This document summarizes information about Permagard America, a company that develops protective coatings. It provides contact information for two employees, details on Permagard's global operations treating surfaces in aviation, marine and automotive industries. The document also lists some of Permagard's global partnerships and describes benefits of Permagard coatings such as reducing cleaning time, retarding paint deterioration, and improving appearance.

1. Contacts Shane Heminway Cell: 512-300-3167 Todd Johnson Office 858-357-9624 Cell: 858-864-6726 Permagard America 828 Prospect St. Suite E La Jolla, CA 92037 info@permagardamerica.com www.permagardamerica.com COPYRIGHT This presentation and the slides contained therein are the exclusive property of PERMAGARD. This presentation cannot be reproduced either in whole or in part without the express written consent of PERMAGARD AMERICA. © PERMAGARD AMERICA

2. PERMAGARD GLOBAL • PERMAGARD was incorporated in 1998 and specializes in the development and the manufacturing of highly durable performance and protective coatings for paint, polyurethane top coats and gel coats. • PERMAGARD is a privately owned company that now operates in 23 countries. • PERMAGARD operates in three primary markets: aviation, marine and automotive. • PERMAGARD treatments provide a protective barrier between the elements and the paint surface. • PERMAGARD reduces friction and surface marks caused by everyday washing. • PERMAGARD fills in surface scratches or ‘spider webs’. • Providing the annual service treatment is adhered to, the paint surface will retain its depth of shine for the life of the vehicle. © PERMAGARD TEXAS 2007 © PERMAGARD AMERICA 2009

3. Benefits of Treating Painted Surfaces • Removing and smoothing out the imperfections on the painted surface means that there is less chance for harmful substances to take hold on treated surfaces so consequently greatly reduces the maintenance time required to keep the surfaces clean. • Ease of washing is a key factor in maintaining long term gloss and condition. Much of the micro-scratching, or “spider’s webs”, that can develop is due to inappropriate plane washing techniques and often the use of too much applied force when the cleaners try to “scrub” a plane clean. •Significantly retards deterioration of paint and gel coat from premature drying and oxidation. Therefore extending the life of the paint. •Optimizes the appearance of the airplane. © PERMAGARD AMERICA 2009

5. AVIATION FACTS • Permagard have reduced Virgin Blues cleaning time on a test 737-700 by over 50%. • Permagard Aviation have proved a reduction in EPR to maintain cruise speed on three brands of jet in the last year. • Permagard have retarded rivet rash issues on Virgin Blue 737-700. • Permagard Aviation have restored oxidized paint for Qantas without cutting the paint (which would reduce its depth and integrity). • Permagard coatings have been proven to continue to be effective after over 1000 cycles and flying the equivalent to the moon and back. • Permagard have worked with the leading brands in aviationincluding Boeing, Airbus, Dassault, Global Express, Bombardier, Falcon, Cessna and Gulfstream. © PERMAGARD AMERICA 2009

6. SCIENTIFIC ANAYLISIS Type: Amino, Methoxy functional polydimenthyl polymer fluid. • Physical Form: Low viscosity thin liquid (milky white). • Special Properties: High corrosive resistance, excellent water and chemical repellence and deep gloss. © PERMAGARD AMERICA 2009

7. TECHNOLOGY • PERMAGARD’s reactive polymer coatings bond chemically to the pores of the paintwork to seal and protect the surface. As the treated surface cures, the plasticized molecules elongate, interlocking with each other, resulting in tough bonded protective coating maintaining a durable high gloss finish. Reactive Polymer Ptfe locked onto surface © PERMAGARD AMERICA 2009

8. APPLICATION Step 1 The paint surface is cleaned of fuel, grease, grime, salt, wax & silicone residues. Step 2 P5000 pre-treatment is applied depending on the condition of the paint. Step 3 P5000 reactive polymer treatment is then applied using low speed oscillators. Instant bonding commences between the polymers and paint molecules, creating a very durable coating once fully cured. © PERMAGARD TEXAS 2007

9. Case Study Pre-Treatment 2005 The paint is only two years old but is suffering from severe oxidation of the roof (a pinkening) and rivet rash. Both of these problems are caused by a combination of over-cleaning with over-concentrated detergents and UV rays. © PERMAGARD AMERICA 2009

10. After Treatment This plane was treated in 2005 and was subject to monthly examination for a year by Virginblue and Boeing technicians. Having travelled a distance equivalent to the moon and back the plane showed no signs of either the oxidation or rivet rash returning. Virginblue has now decided to initiate treatment throughout the fleet.

11. Fuel Saving A recent study by Qantas showed that some of their dirty and oxidized aircraft were using up to 6% more fuel than a clean aircraft, resulting in an additional cost of $250,000 per year, per aircraft. A recent Boeing study reports that on the test 737 a 1% reduction in drag equates to 15,000 gallons per year. *Assumes typical airplane utilization rates. A large Australian competitor to Virginblue cut and polish their leading edges 3 times a year to gain a 1% fuel reduction. Boeing has confirmed that excrescence drag, due to fluid leaks, corrosion, surface roughness etc. is considered a relevant factor in reducing fuel burn. A recent Gulfstream IV Permagarded at Mascot airport, Sydney has proved a reduction of fuel burn of up to 4%. © PERMAGARD AMERICA 2009

