Addendum A Consulting Fees and Performance Bonuses

Addendum A

Consulting Fees and Performance Bonuses

For Consulting Services rendered to the Company by Consultant pursuant to this Agreement, the Company shall pay or cause to be paid, subject to the termination provisions of this Agreement, Consulting Fees and/or Performances Bonuses to Consultant while Consultant provides Consulting Services as set forth in this Addendum A.

1. Consulting Fee.  An annual base consulting fee ("Annual Base Consulting Fee") equal to One Hundred Twenty Thousand Dollars ($120,000) shall be paid to Consultant by the Company for his Consulting Services in monthly increments equal to $10,000 per month. The monthly installment payments shall be paid by the 1st day of each month following the month in which said Consulting Fee was earned.

2. Performance Bonus for New Accounts.  For the period from the Effective Date through December 31, 2009 and for each subsequent twelve (12) month Renewal Period, Consultant shall be eligible to earn a first year Performance Bonus for New Accounts equal to two and one-half (2.5%) percent of  the Gross Revenue (as defined below) from  New Accounts (as defined below). Pricing on all New Accounts must be approved by the Company’s Pricing Committee prior to acceptance of any New Account by the Company. Consultant shall be paid the full amount of the Performance Bonus for New Accounts quarterly, within 30 days after the end of the Company’s applicable fiscal quarter. For purposes of this Agreement, “New Accounts” shall be defined as (i) any new customer account which results in recurring monthly revenue (as defined below) for the Company which account is not in the Company’s pipeline as of the Effective Date; (ii) any customer account which results in recurring monthly revenue and which had not provided any recurring monthly revenue for the Company for the twelve (12) calendar months prior to the submission of new orders and (iii), in the case of both (i) and (ii), Consultant has been solely responsible for securing the new customer accounts or the new orders, as applicable.  Should other sales and marketing personnel or representatives of the Company be involved with or provide material assistance to Consultant in securing the New Accounts, then Consultant shall work out a sharing arrangement for a portion of Consultant’s Performance Bonus for New Accounts with such personnel and/or representatives.  “Gross Revenue” shall mean gross revenues from sales to New Customers net of returns, discounts, refunds, rebates, or any other similar charges incurred by the Company in connection with the sale or distribution of the goods, products and services of the Company. “Recurring monthly revenue” shall mean revenue received from at least three (3) orders placed with the Company during the Contract Term or any Renewal Term.

3. Performance Bonus for Qualified Accounts. Consultant shall be paid a Performance Bonus for Qualified Accounts equal to one (1%) percent of the Gross Revenue from all Qualified Accounts (as defined below) and as listed under the Qualified Accounts section of this Addendum. The Performance Bonus on Qualified Accounts shall be paid to Consultant on Qualified Accounts for a period of five (5) years from the Effective Date in respect of Qualified Accounts described in Section 5 of this Addendum A or for a period of five (5) years after an account becomes a Qualified Accounts of the Company. Pricing on all Qualified Accounts must be approved by the Company’s Pricing Committee prior to acceptance of said account by the Company. For purposes of this Agreement, “Qualified Accounts” shall be those recurring annual revenue accounts listed in Section 5 below that were either (i) generating recurring annual Gross Revenue for the Company or were contracted or specified to use the Company’s coatings as of the Effective Date, or (ii) became Qualified Accounts after being a New Account with the Company upon the one (1) year anniversary of those accounts.  Consultant shall be paid the full amount of the Performance Bonus on Qualified Accounts quarterly, within 30 days after the end of the Company’s applicable fiscal quarter.

