Full Eco Shield Panel Report revised

ECOSHIELD FRAMING SYSTEMS, LLC www.ecoshieldfs.com Changing the Building Industry The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 1 of 53

Table of Contents EcoShield Framing Systems Cover Page ……...…………………………….. Page 1 Table of Contents ………………………………………..………………….. Page 2 EcoShield Framing Systems Overview ………………………..……………… Page 3 Benefits and Capabilities ……………………………………………..………… Pages 4-6 Product Review, assemblies & components, thermal break assembly .. Pages 7-8 Components of a structural wall system …………………………………….. Page 9 Structural Integrity, ICC and Building Code Compliance........................... Page 10 Selling Sheet …………………………………………………….………………… Page 11 Stick vs. Sips Construction Time................................................................. Pages 12-13 Insect Resistance........................................................................................... Page 14 Mold Resistance............................................................................................. Pages 15-16 Fire Resistance............................................................................................... Pages 17-19 General Information....................................................................................... Page 20 Home Efficiency / Market Values ……………………………………….……… Page 21 How much would your Home be worth? ..................................................... Page 22 Brock University Side by Side …………………………………………..…….. Pages 23-26 Case Studies ~ Energy Efficiency Oak Ridge Nat. Laboratories (ORNL) Pages 27-28 Energy Savings ~ Morley ……………………………………………………… Pages 29-31 ORNL R-Value Studies (SIPs vs. Stick) …………………………………….. Pages 32 ORNL Charts (SIPs vs. Stick) ………………………………………………… Page 33 Energy Star …………………………………………………………..………….. Page 34 Higher Resale Value References ……………………………………………. Page 35 Tax Credits …….………………………………………………………………… Page 36 Industry Related Articles ……………………………………………………… Pages 37-38 Frequently Asked Questions …………………………………………………. Pages 39-43 Summary....................................................................................................... Pages 44-46 Pictures of panel erection …………………………………………………….. Page 47 Pictures of completed homes and commercial structures …………….. Pages 48-53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 2 of 53

MISSION STATEMENT EcoShield Framing Systems delivers a proprietary, specially engineered, panelized, wall and roof building system, with superior energy savings, environmental sensitivity, enhanced safety and convenience at significant cost savings. OVERVIEW EcoShield Framing Systems proprietary approach to constructing panelized wall and roof building systems, under strict factory conditions, leads to a unique level of quality in the overall product. Each individual component is designed and engineered using Computer Aided Design, (CAD). This capability enables EcoShield Framing Systems to customize both floor plans and elevations with the added power of translating the clients’ visions into reality. This critical CAD element has improved much of EcoShield Framing Systems' overall effectiveness as a vertically integrated, instant communication manufacturing organization. This new superior quality level and use of, high energy saving components leads to significant energy savings and flexibility of design using environmentally friendly materials. The fact that the world’s tree/wood supply is being exhausted desperately calls out for the need and use of alternative technologies. This overall building approach will set a new standard of excellence and efficiency in the ‘green’, home building industry…one that does not exist today. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 3 of 53

Benefits and Capabilities of the EcoShield Framing Systems (EFS)  Higher Resale Value1 - Studies by the Appraisal foundation document that structures with a higher energy savings will command a higher sales price in the marketplace.  Less expensive than stick construction2 - In general, the material costs of the structural building system are less expensive than typical wood framed homes.  Easier to work with and less expensive than SIPs construction with OSB3 - The EcoShield Framing Systems does not have OSB on the interior or exterior, thus allowing for adjustment in the field to correct inconsistencies in any plans.  Easier to work with than metal skinned SIPs panels - The system does not have metal skins on both sides, allowing for easier adjustment in the field. The structural building system can be disassembled in the field, reconfigured and reassembled as needed  Higher STC Values4- The EcoShield Framing Systems can provide a Higher STC performance due to the sound deadening ability of the EPS used in the individual panels.  Ability to meet geophysical hazards - The EcoShield Framing Systems can be designed to meet the most severe geophysical environmental hazards. The System can be configured to meet the codes by including additional engineering requirements for stability and adjusting the method of assembly.  Ability to meet structural and energy building codes - The EcoShield Framing System has been designed to meet the latest building codes both for structural stability and energy efficiency codes.  Energy Efficient— The EcoShield Framing System is designed to provide the highest attainable energy efficiency.  Easier and faster to assemble in the field - The EcoShield Framing System is delivered on site with detailed on-site assembly/erection instructions. The system is built as engineered, and is generally within 1/8\" of square, and true.  Superior energy savings - The system can be configured and assembled in a manner that provides a product that has superior energy savings over a traditionally built structure  Environmental sensitivity - The system can be configured to be environmentally sensitive to the location where the structure is to be built  Enhanced safety and convenience - The system removes costly and expensive changes in the field, and by doing so makes the system more convenient to use  Less waste - The system is manufactured in a controlled environment which results in minimal waste and precise manufacture.  Easier to work with than lCFs - The system is easier to use than insulated concrete forms.  2012 IBC, IRC and IECC Code Approval - The structural building system has been certified to meet or exceed the latest IBC, IRC and IECC building codes  ICC Report - The benefit of the ICC report on the structural system allows zoning jurisdictions to accept the product without additional documentation. 1 Evidence of Rational Market Values for Home Energy Efficiency,” Rick Nevin and Gregory Watson, Appraisal Journal, October 1998. (Adobe Acrobat Format) This study demonstrates the increased value of energy-efficient homes, assigning estimated incremental home value. \"More Evidence of Rational Market Values for Home Energy Efficiency\" Appraisal Journal, October 1999 2 Cost savings will vary from 5% to 25% less than wood framed structures 3 The absence of OSB allows for easier installation of electrical and HVAC components 4 EPS Industry Alliance (Formally EPS Molders Association) The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 4 of 53

Structural Configurations The structural building system panels can be configured to be used in the following capacities:  Structural Wall Panels - The system can be used to build structural wall panels  Floor Assemblies - The system can be used to build insulated structural floor systems with electrical and HVAC ducts pre-installed.  Roof Assemblies - The system can be used to build insulated structural roof systems with electrical and HVAC ducts pre-installed.  Mobile Home Manufacturing - The system can be used to build mobile homes and meet the safety requirements set by the Department of Housing and Urban Development (HUD), while providing a more energy efficient structure.  Commercial Building Construction - The system can be used in the construction of commercial buildings.  Travel Trailer Manufacturing - The system can be used for the manufacturing of travel trailers  Emergency Housing - The system can be used to manufacture emergency housing  Oil and Gas Field Employee Housing - The system can be used to build Oil and Gas Field employee housing as a self-contained system  Sheds & Self Storage Units- The system can be configured to build sheds, and self- storage units.  Floor Assemblies - The system can be configured to act as a structural floor component.  Second and Third Story Floors - The system can be configured to be a second or third story floor.  Concrete Cap - The floor assembly can be configured to accept a concrete cap, and can be used for either a main floor structural component, a second story structural floor component, or the system can be configured to be used as a roof assembly with a concrete cap.  Modular Building Manufacturing - The system can be used to build modular buildings including homes, commercial buildings, and multi-family structures.  Elimination of Wood - The system can be configured and is designed to eliminate usage of wood; including wood products that would normally be used for studs, floor joists, ceiling rafters and sub-flooring.  Drop Ceilings - The system can be configured to be used in the construction of drop ceilings.  Replaceable Concrete Panels & Inserts - The system can be configured to accept replaceable concrete surface and fascia panels. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 5 of 53

Advantages and Benefits Some of the advantages of a structure or home built with the EcoShield Framing Systems panels are as follows:  Insect and Mold Resistant 5- The components of the system are resistant to mold  High Energy Efficiency Components 6- The components of the system provide a highest amount energy saving than typical wood framed structures  Increased Home Resale Values7 - Structures built with our system will command a higher resale value  Decreased Building Time - A single story 1,200 sq. ft structure can be assembled in about three days compared to three of four weeks as needed for a similar sized wood framed home.  A True Green Product - All components of the system can be recycled  Decreased Mortgage & Payment Rates8 - Structures built using our components can qualify for an energy star, along with energy efficient mortgages.  Potential Energy Tax Credits9 - Structures built with or panels in the past have qualified for energy tax credits with the US Government.  Reduced Energy Costs - Since the structure has better energy efficiency, smaller HVAC units and costs are needed  Increased Life Expectancy of Building10 - With little or no maintenance the structure should have a minimum life expectancy of 75 plus years compared to an average of 45 years for a similar wood framed structure  High Wind Load Survivability - The system can be configured to meet the requirements for the location where the structure is to be built.  Reduced Thermal Loss11 - The system’s thermal break component virtually eliminates thermal transfer.  Reduced Insurance Rates12 - Due to the fire-retardant chemicals contained in the wall components a lower insurance rate can be obtained  Reduced Costs for Heating and Cooling Equipment - Reduced HVAC equipment is required due to the energy efficiency of the structure 5 EPS Molders Association 6 The Appraisal Foundation 7 The Appraisal Foundation 8 Local mortgage companies would have to be contacted to see which company has the better financing packages 9 US Internal Revenue Service 10 Determination made by a licensed Arizona General Real Estate Appraiser 11 The thermal break assembly for the system is subject to a patent filing for the system, and is one of several patent claims currently in the process of being filed with the USPTO and other foreign governments to protect the system 12 Local insurance companies would have to be contacted to get the best rates The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 6 of 53

