District
    in California (the "SCAQMD"), enacted Rule 1171,
    which prohibits the use of types of solvents that we currently
    sell for parts cleaning operations. In the areas of California
    affected by this or similar regulations (including Los Angeles,
    San Francisco and Sacramento), aqueous parts cleaning is
    the primary substitute. Although other states have not passed
    regulations similar to Rule 1171, we cannot predict if or
    when other state
and/or
local
    governments will promulgate similar regulations which may
    restrict or prevent the use of solvent for parts cleaning. We
    currently have one branch located in Los Angeles, California.
More specifically to our parts cleaning services, federal and
    state laws and regulations dictate and restrict to varying
    degrees what types of cleaning solvents may be used, how a
    solvent may be stored, and the manner in which contaminated or
    used solvents may be handled, transported, disposed of, or
    recycled. These legal and regulatory mandates have been
    instrumental in shaping the parts cleaning industry. Any changes
    to, relaxation of, or repeal of federal or state laws and
    regulations affecting the parts cleaning industry may
    significantly affect the demand for our products as well as our
    competitive position in the market.
Federal and state regulations have restricted the types of
    solvents that may be used in vehicle maintenance and industrial
    parts cleaning machines and used parts cleaning solvent is often
    classified as hazardous waste under the regulations. We have
    developed methods of managing solvent as non-hazardous so as to
    significantly reduce the regulatory burden on us and on our
    customers. In our product reuse program for parts cleaning, we
    have developed a use for used solvent as an ingredient in
    manufactured asphalt roofing materials. Because the solvent is
    used as a direct substitute for virgin solvent and is destined
    for reuse as an ingredient in the manufacturing process, it is
    not subject to hazardous waste regulations. In the past fifteen
    years, we and our predecessor Heritage Environmental Services
    have voluntarily obtained concurrence letters from more than
    30 state environmental agencies to validate this approach.
In our non-hazardous program for parts cleaning, we provide
    customers with solvents that do not exhibit the ignitability
    characteristic for liquid hazardous wastes as defined under RCRA
    and we work with our customers to reduce the likelihood that
    toxic or flammable materials are added to the solvent during
    use. When used in accordance with its intended purpose and
    instructions, this used solvent is not subject to regulation as
    a "hazardous waste" and we are able to manage the used
    solvent as RCRA non-hazardous.
The EPA has also promulgated regulations that govern the
    management of used oils. Although used oil is not classified as
    a hazardous waste under federal law, certain states do regulate
    used oil as state-regulated wastes. Our used oil collection
    services require compliance with both federal and state
    regulations. As with our parts cleaning services, we make use of
    various programs to reduce the administrative burden associated
    with our customers' compliance with hazardous regulations
    for their used oils. EPA has recently proposed regulations
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governing the burning of certain materials not previously
    regulated under combustion rules, including non-specification
    used oil. We do not anticipate any negative impacts from this
    pending court ordered regulation.
The used oil re-refinery we plan to construct in Indiana will
    require construction permits, air permits and storm water
    management permits. Some of these permits are required prior to
    construction of the re-refinery and others are required for the
    re-refinery's operation.
Facilities
Our headquarters is based in a 23,100 square foot leased
    facility in Elgin, Illinois. We have 4 hubs and 62 branches that
    vary in size. Depending on the maturity of our branches, our
    branch facilities range from small locations that only provide
    space to park a few vehicles to larger locations that provide
    office space and warehouse storage as well as additional
    parking. Three of our four hubs and all of our branch locations
    are leased with terms ranging from
month-to-month
up to 5 years, and in some cases with options to extend the
    lease term for up to 15 years. In fiscal 2009, we completed
    the purchase of the industrial real estate and equipment that we
    had been occupying as a tenant in Indianapolis, Indiana which is
    the location of our largest hub and the site of our solvent
    recycling tower.
The following map sets forth the states in which we provide
    services:
Legal
    Proceedings
We are not currently party to any legal proceedings that we
    expect, either individually or in the aggregate, to have a
    material adverse effect on our business or financial condition.
    From time to time, we are involved in lawsuits that are brought
    against us in the normal course of business.
U.S.
    Environmental Protection Agency vs. Heritage-Crystal Clean, LLC
    et al
On December 7, 2006, Heritage-Crystal Clean was notified by
    the EPA that we were named as a potentially responsible party in
    the Hassan Barrel site CERCLA cleanup conducted by the EPA in
    Fort Wayne, Indiana. We were one of at approximately
    65 companies that sent empty containers to Hassan Barrel
    for reconditioning or scrapping. Hassan Barrel subsequently
    abandoned their operation and left thousands of containers of
    drum reconditioning waste at their site. U.S. EPA performed
    a Superfund Removal Action to segregate and remove waste
    materials. EPA then pursued legal action against parties that
    paid Hassan to recondition drums. EPA pursued cost recovery for
    their activities and directed the potentially responsible
    parties to do a subsurface environmental study and subsequent
    soil removal. The Company and other responsible parties
    negotiated a settlement agreement with the EPA to implement a
    work plan to restore the site. The initial study and soil
    removal has been completed and EPA is reviewing results to
    determine if further action is required. We believe that we have
    insurance coverage for our exposure in this matter, including
    our legal costs, and our expenses to date have been paid for by
    our insurance carrier.
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MANAGEMENT
Executive
    Officers and Directors
The following persons are our directors and executive officers
    as of the date of this prospectus:
Name
Age
Position
Joseph Chalhoub
64
President, Chief Executive Officer and Director
John Lucks
56
Vice President of Sales and Marketing
Gregory Ray
49
Chief Financial Officer, Vice President, Business Management and
    Secretary
Tom Hillstrom
50
Vice President of Operations
Fred Fehsenfeld, Jr.
59
Director
Donald Brinckman
79
Director
Bruce Bruckmann
56
Director
Carmine Falcone
63
Director
Charles E. Schalliol
62
Director
Robert W. Willmschen, Jr.
62
Director
In addition, the following are key employees as of the date of
    this prospectus:
Name
Age
Position
Mike DeAngelis
64
Vice President of Sales & Service Division 1
Glenn Jones
60
Vice President of Sales & Service Division 2
Joseph
    Chalhoub
President, Chief Executive Officer and Director
Mr. Chalhoub, founder of Heritage-Crystal Clean, LLC, has
    served as our President, Chief Executive Officer and director
    since the formation of the Company in 1999. He started his
    career with Shell Canada as a process engineer, and he then
    worked for several years at SNC, an engineering firm. In 1977 he
    founded Breslube Enterprises and built this into the largest
    used oil re-refiner in North America before selling a
    controlling interest to Safety-Kleen in 1987. Mr. Chalhoub
    then served as an executive of Safety-Kleen from 1987 to 1998
    and he was President of Safety-Kleen from 1997 to 1998.
    Mr. Chalhoub holds a Chemical Engineering degree with high
    distinction from École Polytechnique, Montréal. The
    Board has concluded that Mr. Chalhoub should be a director
    for the Company because he is President and Chief Executive
    Officer. In addition, his significant stock ownership in our
    Company aligns his interests with those of other stockholders.
    We and the Board benefit from his prior experience and knowledge
    gained as a senior executive of both our Company and at
    Safety-Kleen.
John
    Lucks
Vice President of Sales and Marketing
Mr. Lucks has served as our Vice President of Sales and
    Marketing since May 6, 2010 and prior to that as our Vice
    President of Sales since 2000. From 1988 to 1997, Mr. Lucks
    served as the Vice President of Industrial Marketing and
    Business Management of Safety-Kleen, where he was in charge of
    and oversaw a $300 million revenue business unit.
    Mr. Lucks also led the development of several lines of
    business, in particular the industrial parts cleaning and drum
    waste business which became the largest segment of Safety-Kleen.
    Mr. Lucks has over 30 of years experience in the industrial
    and hazardous waste services industry.
Gregory
    Ray
Chief Financial Officer, Vice President, Business Management and
    Secretary
Mr. Ray has served as our Vice President, Business
    Management since 1999. In addition, Mr. Ray has served as
    our Secretary since 2004, and as our Chief Financial Officer
    since June 2007. From 1998 to 1999, Mr. Ray served as the
    Vice President, Business Management of Safety-Kleen, where he
    was in charge of and oversaw a $700 million revenue
    business unit. While in that position, Mr. Ray was
    responsible for managing and expanding the used oil collection
    service and establishing the first nationwide used oil program.
    From
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1983 to 1993, Mr. Ray helped establish the used oil
    recycling business of Evergreen Oil. Mr. Ray has over
    20 years of experience in the industrial and hazardous
    waste services industry.
Tom
    Hillstrom
Vice President of Operations
Mr. Hillstrom has served in various capacities since
    joining Heritage-Crystal Clean, LLC in 2002. He is currently our
    Vice President of Operations. From 1983 to 2000,
    Mr. Hillstrom served in various functions at Safety-Kleen.
    He was the Facility Manager for the East Chicago oil re-refinery
    during its
start-up
and
    first years of operation, and from 1996 to 1998, he was Director
    of Planning and Evaluation, where he was responsible for
    strategic planning and acquisitions. Mr. Hillstrom holds a
    chemical engineering degree from University of Notre Dame, South
    Bend, Indiana.
