Non-Combustible Structural Insulated Sheathing

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1 Non-Combustible Structural Insulated Sheathing

2 The Times Have Changed: Construction Industry Trends

3 Significant Trends in the Construction Industry ² Price selling, not value selling has become the norm creating significant margin pressures, across the entire supply chain. ² New code mandates around energy, fire, and health performance are making construction more expensive, yet theses costs are having to be absorbed by the GC, putting even more pressure on margins. ² Skilled labor is becoming more and more difficult to find. As a result, labor rates have increased at a time when pricing pressure is at it s greatest.

4 New Code Mandates New mandated codes around energy, fire, and health have forced architects, builders, and product manufacturers to look at new ways meet the codes. ² The 2012 IECC, IBC, and IRC building codes require thermal bridging be calculated when determining the R-Value of a wall assembly to meet the codes. ² This has led to a 50% reduction from the old standard for steel framing and a 23% reduction for wood framing. ² Formerly a 6 steel frame filled with batt insulation would be calculated at R20. Now that same wall will only rate as an R10. ² Thermal bridging is eliminated by adding continuous insulation to the exterior of the building envelope, which is the only effective way to meet the new codes. ² Many states and municipalities have already adopted the 2012 standards by law. 46 out of 50 states and all of Canada will have adopted the new codes by Change is REQUIRED in the way the building envelope is constructed to meet these codes.

5 New Code Mandates ² Fire codes are also becoming more stringent as buildings go up and not out. ² In-fill projects are becoming more common as cities cannot annex new land. ² Recent construction fires of large multi-family structures in California, New Jersey and Calgary are forcing more stringent fire codes across the board. ² ROK-ON has been tested to be non-combustible (ASTM E136) and has a smoke/flame spread rating of 0/0 (ASTM E84). ROK-ON easily passed the NFPA 285, a required test for multi-story buildings. Fire codes are becoming more stringent as buildings go up and not out. ² Mold has replaced asbestos as the most litigated issue in building. ² EIFS and other multi-layered systems create multiple chances for the envelope to fail. ² The cost of mold remediation can be up to $150 per square foot. ² ROK-ON is a monolithic system that does not allow water penetration, and will not support the growth of mold or mildew. Mold has replaced asbestos as the most litigated construction issue.

6 ROK-ON Building Systems A Materials Science Company As our company looked at the emerging trends, our approach was to design building systems around the needs, not around existing products or manufacturing. ² Product manufacturers are addressing the new code changes, but most are doing so by adding layers to their existing products. ² They are unwilling to obsolete their manufacturing infrastructure or large profit centers. ² As a result, they are adding layers to existing products to meet the codes. ² This is adding additional costs and labor to the building envelope that is hard to pass off to the end user, creating even more margin pressure across the entire supply chain. Our goal was to simplify the construction process, with products that can exceed the codes, can be installed in a fraction of the time, at a lower cost than traditional assemblies. Better Faster Lower Cost

7 Our Answer: Insulated Structural Sheathing

8 ROK-ON Insulated Structural Sheathing ROK-ON fiberglass reinforced ceramic cement sheathing is laminated to EPS foam to create a thin structural panel that is attached directly to framing as the exterior insulated sheathing. The result is a high-performance, lower cost solution for exterior walls that exceeds the North American building codes for energy and fire performance. ROK-ON Versus Stucco/EIFS System 3 steps Easily Inspected R-11 Non combustible Will Not Rot Mold Resistant Impact Resistant Bug Proof Cuts and attaches like OSB/ DensGlass without special tools or fasteners. 8 steps 8 Chances to Fail R-5 Easily Damaged High Maintenance Fully tested to meet all applicable 2015 IBC building codes. NFPA exceeded criteria by 30% 0 flame/0 smoke. / ASTM E 84 0 flame/0 smoke / ASTM E136 non combustible IBC Code Compliance Chapter 7 Fire resistant rated construction Chapter 16 Structural transverse wind loads resistance Chapter 26 Types I-IV (non combustible) Energy Standards Performance Exceeds 2015 IECC and ASHRAE 90.1 for energy performance. Eliminates thermal bridging. A typical panel is 2.75 thick, and provides an R11 Dew point remains outside the wall cavity. 9 layers of moisture protection in the system. Superior water resistance. Tremendous architectural flexibility. ROK-ON can accept direct application of finishes (stone or brick veneer, metal panels, stucco, etc.) Full Quality Control Issued the Warnock Hersey stamp from Intertek $10 million per occurrence product liability policy in place. Superior performance Easy installation Competitively priced Be#er Faster Lower Cost