EcoShield Framing Systems Structural Building Systems and Structural Assemblies Combine Structural Foam Insulation and Steel13 Two unmistakable trends in the home building industry are leading to the fact that dimensional lumber is losing its place as the dominant structural material, and manufactured components are steadily replacing site-built ones. The expectation is that panelized walls will grow in greater importance. EcoShield Framing Systems engineered panels feature 20 and 18-gauge steel studs for strength and expanded polystyrene (EPS) foam for insulation. Wall panels range from 3 ½ in. to 6 in. thick (up to R-30) and roof panels up to 12 in. thick (R-50). EPS foam is ozone-safe, because it uses air for a blowing agent, rather than CFC and HCFC compounds used by some other foam makers. The panels are made by first routing the panels to accept a structural steel stud, with the studs being spaced depending on engineering specifications. Lateral stabilizing track is placed on the top and bottom edges join the assembly together. Steel angle wraps each corner, inside and out, and fastens to the studs. Siding can be screwed directly to the Studs. Window and door openings are built into the panels. Roof panels can sit on a ridge beam resulting in an entire upstairs with cathedral ceilings. With R-30 walls and R-50 roofs made from SIPs panels, the heating load is about 25 to 30 percent of a wood-framed house. This allows a high-recovery water heater to satisfy all water heating and space heating needs. A wiring chase is preformed into the wall panels and electrical boxes attach to the steel studs. EcoShield Framing Systems recommends that plumbing be located in interior partitions or in specially-built plumbing chases. The wall panels can be used below grade, too. The panels sit on a standard footing. A patented special waterproofing material can be applied to the panel which reduces the need for Treated Waterproof Plywood. ROOF, FLOOR and CEILING STRUCTURAL ASSEMBLIES Primary individual roof panels are from 12' to 24\" wide and 8\" to 12” thick that are assembled into a structural roof assembly. They are supported by ridge and purlin (mid-span) glue laminated beams. Gable, Hip, Mansard, Arched and Flat roofs can all be constructed using EcoShield Framing Systems roof panels. By design the roof assemblies can be vaulted in the interior. The vaulted area can be left vaulted and showcase the expansiveness of your rooms or a ceiling can be constructed within to create a loft area 13 EcoShield Framing Systems, LLC – McKinney, Texas. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 7 of 53

thereby increasing square footage of living space within the same sized envelope. Floor panels like the roof panels are from 12' to 24\" wide and from 6\" to 12” thick. The panels when assembled together create a structural floor system that can be used as a primary floor or as floor for multi- story structures. The completed floor assembly can have a concrete cap attached to it for areas where using wood floor sheeting in not either desirable or not realistic. Skylights and dormers are easily incorporated into the structural roof assemblies as desired. EXTERIOR WALLS Standard EcoShield Framing Systems exterior wall panels are generally 5 1/2\" to 6\" thick. Other thickness sizes are available specific to individual customer needs. All window and door openings, and associated headers, are built into the panels at the factory. Further, electrical chases are factory routed into each wall panel. In most cases it is not necessary to use exterior sheathing; however, all panels should be wrapped in the field with house wrap as a good building practice. Wall panels are custom made specific to each structure’s architectural plans. Lengths may vary from 1'' to 40' or more; panel heights of 8', 9', and 10' are standard. EcoShield Framing Systems will build wall heights of any size to suit your needs. All types of exterior finishes; aluminum siding, brick, cedar shake, metal siding, stone, stucco, vinyl or wood siding are compatible with the panelized wall system. GABLE PANELS Typically gable wall panels are the same thickness as the exterior walls below them. All necessary structural support for roof load beams and any openings are incorporated into them at the factory. STRUCTURAL INTEGRITY & ICC CONPLIANCE EcoShield Framing Systems patented structural building system is designed and approved by a structural engineer based on site specific blueprints and building codes. The structural building system uses ICC14 approved and tested materials. The ability of being able to use any number of different combination of ICC15 approved structural members and manufacturing process sets EcoShield Framing Systems Structural Building System above the rest THERMAL BREAK ASSEMBLY EcoShield Framing Systems patented thermal break assembly is designed to provide the highest amount of protection against thermal transfer. The thermal break assembly or thermal barrier as it is commonly known as, is an element of low thermal conductivity in the EcoShield Framing Systems Structural Building System; which is designed to reduce or prevent the flow of thermal energy between the exterior and interior of structural panels. EcoShield Framing Systems: www.ecoshieldfs.com 14 International Code Council Page 8 of 53 15 International Code Council The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

Components of EcoShield Framing Systems Structural Building System The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 9 of 53

The Patented EcoShield Framing System meets or exceeds the both the 2012 IBC, and the 2012 IRC building codes and is backed by an internationally recognized ICC report. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 10 of 53

SHOULD YOU CONSIDER A NEW GREEN APPROACH FOR YOUR NEW HOME?  REDUCE ENERGY ALL INCREASE  INCREASE VALUE $  INCREASE HOUSE LIFE  TAX CREDITS IN HOME OWNER POCKETS  INCREASED HEALTHY LIVING REDUCED CONSTRUCTION COSTS and more…. REDUCED LABOR REDUCED WASTE ALL DECREASE COSTS REDUCED LOAN INTEREST $ TO BUILDER/DEVELOPER  IMPROVED STRUCTURAL INTEGRITY  NO FORMALDEHYDE, CFC’S, OR HCFC’S  BASIC GREEN BUILDING WITH SIGNIFICANT ENERGY REDUCTION  LITTLE OR NO LANDFILL WASTE  RESISTANCE TO MOLD, MILDEW, MOISTURE & NO OUTGASSING PRESENTS A HEALTHY SYSTEM TO THE COMMUNITY COMMUNITY BENEFITS WELCOME TO THE WORLD OF WORLD HOUSING SOLUTIONS. LLC “creative solutions from fresh thinking and applied fabrication” The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 11 of 53

16 16 EPS Molders Association Page 12 of 53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

17 17 EPS Molders Association Page 13 of 53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

18 Page 14 of 53 18 EPS Molders Association The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

19 Page 15 of 53 19 EPS Molders Association The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

20 Page 16 of 53 20 EPS Molders Association The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

21 21 EPS Molders Association Page 17 of 53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

22 22 EPS Molders Association Page 18 of 53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

23 23 EPS Molders Association Page 19 of 53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

EcoShield Framing Systems Products Satisfies the Customer’s Needs, with the Following Benefits  Adaptable to any design with increased useable space.  Exceeds building codes.  Panels are erected quickly.  Improved quality of construction provides a warp-free, plumb integral structure.  Panels are extremely stable because they are expanded polystyrene (EPS) foam.  Four times the strength of wood construction.  Will not shrink, settle or deteriorate  BPS will not off—gas, no HBCD’s and no formaldehyde.  Withstands the abuses of temperature.  Resistant to peeling, rotting, warping, splitting, blistering and fire.  Protection from insects, including termites and other infestation.  No vapor barrier is required with the wall panel.  Highly resistant to moisture and condensation.  Permits 70% reduction in the HVAC equipment sizing.  Lower operating costs and long-term savings.  Up to R-50 roof panels and R-35 wall panels.  Increases house life and durability.  Reduces outside noise contamination and increases privacy.  Eliminates on-site waste and clean up.  Greatly reduces lumber costs and saves trees.  Access to PREFERRED FINANCING such as an EEM Mortgage.  Considered a minimum 70-year structure by* appraisers.  Improved indoor air quality (IAQ) will help allergy & respiratory sufferers breathe easier.  Air cleaner can be medical insurance write-off.  Eliminates risks of cancer you can get from other types of insulation.  Structure’s “shell” is 100% recyclable as well as the 18 and 20-gauge steel used for Structural support.  Structures can be used for residential, commercial and light industrial purposes  A “green” building product suitable for sustainable development.  Seismic and hurricane capacity rated.  Save on insurance premiums. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 20 of 53

