2012 About Us Think Clean. www.cleanlogix.com 1 | Page Contents... Section Page It’s About You (and Your Business) 2 Think Clean 3 Value Proposition 4 Proven Hands-on Experience 5 Meeting the Challenge 7 Inventing the Future 8 Intellectual Property 9 Business-to-Business Communication 11 Networking with Industry 13 Partnering for Success 14 Stewardship 15 Biography of the Chief CO2 Guy 16 2 | Page It’s About You (and Your Business)... CleanLogix works with you to specify, build, validate and implement state-of-the-art lean and green (aka “clean”) manufacturing technology (CleanTech). Our business is about reducing your manufacturing waste (i.e., lowering production costs) using best available CleanTech. Our core competency uniquely focuses on the use of natural, recycled carbon dioxide (CO2) as a green manufacturing agent. Our customers have realized huge cost savings using our innovative CO2 CleanTech and expert implementation services. CleanLogix is a product of more than 25 years of experience developing and implementing innovative and effective clean manufacturing technology for both large and small businesses. We have a lot of bright ideas; tools, technology, training, expertise and experience to help sustain your business. Our products and services improve your bottom line. We deliver real, measurable value in the form of improved manufacturing productivity and product quality. Our products and services lower energy consumption, eliminate water usage and wastewater production, resolve air pollution and nuisance odor issues, shrink material and labor inputs and reduce many other forms of manufacturing waste. We implement effective lean and green manufacturing methods and processes, and develop clean-enabled assembly tools that produce products at lower cost and with less environmental pollution. We also help you develop unique manufacturing strategies which serve as intellectual property that strengthens your competitive position. We appreciate your interest in CleanLogix (and our selling partners too) and thank you for this opportunity to present our unique company and value proposition. We invite your careful review and look forward to developing a lasting and profitable relationship. For additional information about our company please contact me by e- mail at [email protected]. Sincerely, David Jackson Chief CO2 Guy 3 | Page Think Clean... As our company name and “The CO2 Guy” icon imply, thinking clean is about bright and logical ideas for eliminating manufacturing waste. Manufacturing waste is generally thought of as any resource used in a production process that does not go out as part of the product and costs you money to get rid of it. However, manufacturing waste also exists in many other forms, for example excessive factory space utilization for equipment (production and waste treatment equipment), inefficient material and process flows, inefficient use of facility labor and lost productivity of both labor and equipment. These examples of waste significantly impact profitability too, but are often obscured in overhead accounts or generally overlooked in the manufacturing operation. The bottom line is that manufacturing waste stealthily steals from your hard- earned operating margin. In an era of complex business challenges; intense global competitiveness, burdensome environmental regulation and resource constraints, your company needs both lean and green (clean) manufacturing technology (CleanTech) to eliminate multifaceted manufacturing wastes in your production operations. If you manufacture high-tech or high-reliable products, you need state-of-the-art CleanTech and implementation expertise for successful development and execution of manufacturing waste reduction programs. To assist you in this endeavor, our bright ideas are grounded in the following fundamental concepts: • CleanTech eliminates or reduces composite forms of manufacturing waste: time, labor, space, transport, defect, inventory, processing, equipment, raw materials, air pollution, water pollution, wastewater, solid wastes, and energy wastes. • CleanTech improves quality and reliability requirements imposed by advanced materials, manufacturing methods and processes, and applications. • CleanTech such as flexible automation, modular and clustered assembly operations (cells) eliminate repetitive operational task errors and reduce skilled labor wastes. • CleanTech such as more adaptable and flexible production tools and methodologies improve efficiency and productivity in low volume-high mix-high value production operations. 4 | Page Value Proposition… Our Mission We improve your business profitability through the integration or infusion of clean manufacturing ideas; tools, technology, training, expertise, and experience into your manufacturing operations. Our Program We work with your engineers to specify, build, validate and implement best-in-class equipment, methods, processes and training that improve manufacturing productivity and quality while reducing energy costs, material and labor inputs and other production wastes. This effort may include innovating or inventing cleaner methods and processes where none exist or developing new clean-enabled products and strategies for expanding markets and applications. CleanLogix LLC delivers real, measurable value to your business by decreasing time, space, material, labor, energy, and capital wastes. 5 | Page Proven Hands-on Experience… Creating new Industry • Founded CleanLogix to develop various markets and applications for advanced clean manufacturing technologies using an outsourced manufacturing and value-add reseller (VAR) business development strategy. • Spearheaded a 25 year CO2 technology development and commercialization effort that included production tools utilizing all phases of CO2. Consulting to Industry • Successfully secured project financing from the United Soybean Board for a program to demonstrate a novel employment of soy-based lubricants in combination with near-cryogenic fluids for precision machining applications. • Developed wastewater and storm water discharge compliance strategies for customers such as Warner Brothers Studios, Mobil Oil, and the City of Los Angeles. • Served as an Expert Technical Witness on behalf of Stainless Steel Products (SSP), Burbank, CA in a successful defense against unlawful industrial wastewater discharges in a class action lawsuit filed by the (EPA) Department of Justice. • Managed industrial waste discharge program and treatment plant laboratory operations for the City of Burbank, California. • Managed EPA-certified testing laboratory facilities at several publicly owned wastewater treatment plants located throughout Southern California, including the cities of Rialto, Arrowhead, Pismo Beach, San Juan Capistrano and Camarillo. • Trained plant operators in various pollution testing protocols including gas chromatography, atomic absorption spectrophotometry, wet chemical analysis, physical analysis, fish toxicity bioassay, and radiochemical analysis. • Implemented treated wastewater discharge impact assessments including several ocean outfall sediment recovery dive expeditions, and lake water and bottom sediment pollution studies. 6 | Page Working within Industry • Principle investigator under a Department of Energy (DOE) grant to investigate the energy savings potential for CO2-enabled precision machining operations. • Established new outsourced programs for marketing and selling carbon dioxide (CO2) based clean manufacturing products for Cool Clean Technologies (technology owned by and licensed from CleanLogix) as well as products from several other CleanTech companies • Managed corporate environmental engineering programs including employee Right-to- Know and Proposition 65 notification training, air pollution control permitting, wastewater treatment, and hazardous waste management. • Implemented waste minimization programs for manufacturing facilities involving machining, welding, electroplating, powder coating, precision cleaning and wastewater treatment operations. • Served as a contamination control specialist and consultant, providing technical support for various programs such as Airborne Optical Adjunct (AOA) and Boost Surveillance Tracking System (BSTS). • Managed precision cleaning and functional fluids testing facilities. • Developed first-generation liquid and supercritical CO2 cleaning technology. • Developed solvent replacement technology called the Reactive Aqueous Defluxing System (RADS) for de-fluxing printed circuit boards. • Lead investigator and principal author of Hughes corporate study and report: “Chlorofluorocarbons (CFCs) Usage Audit and Replacement Opportunity Assessment” in preparation for the 1989 Montreal Protocol ODS phase-out. 7 | Page Meeting the Challenge… A Better Way to Clean Hard Disk Drives A major disk drive manufacturer required a dry and selective cleaning process to replace ultrasonic aqueous operations for cleaning disk drive components. CO2 composite spray cleaning was selected due to its ability to effectively remove microscopic particles and residues from partially assembled hard disk drive components. Fully- burdened cleaning costs were reduced between 60% and 85%, a $2,000,000 per year operating cost reduction. Clean Machining A machining company needed a viable PCD-coated tool turning process to replace a 3-hour Tungsten Carbide (WC) grinding operation using a diamond wheel. CO2 machining technology improved PCD-coated carbide insert life by greater than 10x (1000%) with 2x (200%)