9 Premanufactured Wall Assemblies Assembly Joint Details MagBoard Rim Board PVC Corner Bead 8" Fiberglass Mesh. Cementitious Base Coat. Low Expansion Polyurethane Spray Foam PVC Corner Bead MagBoard Rim Board 3/4" Backer Rod Polyurethane Caulk PVC Corner Bead Cementitious Base Coat. Elastomeric Top Coat For demonstration purposes only. Actual details will be according to architectural and engineering specifications.

10 Our Answer: Benefits for the Entire Supply Chain

11 ROK-ON Insulated Structural Sheathing Benefits for the Architect ² Completely developed exterior wall system that can help the architect provide their client with a superior building envelope at a price that is among the lowest cost alternatives in the marketplace. ² The system can take weeks or months off the construction cycle leading to earlier occupancy. The increased revenue can actually help offset the cost of the envelope leading to a lower overall cost and better ROI for the client. ² The system exceeds the 2015 ICC IBC and IRC codes, with superior performance. Fully tested to meet all of the applicable building codes in North America. ² Design flexibility. ROK-ON can accept most exterior finishes with little or no modification to existing plans. ² Significant projects already in place that allow proof of concept. Passed the test of the owner, architect, builder, and code officials. ² These include brands like Hilton, Holiday Inn, the Dept. of Defense, and others. ² Financial models are proven ² Completely developed details.

12 ROK-ON Insulated Structural Sheathing Benefits for the Building Owner ² Less steps directly allows for quicker occupancy for the building owner, regardless of the building type. ² For a full-service hotel, getting in just 60 days early can mean an additional $882,240 in profit! This could more than pay for the entire building envelope. ² Quicker occupancy significantly increases the ROI Hotel Occupancy Statistics ² Other Benefits Source: STR Global Statistics March 2013 ² Better energy performance leading to reduced energy costs over time. (Typical R29 vs. R20) ² Lower overall maintenance costs. ² Competitively priced to EIFS, (among the lower cost alternatives) with much better performance. ² Architectural flexibility in design. ² Tremendous fire performance.

13 ROK-ON Insulated Structural Sheathing Benefits for the GC / Builder ² Large potential labor savings. ² Less steps means lower labor costs to install relative to competing systems. ² Less steps allows other trades in earlier, leading directly to earlier enclosure. ² Scaffolding costs can be eliminated, or significantly reduced. ² Scaffold installation and rental can add as much as $4 - $5 psf to install an EIFS system. ² ROK-ON s fewer steps leads to faster completion and significant savings. ² With a prefabricated wall, scaffolding can be eliminated altogether. Traditional EIFS system (Took weeks just to install the scaffolding) ² Can take weeks / months away from the construction cycle. ² Can lead to better ROI. ² Allows flexibility in critical path timelines. ² Can be constructed and pre-finished in a modular environment. Better quality control. ² The system performance will lead to fewer callbacks and maintenance. ROK-ON prefabricated walls being installed (Panels for ½ of the building were installed in 9 working days)

14 ROK-ON Insulated Structural Sheathing Benefits for Prefabrication ROK-ON is perfect for prefabrication of external wall assemblies. ² Modular projects often include only the frame and sheathing. The balance of the wall is finished in the field. ² ROK-ON replaces several layers of a typical wall assembly in one product, that is installed in about the same time as the first layer of sheathing. ² Productivity is increased as the time to construct a wall assembly is substantially reduced. ² ROK-ON is attached to the frame using conventional tools. No special requirements. ² Additional steps to install the vapor barrier or the exterior continuous insulation are not required. ² The panel can be finished directly, reducing even more layers like wire mesh and multiple applications for stucco. Fewer steps means less time in the construction cycle = greater productivity. It also means less labor and space is required to complete the tasks.