Home Energy Efficiency & Market Values A peer-reviewed study published in The Appraisal Journal shows that homebuyers are willing to pay substantially more for energy-efficient homes. This study, titled \"Evidence of Rational Market Values for Home Energy Efficiency,\" concludes that people are willing to fully pay for the monthly fuel savings of energy efficient homes with higher monthly mortgage payments\" which translate into higher home values. Thus, homebuilders and homeowners who invest in energy efficiency can expect to recover the market value of their energy efficiency investments when they sell their homes. The ICF Incorporated (ICF)* study reviews published research on energy efficiency and home values, and present an extensive statistical analysis of American Housing Survey (AHS) data. The published research shows that market values for energy efficient homes appear to reflect a rational trade-off between homebuyers' fuel savings and their after-tax mortgage interest costs. The ICF statistical analysis explicitly tests this \"rational market hypothesis\" against National AHS data for 1991, 1993, and 1995, and metropolitan statistical area data for 1992 through 1996. Both distinct AHS samples provide data on home characteristics (including home value, number of rooms, square feet, lot size, and utility bills) as reported by homeowners in lengthy interviews with the Census Bureau. The study presents separate statistical results for each year, for detached and attached homes, and for detached housing with different heating fuels (gas, electric, or fuel oil). These statistical results support the conclusion “That home value increases by $20 for every $1 reduction in annual utility bills\", consistent with after-tax mortgage interest rates of about five percent from 1991 through 1996. This research was conducted for the U.S. Environmental Protection Agency (EPA) ENERGY STAR® Homes program. ENERGY STAR® homes use at least 30% less energy than a Model Energy Code home while maintaining or improving indoor air quality and increasing comfort in the home. EPA estimates that the cost to upgrade a new home to ENERGY STAR® levels can range from $2,000 to $4,000, and that a typical ENERGY STAR® home reduces utility bills by $420 per year. The ICF study indicates that $420 in annual utility savings will add about $8,400 to the market value of an ENERGY STAR® home (or to any equally efficient home), or two to four times the builder's upgrade costs. The study should also encourage homeowners to consider energy efficiency upgrades for existing homes. An important conclusion from this research is that homeowners \"can profit by investing in energy efficient homes even if they are uncertain about how long they might stay in the home. If their reduction in monthly fuel bills exceeds the after-tax mortgage interest paid to finance energy efficiency investments, then they will enjoy positive cash flow for as long as they live in their home and can also expect to recover their investment in energy efficiency when they sell their home.\" This research also has significant implications for home appraisers, mortgage lenders, and housing assistance programs at the federal, state, and local levels. Written by: The Appraisal Journal by Rick Nevin and Gregory Watson: “Evidence of Rational Market Values for Home Energy Efficiency,”24 Rick Nevin and Gregory Watson, Appraisal Journal, October 1998. (Adobe Acrobat Format) This study demonstrates the increased value of energy-efficient homes, assigning estimated incremental home value. \"More Evidence of Rational Market Values for Home Energy Efficiency\"25 Appraisal Journal, October 1999* ICF Incorporated is an independent consulting company under contract with HUD and EPA contract number 68-W-0068 24 The Appraisal Journal (October 1998), © by the Appraisal Institute, Chicago, Illinois. Page 21 of 53 25 The Appraisal Journal (October 1999), © by the Appraisal Institute, Chicago, Illinois. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

How much would your new home be worth? How much more would your conventional stick-built home be worth if it was an \"EcoShield Framing Systems\" manufactured SIPs home product? Using a 2,000 square foot home constructed by EcoShield Framing Systems LLC, which has an average heating/cooling bill of $35.00 a month; and a similar size traditional built stick-built home with an average heating/cooling bill of $145.00 a month, you save $110.00 a month in energy costs; or an overall savings of $1,320.00 a year in energy costs. Using the criteria in the U.S. Environmental Protection Agency (EPA)26 report which was published in the Appraisal Journal, you take the $20 for every $1 reduction in annual utility bills and multiply it by $1,320.00 and you get an increased home resale value of $26,400.00. If you saved even more in energy savings in a year, the resale value of your home will do nothing but increase. Doesn't it make sense to maximize the value of your single largest asset? 26 The Appraisal Journal (October 1998), © by the Appraisal Institute, Chicago, Illinois The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 22 of 53

Brock University Side-by-Side Proof: SIP Advantage Brock University study quantifies superior thermal performance of SIPs The thermal qualities of Structural Insulated Panels (SIPs) have long been argued and are generally accepted, but true comparison to traditional stud wall systems often gets bogged down by misleading R-value ratings. Furthermore, many field studies are partially flawed because they compare different structures in different environments. That’s why a recent study by Dr. Tony Shaw of Brock University was a Dr. Tony Shaw of Brock University compared refreshing change from much of the existing research on the thermal the thermal efficiency of two units in these performance of SIPs. Dr. Shaw’s work involved a side-by-side evaluation nearly identical semi-detached homes. The of nearly identical residential buildings – one constructed with SIP exterior walls and one conventionally framed with studs and batt house on the left was built with SIPs, while the insulation. other was framed with studs and batt insulation. The detailed study, which was supported by the National Research Council of Canada (NRC), provides tremendous insight into the energy efficiency properties of SIPs. But before getting into the findings, a bit of background is warranted. Thermodynamics 101 and the limitations of R-Values When two bodies with different temperatures are brought into contact with one another, heat always transfers from the hotter object to the colder one. This is fundamental to our discussion: minimizing heat transfer within a wall system is the key to energy efficiency. There are three different types of heat transfer: conduction, convection and thermal radiation. Conduction is where heat transfers between two bodies through actual physical contact. For example, heat from a stove element is conducted to the frying pan. Convection involves the transfer of heat through the movement of a fluid (e.g. air), which is easy to comprehend when you sit to close to a campfire. Finally, radiation involves energy radiated from hot surfaces through electromagnetic waves, similar to a light bulb emitting light and heat. When we’re talking about the energy efficiency of a wall system, its conduction and convection that matter most. Conduction of heat occurs through sheathing, studs and insulation. Convection occurs through cracks, gaps and openings within the wall, as well as air cells in batt insulation. The problem with using R-values to gauge the energy efficiency of a home is that insulation is typically rated in a laboratory under controlled conditions. But in an actual stick and batt wall, heat conducts not just through insulation, but more significantly through studs, reducing the overall efficiency of the system. And gaps in the wall – sill plates, top plates, electrical outlets, window jambs and even nail holes – further reduce the true R-rating of the wall because of convective heat transfer. A SIP wall’s ability to perform closer to its rated R-value is a result of its tightness as a system, which minimizes convective heat loss. The rigid EPS insulation of SIPs eliminates air circulation and moisture that is often prevalent in stud walls. Furthermore, the structural high-density EPS insulation of a SIP ensures less surface area for conductive heat transfer than conventional walls, which require studs every 16\" or 24\" for structural support – prime vehicles for conductive heat loss. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 23 of 53

The Brock University Study: Comparing Identical Buildings When it comes to quantifying actual heat loss in different wall systems, the Brock University study provided an excellent opportunity for accurate comparison between SIP and stick construction in the real world. The two structures involved in the study were rental housing units, located immediately adjacent to one another. Both buildings were identical and had similar east-west orientations, ensuring the same exposure to outdoor temperature and wind conditions. Except for brief periods both houses were occupied throughout the course of the study, which took place over a 12-month period from February 2000 to January 2001. Both units were heated with a natural gas / forced air system. One unit was constructed with 4.5\" SIPs, while the other used 2x6 studs with batt insulation. Both houses were constructed according to the Ontario Building Code (OBC). The units were built by the same crews, with no one being aware that scientific tests would be conducted afterwards. The study incorporated several test methods to analyze different determinants of energy efficiency: thermo graphic imaging, hourly temperature readings and air leakage measurement. Thermo Graphic Analysis The deceiving nature of R-values was illustrated by infrared imaging on the two structures on a day in early March. Energy loss measured at the conventionally framed building, which used insulation rated at R-20, performed at an R-4 equivalent. By comparison the SIP home, performed at a true R-17 level. Thermo graphic analysis, at an outdoor temperature of -10.5 ºC (13.1 ºF), also demonstrated that the stud home consumed nearly four times as many BTUs as the SIP home. Furthermore, thermographic photographs provided visual Figure 1a: confirmation of areas of thermal weakness in the 2x6 wall, where thermal bridging (i.e. conduction) is visible around each stud, along Thermal photography of stud and batt wall with pockets of air leakage (see figure 1). This thermal photograph of a stud wall reveals multiple points where heat can escape – primarily along studs themselves. Temperature Trends This imaging evidence was supported by temperature data Figure 1b: Thermal photography of SIP wall recorded hourly by a series of sensors located within the walls of The SIP wall allows for minimal heat loss each building (see figure 2). Temperatures recorded in the middle along the wall surface. The only heat loss wall (T3) and inside the exterior wall surface (T2) of the stud evidenced here occurs in the corner area. construction showed the greatest fluctuation, corresponding closely to the variation in outdoor ambient temperatures, especially during the cold months of December, January and February. In comparison, the SIP wall sensors recorded significantly higher and more stable temperatures at those locations. The temperature of the middle wall sensor (T3) averaged 1.95 ºC (35.5 ºF) for the stud wall, while the SIP wall averaged 15.61 ºC (60.1 ºF) in the month of January. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 24 of 53

