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Clustering Around Macrocycles:

Building a Manufacturing Middle Class from Emerging Technologies

Clustering, a geographic concentration of interconnected businesses, suppliers, and associated


institutions in a particular field, is one of the most striking features of a thriving economy. Whether
they are planned or coincidental, clusters are considered to dramatically increase the productivity
with which companies can compete, nationally and globally:

by increasing the productivity of the companies in the cluster,


by driving innovation in the field, and
by stimulating new businesses in the field.

Even casual observation reveals that economic activity does not have an even geographical
distribution. It shows a staggering condensation in some areas and remarkable scarcity in others.

In the mid to late 1990s, for example, several successful computer technology companies emerged in
Silicon Valley. This eventually led everyone who wished to create a technology startup to do so in
this area. The surge in the number of Silicon Valley startups led to a number of venture capital firms
relocating or expanding their offices to the Valley - this in turn encouraged more entrepreneurs to
locate their startups there. In other words, venture capitalists and dot-com startups "clustered" in and
around this geographical area.

This cluster effect also led to clustering of the labor, real estate and retail markets. As an increasing
number of companies started up in Silicon Valley, programmers, engineers etc. realized that they
would find greater job opportunities by moving to Silicon Valley. This concentration of technically
skilled people in the valley meant that startups around the country knew that their chances of finding
job candidates with the proper skill-sets were higher in the valley, hence giving them added incentive
to move there. This in turn led to more high-tech workers moving there.

Although Silicon Valley is arguably Table 1. Business clusters from around the world
the most successful and thus well- Silicon Valley California Computer Technology
known of the technology clusters, it is Napa Valley California Wine Production
Aerospace Valley Toulouse, France Aerospace Technology
by no means alone. In recent decades, Dubai Silicon Oasis Dubai, UAE Semiconductors & Microelectronics
cluster development has become a Silicon Wadi
Albany Tech Valley
Israel
New York
Wireless Telecom
Nanotechnology
prominent framework for economic Hollywood California Movies and Entertainment
policy. Numerous cluster initiatives Micro Center Central Switzerland
Research Triangle Park
Switzerland
North Carolina
Microtechnology
Biotechnology
all over the world aim at supporting Thanagazi Carpet Cluster India Carpet
Montebelluna Sportsystem District Italy Technical Sports Footwear
and enhancing the dynamics of clusters Motorsport Valley British Midlands Formula One Teams and Supplies
(table 1). Although clusters have had Technologiepark
Wall Street
in Heidelberg Germany
New York
High Technology
Finance
varying degrees of success, the most Finnish Maritime Cluster Finland Maritime Industries
successful have one thing in common Antwerp
Taguspark
World Diamond Center Belgium
Portugal
Diamonds
Information Technology
a specialized workforce, unique Dhahran Techno-Valley Saudi Arabia Energy

natural resource or an enabling


technology; a technology and/or methodology that, alone or in combination with associated
technologies, provides the means to generate giant leaps in performance and capabilities of the user.

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com
Silicon Valley, for example, benefited from the development of the integrated circuit. Without it,
there would have been no reason for these companies to cluster there. Thus, the success or failure of
a cluster can be traced back to the success or failure of a single key component. For lightning to
strike; to recreate another Silicon Valley-type success, one would need to have access to a very
special component with applications in many different industries like the integrated circuit.

Without this key component or an enabling technology, attempts to cluster around buzz words like
renewable energy or nanotechnology will fail to distinguish one cluster from another, and the
best that one can hope for is a regional industrial park, which must compete with hundreds of
regional industrial parks just like it around the world.

ODINS INTEGRATED CIRCUIT


ODIN Industries has developed and patented a revolutionary new platform technology for the
development and manufacture of a highly sought-after component called the macrocycle. Though
ODINs technology is a leap-frog technology that overcomes the obstacles faced in the
development and commercial exploitation of these extraordinary components, the timing of this
breakthrough has created a very unique opportunity for ODIN - one that occurs very rarely in history.

Unlike most innovations that have a particular rhythm as the new technology is born, develops,
matures, and then balloons, ODINs technology provides a platform to bring an immense back-log of
products from the laboratory to the market. Instead of having to wait for products to evolve from
ODINs technology, market-ready proto-types will flow rapidly through the pipeline with the aid of
ODINs technology (figure 1).
green
chemistry

water
purification biosensors

soaps
solar
additives lubricants
energy
detergents

anticorrosive CO2 automotive fuel


paint sequestration parts cells

clean aerospace dyes


defense bio-tech
coal

first in class disease health synthetic flavors &


plastics
drug leads detection care rubber fragrances

DOCC
With much more to come !