Mike
    DeAngelis
Vice President of Sales & Service
    Division 1
Mr. DeAngelis has served as our Vice President of
    Sales & Service Division 1 since 1999. From 1998
    to 1999, Mr. DeAngelis served as the Divisional Vice
    President (Central Division) of Safety-Kleen, where he was in
    charge of and oversaw a $400 million sales division.
    Mr. DeAngelis has over 35 years of experience in the
    industrial and hazardous waste services industry.
Glenn
    Jones
Vice President of Sales & Service
    Division 2
Mr. Jones has served as our Vice President of
    Sales & Service Division 2 since 2001. From 1994
    to 2000, Mr. Jones served as the Divisional Vice President
    (Western Division) of Safety-Kleen, where he was in charge of
    and oversaw a $300 million sales division. Mr. Jones
    has over 25 years of experience in the industrial and
    hazardous waste services industry.
Fred
    Fehsenfeld, Jr.
Director
Mr. Fehsenfeld has served as a director on our Board since
    1999. Mr. Fehsenfeld is the general partner and has served
    as Chairman of the Board of Directors of Calumet Specialty
    Products Partners, L.P. ("Calumet Partners") since
    2006. Mr. Fehsenfeld has served as the Vice Chairman of the
    Board of the predecessor to Calumet Partners since 1990.
    Mr. Fehsenfeld has worked for The Heritage Group in various
    capacities since 1977 and has served as its Managing Trustee
    since 1980. Mr. Fehsenfeld received his B.S. in Mechanical
    Engineering from Duke University and his M.S. in Management from
    the Massachusetts Institute of Technology Sloan School. The
    Board has concluded that Mr. Fehsenfeld should be a
    director and Chairman of our Board because of his significant
    executive experience referred to above, as well as the fact that
    his significant stock ownership in our Company aligns his
    interests with those of other stockholders.
    Mr. Fehsenfeld's engineering and management training
    and senior leadership roles in other companies also benefit our
    Company.
Donald
    Brinckman
Director
Mr. Brinckman has served as a director on our Board since
    2002. Mr. Brinckman was the founder of Safety-Kleen in
    1968. Mr. Brinckman served as President of Safety-Kleen
    from 1968 until 1998, excluding portions of
1990-1991
and
1993-1997,
and for most of the thirty-year period he also served as
    Safety-Kleen's Chief Executive Officer. Mr. Brinckman
    was appointed Chairman of Safety-Kleen's Board of Directors
    in August 1990 and served in that capacity until 1998.
    Mr. Brinckman has in the past served as a director of
    Johnson Outdoors Inc., Paychex, Inc. and Snap-On Inc. The Board
    has concluded that Mr. Brinckman should be a director of
    our Company because of his extensive industry experience,
    including being founder and former Chairman of the largest firm
    in the Company's industry. Additionally, his significant
    stock ownership in our Company aligns his interests with those
    of other stockholders.
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Bruce
    Bruckmann
Director
Mr. Bruckmann has served as a director on our Board since
    2004. Mr. Bruckmann has been a Managing Director of
    Bruckmann, Rosser, Sherrill & Co., Inc., a private
    equity investment firm, since January 1995. From March 1994 to
    January 1995, Mr. Bruckmann served as Managing Director of
    Citicorp Venture Capital, Ltd. and as an executive officer of
    399 Venture Partners, Inc. (formerly Citicorp Investments,
    Inc.). From 1983 until March 1994, Mr. Bruckmann served as
    Vice President of Citicorp Venture Capital, Ltd.
    Mr. Bruckmann is also a director of Town Sports
    International, Inc., a fitness club operator, MWI Veterinary
    Products, Inc., a distributor of veterinary products, H&E
    Equipment Services L.L.C., a renter and distributor of
    industrial and construction equipment, and Mohawk Industries,
    Inc., a floor covering manufacturer. Mr. Bruckmann also
    serves as director for a private company. The Board has
    concluded that Mr. Bruckmann should be a director of our
    Company because of his extensive experience in investing in and
    advising public and private companies, as well as the fact that
    his significant stock ownership in our Company aligns his
    interests with those of other stockholders. His broad exposure
    to financing and funding issues also benefits our Company.
Carmine
    Falcone
Director
Mr. Falcone has served as a director on our Board since
    March 2008. Mr. Falcone served in various operating and
    executive positions with Shell Group from 1968 through 2004,
    including roles as Executive Vice President, Oil Products,
    Shell Canada, as Director — Strategic Planning for
    Global Oil Products, Shell International, and from 1999 to 2004
    as Vice President Manufacturing and Supply, Shell Oil Products
    USA. Following his retirement from Shell in 2004,
    Mr. Falcone established CELICO Ventures LLC, a commercial
    real estate company, which he continues to operate.
    Mr. Falcone is currently Chairman of the Board of
    Integrative Energy of Houston (Upstream Oil & Gas) and
    Chairman of the Board of The Plaza Group of Houston (Chemicals
    Marketing). Mr. Falcone was a director of Centurion Energy
    of Calgary from 2006 to 2007. Mr. Falcone holds a Chemical
    Engineering degree with honors from McGill University. The Board
    has concluded that Mr. Falcone should be a director of our
    Company because of his demonstrated skills in engineering and
    management with one of the world's largest and most
    preeminent diversified oil companies. Mr. Falcone's
    expertise is also helpful to our Company in evaluating growth
    opportunities.
Charles
    E. Schalliol
Director
Mr. Schalliol has served as a director on our Board since
    March 2008. Mr. Schalliol served as the Director, Office of
    Management and Budget, State of Indiana, from 2004 to 2007.
    Mr. Schalliol served as the President and CEO of
    BioCrossroads, Indiana's life science initiative, from 2003
    to 2004. Mr. Schalliol served in various executive
    positions, including strategic planning and investment banking,
    with Eli Lilly & Company from 1978 to 2003.
    Mr. Schalliol has served as Chairman of the Board of
    Directors of First Merchant's Corporation since 2007 and as
    a director since 2004 and a director of four venture capital
    funds. Mr. Schalliol holds a business degree with high
    distinction from Indiana University and a law degree from Yale
    University. The Board has concluded that Mr. Schalliol
    should be a director of our Company because of his financial and
    executive experience with the above entities and other Board
    experience. His legal experience also benefits our Company.
Robert W.
    Willmschen, Jr.
Director
Mr. Willmschen has served as a director on our Board since
    March 2008. Mr. Willmschen served as Chief Financial
    Officer of Safety-Kleen from 1981 to 1997 and as Controller of
    Safety-Kleen from 1979 to 1981. He was Executive Vice President,
    Finance of ABC Rail Products Corporation for approximately one
    year in 1998. Since 1999, Mr. Willmschen has been engaged
    in managing his private investments. Mr. Willmschen also
    has nine years experience in public accounting, including Audit
    Manager with Arthur Andersen LLP. The Board has concluded that
    Mr. Willmschen should be a director of our Company because
    of his demonstrated financial experience in our industry area.
    His CPA and public accounting experience is also beneficial to
    us and he is a designated financial expert for the Board.
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PRINCIPAL
    STOCKHOLDERS
The following table sets forth information regarding the
    beneficial ownership of our common stock as of May 17,
    2010, including:
•
each person or entity who is known by us to own beneficially
    more than 5% of any class of outstanding voting securities;
•
each named executive officer and each director; and
•
all of our executive officers and directors as a group.
Unless otherwise indicated below, to our knowledge, all persons
    listed below have sole voting and investment power with respect
    to their shares of common stock, except to the extent authority
    is shared by spouses under applicable law. Unless otherwise
    indicated below, each entity or person listed below maintains an
    address
c/o Heritage-Crystal
Clean, Inc., 2175 Point Boulevard, Suite 375, Elgin,
    Illinois 60123.
The number of shares beneficially owned by each stockholder is
    determined under rules promulgated by the SEC. The information
    is not necessarily indicative of beneficial ownership for any
    other purpose. Under these rules, beneficial ownership includes
    any shares as to which the individual or entity has sole or
    shared voting or investment power and any shares as to which the
    individual or entity has the right to acquire beneficial
    ownership within 60 days after May 17, 2010 through
    the exercise of any stock option, warrant or other right. The
    inclusion in the following table of those shares, however, does
    not constitute an admission that the named stockholder is a
    direct or indirect beneficial owner. The table below is based on
    10,805,186 shares of common stock outstanding as of May 17,
    2010.
Beneficial
Ownership After
Beneficial
Offering (Assuming
Ownership After Offering (Assuming
Underwriters' Option
Beneficial Ownership
No Exercise of Over-
is Exercised
Prior to Offering
Allotment Option)
in Full)
Number
Number
Name
of Shares
Percentage
of Shares
Percentage
Percentage
The Heritage
    Group
(1)
3,389,958
31.4
%
4,252,727
31.4
%
31.4
%
Joseph
    Chalhoub
(2)(3)
1,643,447
14.6
%
1,643,447
11.7
%
11.4
%
Fred Fehsenfeld,
    Jr.
(4)
1,015,547
9.4
%
1,015,547
7.5
%
7.3
%
Bruce
    Bruckmann
(5)
1,045,643
9.7
%
1,045,643
7.7
%
7.5
%
Bruckmann, Rosser, Sherrill & Co. II,
    L.P.