12. Carbonized turbo prop Before During After © PERMAGARD TEXAS 2007

13. Gulfstream Flight Department Office: Australian Jet Charter. Ross Smith Drive East. Mascot NSW 2020 Australia. Mail: P.O. Box 375, Mascot NSW 1460 Australia Telephone: (61) 2 9317-3079 Fax: (61) 2 9317-4442 Permagard Australia Unit 3/25 Benelong Cres Belleview Hill NSW 2023 24 October 2007 Dear Chris, Our Company Gulfstream had Permagard applied nearly two months ago. The paintwork is just over a year old so the general condition is still very good. However we were anxious to protect the paint before there was any deterioration and make the Jet easier to keep clean. The Permagard appears to be very successful and since the treatment we have had many compliments on the appearance of the Jet. It is also much easier to keep clean. We have noticed that when the Jet is parked outside a good shower of rain will wash most of the accumulated dust off. Likewise flying through precipitation does a very good wash. The brightwork on the wing leading edges and engine intakes stay clean and polished. Corrosion protection is vastly improved which is good as this has always been a problem for us. Previously the brightwork used to go dull after a few weeks but we are almost two months on and the shine is excellent. Areas which are subject to Engine and APU exhaust sooting are less affected and easy to clean. Early indications indicate a 2-4% decrease in fuel flow. The Jet uses Performance Computer calculations to provide a power setting (EPR) for the ambient conditions, speed and weight. The computed and actual power settings are always displayed. Our Jet previously required an extra 0.04% EPR to produce the commanded speed (normally M.80). This difference is caused by all sorts of factors and tolerances, control rigging, age of the Jet etc. Since the Permagard treatment the extra EPR required to produce M.80 has decreased to 0.02 above the computed power. This equates to a 2% reduction in fuel flow. At M.85 the fuel flow reduction is in the order of 4%. While it will take some time to gather more data there seems to be a definite decrease in drag and the fuel savings will be quite considerable. I am very satisfied with the product and would recommend it to any aeroplane operator. Best regards, John Dyer Chief Pilot News Limited © PERMAGARD AMERICA 2009

14. Channel 4 Helicopter, Australia © PERMAGARD AMERICA 2009

15. Prodrive chooses PERMAGARD Thank you very much for the absolutely superb job your team did on the helicopter. I had a good look round yesterday and along with the work that Ray has done on the internals and various repainting and it now looks like a brand new helicopter. I understand that the man from ‘Helicopter Life’ was with you and did photographs last week but if there is anything further that you require of me in respect of promoting your product please let me know. I trust you have made contact with Graham Prew and the team in respect of applications to competition cars. Please keep in touch. Regards David Richards (Owner of Prodrive) © PERMAGARD AMERICA 2009

16. Norwegian Air Force: Search and Rescue Fleet PERMAGARD was contracted to treat the first helicopter for the Norwegian Air Force in 2001. The Permagard treatment has now been completed on the entire fleet of nine helicopters. This involves an initial de-carbonization following by a pre-treatment which smoothes out the paint surface filling in surface scratches and imperfections. Finally a full reactive polymer coating is applied. Since the initial treatment of the helicopters none have required a re-paint. PERMAGARD application 2001 PERMAGARD service treatment 2007 Norwegian Air Force Helicopters Testimonial “Time is critical to us. Permagard saves us a lot of time on the ground cleaning our helicopters... In our business time saves lives.” © PERMAGARD AMERICA 2009

17. OXIDATION Oxidation results in a dull chalky appearance and cannot be washed off. It is particularly noticeable on solid gloss colors such as reds (which tend to “fade” to orange-red), whites (which appear to yellow) etc. The PERMAGARD system removes oxidation from the paint surfaces chemically, using specialist solvents of varying degrees of strength and not by the traditional use of abrasive polishes. The PERMAGARD body coating once applied to painted surfaces significantly retards further oxidation, and if followed up with maintenance service coatings will eradicate oxidation altogether, resulting in an indefinitely lasting gloss. 60ft Volvo Ocean Race Yacht Oxidized De-Oxidized © PERMAGARD AMERICA 2009

19. ENVIRONMENTAL • The application of PERMAGARD substantially increases the durability of the paint surface whilst eradicating the need for chemical cleaning or abrasive polishing. Therefore PERMAGARD is most effective way of maintaining your airplane whilst been environmentally responsible. • The EU is committed to reducing the use of toxic chemicals in the production of paints and gel coats. Consequently rules and regulations are becoming increasingly more stringent on the use of toxic chemicals. The substitution of toxic ingredients by other less harmful alternatives can result in certain paints and gelcoatsbecoming less durable. From 1 June 2007 the situation will be governed by the EEC directive REACH (Regulation (EC) No 1907/2006). • “The aims of the proposed new Regulation are to improve the protection of human health and the environment while maintaining the competitiveness and enhancing the innovative capability of the EU chemicals industry. REACH would furthermore give greater responsibility to industry to manage the risks from chemicals and to provide safety information on the substances.” Source: EU Commission website • The application of PERMAGARD is environmentally safe. PERMAGARD contains no toxic ingredients. Its application does not generate any noise pollution, dust or pollutants into the environment. PERMAGARD will not generate any airborne pollutants or residual waste. © PERMAGARD AMERICA 2009

20. PERMAGARD INTERIORS PERMAGARD has a full range of interior treatments to coat and protect all interior fabrics, carpets, leather, dash and door materials: renders each permanently water and stain proof, without affecting the natural qualities of the fabric. They also prevent sun fading, premature ageing and cracking of leather and plastics in extreme heat. © PERMAGARD TEXAS 2007