Figure 1 ODIN Inside. ODINs patented platform technology, called Dynamic Oligomer Control Cyclization or
DOCC, enables the manufacture of highly sought-after components that are essential to the development of cutting
edge products from more than eight (8) diverse industries. Market-ready proto-types, which currently teeter on the
edge of success, can now be rapidly moved from the laboratory to the market. Exciting new products ranging from
pharmaceuticals to synthetic fuels, photovoltaic devices to advanced plastics, and hydrogen fuel cells to clean water,
will quickly emerge with ODINs macrocycles inside.

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com
This inside out technology paradigm presents us with the opportunity to build not just a company,
or a single industry. ODIN possesses the technology and the vision to build the nucleus for numerous
new high-tech clusters and a new manufacturing middle class. Even more exciting is that with
applications in more than 8 different industries, ODINs cluster development model can be replicated
in other regions/countries as the demands and resources allow. We are currently working with
partners to bring this clustering model to the US Midwest, US Southeast, and Kenya.

PHASES OF CORPORATE DEVELOPMENT

In Phase I of development (figure 2); ODIN Industries will offer targeted corporations research and
production rights to the ODIN technology in the form of licenses so that they can develop and
manufacture their own macrocycle-based technologies. This licensing-first strategy is used to get
ODINs technology and market-ready proto-types on the market quickly. To protect the value of ODINs
intellectual property we will make licenses nonexclusive, relatively inexpensive and attach minimal
riders. The tremendous volume of sales will make licensing of the patent very lucrative (figure 3). The
decision to negotiate nonexclusive, rather than exclusive, licenses will also prevent one company from
controlling the entire industry, thus undercutting ODINs ability to compete in related markets with its
own end-use products, and also serves to disincentivize other companies from committing their resources
to challenging the validity/ownership of the intellectual property.

Delaware

non-ODIN
ODIN Industries Phase 1
Subsidiaries (in progrees)

ODIN
Proprietary Holdings Phase 2
(ca. $50 Million)

ODIN Research, Phase 3


non-ODIN non-ODIN
Development, & (ca. $50 Million)
Companies Subsidiaries
Manufacturing

ODIN
ODIN Power ODIN Plastics ODIN Water Phase 4
Pharmaceuticals
(ca. $150 Million)

Figure 2 Phases of Corporate Development. Clustering will occur as a result of manufacturing end-use products through
internal and external programs, licensing, and partnerships. ODIN will work to drive the discovery, development and
commercialization of new pharmaceuticals, advanced materials, clean and renewable energy, water purification, and other
important technologies that use macrocyclic compounds as key components.

Phase I of commercialization is based upon the Cohen-Boyer model - considered by many to be the most-
successful patent commercialization strategy in licensing history. We chose the Cohen-Boyer model
because it was extremely profitable, and our technology shares three key elements with the Cohen-Boyer
technology. First, both technologies are inexpensive and easy to use; from a purely technical standpoint,
there are only minimal impediments to widespread dissemination. Second, there are no alternative
technologies. Third, both technologies are critical to their respective fields, and of very broad
importance.

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com
At present, ODIN Industries is concentrating its licensing campaign on large and medium-sized
pharmaceutical companies, which have already committed to macrocycle drug discovery and
development, but have been hindered by high manufacturing costs, low yields, scale-up problems, slow
development and safety difficulties. ODINs management believes that potential market for their
proprietary technology is immense, and that this targeted group of companies will quickly understand the
enormous benefit of opening up a new pipeline of easily accessible new molecular entities.

$600 billion in annual sales Figure 3 Projected Royalties From the Pharmaceutical Industry. Conservative estimates
10 % macrocycles from just six (6) licenses approach an annual royalty stream of $300 million. There are,
$60 billion
market however, strong indications that macrocycles may eventually dominate the pharmaceutical
10% use our process pipeline. Thus, ODINs projected royalty stream would increase considerably.
$6 billion
market
It is also important to note that ODIN will require companies to purchase one (1) license per
5% royalty
$300 million drug rather than one (1) license per company. Therefore one company may hold dozens of
annual royalty stream
ODINs licenses.

Upon completion of the first agreements, licensing revenue will be used, in part, to protect and expand
ODINs intellectual property assets, and expand the licensing of its core technology to other industries in
strategic areas.