(5)
951,816
8.8
%
951,816
7.0
%
6.8
%
Donald
    Brinckman
(6)
553,021
5.1
%
553,021
4.1
%
4.0
%
Royce & Associates,
    LLC
(7)
1,074,447
9.9
%
1,074,447
7.9
%
7.7
%
Carmine Falcone
10,871
*
10,871
*
*
Charles E. Schalliol
24,262
*
24,262
*
*
Robert W. Willmschen, Jr.
16,871
*
16,871
*
*
John
    Lucks
(3)
166,684
1.5
%
166,684
1.2
%
1.2
%
Gregory
    Ray
(8)(3)
325,007
3.0
%
325,007
2.4
%
2.3
%
Tom
    Hillstrom
(3)
24,206
*
24,206
*
*
All directors and executive officers as a group (10 persons)
4,825,559
41.9
%
4,825,559
33.8
%
32.9
%
*
Less than 1%
(1)
Based on a Schedule 13G/A
    filed with the SEC on January 19, 2010. The Heritage Group
    is a general partnership formed under the laws of the State of
    Indiana. Thirty grantor trusts own all of the outstanding
    general partner interests in The Heritage Group. Five trustees,
    acting on behalf of each of these trusts, have the duty and have
    been empowered to carry out the purposes of the general
    partnership pursuant to the Articles of Partnership. The five
    trustees are Fred M. Fehsenfeld, Jr., James C. Fehsenfeld,
    Nicholas J. Rutigliano, William S. Fehsenfeld and Amy M.
    Schumacher. The address of The Heritage Group is 5400 West
    86th Street, Indianapolis, Indiana 46268.
Amounts beneficially owned after
    the offering in the table above assume that Heritage elects to
    exercise its rights under the participation rights agreement to
    purchase an amount of common stock in the offering so that its
    ownership percentage in our company does not decrease. See
    "Relationships and Transactions With Related
    Persons — Transactions with Related Persons." If
    Heritage does not elect to exercise its participation right with
    respect to the offering, its ownership interest in our common
    stock will be 25% (or 24.3% if the underwriters exercise their
    option to purchase additional shares in full).
(2)
Joseph Chalhoub has voting control
    over the shares held by the entity named J. Chalhoub Holdings,
    Ltd., but disclaims beneficial ownership, other than to the
    extent of his pecuniary interest therein.
(3)
Includes the following options to
    purchase shares of common stock exercisable within 60 days
    after May 17, 2010: Mr. Chalhoub: 436,027 shares;
    Mr. Lucks: 130,869 shares; Mr. Ray:
    130,222 shares; and Mr. Hillstrom: 7,909 shares.
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(4)
Based on a Schedule 13G/A
    filed with the SEC on January 19, 2010. Includes
    10,000 shares held by Mr. Fehsenfeld's family
    members (specifically, his spouse and two children). Does not
    include 125,000 shares held by Frank Fehsenfeld,
    56,855 shares held by the Maggie Fehsenfeld Trust or
    56,855 shares held by the Frank S. Fehsenfeld Trust, for
    which Fred Fehsenfeld, Jr. serves as trustee. Fred Fehsenfeld,
    Jr. disclaims beneficial ownership of the shares of common stock
    owned by these family members except to the extent of his
    pecuniary interest therein. In addition, Mr. Fehsenfeld
    serves as one of five trustees who together are empowered to act
    on behalf of The Heritage Group. Mr. Fehsenfeld disclaims
    beneficial ownership of the shares of common stock owned by The
    Heritage Group except to the extent of his pecuniary interest
    therein, and none of the shares held by The Heritage Group are
    included in the shares listed in the table above as being
    beneficially owned by Mr. Fehsenfeld.
We have agreed to direct the
    underwriters to reserve 257,807 shares in the offering for
    certain related trusts for which Mr. Fehsenfeld serves as a
    trustee (the "Related Trusts") in response to
    Mr. Fehsenfeld's request to participate on a pro rata
    basis in this offering on a basis similar to Heritage's
    participation rights described in footnote 1 above so that
    Mr. Fehsenfeld's ownership percentage in our company,
    after taking into account the shares purchase by the Related
    Trusts in the offering, remains at 9.4%. Based on preliminary
    indications from Mr. Fehsenfeld, the amounts beneficially
    owned by Mr. Fehsenfeld after the offering in the table do
    not include the shares to be purchased in the offering by the
    Related Trusts. Mr. Fehsenfeld disclaims beneficial
    ownership of all shares that may be purchased by the Related
    Trusts in the offering except to the extent of his pecuniary
    interest therein.
(5)
Based on Schedule 13G filed
    with the SEC on February 17, 2009, BRSE LLC is the general
    partner of Bruckmann, Rosser, Sherrill & Co. II, L.P.
    ("BRS II" ) which holds 951,530 shares.
    Bruckmann, Rosser, Sherrill & Co., Inc. ("BRS
    Inc.") is an affiliate of BRS II and holds 286 shares.
    Bruce Bruckmann is a member and manager of BRSE LLC and a
    managing director of BRS Inc., and, together with Harold O.
    Rosser, Stephen C. Sherrill and Thomas J. Baldwin, shares the
    power to direct the voting or disposition of shares held by both
    BRS II and BRS Inc.; however, none of these persons individually
    has the power to direct or veto the voting or disposition of
    shares held by either BRS II or BRS Inc. BRSE LLC and
    Messrs. Bruckmann, Rosser, Sherrill and Baldwin expressly
    disclaim beneficial ownership of the shares held by BRS II and
    BRS Inc.. Shares beneficially owned, directly or indirectly, by
    BRS II and BRS Inc. have been included for purposes of the
    presentation of the beneficial ownership of our common stock by
    Bruce Bruckmann. The address of this stockholder is
    126 East 56th Street, New York, NY 10022.
(6)
Consists of shares held in trust
    for which Mr. Brinckman has voting control.
(7)
Based on a Schedule 13G/A
    filed with the SEC on April 6, 2010. The address of this
    stockholder is 745 Fifth Avenue, New York, New York 10151.
(8)
Includes shares held in trust for
    which Mr. Ray has voting control.
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RELATIONSHIPS
    AND TRANSACTIONS WITH RELATED PERSONS
Procedures
    for Approval of Related Party Transactions
In March 2009, our Board of Directors adopted written related
    party transaction policies and procedures which require that all
    "interested transactions" with "related
    parties" (each as defined below) be subject to approval or
    ratification by the audit committee in accordance with the
    procedures set forth therein. The audit committee reviews the
    material facts of all interested transactions and either
    approves or disapproves of the entry into the transaction. If
    advanced approval of an interested transaction is not feasible,
    the transaction is reviewed and, if the audit committee
    determines it to be appropriate, ratified at that
    committee's next scheduled meeting. In determining whether
    to approve or ratify an interested transaction, the audit
    committee takes into account, among other appropriate factors,
    the extent of the related party's interest in the
    transaction and whether the interested transaction is on terms
    no less favorable than terms generally available to unaffiliated
    third parties under similar circumstances. Directors may not
    participate in any discussion or approval of an interested
    transaction for which they are a related party.
The audit committee has pre-approved or ratified the following
    categories of interested transactions:
•
Any employment by the Company of an executive officer if:
•
The related compensation is required to be reported in our Proxy
    Statement under the SEC's compensation disclosure
    requirements, or
•
The executive officer is not an immediate family of another
    executive officer or director, the related compensation would be
    reported in our Proxy Statement under the SEC's
    compensation disclosure requirements if the executive officer
    was a named executive officer and the compensation committee
    approved (or recommended that the Board approve) such
    compensation;
•
Any compensation paid to a director if the compensation is
    required to be reported in our Proxy Statement under the
    SEC's compensation disclosure requirements;
•
Any transaction with another company in which the related
    person's only relationship is as a non-executive employee,
    director or beneficial owner of less than 10% of that
    company's shares, if the amount involved does not exceed
    the greater of $1,000,000 or 2% of that company's total
    annual revenues;
•
Any charitable contribution by us to a charitable organization,
    foundation or university at which a related person's only
    relationship is as a non-executive employee or director, if the
    amount involved does not exceed the lesser of $100,000 or 2% of
    the charitable organization's total annual receipts;
•
Any transaction where the related person's interest arises
    solely from the ownership of our common stock and all holders of
    common stock received the same benefit on a pro rata
    basis; and
•
Any transaction with a related party involving services as a
    bank depositary of funds, transfer agent, registrar, trustee
    under an indenture or similar services.
In addition, the Board has delegated to the Chair of the audit
    committee the authority to pre-approve or ratify any interested
    transaction with a related party in which the aggregate amount
    is expected to be less than $1,000,000.
An "interested transaction" is any transaction,
    arrangement or relationship, or series of similar transactions,
    arrangements or relationships, in which:
•
The aggregate amount involved will or may be expected to exceed
    $120,000 in any calendar year;
•
We are a participant; and
•
Any "related party" has or will have a direct or
    indirect interest (other than solely as a result of being a
    director or less than 10% beneficial owner of another entity).
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A "related party" covered by the policy is any:
•
Person who was or is (since the beginning of the last fiscal
    year for which we have filed an Annual Report on
Form 10-K
or Proxy Statement) an executive officer, director or nominee
    for election as a director;
•
Greater than 5% beneficial owner of common stock; or
•
Immediate family member of the foregoing, which includes a
    person's spouse, parents, stepparents, children,
    stepchildren, siblings, mothers- and
fathers-in-law,
sons- and
daughters-in-law,
and brothers- and sisters- in law and anyone residing in such
    person's home (other than tenants or employees).