These variances are key because, once again, heat will always move from the hotter body to the cooler one. The higher temperature at the T3 sensor demonstrates that the SIP wall experienced less heat loss than the stud wall, and consequently, is more energy efficient. Also of notable significance are the temperature differentials recorded between the inside interior wall surface (T4) and the inside exterior wall surface (T2). Over the course of the year, lower differentials were recorded for the SIP wall (an average of 6.51 ºC (43.7 ºF) as compared to 12.31 ºC (54.2 ºF) for the stud wall), further demonstrating its reduced susceptibility to heat loss. Figure 3 shows the overall daily thermal performance of the two walls in the cold month of January. The T3 measurement for the stud wall was consistently close to the actual exterior wall surface temperature while the SIP wall demonstrated a steady and sizeable gap. Figure 2: Sensor locations This cross-section shows the positioning of the temperature sensors used in the Brock University study, comparing the thermal performance of stud and SIP wall systems. Air Tightness Comparisons Figure 3: Thermal performance of stud and SIP wall systems Data from the temperature sensors in the stud and SIP walls demonstrates the relative energy efficiency of the two systems. This graph is based on measurements throughout January 2001. Temperatures at the middle wall sensor for the stud construction are very close to the exterior temperature. In contrast, data shows how the SIP wall maintained much higher temperature at the same sensor locations – an indication of superior energy efficiency. In addition to the thermal performance and thermography components of the Brock study, air leakage tests were conducted to compare the tightness of the two units. This analysis shows the relative convective properties of each, a key determinant of overall energy efficiency. The results of the air leakage tests showed the SIP house to be much tighter than the stud house. The SIP house had 1.55 ACH (air changes per hour) at a pressure differential of 50 Pa, while the framed wall house had 2.60 ACH at 50 Pa, or a 68% more leakage. This means that, all other factors being equal, the SIP house would use less energy for heating, would be more comfortable, have better heat retention and be less drafty. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 25 of 53

Conclusion The U.S.-based Oak Ridge National Laboratories 1998 study under Based on the heat loss data collected in the Brock University laboratory conditions stands out among the most authoritative work on the study, a natural-gas heated, 2,000 sq. ft. SIP house would subject, and Habitat for Humanity has provided several opportunities to save $88 on a monthly heating bill in an average winter month. compare different wall systems under similar conditions. Likewise, Dr. Shaw’s research is a very insightful analysis on the thermal properties of SIP and stud construction. Studies such as Brock University’s SIP/stud comparison are relatively uncommon, but they are generating tremendous interest by government, industry and consumers alike. As awareness builds surrounding the environmental impact of buildings on greenhouse gas emissions and urban air quality, the construction industry will be under increasing pressure to adopt new standards and practices to reduce energy consumption. Regardless of the Kyoto Protocol, where signatory governments agree to take concrete measures to reduce greenhouse emissions – inevitably rewarding environmentally friendly technologies at the expense of less efficient ones – the economics of energy costs and natural resources availability will make non-traditional building materials such as Structural Insulated Panels more and more attractive. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 26 of 53

Case Studies on Energy Efficiency27 It's not that the builder is intentionally misleading his client or associate, but that he's just following common practice. In reality, this reasoning doesn't take into account all the other components that go into making a wall: wood or steel studs every 16\" or 24\", bracing, nails or screws, wiring and switch boxes - any number of things that are not insulation, and in all likelihood, have R-values that fall well short of the stated R-24. A new study by the Oak Ridge National Labs (ORNL)28 proves that a 4-inch SIP wall outperforms 2\"x4\" stick and batt construction, and even edges out 2\"x6\" construction in terms of thermal performance. Because SIPs are the structural elements, there are no studs or braces to cause breaks in the insulative action. The end result is a more comfortable, energy efficient structure that performs up to spec in real-world conditions. Unlike stick and batt construction, which can be subject to poorly installed - even missing - insulation, the nature of SIPs is such that the structural and insulative elements are joined as one. There are no hidden gaps, because a solid layer of foam insulation is integral to panel construction. By contrast, state-of-the-art technical analysis of whole wall performance indicates that the losses in a stud wall are much greater than you might think: on average, the other standard components in stick and batt construction can reduce R-values in as much as 30% of the wall area. Fortunately, that's not the case with structural insulated panels. The ORNL study found that SIPs perform at approximately 97% of their stated R-value overall, losing only 3% to nail holes, seams, splines, and the like. Wiring chases are precut or preformed into the foam core, providing a continuous layer of insulation keeping the elements at bay and the interior free of drafts and cold spots. A SIP wall also outperforms stick and batt when it comes to maintaining consistent interior temperatures, and that translates to improved occupant comfort. As shown in the graph below, the interior surface temperature of frame construction drops precipitously at every stud, while the SIP wall remains consistent across its entire surface. No temperature dips mean improved occupant comfort, regardless of where you are in the room. That's a big part of what people are talking about when they say they can immediately \"feel the difference\" in a SIP-built residential or commercial space. With SIPs, thermal efficiency and comfort are built in at the factory, and now the lab results prove it. 27 Oak Ridge National Laboratories, Oak Ridge Tennessee, USA www.ornl.gov Page 27 of 53 28 Oak Ridge National Laboratories, Oak Ridge Tennessee, USA www.ornl.gov The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

Interior surface temperature comparisons indicating constant temperature for SIP wall and reductions in temperature at stud locations for 2\"x 4' and 2\" x 6\" wood frame walls (ORNL). R-Values of EPS Core SIPs (Calculated R-Values) R-Values of EPS Core SIPs EPS Core Thickness 3 5/8” 5 5/8” 7 3/8” 9 3/8” 12 3/8” R-Value @ 75° F 15.34 23.04 29.77 40.36 49.02 16.57 26.26 32.28 43.80 53.23 @ 40° F 17.15 27.16 33.46 45.42 55.21 @ 25° F Calculated R-Values are for a generic World Housing Solutions Structural Insulated Panel, using Type I, Expanded Polystyrene Foam that meets ASTM C – 578, calculated per ASHRAE published values at 3.85 per inch at 75° F, 4.19 at 40° F and 4.35 at 25°. Mean temperatures are established for differing regions, and occupancies. Please consult your local jurisdiction for interpretation of Regional or National Model Energy Code Requirements. A one-inch increase in wall insulation increased home value by $1.90 per square foot; a one-inch increase in ceiling insulation increased home value by $3.37 per square foot. High quality (energy-efficient windows) increased home value by $1.63 per square foot. (Corgel, Goebel, and Wade. \"Measuring Energy Efficiency for Selection and Adjustment of Comparable Sales.\" The Appraisal Journal, 1982, pp 71-78.) The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 28 of 53

