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1 Investor Presentation
Good evening, my name is Mike Stacey and I am the CEO and Co-founder of SmarterShade. SmarterShade finally makes smartglass simple and affordable. Investor Presentation November 2012

Windows that “tint on command” to control glare, and privacy, and energy… Our vision is to have windows that tint on command. Instead of hassling with blinds or shades, you could flip a switch and have windows go from clear to dark with a touch of a button. Instead of turning down your thermostat, you can dim your windows to control temperature. The benefits if this type of a product include solar heat gain control; as well as glare and privacy which may be equally or more important in some applications. SMARTERSHADE

PROBLEM Traditional treatments have wide adoption, BUT… Awkward to use Interrupt view Mechanics break Limited Energy Control The Department of Energy named smart glass #1 “must have technology”, BUT… Too expensive Requires special wiring Slow switching Not a privacy application (does not replace blinds) PROBLEM You may have heard of technology that sounds like this before. Smart glass technology has actually been around for over 20 years. The department of energy even named smart glass to the top of the list of "must have" technologies for buildings. The question is if there is so much demand, where is it? Why isn't it on your problem windows, or the windows right here? The problem is price.  The cost per square foot is through the roof and the reality is that at this price there is going to be virtually no market penetration.  <build> another issue is complexity. It takes hundreds of millions of dollars to build one of the lines needed to create each variety of electronic dimming glass.  And even after all this development, this is the result <point to image> here is the clear state, and this bluish tint is as dark as it gets. You would still need to add blinds or shades for privacy. It just isn't good enough.  THERE MUST BE A SIMPLER SOLUTION ! SMARTERSHADE

A simple approach to smart-glass allows any window to be a smart window. Unique Features of SmarterShade: Can be completely wire –free Retrofit or new window Instant Switching Privacy application Roll to roll film base = low cost We asked ourselves, what is the simplest way to achieve tint on command? Well here it is. This is a pair of polarizers. A cheap, off-the-shelf film. When one is rotated with respect to the other, you can go from clear through different shades all the way to dark. This would work great, if we had round windows. But this won't work for square windows. So smartershade invented a proprietary, patent pending way of using materials to shift one panel a fraction of an inch to go all the way from clear to dark. We integrate these special films EITHER into an aftermarket shading system or into a drop in window cartridge that we sell to window and glass fabricators. We have an enabling technology that makes glass smart. At a high level, this is how the technology works. SMARTERSHADE

Platform Glare Privacy Energy Variable Tint Blinds/ Shades Electrochromic Liquid Crystal (PDLC) Thermochromic SmarterShade Existing Smartglass Technologies UNIQUE PROPOSITION AND DEFENSABILITY No current or wiring Can be retrofit or new window Simplified mechanics Intellectual Property covers entire platform (film and window system) Film technology and mechanical system are platform for many products WE HAVE CREATED AND PROTECTED AN ENTIRELY NEW CATEGORY SMARTERSHADE

SmarterShade is an enabling technology that makes glass smart. Windows Residential Commercial Initial Market Focus Benefits: Energy control New construction or retrofit Fits many types and sizes of windows Leverages existing glass/ window supply chains Transportation Automotive RV/Boat Airplane SmarterShade Technology Home Appliance Bathroom We have created a versatile light and heat control platform that is scalable to a number of applications across industries. Our first focus is in the windows segment (which we will detail out further); however we have been getting attention from other areas including automotive and interior office partitions. Other Office Military Etc… SMARTERSHADE

Addressable market = residential and commercial windows. $5.3B Market @ projected SmarterShade cost $4.2B Market @ current SmarterShade cost @ projected EC cost @ cost of current technologies This graph represents how cost impacts market size. This objective market research conducted by a window company partner that is considering entering the market. At the current cost of these technologies (80-120), there is virtually no market. (niche and showcase). The leading technologies are projecting to be able to get to 50 psf. This barely moves the needle in terms of market size. We have confirmed that this is the lowest that they can possibly get to from a number of industry experts and investors that have looked at these technologies in detail. Note that this is after these companies have brought 100m plants online. Our starting point is $30 psf which equates to a $4.2B MARKET!!! This is 40 times the size of the market today. We are able to do this because of a smaller bill of materials and the fact that we utilize roll to roll mfg methods. Within the next few years, we have clear visibility to get to the $15 psf mark- expanding the market to $5.3B! The bottom line is that because of our cost advantage we are creating a huge new market! We are actively researching ways to get down to $10-$15 psf. This includes looking at alternative film supply method. Cost per square foot SMARTERSHADE

FABRICATION of CARTRIDGE GLASS / WINDOW SALES SmarterShade suppliers 3-4 strategic relationships SmarterShade customers 5 pending JDAs Our competition is currently investing 100’s of M’s just to get to 50psf. WE are different in we don’t have to build our own manufacturing capability. We take advantage of existing industries to produce our product. We have vetted our supply chain and have multiple world class suppliers that want to work with us. Our assembled product is a simple drop in window cartridge. We don’t have to build a whole window (like our competitors). All of these things result in the fact that we are a capital light business. SmarterShade products via JV partners SMARTERSHADE SMARTERSHADE

This slide represents our first two products: Invisiblind is something that we are planning to launch in the next 12 months and followed up by SmarterShade within 6 months. The difference is that Invisiblind is a 2 state (clear/ dark) product while SmarterShade offers continuous shading. The unit shown on the left was built for us by a global skylight manufacturer and represents an aftermarket shading system. Continuous change 2 State SMARTERSHADE