In Phase II, ODIN Proprietary Holdings will pursue capital to acquire a significant number of strategically
positioned third-party patents. Given the high cost of manufacturing, there currently exist thousands of
undervalued patents and proto-types that use macrocycles as the essential component, but are not
commercially viable without ODINs core technology. Thus, ODIN feels that there is a window of
opportunity for acquiring hundreds of key patents and products, which will define their respective
industries in the near future. Patent mapping services will also be developed to identify peripherally-
related technologies so that ODIN Proprietary Holdings can build a picket fence around its key
intellectual property. The opportunity to acquire these patents at low cost will exist until such time as
patent holders from the private, academic and industrial sectors become fully aware that the mass
economic production of macrocycles is available. ODINs management believes that once the impact of
the ODIN technology is broadly known, the value of this third-party intellectual property will increase
dramatically, thus creating an significant opportunity for ODIN by securing the future of the companys
pipeline long beyond the life span of its core technology patents.

Since ODIN Proprietary Holdings will be a subsidiary of ODIN Industries, it will have the exclusive right
to bundle these newly acquired technologies with ODINs core technology, and license or resell them to
other companies as an integrated product or complete "turn-key" production facility. This proposed
business model is analogous to a value added reseller (VAR) business model. ODIN Proprietary Holdings
will also develop and market other core services such as:

Business Development
Patent Mapping
Product Marketing
Technology licensing and transfer
Training
IP Management
Distribution chain management
Partner development

These services will accelerate the market adoption of ODINs platform technology by quickly bringing
new applications and products to market, and complement ODIN Industries direct licensing strategy.

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com
In Phase III, ODIN will open a forward-looking macrocycle industrial research institute to capture future
technology trends, develop new products, and meet the demands and desires of our licensed customers.

The activities and services of the institute will be organized to realize the following aims:

to conduct rapid prototyping,


to conduct research, development and education relevant to the establishment of new products and new
industries,
to investigate and disseminate information about the availability of raw materials with a view to defining
their use and establishing the best means for their exploitation,
to provide, on an international scientific level, reliable services in testing and analysis,
to provide, on an international scientific level, education and training services,
to provide specialized technological, management and economic consulting services to existing industries
and industrial development schemes, and
to conduct contract research and manufacturing services

In carrying out its functions, the institute will adhere to ethical and professional standards whereby it
safeguards both ODINs and the clients' property, information, processes, patents or techniques developed
during work with the institute, and safeguards such matters in complete secrecy.

The essential resources that will enable the industrial research institute to realize the above aims are:

a permanent reliable body of experts, specialists, and engineers in many fields,


laboratories and scientific equipment such as:
wet chemistry and physical chemistry laboratories
petroleum and petroleum products laboratory
central laboratory for advanced pharmaceutical ingredients (API)
renewable energy laboratory
water laboratory
an updated electronic library with scientific and technical publications,
lecture rooms, exhibition hall and conference rooms,
equipped workshops, e.g. glass blowing, and
a pilot plant for applied and contract research

From the contract research perspective, synthetic chemistry is the software of the chemical sciences. Just
as there is an explicit need for the constant evolution and improvement of the software and the operating
systems that drive our computers, our economy depends upon the constant improvement and evolution of
the methodologies available to the chemical industries. In spite of the impressive progress achieved by
chemists in the past several decades, the state of the art of methods for chemical synthesis remains at an
early stage of development. There is a great need for new reactions and synthetic methods to permit any
substance, of any complexity, to be prepared with high chemical efficiency, in a small number of steps,
and with minimal cogeneration of any waste products.

Thus, as profit margins come under increasing pressure, many companies are outsourcing aspects of their
development and manufacturing processes so as to concentrate on their core specialties. Global industry
analyzers estimated that pharmaceutical companies alone spent approximately $57 billion on R & D in
2005, out of which an estimated $14 billion was used for the outsourcing services offered by the Contract
Research Organization (CRO) industry. This figure is expected to increase further with the broadening of
the spectrum of services outsourced to cover the entire value chain - the total contracts value may go up to
$20 billion by 2010.

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com
ODIN Industries will use its proprietary technology to serve the outsourcing needs of companies in
numerous areas from pharmaceutical to transportation, and renewable energy to defense. Because our
technology and services are proprietary, our largest competitors are our customers own development
organizations and manufacturing organizations.

Short term market penetration will be pursued in the following areas:

-Advanced Plastics (includes automotive, renewable energy, aerospace, defense) an end-market that
consumes 50 billion pounds, is forecasted to grow at 5.7% over the next five years with continued metal
replacement

-Advanced Pharmaceutical Ingredients (API) (includes pharmaceuticals and biotechnology) accounts for
nearly 1 trillion in sales worldwide, projected to grow at 8.3%, where key issues include patent protection,
safety, and individualized treatments (based on gender, race, etc).

