Quiksilver Method Nutrition tm Strategic Business Opportunity Roxy

Quiksilver Method Nutrition tm Strategic Business Opportunity Roxy Confidential ®

Method Nutrition Forging an Alliance based on Science Shaping a Healthy Core Lifestyle Confidential

Table of Contents: • Executive Summary • The Opportunity • Market Landscape & Plan • SWOT Analysis • Marketing Strategy • Financial Forecast • Structure • Next Steps • Science Data Confidential

Initial Product Suite Roxy The Roxy branded products will be specially formulated for the target market; size, flavors, and caloric volume Ready to Drink v 12 -16 oz Method Nutrition Bar v 12 bars in a 4 color box Roxy Madness (travel pack) v. RTM + Bars + Surf/ Roxy Related Products Confidential

Marketing Tactics II Print Advertising Strategic, cost-contained print advertising in select magazines, targeting demographically-rich, enthusiast communities Enthusiast Vehicle Editorial Harness “editorial secret agents” who are Method friends and have columns in high circ enthusiast publications/websites Press Conferences Announcing significant study results, with venue co-located with national/intl. science conference, near journal publisher Product Placement Leverage contacts (directors, actors, producers) in TV/film to anchor Method brand (clothing, product use) VIP User/Influencer Marketing Ambitious, Method-managed, low $, elite user/VIP/ambassador program: pro elite trainers/coaches; amateur to pro standouts Digital & Interactive “Books” New media format “books”, with interactive and Web-enabled content, extolling Method platform, and significant introductions Event Promotions Nationwide, active presence with Method team at enthusiast and competitive events: youth to world class; podcasts Confidential

Marketing Tactics – ZQK Specific Store Visits Quik Announcements Regular visits to each Surf region to provide training and motivational seminars about new products, w/Method mgmt Frequent media announcements directed to corporate, franchise, and board shops, via email and podcasts Co-promotions Complementary Quiksilver co-branding product recommendations placed in all Method product media formats Conference Calls/ Webinars Regular scheduled conference calls with store managers to update on products, marketing support, new offerings, promos Pro Appearances In-person appearances of pro and elite athletes, at Quiksilver/Board stores; trade shows, etc. Incentives & Rewards Cash incentives for active promotion & sale of Method brand; “Secret Shopper”, on-site multifaceted rewards program Info Packages Creation and collaborative review/shaping of digital and print information kits for each product Confidential

Initial Distribution – Revenue Range Confidential

Year One & Two Distribution Confidential

Year Three Plus Distribution Confidential

Launch Support The Method launch plan is to utilize the best of Quiksilver and Genr 8 --synergy--with no duplication of infrastructure where applicable. Method would be expected to stand on its own and therefore Quiksilver support to Method will be at an agreed upon rate/allocation This structure will promote Method to be nimble and achieve positive cash flow faster than building a traditional infrastructure from which to launch Method Confidential

Who does What Method Quiksilver Genr 8 / MRM Quik Brands Management Team Corp Store Distribution Vitargo Intellectual Property, Scientific Proof Core Shop Distribution Event Marketing/Promotions R&D/Innovation & Formulation Marketing Support* Sales, Marketing & CRM Accounting, Tax & Legal Support* Operations / Distribution Sport/Science-Driven Media Internet Synergy/Links* Supply Chain Mgmt Regulatory *At an agreed upon rate Confidential

Financial Forecast Confidential

Pro. Forma Income Statement Five Year Confidential

Pro. Forma Income Statement Year 1 Confidential

Volume Forecast Confidential

Volume Forecast Confidential

Pro. Forma G&A Expense Confidential

Pro. Forma Cashflow Confidential

Startup Capital Confidential

Possible Structures: Quiksilver & Genr 8 Joint Venture: Ownership structure to be developed (xx% Quik; yy% Genr 8) Hybrid JV: With revenue and earnings consolidation to Quiksilver (accretive) Quiksilver Subsidiary: Under the Quiksilver umbrella (financial consolidation) with equity issued to Genr 8 and appreciation rights Confidential

