ConfidentialityAgreement 

 

The undersigned party acknowledges that the information provided by NEMO, LLC. in the following business overview is strictly confidential. Therefore, the signer agrees not to disclose any information contained herein without the express written consent of NEMO, LLC.  

It is further acknowledged by the reader that the information furnished in this business overview is in all respects confidential in nature, other than information which is public through other means, and that any disclosure or use of information by the signer may cause harm or damage to NEMO, LLC.  

Upon request, this document is to be immediately returned to NEMO, LLC.  

Return by Fax at: (406) 258‐0511 (Must dial area code)  

 

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__________________________________ Printed Name   ________________ Date   ________________ Copy Number   Note: This is a business overview. It does not imply any offering of securities.  

Mission Statement NEMO is committed to developing weapons technologies that will enable our partners in the Special Operations, Law Enforcement and private sectors to effectively and confidently carry out their missions knowing they are armed with the finest primary firearms available in the world. NEMO Overview The roots of NEMO date back to the 1980s when MG Paul Vallely became one of the first two candidates for the position of Assistant Secretary of Defense for Special Operations and Low Intensity Conflict (SOLIC) provided for under new legislation, which lead to the creation of Joint Special Operations Command in 1988. MG Vallely was also involved with the staff study for Army Special Operations examining structure, training, budget and development of new weapons systems for strategic and tactical special operation missions. He has remained committed to developing modern war fighting strategies and has published many articles on the subject of current military and special operation requirements. NEMO is based on his experience and background and the concept of designing and manufacturing of evolving weapon systems. MG Vallely partnered with Kirk Leopold and Clint Walker on individual projects before the group realized its collective resources in military, law enforcement and private sectors - NEMO was born. Firearm Industry Overview The global firearms industry as a whole remains one of the more robust manufacturing industries, particularly as it relates to the manufacturing sector in the United States. As of 2009, the firearms industry is worth an estimated 5 billion dollars and is highly consolidated with roughly 300 manufacturers worldwide.

”since 2008—the FBI noted a 31% increase nationally, with some states up as much as 49%” Today, it is estimated that 28% of U.S. residents own one or more firearms. And the number of gun owners has tripled over the past 40 years. In fact, record sales have been reported in firearm sales since 2008—the FBI noted a 31% increase nationally, with some states up as much as 49% individually for background checks over the same calendar period in 2007. Additionally, the NRA reports record sales to persons who have never previously owned a firearm. The two primary factors buyers site as driving sales are; fear 2nd amendment rights will be revoked and failing confidence in government protection. (Population density/sprawl.)

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Further, American-made firearms are among the most desired weapons in the world, sharing the top seat with Germany who is also known for craftsmanship and innovation. The fastest growing segments of the firearm industry are found in handguns and AR (assault rifles). The handgun sector growth is driven by purchases for personal defense, while the assault rifle sector is driven by three factors; the release of the AR design patents resulting in more AR-style weapons in the marketplace, personal defense, and military demand. Firearm Industry by the Numbers

• 5 Billion Dollar Industry • 300+ companies worldwide • Total Number of Firearms Owned by civilians in the U.S. 235,000,000 (U.S. Population 273,000,000)

*Note this number has tripled over the past 40 years • 42% fraction of U.S. households owning firearms • 28% fraction of U.S. residents owning firearms

NEMO Genesis NEMO was originally founded to serve solely as a sales and marketing company to support those firearms manufacturers in gaining market penetration and equity position within the Military, Law Enforcement and civilian sectors. ”Although in its infancy as a company, NEMO has already had a great deal of traction in the military and federal law enforcement and is currently working on special weapons projects with the CIA, U.S. Navy SEALs and the Pentagon.” NEMO principal Clint Walker had been previously contracted by the state of Montana to execute the economic development plan beginning in 2009. He soon realized the viability of firearms manufacturing in NW Montana. Clint conducted a “forensic marketing” study that determined, though there were many viable manufacturers in the area, minimal equity positions had been gained solely through product performance as opposed to gains through branding or marketing. He concluded that this was due to two simple factors; limited access to capital for marketing and inability to meet the increase in product demand following investment in sales and marketing. NEMO quickly identified two companies; Underground Skunk Works and SI Defense which had the most potential, categorically speaking, with Skunk Works producing precision bolt-action sniper rifles and combat pistols, and SI Defense producing Assault Rifles—covering the fastest growing sectors in small arms. The relationship of NEMO between companies serving as a third party sales and marketing company was short lived. NEMO realized that these partners, while well-equipped to fulfill their small customer base, simply didn’t have the vision, leadership or working capital to grow their companies to fulfill the sales pathways NEMO would invariably demand.

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Soon after this realization, the NEMO founders decided the best path forward was to acquire any manufacturing and skilled personnel they could in an effort to build their own weapons and brand. Classified Information Although in its infancy as a company, NEMO has already had a great deal of traction in the military and federal law enforcement and is currently working on special weapons projects with the CIA, U.S. Navy SEALs and the Pentagon. Early conversations with contact within the Pentagon have already led to the discussions of supplying specially-designed ARs to the CIA in quantities of 10,000 or more units and the potential to develop weapons under classified defense programs.