Transactions
    with Related Persons
The following transactions were reviewed and approved by our
    audit committee under the Related Party Transaction Policies and
    Procedures.
Relationship
    with The Heritage Group
Our operating subsidiary, Heritage-Crystal Clean, LLC, was spun
    out of Heritage Environmental Services, an affiliate of
    Heritage, our largest stockholder, in 1999. Since 1999, we have
    had many transactions with affiliates of Heritage. In fiscal
    2009, we generated sales of $326,131 from product sales and
    services to Heritage Environmental Services and incurred
    expenses of $1,370,419 from waste transportation and disposal
    services, rent for facility use, and various advisory and
    administrative services performed by Heritage Environmental
    Services. In addition, in fiscal 2009, we generated sales of
    $1,110,608 and incurred expenses of $2,131,141 with other
    affiliates of Heritage. We believe that the aggregate price we
    pay and price we charge Heritage for services and revenue is
    approximately what we would pay and receive for such services
    from third parties in arms-length transactions.
Employee
    Benefit Plan
The employees of our operating subsidiary Heritage-Crystal
    Clean, LLC participate in a defined contribution 401(k) benefit
    plan sponsored by an affiliate of Heritage. Participants in this
    plan are allowed to contribute 1% to 70% of their pre-tax
    earnings up to relevant IRS limitations to the plan. We match
    100% of the first 3% contributed by the participant and 50% of
    the next 2% contributed by the participant for a maximum
    contribution of 4% per participant. The matching expense for
    this plan was $630,433 in fiscal 2009.
Workers'
    Compensation
We participate in a workers' compensation group insurance
    program with affiliates of Heritage. In connection with our
    insurance program for workers' compensation, we contribute
    payments to an affiliate of Heritage. Payments under the group
    insurance program for workers' compensation totaled
    $615,567 in fiscal 2009, $293,668 in fiscal 2008 and $324,439 in
    fiscal 2007.
Employment
    of Frank S. Fehsenfeld
Frank S. Fehsenfeld, the brother of Fred Fehsenfeld, Jr., a
    director, is employed by us as a Director of Sales —
    Solvents and in such capacity earned approximately $130,000 in
    fiscal 2009 (including base salary, bonus and car allowance).
Heritage
    Participation Rights
Simultaneous with the completion of the initial public offering
    in fiscal 2008, we entered into a participation rights agreement
    with Heritage, pursuant to which Heritage received the option to
    participate, pro rata based on its percentage ownership interest
    in our common stock, in any future equity offerings for cash
    consideration, including (i) contracts with parties for
    equity financing (including any debt financing with an equity
    component) and (ii) issuances of equity securities or
    securities convertible, exchangeable or exercisable
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into or for equity securities (including debt securities with an
    equity component). If Heritage exercises its rights with respect
    to all future offerings, it will be able to maintain its
    percentage ownership interest in our common stock. The
    participation rights agreement does not have an expiration date.
    Heritage is not required to participate or exercise its right of
    participation with respect to any offerings. Heritage's
    right to participate will not apply to certain future offerings
    of securities that are not conducted to raise or obtain equity
    capital or cash such as stock issued as consideration in a
    merger or consolidation, in connection with strategic
    partnerships or joint ventures, or for the acquisition of a
    business, product, license or other assets by us.
Reservation
    of Shares in the Offering
At our direction, the underwriters have reserved for sale to
    Heritage and certain related trusts of Fred
    Fehsenfeld, Jr., the Chairman of our Board and an affiliate
    of Heritage, at the public offering price, up to
    1,120,576 shares of common stock in this offering. Heritage
    will be offered 862,769 shares and the related trusts of
    Mr. Fehsenfeld will be offered 257,807 shares (not
    including amounts offered to them if the underwriters exercise
    their option to purchase additional shares), in each case
    representing the same percentage of shares being sold in this
    offering as each of Heritage and Mr. Fehsenfeld currently
    holds of our outstanding common stock. In the event the
    underwriters' option to purchase additional shares is
    exercised, Heritage and the related trusts of
    Mr. Fehsenfeld will be offered 31.4% and 9.4%,
    respectively, of the total number of shares for which the option
    is exercised. These shares are being offered to Heritage
    pursuant to the participation rights agreement between us and
    Heritage which provides it the option to participate, pro rata
    based on its percentage ownership interest in our common stock,
    in any of our equity offerings for cash consideration.
    Mr. Fehsenfeld has requested a similar opportunity to
    participate on a pro rata basis in this offering, and we have
    agreed to direct the underwriters to reserve shares in this
    offering in response to Mr. Fehsenfeld's request.
    Purchases of these reserved shares would reduce the number of
    shares available for sale to the general public. If Heritage and
    Mr. Fehsenfeld or his related trusts purchase all of the
    shares reserved for sale to them, Heritage and
    Mr. Fehsenfeld, after taking into account the shares
    purchased by the related trusts in the offering, will maintain
    their respective 31.4% and 9.4% ownership interests in our
    common stock. See "Principal Stockholders." The
    underwriters will offer any reserved shares which are not so
    purchased to the general public on the same terms as the other
    shares being sold in this offering.
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UNDERWRITING
The underwriters named below have severally agreed, subject to
    the terms and conditions set forth in the underwriting agreement
    by and between us and William Blair & Company, L.L.C.,
    as representative of the underwriters, to purchase from us the
    respective number of shares of common stock set forth opposite
    each underwriter's name in the table below. William
    Blair & Company, L.L.C. is acting as Sole Book-Running
    Manager and Robert W. Baird & Co. Incorporated and
    Needham & Company, LLC are acting as Co-Managers for
    this offering.
Underwriter
Number of Shares
William Blair & Company, L.L.C.
Robert W. Baird & Co. Incorporated
Needham & Company, LLC
Total
This offering will be underwritten on a firm commitment basis.
    In the underwriting agreement, the underwriters have agreed,
    subject to the terms and conditions set forth therein, to
    purchase the shares of common stock being sold pursuant to this
    prospectus at a price per share equal to the public offering
    price less the underwriting discount specified on the cover page
    of this prospectus. According to the terms of the underwriting
    agreement, the underwriters either will purchase all of the
    shares or none of them. In the event of default by any
    underwriter, in certain circumstances, the purchase commitments
    of the non-defaulting underwriters may be increased or the
    underwriting agreement may be terminated.
The representative of the underwriters has advised us that the
    underwriters propose to offer the common stock to the public
    initially at the public offering price set forth on the cover
    page of this prospectus and to selected dealers at such price
    less a concession of not more than
    $      per share. The underwriters may
    allow, and such dealers may re-allow, a concession not in excess
    of $      per share to certain other
    dealers. The underwriters will offer the shares subject to prior
    sale and subject to receipt and acceptance of the shares by the
    underwriters. The underwriters may reject any order to purchase
    shares in whole or in part. The underwriters expect that we will
    deliver the shares to the underwriters through the facilities of
    The Depository Trust Company in New York, New York on or
    about          ,
    2010. At that time, the underwriters will pay us for the shares
    in immediately available funds. After commencement of the public
    offering, the representative may change the offering price and
    other selling terms.
We have granted the underwriters an option, exercisable within
    30 days after the date of this prospectus, to purchase up
    to an aggregate of 412,500 additional shares of common stock
    from us at the same price per share to be paid by the
    underwriters for the other shares offered hereby. The
    underwriters may exercise this option if they sell more shares
    than the total number of shares set forth in the table above. If
    the underwriters purchase any such additional shares pursuant to
    this option, each of the underwriters will be committed to
    purchase such additional shares in approximately the same
    proportion as set forth in the table above. The underwriters
    will offer any additional shares that they purchase on the terms
    described in the preceding paragraph, subject to the reservation
    of shares described below.
At our direction, the underwriters have reserved for sale to
    Heritage and certain related trusts of Fred
    Fehsenfeld, Jr., the Chairman of our Board and an affiliate
    of Heritage, at the public offering price, up to
    1,120,576 shares of common stock in this offering. Heritage
    will be offered 862,769 shares and the related trusts of
    Mr. Fehsenfeld will be offered 257,807 shares (not
    including amounts offered to them if the underwriters exercise
    their option to purchase additional shares), in each case
    representing the same percentage of shares being sold in this
    offering as each of Heritage and Mr. Fehsenfeld currently
    holds of our outstanding common stock. In the event the
    underwriters' option to purchase additional shares is
    exercised, Heritage and the related trusts of
    Mr. Fehsenfeld will be offered 31.4% and 9.4%,
    respectively, of the total number of shares for which the option
    is exercised. These shares are being offered to Heritage
    pursuant to the participation rights agreement between us and
    Heritage which provides it the option to participate, pro rata
    based on its percentage ownership interest in our common stock,
    in any of our equity offerings for cash consideration. See
    "Relationships and Transactions with Related Persons"
    Mr. Fehsenfeld has requested a
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similar opportunity to participate on a pro rata basis in this
    offering, and we have agreed to direct the underwriters to
    reserve shares in this offering in response to
    Mr. Fehsenfeld's request. Purchases of these reserved
    shares would reduce the number of shares available for sale to
    the general public. If Heritage and Mr. Fehsenfeld purchase
    all of the shares reserved for sale to them, Heritage and
    Mr. Fehsenfeld, after taking into account the shares
    purchased by the related trusts in the offering, will maintain
    their respective 31.4% and 9.4% ownership interests in our
    common stock. See "Principal Stockholders." The
    underwriters will offer any reserved shares which are not so
    purchased to the general public on the same terms as the other
    shares being sold in this offering.