What’s Next q. Letter of Intent q. Presentation to Quiksilver leadership q. Comprehensive business plan: meticulous manufacturing/supply chain, branding, financials marketing, sales & distribution strategy q. Entity Creation q. Entity Operational q. Product Launch q. Market Capture q. Value Creation Confidential

Genr 8 & Quiksilver Thank you Merci Beaucoup большое спасибо Muchas Gracias ありがとう Danke 謝謝 obrigado muito Confidential

Science Data Confidential

Anthony L. Almada Anthony has worked within the natural products industry since 1975. He performed his undergraduate training in physiology and nutritional biochemistry at UC Irvine and CSU Long Beach. He performed his graduate research at Berkeley in antioxidant and exercise biochemistry. In 1992 he co-founded EAS, the world’s largest sports nutrition company, acquired by Abbott Labs/Ross in 2004. At EAS he developed and implemented a strategic university research program that completed over 15 clinical studies in the first 3 years of the company’s history, and yielded 2 patents. He then cofounded a medical food company focused on the prevention of HIV-associated wasting. He has collaborated on over 90 university and private research center clinical trials, ranging from AIDS/HIV to weight loss. He is the founder and CSO of IMAGINutrition, Inc. , a think tank focusing upon intellectual properties, clinical research validation, and science-driven media campaigns in the dietary supplement, cosmeceutical, medical food, and conventional beverage and food sectors. He is a founding partner of Lev. Inova, Inc. , marketers of Zsweet™, a patent pending all natural, zero calorie, clinical research-validated zero glycemic bulk sweetener. He is the Managing Director of a North American subsidiary of a spin-out from the University of Nottingham, poised to market an evidence-based suite of performance nutrition dietary supplements. He has been a surfer since 1975 and a Quiksilver brand loyalist since 1979 Confidential

Tom Corrigan Tom is a surfer, hiker, dad, and finance guy. He is Financial Advisor for Metabolic Response Modifiers, JYM Supplement Science, Vitargo, and Bar. Tech. MRM is a cutting edge, rapidly expanding sports nutrition company. Bar. Tech is a high quality, custom bar manufacturer. Prior to joining MRM Corrigan served as Finance Advisor for Imagi. Nutrition, a nutritional technology and demand creation think tank. Consultants to the natural products industry, with a focus on dietary supplements, nutraceuticals, and functional beverages. Previously Corrigan was Director of Finance for Alteon, the Flight and Technology subsidiary of the Fortune 20 Boeing Company. Alteon has flight training facilities on 6 continents and 24 locations. Corrigan has over twenty years financial and business development experience and has consulted within the Natural Products Industry since 1998. He specializes in the architecture of product launches, business strategies, financing, and value creation. Tom is also on the board of directors for Bar. Tech Manufacturing Tom has International experience in China, Korea, Australia, the UK and Mexico; his education includes an MBA from the Chapman University School of Business, BA from California State University, Long Beach. He is a member of Surfrider Foundation, the Chapman Economic Association, and Chapman MBA Association. Tom enjoys time with his family, surfing, hiking and travel. Tom also speaks Spanish and French. Disclosure - Corrigan owns shares of ZQK Confidential

Mark Olson Mark is a Surfer, Dad, and the Chief of Chemi Source, Inc. and Metabolic Response Modifiers (MRM). He is also Chairman of the Board for Bar. Tech. MRM is experiencing exponential growth in both top and bottom lines. Previous experience initiated while working on his Masters in Clinical Nutrition and publishing/participating in several clinical trials at Harbor/UCLA, Research and Education Institute As Director of R&D for KAL (now Nutriceutical, Inc. ), he successfully launched Melatonin (industry first) and did other innovations while at Jarrow Formulas, Inc. Mark continued consultation for the supply-side of this industry which led to the formation of Chemi-Source in 1996. Mark has had many studies published and continues to be a contributing writer for numerous health oriented publications Confidential

Energ 8 Group Ltd: UK Roots • An elite, UK university-based muscle scientist: Dr. Paul Greenhaff • A highly respected English Premier League (soccer) strength coach veteran • A “dormant” patented carbohydrate with underappreciated potential Confidential