ENERGY SAVINGS STUDIES \"If you are not using SIP’s as your core building material you are not serious about energy efficiency.\" Michael Morley, Builder & Author - \"Building with Structural Insulated Panels\" There are five reasons foam-panel homes should have lower heating and cooling bills than homes insulated with common wall and ceiling insulation materials:  Structural Insulated Panels achieve thermal ratings of between R-4 and R-7 per inch; batt and loose- fill materials are about half that.  With less wood, panels reduce thermal bridging (the transfer of heat into or out of a structure through a solid piece of lumber). A 16-foot SIP wall section with one 3 x 4-foot window contains 5 percent wood and 95 percent Insulation. The same wall framed with 2 x 4s 16 o.c. has 20 percent wood and a variable amount of insulation.  If not installed properly, batt insulation is susceptible to voids. Batts are either jammed into narrow cavities, improperly split around wiring or around electrical boxes, or cut too short or too long. In some remodeling jobs, insulation is removed, but not replaced. When used with a trussed roof system, batts won't cover up the bottom chords, allowing heat to transfer directly from the interior of the house into the attic area in the winter and from the attic into the house in the summer. A solid foam panel eliminates these problems.  Any air moving within a conventionally insulated wall or ceiling decreases the energy performance of batt insulation. When properly sealed, foam panels do not allow air movement.  Depending on proper installation and effective sealing of joints and openings, Structural Insulated Panel (SIP) construction lends itself to tighter-than-average construction. This is especially true when SIP’s are used for both walls and ceiling because the systems are engineered to connect to each other easily and tightly. Energy Tables R Value Panel Thickness Weight (PSF) 16.87 4.50\" 3.31 25.60 6.50\" 3.47 33.20 8.25\" 3.61 41.90 10.25\" 3.78 50.60 12.25\" 3.95 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 29 of 53

CASE STUDY 1 Conventional frame Panel frame Place: Watertown, S.D. Walls 6' fiberglass batts with 1\" foil 5\"EPS-core Heating degree days: sheathing; R-24 panels, R- 9,000 Ceiling 2741/2\" EPS-core 12\" fiberglass; R-38 panels, R-32 Size of home: 1,040 Heate square feet with a full d area Main floor Main floor and basement, identical floor plans basement Energy source: Natural gas, forced- Heating bill $263 $85 air furnace Jan.-March Source: Enercept, Inc., Watertown, SD CASE STUDY 2 Conventional 2 x 6 frame Panel frame Place: El Jebel, Colo. Heating degree days: Walls 51/2\" fiberglass batts plus R-22 7,635 1/2\"exterior Insulated, R-22 R-38 Ceiling with airtight drywall (5/8\") Size of home: 1,336 square feet Heated area Fiberglass batts, R-38 (R-30 Heating source: Electric baseboard; Heating bill in slope) HRV Oct.-Dec. Whole House Whole House $450 $112 Source: Big Horn Construction Services, Carbondale, Colo. CASE STUDY 3 Walls Conventional 2 x 6 frame Panel frame Place: Ludlow, Mass R-25 Heating degree days: Ceiling 51/2\" fiberglass 5,600 Heated area batts, R-19 R-33 9\"Fiberglass batts, R-30 Whole House Size of home: 2400 square feet Whole House Heating source: Electric Heating bill $131/mo. $30/mo. Oct.-Dec. Source: Waverly Heights Development Corporation, Ludlow, Ma. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 30 of 53

The walls of this Idaho State Liquor Store in Nampa, Idaho (pictured above the tables) are 6.5\" thick (R 25.6) and 9' high. Most panels measured 8' wide x 9' high. The total square footage of this building is 2,990 square feet and the walls were installed in one day. The General Contractor on this project was Sage Construction of Caldwell, Idaho. According to the Idaho State Liquor Dispensary, the building saves them operating expenses every month. There is a similar building located approximately 10 miles away in Caldwell, Idaho that has a total of 3,010 square feet and was framed using 2 x 6 studs at 16\" on center. Below are the comparative energy costs for the (2) buildings during the winter of 1997 / 1998: Building 1 Building 2 2 x 6 Stick Frame 6.5\" Precision Panel December 1997 $158.92 $38.45 January 1998 $176.46 $64.85 February 1998 $112.85 $29.36 March 1998 $72.81 $22.07 Totals $521.04 $154.73 Savings over a 4-month period = $366.31 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 31 of 53

Oak Ridge National Labs (ORNL) R-Value Case Studies SIP’s Outperform Stick & Batt (Oak Ridge National Labs R-Value Test) \"R-value\" is resistance to heat flow in a given medium, such as fiberglass insulation, the higher the R-Value number, the greater the resistance factor. So when a builder is asked \"What's the R-value of this wall?” the natural inclination is to think of the material that most commonly specifies its rating. More often than not, it's the insulation, and the response is something along the lines of \"Oh, that wall has an R-value of 24\" - fairly impressive, but also strikingly inaccurate. It's not that the builder is intentionally misleading his client or associate, but that he's just following common practice. In reality, this reasoning doesn't take into account all the other components that go into making a wall: wood or steel studs every 16\" or 24\", bracing, nails or screws, wiring and switch boxes - any number of things that are not insulation, and in all likelihood, have R-values that fall well short of the stated R-24. A new study by the Oak Ridge National Labs (ORNL) proves that a 4-inch SIP all outperforms 2\"x4\" stick and batt construction, and even edges out 2\"x6\" construction in terms of thermal performance. SIP’s are the structural elements, there are no studs or braces to cause breaks in the insulation. The end result is a more comfortable, energy efficient structure that performs up to spec in real-world conditions. Stick and batt construction can be subject to poorly installed or even missing insulation. The nature of SIP’s combines the structural and insulation elements are joined as one. There are no hidden gaps, because a solid layer of foam insulation is integral to panel construction. State-of-the-art technical analysis of whole wall performance indicates that the losses in a stud wall are much greater than expected. On average, the other standard components in stick and batt construction can reduce R-values in as much as 30% of the wall area. That is not the case with structural insulated panels (SIP). The ORNL study found that SIP’s perform at approximately 97% of their stated R-value overall, losing only 3% to nail holes, seams, and splines. Wiring chases are precut or preformed into the foam core, providing a continuous layer of insulation keeping the elements at bay and the interior free of drafts and cold spots.29 A SIP wall also outperforms stick and batt when it comes to maintaining consistent interior temperatures, and that translates to improved occupant comfort. As shown in the graph below, the interior surface temperature of frame construction drops precipitously at every stud, while the SIP wall remains consistent across its entire surface. No temperature dips mean improved occupant comfort, regardless of where you are in the room. That's a big part of what people are talking about when they say they can immediately \"feel the difference\" in a SIP-built residential or commercial space. With a SIP system, thermal efficiency and comfort are built in at the factory, and now the lab results prove it. 29 ORNL Rest Report Page 32 of 53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

Oak Ridge National Laboratory Studies30 30 Oak Ridge National Laboratories, Oak Ridge Tennessee, USA www.ornl.gov Page 33 of 53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

Benefits of the ENERGY STAR® New Home Program ENERGY STAR Homes: What are we going to do with all the money? The true cost of a house is not its \"sticker\" price, but what it costs you to own and operate every month. The ENERGY STAR home cost advantage is based on the concept that monthly utility bill savings can significantly exceed the increase in the monthly mortgage payment for extra energy efficiency measures. Putting this concept into practice results in positive cash flow the very first day you move into your ENERGY STAR home. ENERGY STAR Homes: Many extra benefits mean more value! Home buyers can expect much more value from their home purchase including: Improved Comfort Homes with additional insulation and high performance windows are blanketed in comfort because surrounding surface temperatures are warmer in winter and cooler in summer. Tightly-constructed homes will not experience annoying drafts and airborne dust. Better insulated walls, sealed ducts and properly sized efficient mechanical systems can deliver quiet performance year-round. Improved Indoor Air Quality Where ENERGY STAR homes and ducts are field verified to be tightly sealed; significant sources of indoor air pollution are effectively blocked from entering your home. These pollutants include moisture, dusts, pests, pollen and radon that could otherwise enter through leaks in attics, basements, and garages. Quality Construction Look for ENERGY STAR homes to have greater attention paid to many important construction details. Where provided, high-efficiency equipment, such as ENERGY STAR air conditioners, heat pumps, and furnaces may include quality features beyond improved performance, such as higher-grade heat exchangers, fans, motors, and longer-term warranties. Higher Resale Value ENERGY STAR homes are more likely to have a higher resale value regardless of how long you own your home. A typical ENERGY STAR home reduces utility bills by $35 per month or $420 a year. A recent EPA study revealed that these savings can add $8,400 to the market value of an ENERGY STAR home. Access to Preferred Financing National and local ENERGY STAR mortgages can make it easier for home buyers to qualify for ENERGY STAR homes. In some cases, loan origination fees may be discounted along with easier loan qualification requirements. Call the EPA ENERGY STAR Hotline about ENERGY STAR mortgages. Experience All These Benefits and Help the Environment Too! It's a great feeling to know that you can have an important impact on helping the environment. American house-hold energy use contributes significantly to air pollution, including 20 percent of all U.S. carbon dioxide emissions. By constructing more energy-efficient homes, we can make a difference. ENERGY STAR homes, built by the year 2012, are projected to lock in over $100 billion in utility bill savings and prevent pollution equivalent to removing more than three million cars from U.S. roads. For more information on ENERGY STAR homes and other ENERGY STAR programs, call the U.S. EPA hotline at 1-888-STAR- YES or visit their website at http://www.energystar.gov/homes. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 34 of 53