The underwriters have further reserved for sale in a directed
    share program, at the initial public offering price, up to
    137,500 shares of common stock in the offering for our
    employees, affiliates and current and potential customers.
    Purchases of these reserved shares would reduce the number of
    shares available for sale to the general public. The
    underwriters will offer any reserved shares which are not so
    purchased to the general public on the same terms as the other
    shares being sold in this offering.
The following table summarizes the compensation to be paid by us
    to the underwriters. This information assumes either no exercise
    or full exercise by the underwriters of their option to purchase
    additional shares:
Without
With
Per Share
Exercise
Exercise
Offering price
$
$
$
Underwriting discount paid by us
$
$
$
Proceeds, before expenses, to us
$
$
$
We estimate that our total expenses for this offering, excluding
    the underwriting discount, will be approximately
    $0.7 million.
We, each of our directors and executive officers and Heritage
    have agreed, and each of the purchasers in the directed share
    program will agree, subject to limited exceptions described
    below, for a period of 90 days after the date of this
    prospectus, not to, without the prior written consent of William
    Blair & Company, L.L.C.:
•
directly or indirectly, offer, sell (including "short"
    selling), assign, transfer, encumber, pledge, contract to sell,
    grant an option to purchase, establish an open "put
    equivalent position" within the meaning of
Rule 16a-1(h)
under the Securities Exchange Act of 1934, or otherwise dispose
    of any shares of common stock or securities convertible or
    exchangeable into, or exercisable for, common stock held of
    record or beneficially owned (within the meaning of
Rule 13d-3
under the Securities Exchange Act of 1934); or
•
enter into any swap or other arrangement that transfers all or a
    portion of the economic consequences associated with the
    ownership of any common stock.
The
lock-up
period will be extended if (1) we release earnings results
    or material news or a material event relating to our company
    occurs during the last 17 days of the
lock-up
period, or (2) prior to the expiration of the
lock-up
period, we announce that we will release earnings results during
    the
16-day
period beginning on the last day of the
lock-up
period. In either case, the
lock-up
period will be extended for 18 days after the date of the
    release of the earnings results or the occurrence of the
    material news or material event.
These agreements do not extend to transfers or dispositions
    either during the holder's lifetime or on death (i) by
    will or intestacy or to the holder's immediate family or to
    a trust or limited partnership for their benefit or (ii) by
    bona fide gift or gifts to donee or donees, provided in each
    case that the recipient of those shares agrees to be bound by
    the foregoing restrictions for the duration of the
lock-up
period. William Blair & Company, L.L.C., in its sole
    discretion, may release the common stock and other securities
    subject to the
lock-up
agreements described above in whole or in part at any time with
    or without notice. In determining whether to consent to a
    transaction prohibited by these restrictions, William
    Blair & Company, L.L.C. will take into account various
    factors, including the number of shares requested to be sold,
    the anticipated manner and timing of sale, the potential impact
    of the sale on the market for the common stock, the restrictions
    on
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publication of research reports that would be imposed by the
    rules of the Financial Industry Regulatory Authority and market
    conditions generally. We may issue up to 12,000 shares of
    common stock under our Employee Stock Purchase Plan of 2008 and
    shares of common stock in connection with the exercise of any
    outstanding convertible securities or options during the
lock-up
period. In addition, this agreement will not extend to planned
    selling under
Rule 10b5-1
for Gregory Ray, our Chief Financial Officer, Vice President,
    Business Management and Secretary, pursuant to his
Rule 10b5-1
trading plan dated October 21, 2009 under which a maximum
    of 50,000 shares of our common stock can be sold.
We have agreed to indemnify the underwriters and their
    controlling persons against certain liabilities for
    misstatements in the registration statement of which this
    prospectus forms a part, including liabilities under the
    Securities Act of 1933, or to contribute to payments the
    underwriters may be required to make in respect thereof.
The representative has informed us that the underwriters will
    not confirm, without client authorization, sales to their client
    accounts as to which they have discretionary authority. The
    representative has also informed us that the underwriters intend
    to deliver all copies of this prospectus via electronic means,
    via hand delivery or through mail or courier services.
In connection with this offering, the underwriters and other
    persons participating in this offering may engage in
    transactions which affect the market price of the common stock.
    These may include stabilizing and over-allotment transactions
    and purchases to cover syndicate short positions. Stabilizing
    transactions consist of bids or purchases for the purpose of
    pegging, fixing or maintaining the price of the common stock. An
    over-allotment, or short sale, involves selling more shares of
    common stock in this offering than are specified on the cover
    page of this prospectus, which results in a syndicate short
    position. The short position may be either a covered short
    position or a naked short position. In a covered short position,
    the number of shares over-allotted by the underwriters is not
    greater than the number of shares available in the
    underwriters' option to purchase additional sales in the
    public offering. In a naked short position, the number of shares
    over-allotted is greater than the number of shares in the option
    to purchase additional shares. The underwriters may close out a
    covered short position by purchasing common stock in the open
    market or by exercising all or part of their option to purchase
    additional shares. In determining the source of shares to close
    out the covered short position, the underwriters will consider,
    among other things, the price of shares available for purchase
    in the open market as compared to the price at which they may
    purchase shares through the option to purchase additional
    shares. The underwriters must close out any naked short position
    by buying shares in the open market. A naked short position is
    more likely to be created if the underwriters are concerned that
    there could be downward pressure on the price of the shares in
    the open market after pricing that could adversely affect
    investors who purchase in the public offering. Similar to other
    purchase transactions, the underwriters' purchases to cover
    the syndicate short sales may have the effect of raising or
    maintaining the market price of the issuer's stock or
    preventing or retarding a decline in the market price of
    issuer's stock. As a result, the price of the issuer's
    stock may be higher than the price that might otherwise exist in
    the open market. In addition, the representative may impose a
    penalty bid. This allows the representative to reclaim the
    selling concession allowed to an underwriter or selling group
    member if shares of common stock sold by such underwriter or
    selling group member in this offering are repurchased by the
    representative in stabilizing or syndicate short covering
    transactions. These transactions, which may be effected on The
    NASDAQ Global Market or otherwise, may stabilize, maintain or
    otherwise affect the market price of the common stock and could
    cause the price to be higher than it would be without these
    transactions. The underwriters and other participants in this
    offering are not required to engage in any of these activities
    and may discontinue any of these activities at any time without
    notice. We and the underwriters make no representation or
    prediction as to whether the underwriters will engage in such
    transactions or choose to discontinue any transactions engaged
    in or as to the direction or magnitude of any effect that these
    transactions may have on the price of the common stock.
One or more of the underwriters currently act as a market maker
    for our common stock and may engage in "passive market
    making" in such securities on The NASDAQ Global Market in
    accordance with Rule 103 of Regulation M under the
    Securities Exchange Act of 1934. Rule 103 permits, upon the
    satisfaction of certain conditions, underwriters participating
    in a distribution that are also NASDAQ market makers in the
    security
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being distributed to engage in limited market making
    transactions during the period when Regulation M would
    otherwise prohibit such activity. Rule 103 prohibits
    underwriters engaged in passive market making generally from
    entering a bid or effecting a purchase price that exceeds the
    highest bid for those securities displayed on The NASDAQ Global
    Market by a market maker that is not participating in the
    distribution. Under Rule 103, each underwriter engaged in
    passive market making is subject to a daily net purchase
    limitation equal to the greater of (i) 30% of such
    entity's average daily trading volume during the two full
    calendar months immediately preceding, or any 60 consecutive
    calendar days ending within the ten calendar days preceding, the
    date of the filing of the registration statement under the
    Securities Act pertaining to the security to be distributed or
    (ii) 200 shares of common stock.
Our common stock is listed on The NASDAQ Global Market under the
    symbol "HCCI."
In the ordinary course of business, some of the underwriters and
    their affiliates may in the future provide investment banking,
    commercial banking and other services to us for which they may
    receive customary fees or other compensation.
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LEGAL
    MATTERS
The validity of the issuance of the shares of common stock
    offered hereby has been passed upon for us by McDermott
    Will & Emery LLP, Chicago, Illinois. Legal matters in
    connection with the offering will be passed upon for the
    underwriters by Sidley Austin LLP, Chicago, Illinois.
EXPERTS
The consolidated financial statements for the years ended
    January 2, 2010 and January 3, 2009 and
    management's assessment of the effectiveness of internal
    control over financial reporting (which is included in
    Management's Report on Internal Control over Financial
    Reporting) for the year ended January 2, 2010 incorporated
    in this prospectus by reference to our Annual Reports on
Form 10-K
have been so incorporated in reliance on the reports of Grant
    Thornton LLP, an independent registered public accounting firm,
    upon the authority of said firm as experts in auditing and
    accounting in giving said reports.