Energ 8 International: Mission • Apply pioneering, exclusive human science to enhance muscular and metabolic performance • Develop and exploit a pipeline of University lab-birthed, evidence-based nutritional compositions • Create unflinching confidence--from elite coach to consumer-- and create legions of brand zealots across many sports • Proof Before Promises™ (mark filed for registration) Confidential

Product Development Strategy • Identify and explore unchartered, consumer-relevant regions of human performance and metabolism enhancement: GENERATE IP • Prove concept in rigorously controlled, university-based clinical studies: GENERATE VALIDATION • Apply the IP and science platform to novel compositions with a variety of delivery systems • Undertake additional studies to build evidence bases for each composition Confidential

Genr 8 Management Team • Anthony L. Almada, MSc--CEO (32 years; EAS; Diet. Max®) • Tom Corrigan, MBA--CFO (20 years; MRM, Bar. Tech, Fortune 100) • Joe Evans, Ph. D--VP, Scientific Affairs (17 years; MRI, Shaman Pharmaceuticals, Novartis) • Chris Noonan, MPH--VP, Marketing & Regulatory Affairs (13 years; Pharmanex, Pharmavite, EAS [team sales]) • Neil Beltran, MBA--VP, Branding (26 years; Weider, Amerifit) Plus 9 other industry veterans: endurance, pros, EAS sales, legal Confidential

Genr 8, Inc. Advisory Board • Greg Horn (former CEO, GNC) • Farah Ahmed, BSc, Esq: former attorney for FDA (CFSAN); Bachelors in neuro-nutrition; assistant general counsel, CTFA • W. Patrick Noonan, RPh, MBA, Esq: former nutrition industry EVP; submitted first NDI; 35 years food & drug law experience • Rod Berman, MS, Esq: 20+ years IP law experience; Masters in Chemistry; voted one of Top 25 IP lawyers in California • Steve Jennings: launched first creatine product; ex-Pepsico Confidential

Opportunity: Quiksliver & Genr 8 • Novel, evidence-based (U Nottingham), IP-anchored (Vitargo® axis + patents and patents pending) platform with a deep innovation pipeline • Savvy and highly skilled management team (> 160 years of industry experience) • Industrial Physics 101: minimal inertia to overcome; Vitargo momentum across a broad span of enthusiasts • Incremental consumer$: parents + youths, plus soccer, endurance, and performance-driven communities Confidential

Initial (Launch) Product Suite • Method – Ready to Drink • Method Endurance/Energy Bar • Method Ready to Mix Confidential

Proof Before Promises™ REAL WORLD SCIENCE Confidential

Scientific Rationale (1): Vitargo • Prolonged sub-maximal exercise in humans is limited by availability of muscle and liver glycogen stores • Glycogen stores increase when carbohydrate intake is high • Glycogen synthesis is highest in muscles in which glycogen stores have been depleted by exercise, especially during first two hours post-exercise Confidential

Effects of Vitargo on Muscle Glycogen Overview of Study Design • Single-Blinded, Randomized, Two-Way, Cross-over Design • 13 healthy well-trained young male students • Subjects performed standard exercise routine to deplete muscle glycogen stores • 60 min on treadmill followed by 60 min submax cycle ergometer + sprints • After exercise, subjects ingested 4 servings of one of 2 carbohydrate drinks (300 g total): • 75 g Monomeric/Oligomeric Glucose (MW ~ 500; 350 mosmol/liter) • 75 g Vitargo, a High Molecular Weight Glucose Polymer (MW ~500 -700 K; 84 mosmol/liter) • Muscle biopsies at 0, 2, and 4 hours post-exercise Timing of carb drinks, postexercise Confidential

Vitargo Increases Muscle Glycogen and Glycogen Synthesis Rate in Humans Conclusion • Use of Vitargo after glycogen-depleting exercise restores muscle glycogen at a 70% faster rate compared to equal calorie maltodextrin + glucose drink with higher osmolality • The rate of glycogen repletion approaches that of IV glucose Aulin et al 2000 Eur J Appl Physiol 81: 346 -351 Confidential