Higher Resale Value Studies conducted since the early 1970's have consistently concluded that energy-efficient homes earn a higher resale price than average homes. This means that purchasing an ENERGY STAR31 qualified new home isn't just a smart investment today, but it will also pay significant dividends in the future. Time Key Finding on Increased Value Period 1970-75 The 1974 spike in relative cost of fuel oil raised the price differential between gas- and oil- heated houses to $761 in 1974 and up to $4,597 in the first half of 1975. A one-inch increase in wall insulation increased home value by $1.90 per square foot; a one-inch increase in ceiling insulation increased home value by $3.37 per square foot. High quality 1971-78 (energy- efficient windows) increased home value by $1.63 per square foot. (Corgel, Goebel, and Wade. \"Measuring Energy Efficiency for Selection and Adjustment of Comparable Sales.\" The Appraisal Journal, 1982, pp 71-78.) 1978 Home value increased by about $20.73 for every $1.00 decrease in annual fuel bills. 1978-79 Value of energy-efficient homes (with lower structural heat loss) was $3,248 higher than inefficient homes. 1980 Home value increased by $2,510 for each one unit increase in energy efficiency. 1982 Home value increased by $11.63 per $1.00 decrease in fuel expenditures needed to maintain a house at 65o F in an average heating season. 1983-85 Home value increased by $12.52 per $1.00 decrease in electric bills, consistent with home buyers discounting savings at after-tax mortgage interest rate. 1 Halvorsen and Pollakowski. \"The Effect of Fuel Prices on House Prices.\" Urban Studies, Vol. 18, No. 2, 1981, pp. 205-211. 2 Corgel, Goebel, and Wade. \"Measuring Energy Efficiency for Selection and Adjustment of Comparable Sales.\" The Appraisal Journal, 1982, pp 71-78. 3 Johnson and Kaserman. \"Housing Market Capitalization of Energy-Saving Durable Good Investments.\" Economic Inquiry, Vol. XXI, July 1983, pp. 374-386. 4 Laquatra. \"Housing Market Capitalization of Thermal Integrity.\" Energy Economics, Vol. 8, No. 3, 1986, pp.134-138. 5 Longstreth. \"Impact of Consumers' Personal Characteristics on Hedonic Prices of Conserving Durables.\" Energy, Vol. 11, No. 9, 1986, pp. 893-905. 6 Dinan and Miranowski. \"Estimating the Implicit Price of Energy Efficiency Improvements in the Residential Housing Market: A Hedonic Approach.\" Journal of Urban Economics, No. 25, 1986, pp. 52- 67. 7 Horowitz and Haeri. \"Economic Efficiency versus Energy Efficiency.\" Energy Economics, April 1990, pp. 122-131. 31 U.S. Environmental Agency ~ U.S. Department of Energy ~ www.energystar.gov Page 35 of 53 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

Tax Credits for Home Builders Tax Credits for Home Builders: Eligible contractors need to fill out IRS Form 8908 to get the tax credit. The IRS has provided the following guidance regarding the tax credits for constructing energy efficient new homes available under the Energy Policy Act of 2005:  IRS Notice 2006–27 provides guidance for the credit for building energy efficient homes other than manufactured homes.  IRS Notice 2006–28 provides guidance for the credit for building energy efficient manufactured homes. The tax credit information provided below is based on information contained in the Energy Policy Act of 2005. The IRS guidance provides specific information that home builders and housing manufacturers can rely on to take action to claim the tax credits. ENERGY STAR will study the IRS publications and provide updates as necessary. 50% energy efficient standard - The credit is $2,000 for a dwelling unit that is certified to have an annual level of heating and cooling energy consumption at least 50% below the annual level of heating and cooling energy consumption of a comparable dwelling unit and has building envelope component improvements that account for at least 1/5 of the 50% reduction in energy consumption. A manufactured home meeting the requirements described above and the Federal Manufactured Home Construction and Safety Standards (FMHCSS) requirements (see 24 C.F.R. part 3280) is also eligible for the $2,000 credit. Who May Claim the Credit - Eligible contractors may claim the credit for new energy efficient homes that are acquired by sale or lease by an individual from that contractor during the tax year for use as a residence Qualified New Energy Efficient Home - A qualified new energy efficient home is a dwelling unit located in the United States, whose construction is substantially completed after August 8, 2005, and sold or leased to another person after 2005 but before 2014, for use as a residence. The home is also required to be certified and meet certain energy saving requirements. Construction includes substantial reconstruction and rehabilitation. There is also a $1,000 tax credit to the producer of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by EPA under the ENERGY STAR program. Please note that, with the exception of the tax credit for an ENERGY STAR qualified manufactured home, these tax credits are not directly linked to ENERGY STAR. Therefore, a builder of an ENERGY STAR qualified home may be eligible for a tax credit but it is not guaranteed. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 36 of 53

Industry Related Data / Articles Panels Gain Favor in Construction; Insulated Pieces Add Cost and Precision to Marketplace Goodbye, Lincoln Logs. Hello, Legos. A revolution has slowly been taking hold in the manner some residential and commercial projects are constructed. The hegemony of the 2-by-4 and the roof truss is crumbling, as structural insulated panels, resembling large wooden sandwiches, make their incursion into the construction marketplace. \"Stick-building - that's gone,\" Larry Cabaniss, owner of Cabaniss Construction, said of traditional wood-frame construction. \"It's like a dinosaur lumbering around.\" While the Nellysford builder's assertion may be a little over- reaching, there is indeed a small but growing market for structural insulated panels. There were 12,000 houses built with SIPs in the United States in 2002, up from 8,000 in 1997, according to the Structural Insulated Panel Association. That number, albeit tiny in the grand scheme of house construction, is expected to grow as the new technology gains acceptance. SIPs consist of polystyrene foam insulation sandwiched between two panels of oriented strand board. EPS can be made in a variety of shapes and sizes. The panels are linked together, much like Lego building blocks, to form walls, floors and ceilings. Cabaniss said there are three primary benefits of SIPs construction: *SIPs buildings are remarkably strong. In the Kobe, Japan, earthquake of 1995 that killed 5,000 people, the five SIPs buildings in the city remained standing while traditional post-and-beam structures collapsed. Since then, the local government has been a proponent of the construction material, even opening afactory. *SIPs structures are energy-efficient. Because they fit together so tightly, less energy is used in heating and cooling. A test at the Oak Ridge National Laboratory found SIPs structures to be 15 times less leaky than buildings made of 2-by-6-foot wooden studs, fiberglass insulation and drywall. \"It's an Igloo cooler,\" Cabaniss said. \"In a SIPs house you can go up in the attic in the summer and go to sleep.\" *SIPs structures can be built faster and with fewer workers. Builders simply line up the pieces and secure them without the work required to frame and hang insulation. Cabaniss said most of his customers have thus far been the type who embraces new technology. \"They look at that old stuff and say, there’s got to be something better; and the answer is SIPs,\" he said. SIPs have been around for 50 years, but only recently have they started to catch on as energy and lumber costs rise. Despite their novelty, they can be used to build traditional houses, from Colonials to modern designs. \"The only thing noticeably different [about a SIPs house] is it's so exact,\" Cabaniss said. \"These houses are perfect.\" Cabaniss Construction is building a two-story office building for Atlantic Computing Services in Charlottesville. The 5,700- square- foot \"green\" building is a natural fit for the company, which recycles and resells toner cartridges for Hewlett-Packard printers. \"I'm always looking for something that would be very energy- efficient for the future,\" said Jennifer Workman, who co-owns the business with her husband, John. She said although the SIPs-constructed office will be a little more expensive than a traditional stick-built one, she expects to make up the difference in lower electricity bills - they can be up to two-thirds lower with SIPs - and the speed of construction, which will take three weeks instead of twomonths. \"We're paying a little more for the structural panels but saving in time and not having to put in such a large heat pump,\" she said. Cabaniss said he cannot compete with houses built on spec, but he can take on a custom-home builder any day. \"Custom homes and office buildings - then you’re in my league,\" he said. Source: Richmond Times - Dispatch Publish Date: 2004-06-13 The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 37 of 53