The consolidated financial statements of Heritage-Crystal Clean,
    Inc. (formerly Heritage Crystal Clean, LLC) for the year
    ended December 29, 2007, have been incorporated by
    reference herein in reliance upon the report of KPMG LLP,
    independent registered public accounting firm, incorporated by
    reference herein, and upon the authority of said firm as experts
    in auditing and accounting.
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2,750,000 Shares
Heritage-Crystal Clean,
    Inc.
Common Stock
PROSPECTUS
William Blair &
    Company
Baird
Needham & Company, LLC
,
    2010
Table of Contents
PART II
INFORMATION
    NOT REQUIRED IN PROSPECTUS
Item 13.
Other
    Expenses of Issuance and Distribution
The following table sets forth all the costs, other than
    underwriting discounts and placement fees, payable in connection
    with the issuance and distribution of the common stock being
    registered, all of which will be paid by the registrant. All
    amounts shown below are estimates, except the registration fee:
SEC registration fee
$
2,201
FINRA filing fee
3,587
Exchange additional listing fee
27,500
Printing expenses
50,000
Accounting fees and expenses
50,000
Legal fees and expenses
275,000
Transfer agent fees and expenses
1,000
Miscellaneous
280,712
TOTAL
$
690,000
Item 14.
Indemnification
    of Directors and Officers
Section 145 of the DGCL, provides, among other things, that
    a corporation may indemnify any person who was or is a party or
    is threatened to be made a party to any threatened, pending or
    completed action, suit or proceeding (other than an action by or
    in the right of the corporation) by reason of the fact that the
    person is or was a director, officer, employee or agent of the
    corporation, or is or was serving at the corporation's
    request as a director, officer, employee or agent of another
    corporation, partnership, joint venture, trust or other
    enterprise, against expenses, including attorneys' fees,
    judgments, fines and amounts paid in settlement actually and
    reasonably incurred by the person in connection with the action,
    suit or proceeding. The power to indemnify applies (i) if
    such person is successful on the merits or otherwise in defense
    of any action, suit or proceeding or (ii) if such person
    acted in good faith and in a manner he reasonably believed to be
    in or not opposed to the best interests of the corporation, and
    with respect to any criminal action or proceeding, had no
    reasonable cause to believe his conduct was unlawful. The power
    to indemnify applies to actions brought by or in the right of
    the corporation as well, but only to the extent of defense
    expenses, (including attorneys' fees but excluding amounts
    paid in settlement) actually and reasonably incurred and not to
    any satisfaction of judgment or settlement of the claim itself,
    and with the further limitation that in such actions no
    indemnification shall be made in the event of any adjudication
    of negligence or misconduct in the performance of his duties to
    the corporation, unless a court believes that in light of all
    the circumstances indemnification should apply.
Our certificate of incorporation provides that we shall
    indemnify and hold harmless, to the fullest extent permitted by
    applicable law as it presently exists or may hereafter be
    amended, any person who was or is made or is threatened to be
    made a party or is otherwise involved in any action, suit or
    proceeding, whether civil, criminal, administrative or
    investigative, any or all of which may be referred to as a
    proceeding, by reason of the fact that he or she, or a person
    for whom he or she is the legal representative, is or was at any
    time a director or officer of the corporation or, while a
    director or officer of the corporation, is or was at any time
    serving at the written request of the corporation as a director,
    officer, employee or agent of another corporation or of a
    partnership, joint venture, trust, enterprise or nonprofit
    entity, including service with respect to employee benefit
    plans, against all liability and loss suffered and expenses
    (including attorneys' fees) reasonably incurred by such
    person; provided, however, that we shall be required to
    indemnify a person in connection with a proceeding (or part
    thereof) initiated by such person only if the commencement of
    such proceeding (or part thereof) was authorized by our Board of
    Directors.
II-1
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Section 102 of the DGCL permits the limitation of
    directors' personal liability to the corporation or its
    stockholders for monetary damages for breach of fiduciary duties
    as a director except for (i) any breach of the
    director's duty of loyalty to the corporation or its
    stockholders, (ii) acts or omissions not in good faith or
    which involve intentional misconduct or a knowing violation of
    the law, (iii) breaches under section 174 of the DGCL,
    which relates to unlawful payments of dividends or unlawful
    stock repurchase or redemptions, and (iv) any transaction
    from which the director derived an improper personal benefit.
Our certificate of incorporation limits the personal liability
    of our directors to the fullest extent permitted by
    section 102 of the DGCL.
Insofar as indemnification for liabilities arising under the
    Securities Act may be permitted to directors, officers or
    persons controlling the registrant pursuant to the foregoing
    provisions, the registrant has been informed that in the opinion
    of the SEC such indemnification is against public policy as
    expressed in the Securities Act and is therefore unenforceable.
We maintain directors' and officers' liability
    insurance for our officers and directors.
The Underwriting Agreement for the offering will provide that
    each underwriter severally agrees to indemnify and hold harmless
    Heritage-Crystal Clean, Inc., each of our directors, each of our
    officers who signs the registration statement, and each person
    who controls Heritage-Crystal Clean, Inc. within the meaning of
    the Securities Act but only with respect to certain information
    included in the registration statement.
Item 15.
Recent
    Sales of Unregistered Securities
We have not sold any unregistered securities in the last in the
    last three years prior to the offering other than the
    7,274,290 shares of common stock that we issued in a
    private placement exempt under § 4(2) of the
    Securities Act to former members of Heritage-Crystal Clean, LLC
    in exchange for their common and preferred units of
    Heritage-Crystal Clean, LLC in our reorganization prior to the
    completion of our initial public offering.
Item 16.
Exhibits
    and Financial Statement Schedules
(a) Exhibits:
Exhibit
Number
Exhibit
1
.1*
Form of Underwriting Agreement
3
.1(1)
Certificate of Incorporation of Heritage-Crystal Clean, Inc.
    (Incorporated herein by reference to Exhibit 3.1 of
    Amendment No. 6 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
3
.1(2)
Amendment to Certificate of Incorporation of Heritage-Crystal
    Clean, Inc. (Incorporated herein by reference to
    Exhibit 3.1(2) to the Company's Current Report on
Form 8-K
filed with the SEC on May 17, 2010)
3
.3
By-Laws of Heritage-Crystal Clean, Inc. (Incorporated herein by
    reference to Exhibit 3.2 of Amendment No. 6 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
4
.1
Form of Specimen Common Stock Certificate of Heritage-Crystal
    Clean, Inc. (Incorporated herein by reference to
    Exhibit 4.1 of Amendment No. 7 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
5
.1*
Opinion of McDermott Will & Emery LLP
10
.1
Restated Operating Agreement for Heritage-Crystal Clean, LLC
    dated October 26, 2004, as amended. (Incorporated herein by
    reference to Exhibit 10.1 of Amendment No. 1 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
II-2
Table of Contents
Exhibit
Number
Exhibit
10
.2
Amendment No. 6 to Operating Agreement for Heritage-Crystal
    Clean, LLC dated December 28, 2007 (Incorporated herein by
    reference to Exhibit 10.37 of Amendment No. 4 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 1, 2008)
10
.3
Form of Agreement and Amendment No. 7 to Operating
    Agreement for Heritage-Crystal Clean, LLC (Incorporated herein
    by reference to Exhibit 10.38 of Amendment No. 4 to
    the Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 1, 2008)
10
.4
Third Amended and Restated Credit Agreement dated as of
    December 14, 2009 between Heritage-Crystal Clean, LLC and
    Bank of America, N.A. (Incorporated herein by reference to
    Exhibit 10.1 to the Company's Current Report on
Form 8-K
filed with the SEC on December 18, 2009)
10
.5
First Amendment to Third Amended and Restated Credit Agreement
    dated as of May 14, 2010 between Heritage-Crystal Clean,
    LLC and Bank of America, N.A. (Incorporated herein by reference
    to Exhibit 10.5 to the Company's Current Report on
Form 8-K
filed with the SEC on May 18, 2010)
10
.6
Intercreditor Agreement dated as of February 24, 2004 among
    Heritage-Crystal Clean, LLC, Bruckmann, Rosser,
    Sherrill & Co. II, L.P., Asphalt Refining Company and
    Donald Brinckman (Incorporated herein by reference to
    Exhibit 10.3 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.7
First Amended and Restated Promissory Note to Asphalt Refining
    Company dated December 29, 2006 (Incorporated herein by
    reference to Exhibit 10.6 of Amendment No. 1 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.8
Third Amended and Restated Note by Bank of America, N.A. dated
    April 30, 2007 (Incorporated herein by reference to
    Exhibit 10.7 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.9
Form of Participation Rights Agreement between Heritage-Crystal
    Clean, Inc. and The Heritage Group (Incorporated herein by
    reference to Exhibit 10.9 of Amendment No. 7 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.10†
Employment Agreement, dated as of August 24, 1999 by and
    between Heritage-Crystal Clean, LLC and Joseph Chalhoub, as
    amended March 1, 2000 (Incorporated herein by reference to
    Exhibit 10.8 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.11†
Employment Agreement, dated as of March 1, 2000 by and
    between Heritage-Crystal Clean, LLC and John Lucks (Incorporated
    herein by reference to Exhibit 10.10 of Amendment
    No. 1 to the Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.12†