Scientific Rationale (2): Vitargo • Synthesis of muscle glycogen from ingested carbs is dependent upon 1) glucose transport across intestinal mucosa and muscle cell membrane, 2) glucose phosphorylation, and 3) the enzyme glycogen synthase • Blood glucose concentrations are influenced by the flux of glucose from stomach via the intestine • Rate of gastric (stomach) emptying is influenced by the osmolality (amount of dissolved ingdts. ) of ingested solution • Solution with high osmolality could delay gastric emptying, thereby delaying release of glucose into the blood Confidential

Effects of Vitargo on Gastric Emptying Overview of Study Design • Single-Blinded, Randomized, Two-Way, Cross-over Design • 6 healthy young males evaluated on two separate occasions • After 5 hour fast, subjects were given (by oral tube into the stomach, to control amount) one of 2 carbohydrate drinks: • 75 g Monomeric/Oligomeric Glucose [15% glucose; 13% disaccharides] (MW ~ 500; 336 mosmol/liter) • 75 g Vitargo (MW ~ 500 -700 K; 62 mosmol/liter) • Gastric volumes measured at 10 -minute intervals for 60 min. post-gavage using standard techniques (concentration of dyecontaining solution) Confidential

Vitargo Accelerates Gastric Empting in Humans Conclusions • Vitargo empties from stomach 2 x faster than equal carbs as maltodextrin + sugars drink (minimizes “fullness” feeling) • Vitargo delivers energy to small intestine (for rapid absorption) at a rate 2 x faster than maltodextrin + sugars drink Leiper et al 2000 Scand J Gastroenterol 35: 1143 -1149 Confidential

Effects of Vitargo on Endurance Overview of Study Design • Single-Blinded, Randomized, Three-Way, Cross-over Design • 8 healthy recreationally active young male students • Subjects performed cycling exercise to the point of exhaustion at 75% VO 2 max (previously determined) • Protocol results in virtually complete glycogen depletion • After exercise, subjects ingested one of 3 drinks (1 liter total volume) • 100 g Monomeric/Oligomeric Glucose (MW ~ 900; 124 mosmol/liter) • 100 g Vitargo (MW ~500 -700 K; 34 mosmol/liter) • Control Solution: Equal volume of calorie-free flavored water • Two hours after consumption of drink, subjects performed as much work as possible in 15 minutes on a braked cycle ergometer • Validated model of endurance performance • Blood (arterialized) samples obtained every 10 minutes during 2 h recovery period for glucose and insulin measurements Confidential

Effects of Post-Exercise Use of Vitargo on Glucose and Insulin Conclusion • Post-exercise consumption of Vitargo results in faster and higher increases in glucose and insulin concentrations • Blood sugar does not “crash”; glucose enters muscle Stephens et al 2007 J Sports Sci in press Confidential

Vitargo Improves Max Endurance Performance after Glycogen Depletion Conclusions • Post-exercise use of Vitargo results in 10% greater work output during 15 min. subsequent max endurance exercise • Improvement observed in each subject Stephens et al 2007 J Sports Sci in press Confidential

Scientific Rationale: Carnitine + Superior Insulin Elevating Agent • Carnitine: essential for fatty acid transport into mitochondria; as buffer for excess acetyl groups produced during carb oxidation • >95% of body’s total carnitine stores: in skeletal muscle • During intense exercise, skeletal muscle free carnitine decreases >65%, fatty acid (FA) oxidation decreases by 30% • During intense exercise, free carnitine availability might be rate limiting for FA oxidation in muscle • CHALLENGE: Carnitine supplementation alone does not increase carnitine pool in skeletal muscle in humans--explaining the equivocal performance and fat oxidation (and lack of human fat loss data) body of science Confidential

Metabolic Roles of Carnitine in Muscle INSULIN Figure modified from Stephens et al 2007 J Physiol Confidential

Carnitine Increases Fat Oxidation and Glycogen Storage in Humans: Breakthrough Conclusion • Increased muscle carnitine content boosts fat oxidation (judged by reduced PDH activity) AND muscle glycogen in humans, without increasing carb intake Data from Stephens and Greenhaff et al 2006 J Clin Endocrinol Metab 91: 5013 -5018. Confidential

Carbohydrate Ingestion Augments Carnitine Retention in Humans Single Dose 14 Day Dosing 3 g Carnitine (base) + 94 g CHO Conclusion • CARB-stimulated insulin secretion results in increased whole body (muscle) carnitine retention in humans Data from Stephens and Greenhaff et al 2007 J Appl Physiol 102: 1065 -1070. Confidential