-Photovoltaics (PV), which accounted for $13 billion in Global sales in 2007 will increase to an estimated
$16 million by the end of 2008. It should reach $32 billion by 2012, a compound annual growth rate (CAGR)
of 14.9%. The rapid growth of PV will be driven by the global demand for energy of all kinds, the potential
problems of climate change, the renewable features of solar energy and improvements in PV technology and
materials.

The industrial research institute will also have the means to apply for and receive federal grants to
supplement its research and development budget. Given our areas of expertise, we anticipate eligibility
for grants from at least the following agencies and organizations:

Department of Energy (DOE),


fuel cells (est. $18 billion market), photovoltaics (est. $13 billion market),
Department of Defense (DOD),
marine & protective coatings (est. $90 billion market)
National Science Foundation (NSF),
Nanotechnology (est. 1 Trillion), Water Purification ($22 Billion), Green Chemistry
National Institutes of Health (NIH),
Orphan drugs, HIV, HCV, Cancer etc.
National Aeronautics and Space Administration (NASA),
Lubricants, Disease Detection ($15 Billion)
Small Business Innovation Research (SBIR),
American Cancer Institute (ACS)

Additionally, in Phases III and IV, ODIN Industries will retain exclusive rights to certain specialist areas
and create spin-off companies using, in some cases, certain reserved rights to the under-valued
technologies acquired by ODIN Proprietary Holdings. Whereas ODIN Industries and ODIN Proprietary
Holdings are basically intellectual property holding companies, these spinoff companies will manufacture
materials and products used by a diverse array of other companies and end users. This approach will
provide ODIN Industries with tremendous growth potential, and a measure of protection from cyclical,
industry-wide economic fluctuations.

The quantities of macrocycles produced, and products developed by ODINs spin-off companies will vary
widely, and will be tailored to meet the needs of the client. For example, the pharmaceutical industry may
only need hundreds of kilograms of an active pharmaceutical ingredient (API), but the cost of this product
will be very high (millions of dollars per kilogram) due to its complexity. On the other, the automotive
industry may require millions of tons of a relatively simple raw material, so the cost will only be dollars
per pound. Thus, our facilities will be highly modular to accommodate these demands.

It is important to note that Phases I IV can be implemented sequentially or in parallel as


resources allow.

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com
JUST A FEW APPLICATIONS OF ODINS TECHNOLOGY

Even though todays revolutionary advances in science and technology have raised expectations for
remarkable new products, there is growing concern that many of these discoveries may never reach
the consumer. In the pharmaceutical industry, for example, there has been a slowdown, instead of
the expected acceleration in new drugs reaching patients. The automotive industry has been
hampered by the exorbitant cost associated with the development of battery and fuel cell
technologies, and the biotechnology and nanotechnology sectors have failed to live up to the hype to
deliver more effective, more affordable and safe products. With all of the highly publicized scientific
breakthroughs, why arent the benefits of these discoveries available to the consumer today?

The problem is not unlike the one found in the automotive industry before the development of the
assembly line. The evolution of the methods needed to bring these new discoveries from the
laboratory to the market quickly and at an affordable price have not kept pace with the rate of
discovery. In many cases, the most beneficial products are stuck in the development pipeline, and
companies concentrate their efforts on low hanging fruit: ordinary products with high market
return. Tragically, many significant discoveries are not commercialized, and more importantly, life-
altering research is greatly impeded.

Solar Energy: Most solar cells are silicon-based and are very inefficient, typically around 10%.
Although some improvement can be anticipated, the fundamental problem is that silicon-based
systems do not absorb much light. Macrocycle-based solar cells, on the other hand, are designed
using natures own light-absorbing technology, chlorophyll, and are 4 to 5 times more efficient than
silicon-based cells. Furthermore, macrocycles can be incorporated into paints and plastics for ease of
use, and application. Unfortunately, while these macrocyclic systems are certainly the future of the
solar energy industry, they are much more expensive to produce than the silicon cells and will not
come online for many years into the future.

Hydrogen Fuel Cells and Batteries: A green automotive industry and a green economy will
succeed or fail with the development of ways to store energy. Fuel cells and batteries are not only
necessary for running our green automobiles, they are necessary for storing both wind and solar
energy for times when the wind is not blowing and the sun is not shining. Macrocycle-based
technologies show great promise in both of these areas, but the cost of these products will keep them
out of the hands of the consumer.