Employment Agreement, dated as of November 15, 1999 by and
    between Heritage-Crystal Clean, LLC and Gregory Ray
    (Incorporated herein by reference to Exhibit 10.12 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.13†
Employment Agreement, dated as of September 14, 2002 by and
    between Heritage-Crystal Clean, LLC and Tom Hillstrom
    (Incorporated herein by reference to Exhibit 10.14 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.14†
Non-Competition and Non-Disclosure Agreement between Donald
    Brinckman and Heritage-Crystal Clean, LLC dated March 22,
    2002 (Incorporated herein by reference to Exhibit 10.16 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
II-3
Table of Contents
Exhibit
Number
Exhibit
10
.15†
Non-Competition and Non-Disclosure Agreement between Joseph
    Chalhoub and Heritage-Crystal Clean, LLC dated August 24,
    1999 (Incorporated herein by reference to Exhibit 10.32 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.16†
Non-Competition and Non-Disclosure Agreement between Gregory Ray
    and Heritage Crystal Clean, LLC dated November 15, 1999
    (Incorporated herein by reference to Exhibit 10.33 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.17†
Non-Competition and Non-Disclosure Agreement between John Lucks
    and Heritage-Crystal Clean, LLC dated March 1, 2000
    (Incorporated herein by reference to Exhibit 10.34 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.18†
Non-Competition and Non-Disclosure Agreement among BRS-HCC
    Investment Co., Inc., Bruckmann, Rosser, Sherrill &
    Co. II, L.P., Bruckmann, Rosser, Sherrill & Co., Inc.,
    Bruce C. Bruckmann and Heritage-Crystal Clean, LLC dated
    February 24, 2004 (Incorporated herein by reference to
    Exhibit 10.35 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.19†
Heritage-Crystal Clean, LLC Key Employee Membership Interest
    Trust Agreement dated February 1, 2002, as amended
    (Incorporated herein by reference to Exhibit 10.18 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.20†
Heritage-Crystal Clean, Inc. Omnibus Incentive Plan
    (Incorporated herein by reference to Exhibit 10.25 of
    Amendment No. 6 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
10
.21†
Heritage-Crystal Clean, Inc. Performance-Based Annual Incentive
    Plan (Incorporated herein by reference to Exhibit 10.26 of
    Amendment No. 6 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
10
.22†
Heritage-Crystal Clean, Inc. Non-Qualified Deferred Compensation
    Plan (Incorporated herein by reference to Exhibit 10.27 of
    Amendment No. 7 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.23†
Heritage-Crystal Clean, LLC Form of Omnibus Incentive Plan of
    2008 Stock Option Grant Notice and Agreement (Incorporated
    herein by reference to Exhibit 10.28 of Amendment
    No. 6 to the Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
10
.24†
Heritage-Crystal Clean, Inc. Employee Stock Purchase Plan of
    2008 (Incorporated herein by reference to Exhibit 10.29 of
    Amendment No. 7 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.25†
Form of Indemnity Agreement (Incorporated herein by reference to
    Exhibit 10.30 of Amendment No. 7 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.26
Multi-Story Office Building Lease between
    Heritage-Crystal-Clean, LLC and RP 2 Limited Partnership dated
    November 28, 2005 (Incorporated herein by reference to
    Exhibit 10.17 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.27
Form of Subscription Agreement entered into between
    Heritage-Crystal Clean, Inc. and the participants in the Direct
    Placement (Incorporated herein by reference to
    Exhibit 10.36 of Amendment No. 6 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
II-4
Table of Contents
Exhibit
Number
Exhibit
10
.28
Form of Equity Exchange Agreement among Heritage-Crystal Clean,
    Inc., Heritage-Crystal Clean, LLC and each member of
    Heritage-Crystal Clean, LLC (Incorporated herein by reference to
    Exhibit 10.39 of Amendment No. 8 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 11, 2008)
10
.29
Form of Agreement and Plan of Merger among Heritage-Crystal
    Clean, Inc., BRS-HCC Investment Co., Inc. and each stockholder
    of BRS-HCC Investment Co., Inc. (Incorporated herein by
    reference to Exhibit 10.40 of Amendment No. 7 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.30
Exchange Advisor and Placement Agent Agreement among
    Heritage-Crystal Clean, Inc., Heritage-Crystal Clean, LLC,
    William Blair & Company, L.L.C. and Piper
    Jaffray & Co. dated March 3, 2008 (Incorporated
    herein by reference to Exhibit 10.42 of Amendment
    No. 7 to the Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.31
Placement Agent Agreement among Heritage-Crystal Clean, Inc.,
    Heritage-Crystal Clean, LLC, William Blair & Company,
    L.L.C. and Piper Jaffray & Co. dated March 3,
    2008 (Incorporated herein by reference to Exhibit 10.43 of
    Amendment No. 7 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
23
.1**
Consent of Grant Thornton LLP, Independent Registered Public
    Account
23
.2**
Consent of KPMG LLP, Independent Registered Public Accountants
23
.3*
Consent of McDermott Will & Emery LLP (contained in
    their opinion filed as Exhibit 5.1)
24
.1
Powers of Attorney (included on signature page)
†
Indicates management contract or compensatory plan or
    arrangement.
*
To be filed by amendment.
**
Filed herewith.
(b) Financial Statement Schedules:
All financial statement schedules are omitted because they are
    not applicable or not required, or because the required
    information is provided in our consolidated financial statements
    or accompanying notes.
Item 17.
Undertakings
The undersigned registrant hereby undertakes:
(1) That, for the purpose of determining liability under
    the Securities Act of 1933 to any purchaser each prospectus
    filed pursuant to Rule 424(b) as part of a registration
    statement relating to an offering, other than registration
    statements relying on Rule 430B or other than prospectuses filed
    in reliance on Rule 430A, shall be deemed to be part of and
    included in the registration statement as of the date it is
    first used after effectiveness; provided, however, that no
    statement made in a registration statement or prospectus that is
    part of the registration statement or made in a document
    incorporated or deemed incorporated by reference into the
    registration statement or prospectus that is part of the
    registration statement will, as to a purchaser with a time of
    contract of sale prior to such first use, supersede or modify
    any statement that was made in the registration statement or
    prospectus that was part of the registration statement or made
    in any such document immediately prior to such date of first use.
(2) For purposes of determining any liability under the
    Securities Act of 1933, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule 430A and contained in a form of
    prospectus filed by the registrant pursuant to
    Rule 424(b)(1) or (4) or 497(h) under the Securities
    Act shall be deemed to be part of this registration statement as
    of the time it was declared effective.
II-5
Table of Contents
(3) For the purpose of determining any liability under the
    Securities Act of 1933, each post-effective amendment that
    contains a form of prospectus shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the
    Securities Act of 1933 may be permitted to directors,
    officers and controlling persons of the registrant pursuant to
    the provisions described under Item 14 above, or otherwise,
    the registrant has been advised that in the opinion of the SEC
    such indemnification is against public policy as expressed in
    the Securities Act of 1933 and, therefore, unenforceable. In the
    event a claim for indemnification against such liabilities
    (other than the payment by the registrant of expenses incurred
    or paid by a director, officer or controlling person of the
    registrant in the successful defense of any action, suit or
    proceeding) is asserted by such director, officer or controlling
    person in connection with the securities being registered, the
    registrant will, unless in the opinion of its counsel the matter
    has been settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Securities Act of 1933 and will be governed by the final
    adjudication of such issue.
II-6
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as
    amended, the registrant has duly caused this Registration
    Statement to be signed on its behalf by the undersigned,
    thereunto duly authorized, in the City of Elgin, State of
    Illinois, on this 18th day of May, 2010.
Heritage-Crystal Clean, Inc.
(Registrant)
By:
/s/
Joseph
    Chalhoub
Joseph Chalhoub
President, Chief Executive Officer and Director
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose
    signature appears below constitutes and appoints, Joseph
    Chalhoub and Gregory Ray, and each of them, his or her true and
    lawful attorneys-in-fact and agents, for him or her and in his
    or her name, place and stead in any and all capacities, to sign
    any and all amendments (including post-effective amendments and
    any registration statement for the same offering filed pursuant
    to Rule 462 under the Securities Act) to this registration
    statement, and to file the same, with all exhibits thereto, and
    other documents in connection therewith, with the Securities and
    Exchange Commission and any other regulatory authority, granting
    unto said attorneys-in-fact and agents full power and authority
    to do and perform each and every act and thing requisite and
    necessary to be done in and about the premises, as fully to all
    intents and purposes as he or she might or could do in person,
    hereby ratifying and confirming all that said attorneys-in-fact
    and agents may lawfully do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed by the following persons
    in the capacities indicated and on May 18, 2010.
Signature
Title
/s/
Joseph
    Chalhoub
Joseph
    Chalhoub
President, Chief Executive Officer and Director (Principal
    Executive Officer of the Registrant)
/s/
Gregory
    Ray
Gregory
    Ray
Chief Financial Officer, Vice President, Business Management and
    Secretary
(Principal Financial Officer of the Registrant)
/s/
Ellie
    Chaves
Ellie
    Chaves
Chief Accounting Officer of the Registrant
/s/
Fred
    Fehsenfeld, Jr.
Fred
    Fehsenfeld, Jr.