GO TO MARKET PLAN 1 2 3 RESIDENTIAL WINDOW/ DOOR TRANSPORTATION COMMERCIAL WINDOWS Over the last several months we have conducted quite a bit of customer exploration and discovery. The result is that we believe we have found the key entry points and partners that will allow us to achieve speed and scale. We have started to engage with several of these partners in the doorglass and skylight segment and are working with a few of these on joint development efforts. We are also negotiating a joint development agreement with a large glass fabricator that can serve these initial segments as well as several others. By entering the market quickly in these segments and having partners that can scale; we can achieve high growth across the residential and commercial segments. Market entry: Q2 2013 2017 sq ft sold 4M # of fabricators: 1-2 Market entry: Q3 2014 2017 sq ft sold: 5.7M # of fabricators: 10+ Market entry: Q1 2014 2017 sq ft sold: 3.5M # of fabricators: 4-6 SMARTERSHADE

Timeframe Details Supplier JDA Dec 2012 Liquid Crystal and a film supplier Fabricator JV/ JDA In discussions with multiple companies in U.S., Canada, and Europe Gen 2 Prototype Jan 2013 Manufacturable prototype for 1st product Durability testing Apr 2013 Lifecycle testing of components and system File international patents File in specific countries outside of the U.S. where end product will be sold Supply Chain Readiness May 2013 Final product development, manufacturing tooling Product Launch Jun 2013 Launch product 1 (Invisiblind) for select applications SMARTERSHADE

12 Additional Business Advisors
TEAM Management Team Technical Resources Mike Stacey, CEO 12 years mgmt consulting - focus on energy industry Prior owner/ operator of home renovation businesses Ryan Tatzel, Film Development Construction industry and machining experience BS Chemical Engineering Will McLeod, Window Systems Development Industrial design/ mechanical engineer MS engineering Ted Willoughby, Business Development Window and building products industry veteran Former sales executive for Milgard Windows Brandon Tinianov**, Former CTO Serious Energy Rick McCurdy, Former VP Product Development at Milgard Windows Court Hiniricher, Windows engineer Clay Shepherd, Display industry expert Colin Lines, Optics analyst Chris Riordan, Mechanical engineer Our team brings together passionate founders with complementary skills and an advisory team with the right mix of domain and strategy experts. I have over 12 years experience as a project manager and management consultant. I managed projects with budgets over $10M budgets. I developed my passion for entrepreneurship by running a 10 employee painting franchise as a undergraduate College. I learned how to sell, how to manage, and how to persevere. It was an incredibly rewarding experience and I was able to fund the remaining 2 years of my college tuition. This experience drove me to revisit entrepreneurship as an MBA student at Notre Dame 5 years ago. This is when I met Will and Ryan who had developed the original concept behind SmarterShade. Together we raised over $50k in seed money based on an initial business plan and used the money to fund R&D. After a focus on technology I came back full time in July 2011. Together we have achieved a tremendous amount and we have surrounded ourselves with the right advisors and strategic partners. Additional Business Advisors Tom Hood**, Former CEO Southwall Technologies, Will Glaser*, Founder of Pandora, Marc Tarpenning, Founder of Tesla Motors, Steve Abramson, President Pace Windows SMARTERSHADE

License application and pattern to film makers Joint Development/ Partnership Opportunity 2 Product sales of full window systems Joint Venture Relationships with initial Glass Fabricators Because we’re capital lite, we will be able to scale quickly to be a 60M business in 5 years. The key driver is that we’ll have already gone through the basic building blocks of design, test, and certification in 2012, so that we can expedite the process of launch with new customers and markets Beyond year 5, we will extend our product platform and continue on a high growth trajectory. 3 License of window system manufacturing IP JV/ Strategic Partner License of Manufacturing Process Phase 2 SMARTERSHADE

Scale achieved through strategic partnerships and adding new markets, and licensing. Application/ Mfg Licensing Market 3 Launch Market 2 Launch Because we’re capital lite, we will be able to scale quickly to be a 60M business in 5 years. The key driver is that we’ll have already gone through the basic building blocks of design, test, and certification in 2012, so that we can expedite the process of launch with new customers and markets Beyond year 5, we will extend our product platform and continue on a high growth trajectory. Market 1 Launch SMARTERSHADE

Opportunity 1 Opportunity 2 Q4 2012 Q1 2014 Q4 2015 Q1 2017 Suitors Window: Prelco, Milgard, Nashville Tempering etc… Film: LG Chemical, Merck, BenQ, etc… Glass: St. Gobain, AGC, PPG, etc… We’ve made tremendous progress in the last 12 months in building our company. Some highlights include the development of a comprehensive IP portfolio, as well as acquiring additional film samples. Raising over $400 in funding from grants and a note from KP; engagement with multiple customers in prototype development and building our organization here in the bay area. SMARTERSHADE

Window system final development Utility and foreign patent filing Supply chain readiness Full lifecycle testing Product launch Strategic (500K) Grant match (500K) Equity funding (2M) Grants (870K) Conv note (325K) Customers / bootstrapping (145K) SOURCES: R&D Patenting Customer acquisition Value chain development USES: The 600K that we are currently looking to raise will be used to acquire additional customers, file new patents , go through full lifecycle testing, prepare the supply chain and launch a product within the next 12 months. Positive Cash flow from Operations in 12 months Only funding needed to launch our first products. Additional raise in 12 months : $1.5- 2M = for operational scale up. SMARTERSHADE


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