Skeletal Muscle Carnitine Delivery Technology Product Development Approach • Combine carnitine with a superior insulin elevating agent to insure carnitine retention in skeletal muscle • Superior Insulin elevating agent: Vitargo • Take as a daily post-workout or rest day solution Results • Increased fat oxidation in skeletal muscle • Increased glycogen storage in skeletal muscle Applications • Sport Nutrition: Endurance Sports; Post-training Repletion • Medical Foods (Obesity, Impaired Glucose Tolerance, Type 2 diabetes, Metabolic Syndrome), others Confidential

Product Safety • No issues have been observed with regard to safety, tolerability, adverse events, dropouts from clinical studies, or any other indices of product safety following consumption of Vitargo Confidential

Intellectual Property • Issued, unchallenged US patent related to Vitargo--expires 2016 --with EXCLUSIVE North Am license; exclusive license to Vitargo trademark • Three U Nott patents pending, related to Carni. Sure platform; Vitargo + “black box”; license to all U Nott/Greenhaff IP exclusive • Engagement of elite IP firm: patent and ™ prosecution; offensive and defensive patent infringement strategies in place; swift enforcement • Genr 8 management team has HIGH IP savvy, expertise Confidential

Manufacturing • NPA, NSF c. GMP contract manufacturer for RTMs, sachets, solid doses (only ultra high speed sachet packaging unit west of MS)--15+ year close working relationship with owner/CEO • ALL US or EU-produced bioactives; Swecarb (Vitargo) is a global top producer of starches--2 yr shelf stability • Food c. GMP bar manufacturer--28+ year working relationship with majority owner; excellent working relationship with CEO; Genr 8 CFO has served as external CFO for this company • Food c. GMP flavor and RTD manufacturer, for aseptic and UHT development, and aseptic production; stability testing Genr 8 is committed to satisfying Quiksilver’s quality standards Confidential

Regulatory Status • Genr 8 product suite (and innovation pipeline) contains both old and new dietary ingredients – qualifies as dietary supplements • Sucralose is the only sweetener; pursuing GRAS status on a natural, zero calorie, high intensity sweetener constituent found in Stevia (NOT Stevia extract or stevioside), to create 100% natural line extensions (for youths/Mom shoppers) • Banned Substances Control Group (BSCG) certification for EACH product Confidential

Product Certification • EACH lot of Genr 8 finished product will be submitted to certify the absence of ANY substances banned by WADA, IOC, MLS, NFL, MLB, NBA, NHL, NCAA • Testing by Banned Substances Control Group • www. bscg. org • ONLY certification program in the US that uses a WADAaccredited laboratory for all analyses • Detection limits used by BSCG are the lowest detection limits for any similar program worldwide • Assays for the presence of • Anabolic Agents (>40 different banned substances) • Stimulants (> 30 different banned substances) Confidential

Prove It and They Will Come SCIENCE-DRIVEN MARKETING Confidential

Core Sports Synergy • Surfing • Snow Sports • Golf • Skateboarding • Motocross • Volleyball • School and University • Unlimited Potential Confidential

Marketing Objectives • Build on the scientific support for the product; “Proof Before Promises™” is our mantra • Create legions of brand zealots across many sports AND age ranges: leverage relationships in professional & youth surfing, skiing, snowboarding, golf, and skateboarding • Highly targeted messaging through digital media, relationships with key influencers (who use the product, not sponsorship), and abundant beta-testing, trial, and sampling programs • “Curriculum marketing” to both Quiksilver & board shop retail staff and end users via multimedia/interactive vehicles and forums • Achieve HIGH editorial: advertorial ratio through strategic media campaigns linked to every new published human study Confidential

Sales & Distribution Plan: • Controlled distribution to build incremental and high velocity awareness and maintain nationwide price integrity • Method will attract new customers to Quiksilver enthusiasts with NOVEL, evidence-based products • Minimize commoditization (despite robust and expanding patent/IP portfolio) • Breed Method brand zealots and NEW Quiksilver consumers Confidential