15 ROK-ON Insulated Structural Sheathing Benefits for Prefabrication Traditional prefabricated EIFS Installation #1 DensGlass sheathing applied to frame #2 Vapor barrier applied to sheathing #3 / #4 Foam installed over sheathing. Joints glued and filled. #5 Foam is leveled to make smooth surface for base and final coat. ROK-ON replaces five steps with one step ² ROK-ON is attached directly to framing. ² It can be cut and fastened with normal tools. No special requirements. ² Requires no modification to existing framing tables/or infrastructure. ² Less steps significantly increases productivity. ² This significantly reduces the time, space, and labor required to get the panel ready for finishing.

16 ROK-ON Insulated Structural Sheathing Benefits for Prefabrication ² Exterior finishing is typically done in the field. ROK- ON makes it easy to do during the prefabrication process. ² ROK-ON allows direct applications of finishes with no additional layers or build-up. (as codes permit) ² This creates an opportunity reduce trades into a project, decreasing the complexity in the project timelines. ² The potential elimination of layers like vapor barriers, lath, mesh, etc. increases productivity as well. ² ROK-ON can accept many different types of finishes: stucco, brick, stone veneers, metal, etc. ² Reveals and other architectural details can easily be incorporated into the prefabrication. ² This allows for tremendous architectural flexibility.

17 ROK-ON Insulated Structural Sheathing Benefits for Prefabrication ² A key difference is that ROK-ON has structural sheathing on the outside of the assembly versus just an acrylic finish over foam on the exterior face. ² This provides the strength to even install windows in the wall assembly. ² Much faster construction time - faster to enclosure for the builder and owner. ² Window installation adds little time to the prefab process and adds more value to the GC/Builder. ² Unlike EIFS, which is easily damaged, ROK-ON is structural and impact-resistant. ² This solves a major problem with prefabricated EIFS walls which is the damage created during transportation to the job site. Sto EIFS prefabricated walls No windows ² ROK-ON s strength allows the wall assemblies to easily be craned into place with no damage. ² In certain cases, the structural strength of ROK-ON can lead to a reduction in the gauge of the steel frame. This can potentially reduce the stud cost by as much as 23% on the frame, a hidden benefit to the GC which can go directly to the bottom line. ROK-ON prefabricated walls With windows pre-installed

18 ROK-ON Qualifications and Contacts

19 ROK-ON Insulated Structural Sheathing ² All of our products are fully tested by Intertek to meet the 2015 edition of the IBC codes. 54 separate ASTM tests completed. ² We own and operate our own manufacturing plants with significant capacity to meet growth needs. Ø Ø We have a fully integrated quality control process in our plants with Intertek in all of our plants. We proudly stamp all of our products with the Warnock- Hersey stamp and are listed with Intertek on their Spec Direct site for our boards and panels. (

20 ROK-ON Insulated Structural Sheathing ² We have passed the due diligence with architects/engineers, building code officials, GC s, and owners, on our current projects going up. ² We provide in-house engineering and technical support with both a structural engineer and architect on staff. ² Our products come with a 20-year warranty. ² We provide a $10 million per-occurrence product liability insurance, a requirement for most projects.

21 Contacts United States Richard Chase - VP Sales rjnechase@yahoo.com Canada Gordon Ritchie - Managing Director gdritchie@shaw.ca Mexico David Chase President/CEO dchasebaja@yahoo.com China Cathleen Sun Operations GM Cathleen.sky@hotmail.com