\"Invent This, Please?\" by Bill Wachtler, Executive Director & C.O.O. The March issue of Professional Builder featured an article titled \"Invent This Please!\" The author of the article interviewed several builders and asked them to talk about recurring pressing problems and what they would like to see invented if they could \"push a button\" or wave a magic wand to instantly create an innovation that would solve the problem they identified. One of the builders interviewed for the article was Harry Thurgate of H. R. Thurgate and Son in Jericho, VT. Harry is quoted as saying his customers \"expect more technology these days. They expect the builder to demonstrate 'efficiency, technique, energy technique and structural technique,' as well as 'the handling and use of materials that are less susceptible to environmental conditions.\" Well \"Presto\" there's no need to wave your magic wand, Harry. The solution to your problems has already been invented! Structural insulated panels (SIPs) grant your every wish. SIPs provide plenty of technology to go around for builders and homebuyers. For example, hsbSOFT, an innovative CAD software company has set the standard for SIP friendly software. Home plan designers with regular CAD programs are drawing in 3D, while those with the hsbSOFT SIP programs are drawing with actual panels’ right from the get-go. The software automatically \"panelizes\" the design! This system drastically reduces the time formerly needed for these tasks. The program is designed to automatically configure the panels which helps reduce waste. The optional nesting package of the hsbSOFT program will also help maximize panel utilization. Once the CAD drawing is completed, you can literally \"press a button\" and the CAD files are sent to a CNC panel processing machines such as those made by Hundegger or Stiles Machinery that will automatically cut all the structural insulated panels perfectly with almost \"0\" tolerance accuracy. After the CNC machines cut the panels and any necessary dimensional lumber, each piece is marked according to the design plan, so that when the job is delivered to the site, it is easy to fit each piece together in order. This design and manufacturing technology offers fast, accurate and affordable SIP packages for all builders, large and small. Besides doing accurate takeoffs for estimating purposes the 3D rendering is a great visualization tool for the homebuyers. While all the innovations of technology make the manufacturing process for EPS easier, it still does not change the fact that any SIP building beats the stick buildings by at least two strokes of the magic wand. In addition to manufacturing efficiency, there are plenty of on-site efficiencies. Building with SIPs speeds up dry- in and cycle time which can save plenty in reduced on-site labor, carrying costs, and can eliminate those costly callbacks like magic. Then there's the real efficiency, energy efficiency. SIPA, with many contributions from SIPA members, has now built four research houses in partnership with Oak Ridge National Laboratory and Habitat for Humanity. The latest data just released on the first house shows that the total annual heating cost is 45 cents a day. Now that's energy efficiency. Regarding \"structural technique,\" not only do test results show panels are stronger, but natural disasters have proven it time and again. Homes built with EPS withstood the Great Hanshin (Kobe, Japan) and the North Ridge, CA earthquakes, as well as Hurricane Andrew. If you want more evidence, just ask Matt and Kim Chesley who were inside their two-story SIP home while it was lifted from its foundation and set down on top of their family car by a ferocious tornado. After this exciting experience, they noticed that the refrigerator was still upright and even the dishes stayed inside the kitchen cupboard. (Onsite@SIPA Winter 2002/2003). Further, as a result of the efforts by Premier Building Systems, in early February 2004, the International Code Council's Evaluation Service (ICC-ES) approved the use of structural insulated panels (SIPs) manufactured by Premier on the West Coast where high-risk seismic zones exist (Seismic Categories Dl, D2, and E.) The protocol for testing panels was developed by APA - The Engineered Wood Association. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 38 of 53

EcoShield Framing Systems Structural Building System Frequently asked questions about SIP’s, Homes, Houses & Construction Methods General What are the advantages of panelized construction over conventionally framed buildings? Panelized homes made from EcoShield Framing Systems panels are erected quickly, provide un-precedented energy efficiency, offers design flexibility and are substantially stronger than conventional framing. In essence, the EcoShield Framing Systems panelized system is the construction method of the 21st Century. What holds the house up since framing is not used? Structural support is provided by steel framing members placed 18 to 24\" on center and screw connected to steel at both the top and bottom of the panels. This assembly results in a wall exponentially stronger than a conventional 2\" x 6\" wall. What are the disadvantages to this type of panelized construction? EcoShield Framing Systems wall and roof panels are state of the art construction. As such, many builders may not be familiar with erection techniques. Techniques required for construction are very easy to master, and instruction is provided by EcoShield Framing Systems. An experienced crew or local contractor familiar with this type of assembly can handle the erection of the building shell. Is there an advantage to the 6” panel thickness for walls and 10\" panel thickness for the roof? Yes, this construction system provides the highest level of energy efficiency (4.35 R/1\" at 25°F, 3.85 R/1\" at 75°F) for a given wall or roof system available in the industry. Additionally, because of the design flexibility, the homeowner can receive more living space than in comparatively insulated houses, with the same outside dimensions, and vaulted (cathedral) ceilings in all living space directly below roof members. What is the interior layout like in EcoShield Framing Systems home? Because the building shell provides most of the load-carrying requirements of the house, there is inordinate flexibility of interior design. In fact, the improved volume space offered by this system is a distinct feature favored by homeowners. Users can select a EcoShield Framing Systems home design, plan the layout themselves, or work with an architect, builder or EcoShield Framing Systems representative to provide for all your special needs. Unlike most houses, the structure does not constrain your design flexibility. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 39 of 53

EcoShield Framing Systems Panels EcoShield Framing Systems panels are highly insulated building panels which have a core of rigid insulation supported with exterior and interior steel framing members made from 26 to 18 gauge galvanized structural steel. The steel framing members are joined together with self-tapping screws to provide a warp-free integral structure. Adjacent panels are joined with top and bottom structural steel track which are secured with self-tapping screws. What kind of exterior siding can be used on the panels? Virtually any type of exterior application can be employed. This would include masonry, wood, vinyl or aluminum. How are panels made? Panels are designed, cut and assembled to very specific tolerances at the EcoShield Framing Systems plant. Each wall and roof section are custom made for a specific home. Therefore, both builders and home owners have confidence that the EcoShield Framing Systems system is made specifically for their use. Are there problems with dimensional stability of the panels? Panels are extremely stable, and while they may expand slightly, the effect is almost indefinable. Does the R-value of the EPS experience thermal drift? No, when properly insulated, the R-value of EPS insulation remains constant because the cellular structure contains only stabilized air. The R-value of EPS will not decrease with age. As a result, the thermal resistance, or R-value, may be used without age adjustment. Why isn't there a vapor barrier in the panel? The panel itself serves as the vapor barrier. Most model building codes require a vapor barrier with a perm rating of 1 or less. The perm rating of the EcoShield Framing Systems system is less than 1. Moreover, with the EcoShield Framing Systems system wall voids are eliminated and therefore moisture does not condense. Moisture is not a problem with this panelized system. Do I need to add a vapor barrier or use a vapor retardant paint? No vapor barrier is required with the panel. The only place where moisture migration might be a concern is at panel joints; however, these joints are sealed following installation to prevent moisture is areas such as kitchens and bathrooms. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 40 of 53

Environmental and Health Concerns What are the physical properties of expanded polystyrene (EPS)? EPS is a formulation of lightweight, closed cell plastic foam material composed of hydrogen and carbon atoms. It is derived from petroleum and natural gas by-products and developed for high R-value, structural strength and for its safety characteristics. Does temperature cycling affect EPS insulation characteristics? No. EPS can withstand the abuses of temperature (freeze-thaw) cycling without loss of structural integrity or other physical properties, thus assuring long term performance. Is EPS manufactured with chloroform carbons (CFCs) or hydro-chlorofluorocarbons (HCFCs)? No. EPS neither contains nor uses chlorofluorocarbons, usually referred to as CFCs or hydro- chlorofluro carbons, referred to as HCFCs, in its manufacturing process. What is the wall finish rating of EcoShield Framing Systems panels? ASTM testing by an independent laboratory showed the wall finish rating of EcoShield Framing Systems panels achieve up to a one-hour rating with drywall attached. Complete information on wall and roof finish ratings is available from EcoShield Framing Systems. What are the building code requirements for panels relative to fire? Building and fire codes vary from location to location; however, typically a 15-minute finishing rating is required for light construction. EcoShield Framing Systems panels, with an interior layer of 1/2\" drywall, significantly surpass this requirement with a one-hour rating. Complete information on wall and roof finish ratings is available from EcoShield Framing Systems. Do I need an air-to-air heat exchanger? Air-to-air heat exchangers, and/or other types of mechanical ventilation are recommended in all tight houses, including those constructed with EcoShield Framing Systems panels. EcoShield Framing Systems recommends that air-to-air heat exchangers be incorporated into all EcoShield Framing Systems homes. Does EPS offer good moisture resistance? Yes. A study by the Energy materials Testing Laboratory has shown that EPS insulation does not absorb appreciable moisture, even under conditions characteristic of prolonged, cold, damp winters. The small amount of moisture absorbed (an average of 0.02% by weight) has little or no effect on compression and flexural strength. Further, the EPS insulation retains between 95% and 97% of its thermal efficiency. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 41 of 53