”…discussions of supplying specially-designed ARs to the CIA in quantities of 10,000 or more units and the potential to develop weapons under classified defense programs.” A former U.S. Navy SEAL (name omitted pending release) will head up weapons development and sales training for NEMO. He currently serves as a Military and Private Contractor on various deployments around the world and also oversees training for weapons and operational risk. His name will be released once his current contract operations end which we anticipate to be before January 2012. He will work closely with Mike Bush who is the founder/owner of Underground Skunk Works / Black Ops Precision. Mike is former FBI serving in kidnap and rescue, and started developing weapons under the name Underground Skunk Works over ten years ago. Today, Mike works with NEMO exclusively developing bolt-action precision rifles. NEMO desires to fully acquire Mike's company, now called Black Ops Precision. In the Assault Rifle platform, NEMO currently has a manufacturing supplier in Sonju Industrial. Located in Kalispell, Montana, SI currently holds an ASA 9000 level manufacturing certification and manufactures aerospace parts for Raytheon Missile Systems and Boeing. This manufacturing capability gives NEMO the advantage of rapid research and development of weapons, along with making NEMO the only gun company in the world using aerospace-grade billet and machining to manufacture its weapons systems. NEMO looks to rapidly tool up to bring manufacturing of all AR parts in-house. NEMO currently has weapons in the AR 10 and AR 15 platforms with calibers including .223, .308 and .300 Blackout, with research and development pending in the 6.8 SPC caliber platform. Additionally, we have a combat 1911 .45 cal semi-auto pistol and various bolt-action sniper rifles.

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Current Summation Today, NEMO seeks to continue to develop and supply weapons to Military and Law Enforcement sectors and emerge in the consumer sector as a premiere brand by leveraging the personalities of its leadership and existing clients to capture market share of a 5-billion dollar industry. The NEMO leadership team has adapted its strategy to focus on developing its own manufacturing facility in order to meet the projected demands of its Military and Law Enforcement customers while maximizing profits. Additionally, NEMO looks to further increase its profitability by leveraging its success in Military and LE into building a strong brand in the Civilian Consumer sector. NEMO currently has immediate manufacturing solutions limited to third party suppliers to meet minimal market demand. However, NEMO has identified a viable acquisition in Underground Skunk Works / Black Ops Technologies which currently commands a stellar reputation. The company now seeks to raise capital to realize this acquisition through a structured buyout while at the same time raising enough capital to launch its Phase 1 Marketing Strategy. In concert with these goals, NEMO has a business plan which includes raising funds to bring manufacturing of fracture-critical components in-house to further maximize profitability and production output. NEMO estimates the capital requirements needed to fully realize this launch to be 5-million dollars. Discovery Documentation You are reviewing this executive summary because you are a trusted ally of MG Vallely or one of the NEMO principals—all of whom have demonstrated the capacity for leadership and honest dealings throughout their careers. We have spent several months and countless hours to develop a comprehensive strategy that will enable NEMO to quickly realize market share and profitability in a market that is proven to be viable, even in times of economic instability. If you would like to review the full business plan which includes a detailed description of costs and sales projections, we are happy to provide it to you. NEMO Principal Biographies are attached for your review. Respectfully,

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Principal Summaries MG Paul Vallely, President pvallely@NEMOarms.com (406) 249-1091 Paul E. Vallely, Major General, US Army (ret) was born in DuBois, Pa. He retired in 1991 from the US Army as Deputy Commanding General, US Army, Pacific in Honolulu, Hawaii. General Vallely graduated from the US Military Academy at West Point and was commissioned in the Army in 1961 serving a distinguishing career of 32 years in the Army. General Vallely has been a military analyst on television and radio for over ten years. He is also a guest lecturer on National Security, international political, economic issues, strategic planning matters and the Global War against Radical Islam and other threats to America. He and LTG Thomas McInerney authored the book, “Endgame” – Blueprint for Victory for Winning the War on Terror”, “Warfooting” and “Baghdad Ablaze”. He is a member and co- founders of the Iran Policy Committee. He is the Chairman of the Stand Up America and was the senior military analyst for the Fox News Channel from 2000 -2007. General Vallely conducts an average of 4-6 national radio show interviews per week and is well known for his published articles on a multitude of subjects and issues. Clint Walker, VP / Director of Marketing cwalker@NEMOarms.com (406) 270-8830 While Clint is best-known locally for being the founder and owner of Flathead Living Magazine, he has an equally strong background in marketing. In 2005 Clint served as the VP Lifestyle Brand Manager for Land Rover North America where he helped to develop and implement a marketing strategy which resulted in a 150% increase in sales in just three years. Clint is a principal partner in NEMO and leads the marketing and branding effort while serving full time as the VP/ Director of Marketing. His knowledge and leadership of military and law enforcement coupled with his proven background in consumer publishing and marketing make him a unique and mission critical asset to the NEMO leadership team. Kirk Leopold, VP Business Development kleopold@NEMOarms.com (406) 249-6522 Kirk is well-known for his accomplishments as the founder/owner of Wind Dancer Construction. Over the past 22-years Kirk has managed dozens of multi-million dollar projects. His experience is securing contracts through competitive bids, client relations and production and quality oversight translate well into his role as VP of Business Development. Kirk also brings his real-world experience as an avid outdoorsman and hunter. Additionally, Kirk has completed hundreds of hours of training in self-defense and handgun courses and is currently an NSCA competitive shooter.

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