Director
/s/
Donald
    Brinckman
Donald
    Brinckman
Director
/s/
Bruce
    Bruckmann
Bruce
    Bruckmann
Director
II-7
Table of Contents
Signature
Title
/s/
Carmine
    Falcone
Carmine
    Falcone
Director
/s/
Charles
    E. Schalliol
Charles
    E. Schalliol
Director
/s/
Robert
    W. Willmschen, Jr.
Robert
    W. Willmschen, Jr.
Director
II-8
Table of Contents
EXHIBIT INDEX
Exhibit
Number
Exhibit
1
.1*
Form of Underwriting Agreement
3
.1(1)
Certificate of Incorporation of Heritage-Crystal Clean, Inc.
    (Incorporated herein by reference to Exhibit 3.1 of
    Amendment No. 6 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
3
.1(2)
Amendment to Certificate of Incorporation of Heritage-Crystal
    Clean, Inc. (Incorporated herein by reference to
    Exhibit 3.1(2) to the Company's Current Report on
Form 8-K
filed with the SEC on May 17, 2010)
3
.3
By-Laws of Heritage-Crystal Clean, Inc. (Incorporated herein by
    reference to Exhibit 3.2 of Amendment No. 6 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
4
.1
Form of Specimen Common Stock Certificate of Heritage-Crystal
    Clean, Inc. (Incorporated herein by reference to
    Exhibit 4.1 of Amendment No. 7 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
5
.1*
Opinion of McDermott Will & Emery LLP
10
.1
Restated Operating Agreement for Heritage-Crystal Clean, LLC
    dated October 26, 2004, as amended. (Incorporated herein by
    reference to Exhibit 10.1 of Amendment No. 1 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.2
Amendment No. 6 to Operating Agreement for Heritage-Crystal
    Clean, LLC dated December 28, 2007 (Incorporated herein by
    reference to Exhibit 10.37 of Amendment No. 4 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 1, 2008)
10
.3
Form of Agreement and Amendment No. 7 to Operating
    Agreement for Heritage-Crystal Clean, LLC (Incorporated herein
    by reference to Exhibit 10.38 of Amendment No. 4 to
    the Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 1, 2008)
10
.4
Third Amended and Restated Credit Agreement dated as of
    December 14, 2009 between Heritage-Crystal Clean, LLC and
    Bank of America, N.A. (Incorporated herein by reference to
    Exhibit 10.1 to the Company's Current Report on
Form 8-K
filed with the SEC on December 18, 2009)
10
.5
First Amendment to Third Amended and Restated Credit Agreement
    dated as of May 14, 2010 between Heritage-Crystal Clean,
    LLC and Bank of America, N.A. (Incorporated herein by reference
    to Exhibit 10.5 to the Company's Current Report on
Form 8-K
filed with the SEC on May 18, 2010)
10
.6
Intercreditor Agreement dated as of February 24, 2004 among
    Heritage-Crystal Clean, LLC, Bruckmann, Rosser,
    Sherrill & Co. II, L.P., Asphalt Refining Company and
    Donald Brinckman (Incorporated herein by reference to
    Exhibit 10.3 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.7
First Amended and Restated Promissory Note to Asphalt Refining
    Company dated December 29, 2006 (Incorporated herein by
    reference to Exhibit 10.6 of Amendment No. 1 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.8
Third Amended and Restated Note by Bank of America, N.A. dated
    April 30, 2007 (Incorporated herein by reference to
    Exhibit 10.7 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.9
Form of Participation Rights Agreement between Heritage-Crystal
    Clean, Inc. and The Heritage Group (Incorporated herein by
    reference to Exhibit 10.9 of Amendment No. 7 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.10†
Employment Agreement, dated as of August 24, 1999 by and
    between Heritage-Crystal Clean, LLC and Joseph Chalhoub, as
    amended March 1, 2000 (Incorporated herein by reference to
    Exhibit 10.8 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
II-9
Table of Contents
Exhibit
Number
Exhibit
10
.11†
Employment Agreement, dated as of March 1, 2000 by and
    between Heritage-Crystal Clean, LLC and John Lucks (Incorporated
    herein by reference to Exhibit 10.10 of Amendment
    No. 1 to the Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.12†
Employment Agreement, dated as of November 15, 1999 by and
    between Heritage-Crystal Clean, LLC and Gregory Ray
    (Incorporated herein by reference to Exhibit 10.12 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.13†
Employment Agreement, dated as of September 14, 2002 by and
    between Heritage-Crystal Clean, LLC and Tom Hillstrom
    (Incorporated herein by reference to Exhibit 10.14 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.14†
Non-Competition and Non-Disclosure Agreement between Donald
    Brinckman and Heritage-Crystal Clean, LLC dated March 22,
    2002 (Incorporated herein by reference to Exhibit 10.16 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.15†
Non-Competition and Non-Disclosure Agreement between Joseph
    Chalhoub and Heritage-Crystal Clean, LLC dated August 24,
    1999 (Incorporated herein by reference to Exhibit 10.32 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.16†
Non-Competition and Non-Disclosure Agreement between Gregory Ray
    and Heritage Crystal Clean, LLC dated November 15, 1999
    (Incorporated herein by reference to Exhibit 10.33 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.17†
Non-Competition and Non-Disclosure Agreement between John Lucks
    and Heritage-Crystal Clean, LLC dated March 1, 2000
    (Incorporated herein by reference to Exhibit 10.34 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.18†
Non-Competition and Non-Disclosure Agreement among BRS-HCC
    Investment Co., Inc., Bruckmann, Rosser, Sherrill &
    Co. II, L.P., Bruckmann, Rosser, Sherrill & Co., Inc.,
    Bruce C. Bruckmann and Heritage-Crystal Clean, LLC dated
    February 24, 2004 (Incorporated herein by reference to
    Exhibit 10.35 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.19†
Heritage-Crystal Clean, LLC Key Employee Membership Interest
    Trust Agreement dated February 1, 2002, as amended
    (Incorporated herein by reference to Exhibit 10.18 of
    Amendment No. 1 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.20†
Heritage-Crystal Clean, Inc. Omnibus Incentive Plan
    (Incorporated herein by reference to Exhibit 10.25 of
    Amendment No. 6 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
10
.21†
Heritage-Crystal Clean, Inc. Performance-Based Annual Incentive
    Plan (Incorporated herein by reference to Exhibit 10.26 of
    Amendment No. 6 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
10
.22†
Heritage-Crystal Clean, Inc. Non-Qualified Deferred Compensation
    Plan (Incorporated herein by reference to Exhibit 10.27 of
    Amendment No. 7 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.23†
Heritage-Crystal Clean, LLC Form of Omnibus Incentive Plan of
    2008 Stock Option Grant Notice and Agreement (Incorporated
    herein by reference to Exhibit 10.28 of Amendment
    No. 6 to the Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
II-10
Table of Contents
Exhibit
Number
Exhibit
10
.24†
Heritage-Crystal Clean, Inc. Employee Stock Purchase Plan of
    2008 (Incorporated herein by reference to Exhibit 10.29 of
    Amendment No. 7 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.25†
Form of Indemnity Agreement (Incorporated herein by reference to
    Exhibit 10.30 of Amendment No. 7 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.26
Multi-Story Office Building Lease between
    Heritage-Crystal-Clean, LLC and RP 2 Limited Partnership dated
    November 28, 2005 (Incorporated herein by reference to
    Exhibit 10.17 of Amendment No. 1 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on August 3, 2007)
10
.27
Form of Subscription Agreement entered into between
    Heritage-Crystal Clean, Inc. and the participants in the Direct
    Placement (Incorporated herein by reference to
    Exhibit 10.36 of Amendment No. 6 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on February 25, 2008)
10
.28
Form of Equity Exchange Agreement among Heritage-Crystal Clean,
    Inc., Heritage-Crystal Clean, LLC and each member of
    Heritage-Crystal Clean, LLC (Incorporated herein by reference to
    Exhibit 10.39 of Amendment No. 8 to the Company's
    Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 11, 2008)
10
.29
Form of Agreement and Plan of Merger among Heritage-Crystal
    Clean, Inc., BRS-HCC Investment Co., Inc. and each stockholder
    of BRS-HCC Investment Co., Inc. (Incorporated herein by
    reference to Exhibit 10.40 of Amendment No. 7 to the
    Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.30
Exchange Advisor and Placement Agent Agreement among
    Heritage-Crystal Clean, Inc., Heritage-Crystal Clean, LLC,
    William Blair & Company, L.L.C. and Piper
    Jaffray & Co. dated March 3, 2008 (Incorporated
    herein by reference to Exhibit 10.42 of Amendment
    No. 7 to the Company's Registration Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
10
.31
Placement Agent Agreement among Heritage-Crystal Clean, Inc.,
    Heritage-Crystal Clean, LLC, William Blair & Company,
    L.L.C. and Piper Jaffray & Co. dated March 3,
    2008 (Incorporated herein by reference to Exhibit 10.43 of
    Amendment No. 7 to the Company's Registration
    Statement on
Form S-1
(No. 333-1438640)
filed with the SEC on March 7, 2008)
23
.1**
Consent of Grant Thornton LLP, Independent Registered Public
    Account
23
.2**
Consent of KPMG LLP, Independent Registered Public Accountants
23
.3*
Consent of McDermott Will & Emery LLP (contained in
    their opinion filed as Exhibit 5.1)
24
.1
Powers of Attorney (included on signature page)
†
Indicates management contract or compensatory plan or
    arrangement.
*
To be filed by amendment.
**
Filed herewith.
II-11