Finishing an EcoShield Framing Systems Home What skills are required for finishing EcoShield Framing Systems home? General carpentry skills are all you will need to finish a home constructed with the EcoShield Framing Systems panelized wall roof and floor system. Skilled homeowners can do most of the work themselves, subcontracting work requiring specialized skills such as electrical and plumbing. How is the roof finished? After panel joints are sealed, 1/2\" OSB or plywood is fastened to the steel structural members in the roof panels, and then felt paper and shingles are installed, alternately a concrete cap can also be applied. Can exterior siding be directly applied to the EcoShield Framing Systems panels? Generally, yes. Felt paper and other moisture barriers should not be used between the panels and siding; however, an air barrier such as Tyvek or Typar is recommended. How should the siding be applied? Horizontal siding is screwed directly to the structural support members of the panels. Are windows and doors difficult to install? Windows and doors are ready to install in an EcoShield Framing Systems home because of the exacting standards used to cut rough openings prior to delivery. The door and window units are set into the openings in the field under normal construction methods. Then, the perimeters are sealed with expanding foam sealer, resulting in an energy efficient installation. How are interior walls installed? Interior partition walls can be constructed of either expanded polystyrene with steel studs, out of wood or steel 2x4s and sheathed with drywall, as in conventional frame construction. Where an interior partition wall meets an exterior wall, the edge stud is screwed into a structural support member pre-designed for that location. How do you run wiring in panels? Horizontal wiring runs are engineered into the panels prior to assembly, so field wiring is simplified. Vertical runs as needed or required can also be completed at the factory. How are electrical boxes attached to panels? The boxes in the field are screwed to the structural support members in the wall panels. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 42 of 53

How do you run plumbing in an EcoShield Framing Systems home? There will be almost no difference between plumbing in an EcoShield Framing Systems home and plumbing in a conventional framed house. How are walls finished in an EcoShield Framing Systems home? Walls may be finished in the normal way with drywall on the interior face. Typically, the drywall is fastened with self-tapping screws to the support members of the panel; however, some builders use construction adhesive in applying drywall to the EcoShield Framing Systems panels, enabling them to use fewer fasteners. A patented Spray on waterproof interior and exterior finish that reduces the need for drywall, and color can be mixed throughout the finish for long lasting durability that far our performs drywall. What is the best type of heating system for an EcoShield Framing Systems home? Any type of heating system can be used; however, the advantages of this unique, energy efficient panelized system will reduce the BTU loading requirement substantially from what is conventionally expected. Where gas is available, a 50-gallon hot water tank will meet all heating and domestic hot water needs. Therefore, work with your heating contractor, general contractor or EcoShield Framing Systems Representative for recommendations. For additional information on EcoShield Framing Systems homes, custom designs and details on shell erection and finishing, contact our company at ecoshieldfs.com The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 43 of 53

SUMMARY EcoShield Framing Systems structural building system is a patented proprietary building system that has proven to be more cost effective than traditional stick building. Some of the benefits of our structural building system and structural panels are as follows:  Higher Resale Value  Less expensive than stick construction  Easier to work with and less expensive than traditional SIPs construction with OSB  Less expensive than metal skinned SIPs panels.  Higher STC Values  Ability to meet geophysical hazards  Ability to meet structural and energy building codes  Energy Efficient  Easier and faster to assemble in the field  Superior energy savings  Environmental sensitivity  Enhanced safety and convenience  Significant cost savings  Less waste EcoShield Framing Systems delivers a patented proprietary, specially engineered, panelized, wall, floor, ceiling and roof building system with superior energy savings, environmental sensitivity, enhanced safety and convenience at significant cost savings. EcoShield Framing Systems structural building panels, with their unique proprietary design and ability to be reconfigured as needed, allows us to deliver a structural panel that is superior in strength, faster to install and provide superior insulation/energy savings. The panel can be configured to be used in roofs, walls, floors and ceilings -- and can be used to manufacture mobile homes and travel trailers, simply by re- configuring the panels various components, which is unique to our component assemblies. EcoShield Framing Systems structural building panel systems can be designed and manufactured to be able to withstand the most severe environmental and geophysical hazards. They are designed to be approved and used nationwide, while delivering an energy efficient structure designed to meet local energy efficiency zoning codes Are Structural Insulated Panels More Expensive? EcoShield Framing Systems structural building panel systems has proven to be far less expensive for building with than wood frame construction, especially when you factor in the additional labor savings resulting from shorter construction time and less job-site waste. Other additional savings are realized because less expensive heating and cooling systems are required with SIP construction. Ecoshield Homes Out Perform Traditional \"Stick Built\". An EcoShield framed building is vastly more energy efficient, stronger, quieter, and more draft free than other building systems, such as stud framing with fiberglass insulation. Fiberglass is sometimes used for furnace filters because air moves through so freely. Rigid insulation is used as solid component insulation in almost every industry for its inherent efficiency and lack of air movement. These attributes are automatically included in a SIP building. Less air leakage, means fewer drafts, less noise, lower energy bills, and a much more comfortable indoor environment. The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 44 of 53

 Save construction time and \"MONEY\" on your \"CONSTRUCTION LOANS\"  EcoShield framed homes are installed very quickly saving costly labor hours. A project using stick frame construction may take several weeks with a 4-person crew, but will take as little as 3 days, with the same crew using our SIPs Homes system.  What makes EcoShield framing even more efficient, is that utility/wire chases are precut into the panels at the factory, therefore making installation quick and easy. Insulation and its installation are not an additional cost since the EPS (Expanded Polystyrene) replaces the normal insulation and provides a much higher “whole-wall” insulation value and performance with minimal thermal drift. In summary our proprietary method of addressing thermal transfer makes a system that out performs the competition, in accuracy, ease of installation and energy efficiency. EcoShield Framing Systems Our proprietary approach to manufacturing panelized walls, floors, ceilings and roofs structural systems, under strict factory conditions, using ICC tested and approved materials leads to a unique level of quality in the overall product. Each individual component is designed and engineered using Computer Aided Design, (CAD). This capability enables us to customize both floor plans and elevations with the added power of translating the clients’ visions into reality. This critical CAD element has improved much of our overall effectiveness as a vertically integrated, instant communication manufacturing organization. This new superior quality level and use of high energy saving components leads to significant energy savings and flexibility of design using environmentally friendly materials. The fact that the world’s tree/wood supply is being exhausted desperately calls out for the need and use of alternative technologies. This overall building approach will set a new standard of excellence and efficiency in the ‘green’ home building industry that does not exist today. Our panels can be configured to be used in the following capacities:  Structural Wall Panels  Floor Assemblies  Roof Assemblies  Mobile Home Manufacturing  Commercial Building Construction  Travel Trailer Manufacturing  Emergency Housing  Oil and Gas Field employee housing  Sheds The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 45 of 53

Some of the advantages of one of our homes are as follows:  Insect and Mold Resistant  High Energy Efficiency Components  Increased Home Resale Values  Decreased Building Time  A True Green Product  Decreased Mortgage & Payment Rates  Potential Energy Tax Credits  Reduced Energy Costs  Increased Life Expectancy of Building  High Wind Load Survivability  Reduced Thermal Loss  Reduced Insurance Rates  Reduced Costs for Heating and Cooling Equipment Structural Integrity & ICC Compliance EcoShield Framing Systems patent pending structural building system is designed and approved by a structural engineer based on site specific blueprints and building codes. The structural building system i7s based on an ICC 32 report using ICC 33 approved and tested materials. The ability of being able to use any number of different combination of ICC approved structural members and manufacturing process sets EcoShield Framing Systems Structural Building System above the rest. 32 International Code Council Page 46 of 53 33 International Code Council The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited.

BASIC WALL ERECTION The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 47 of 53

PICTURES OF COMPLETED HOMES The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 48 of 53

The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 49 of 53

The information contained herein is PROPRIETARY and CONFIDENTIAL any unauthorized use of this information is strictly prohibited. Page 50 of 53