Peptide Antibiotics: These drugs are used to treat MRSA and other high profile superbugs.
However, they are very difficult to make, and it is virtually impossible to make analogs (relatives of
the original drug), which are important once bacteria become resistant to the original drug. It is for
this reason that it has been more than twenty years since the last new antibiotic was introduced, and
the reason that most major pharmaceutical companies have abandoned the antibiotic business.

Macrocyclic Plastics: These macrocycle-based plastics have many advanced properties, and could
replace traditional plastics (more than a 50 billion pound/year industry). In addition, macrocycle-
based plastics can be used to replace many heavier steel components in, for example, the aerospace
and transportation industries. These plastics have been highly sought after by major companies,
including Ford and GE, for over two decades because they have the strength of conventional metals,
but are 30% lighter (thus reducing fuel costs), and they are 30% - 60% more impact resistant so
safety is increased dramatically. Unfortunately, the cost of manufacturing is still 2 to 5 times higher
than more traditional materials, thus most companies are not willing to adopt them at this price.

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com
Macrocyclic PDT Drugs: Photodynamic therapy (PDT) is a bimodal treatment for cancer (and other
diseases), which has few side effects. Unfortunately, the clinical performance of this treatment has
not lived up to expectations. This is due to the fact that the macrocyclic drugs used in PDT are
isolated from nature as impure substances, and can not be optimized for efficacy. Second and third
generation synthetic macrocycles perform much better than their natural counterparts, but they are
too expensive to use. Unfortunately, companies that have pioneered this area are now going out of
business and there is a risk that this technology will be abandoned.

Synthetic Rubber from Macrocycles: In yet another emerging crisis, the world-wide demand for
natural rubber will outpace the supply in less than 5 years, so research on synthetic rubbers is at a
frantic pace. Some synthetic rubbers are currently being used on high-end performance and race cars,
but the cost is still too high for mass development and commercialization.

Drugs from the Sea: Supply is a serious obstacle to the development of many promising marine-
based therapeutics. The concentrations of many highly active compounds in marine invertebrates are
often minute, sometimes accounting for less than 0.1 % of the wet weight. If one of these compounds
were to make it to the market the annual need for a single compound is estimated to be roughly
3,00016,000 metric tons of biomass per year. It is obvious that such a large amount of biomass,
consisting of either sponges, tunicates or other pharmacologically promising marine invertebrates,
can never be harvested without risking extinction. Synthetic strategies for environmentally sound and
economically feasible supplies of marine natural products are therefore needed.

The bottom line is this; ODINs technology makes cutting-edge science and technology
commercially viable now, and accelerates research in emerging industries that would not
otherwise be viable for many years into the future.

ODINS INTELLECTUAL PROPERTY POSITION

ODIN controls proprietary technology relating to the synthesis of macrocyclic compounds and
compounds (ODIN Technology") that is the subject of U.S. Patent Application No. 11/059,796 and
many other international applications filed February 17, 2005 in the names of Thomas Johnson and
Billy Fowler for Methods, Compositions, and Apparatuses for Forming Macrocyclic Compounds.

Based on a review of the technology incident to patent filing by Intellectual Property Technology
Law (IPTL), Research Triangle Park, NC, AND by the United States Patent & Trade Office ODINs
intellectual property is a novel and fundamental enabling technology for the manufacture of
macrocyclic compounds. The technology resolves a number of basic problems that have limited the
prior commercial synthesis of macrocyclic compounds to small yield and small-volume production
involving costly and complex purification procedures. By enabling high yields of macrocyclic
compounds to be economically achieved at high volume, the technology makes these compounds
widely available at low costs.

UPDATE 05/04/2010: The first of ODINs patents have issued in the United States, Singapore,
and Mexico. Many other applications are patent pending and are expected to issue over the
next year.

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com
ABOUT ODIN

ODIN Industries is a molecular engineering company specialized in cyclic compound R&D,


technology assessment, new product pipeline development, and manufacturing. The companys
proprietary technology gives individuals, institutions and companies the ability to exploit vast,
undeveloped chemical space, establish strong patent protection, and deliver big profit margins on
molecules that, until now, have had little or no commercial viability. Through internal and external
programs, licensing, and partnerships, ODIN is working to drive the discovery and development of
new pharmaceuticals, advanced materials, renewable energy, CO2 sequestration, water purification,
and other important technologies that use cyclic compounds as key components.

For more information, please contact:

Thomas E. Johnson, Ph.D.


Chairman & CEO
ODIN Industries
Athens, Georgia 30605

Tel: 706 540-7325


Email TEJ@ODINIndustries.com
WWW.ODININDUSTRIES.COM

ODIN Industries, LLC 100 Snapfinger Drive Athens, GA 30605 706.540.7325 ODINIndustries.com