Issues:

04 March 2009

Confidential

BioLocus A/S, Agern Allé 3, 2970 Hørsholm

� Tests

� Regulatory aspects

� Products

� Market

� Heads of agreement

Raft testing 2008 - Kristineberg

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Raft testing 2008

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Elsinore SS Erica

Test on Torm Gerd 2008-09

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After docking in Lisboa,Torm Gerd has been sailing as follows:

1 month anchoring outside Libanon – 3 months sailing around outside Lagos, Nigeria – Round South Africa to the Persian

Golf – A trip to the Black Sea – A trip to England – A trip to Argentina

After 11 months no fouling and no underwater cleaning has been performed

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Under water photo

Test on Olivia Mærsk

• Olivia Maersk 7,06.01.09.JPG

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Tests of antifouling effects

R&D laboratory tests of enzyme effect

• Proof of Concept of effects in lab. tests has been shown at Duke-, Birmingham-, Newcastle Universities plus Sergey

Dobretsov and BioLocus.

• Effects in lab. tests on several organisms: algae, barnacles, chalk worms, bacteria. So, it is likely to conclude that subtilisins

has a very general biological effect by degrading adhesives.

Field tests with paints on panels:

• When testing in paint, the interpretation of effects becomes much more complicated.

– A blank panel will be overgrown quite fast

– A panel with paint but without active compound will stand fouling much longer than the blank – so every paint is better than no paint

– A panel with a polishing paint without active compound is even better

– A panel with polishing paint with a biocide (or enzyme) will be best but often in the late test season

Influencing factors to be considered in antifouling paints:

• Biocides (or enzymes)

• Binders (their kind and combination)

• Zink oxide (very important in polishing effect, not yet registered as biocide, but with some biocidal effect)

Conclusion:

• The evaluation of antifouling effect of a paint is therefore very complex and the effect is most often due to several

influencing factors and it is difficult to judge which factor is the most important. In the final paint receipt one most combine

the individual factors in order to get the best ”meal”.

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An enzyme additive must be approved in EU, but not in USA.

EU Biocide direktive (BPD)

Plan for approval in EU:•Q1, 2009: Information about relevant member states to contact

•Q1, 2009: Information about professional assistance (TNO, DHI, Litehauz ?)

•Q2, 2009: Danisco/BioLocus action group

•Q3, 2009: Application process start

•Q4, 2010: Enzyme approval according to BPD

Environmental Protection Agency (EPA) USABarry Elman (elman.barry@epa.gov) EPA, National Paint and Coatings Sector Point-of-Contact (202) 566-2958 stated:

”EPA do not claim a special approval for special application of enzymes e.g. antifouling paint. The enzyme must be registered as a

chemical and a paint producer located in USA is allowed to market an enzyme based antifouling product. The producer must respect

general EPA regulatives, but no specific approval concerning the specific application is needed.”

Enzymes (subtilisins) are registered in USA and widely used in detergents (“GRAS”). Barry Elman recommend to study www.paint.org for

further information.

To be studied: other markets outside EU.

Relevant market segments outside EU must have yachts and local/national shipping as first priority.

Regulatory

BioLocus’ products

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Product Description Est. Price Stage Illustration

CoatZyme® -Basic

Water based enzyme-

additive for use in water

based antifouling paint for

yachts.

T.B.D. Prototype √

Panel test √

Ship test √

Product √

Registered -

CoatZyme®-Solve

Enzyme additive as a

paste for use in solvent

based antifouling paint for

yachts and smaller

professional ships

T.B.D. Prototype √

Panel test √

Ship test -

Product √

Registered -

CoatZyme®-Areogel

Enzymes moulded in

aerogel for the use in

solvent based (long

lasting) antifouling paint

for big ships.

T.B.D. Prototype √

Panel test √

Ship test (√)

Product √

Registered -

Marketing and sale

1. CoatZyme®- Basic for US based paint producers of

water based antifouling paint for yachts.

2. CoatZyme®-Solve for US based paint producers of

solvent based antifouling paint for yachts, super

yachts and smaller professional ships.

3. CoatZyme®-Areogel. Pilot projects on big ships with

big paint producers, like Jotun, Hempel, Int. Paint.

BioLocus has already established good relations to

big shipping companies e.g. Torm, Mærsk, Clipper.

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BioLocus plan to work on 3 different marketing activities in 2009

Producer cooperation

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Biolocus has/had cooperation and contact to a range of paint producers

Contact &

NDA

Technology

testDevelopment Product test

Commercial

agreement

Jotun, NOR √ √ √

Hempel, DEN √ √

International, GBR √ √

Euronavy, POR √ √ √

Rovima, FRA √ √ √

Sherwin Williams, USA (√)

Lotrec, SWE (√) √

Market

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Existing competitive products:

�Cu compounds in use in 90% of all antifouling paints (toxic, not degradable)

�Organic biocides – only used as co-biocide to Cu compounds (toxic)

�Silicones – (min. 15 knots and constant sailing –expensive, not used on yachts)

Unit Yachts Small Ships Big shipsMarket

Potentialper year

AF-Paint Million litre

per year

70 38 56 164

Enzyme Additive

Market*Million Euro

per year

140 76 112 328

*Market estimate 2007

Total potential sale of enzyme additive based on an estimated price on enzyme additive: Euro 2 pr. litre paint.

Heads of agreement

• Objective: Commercialising enzymes as antifouling additives for the paint industry through a strategic partnership between

Danisco and Biolocus.

• Field: Antifouling additives for the paint industry

• Territory: The World

• Exclusivity: The parties work exclusively within the field.

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To be agreed upon by 30th April

2009