Initialed by nCoat __________ Dated __________, Initialed by Consultant _________ Dated __________

Addendum A - Page 1 of 4

nCoat Confidential and Proprietary Information - Rel. 6-19-07

4. Quarterly Performance Bonuses Calculation and Payment Example.  Following is an example of how the Performance Bonus for Qualified Accounts and New Accounts would be calculated each quarter (by using numbers for the appropriate quarters) to determine the Performance Bonuses owed to Consultant by the Company:

a.  Collected and deposited Gross Revenue from New Accounts		=		$	1,000,000
b.  Multiply the amount in line (a) above by 2.5%		=			X .025
c.  Performance Bonus to be paid 30 days following quarter		=		$	25,000.00
d.  Collected and deposited Gross Revenue from Qualified Accounts		=		$	1,250,000
e.  Multiply the amount in line (d) by 1%		=			X .01
f.   Performance Bonus to be paid 30 days following quarter		=		$	12,500.00
g.  Total Performance Bonuses earned for the quarter		=		$	37,500.00

5. Qualified Accounts. Following is Consultant’s list of Qualified Accounts, as accepted by the Company, as of the Effective Date.

                            See Attached List                                                                         

Initialed by nCoat __________ Dated __________, Initialed by Consultant _________ Dated __________

Addendum A - Page 2 of 4

nCoat Confidential and Proprietary Information - Rel. 6-19-07

LIST OF QUALIFIED ACCOUNTS		Belanger’s Headers		Clover Leaf Auto
		Xxxxxx’x Custom Exhaust		Cobras N Vettes
5R Restorations		Xxxxxx Edging		Competition Heads
928 Motorsports		Xxxxxxx Hills Ducati		Confederate Motorsports
A Plus Powder Coaters		Xxxx Xxxxxxx		Corvette Masters
AC Car Craft		Xxxx Xxxxxxx		County Corvette
Acky Surcz/AM Performance		Bimmer World		Cox Motorsports
Action Brass Co.		Blast From The Past		CTS Enterprises
Action Powder Coating		Xxxxxx Turbo Inc.		Custom Engineering
Xxxxxx Xxxx		BME Industrial Powder Company		Custom Speed Sound
AG Automotive		BMW of Manhattan		Xxxx Xxxxx
AHM Performance		BNT Performance		Xxxx Xxxxx
Air-Tech		Xxx Xxxxx		Xxxxx Xxxxxxxxx
AJRS		Bob/Midway Service		Danville Engine
Xx Xxxxxxx & Sons		Bob’s Automotive Racing		DAS
Xxxx’s Exhaust		Boosted Xxxx’s		Xxxx Xxxxxxx
Xxxxx Xxxxxx		Boss Hoss		Xxxx Xxxx Hot Rods
Amarillo Specialty Car		Bowmansville Maintenance		Xxxxx Xxxxxxx
American Chopper FX		Xxxx Xxxxxxxxx		Delorean Motor Company
American Cylinder		Xxxx Xxxxx Racing		Delorean Motor Company
American Racing		Xxxxx’x High Performance		Xxxxxx Xxxxxx
American Sport Bike		Xxxxxxxx Motorsports		Devek Performance
AMP Custom Motorcycles		Xxxxx Xxxxxxx		Dezod Motorsports
Xxxxxx Xxxxxx		Xxxxx Xxxxx		Diamond Marine
Xxxxxx’s Powder CTG.		Xxxxx Xxxxxxx		Xxxx Xxxxxx Racing
Xxxx Xxxxx		Xxxxx Xxxxxxxx Xxxxxx		Don’s Hot Xxx
Xxxxxx Diesel		British Motor Company		Don’s Hot Rod
Apex Motorsports		Xxxxxxxxx Racing		Xxxxxx Xxxxxxx
Xxxxxx Racing		BRP		Xxxx Xxxxxx
Arizona Z Car		Xxxxx Xxxxxxxx		Xxxx Xxxxxx’x Custom
Arkansas Performance		Xxxxx Xxxxxxxxx HD		Xxxx Xxxxxx
Xxxxx Xxxxxxx		Xxxxxxx Automotive		Drago’s Corvette
ATA		CA Harley Davidson		DTS
Auto Sport		Xxxxxx’s Automotive		Dynatech
Automotive Spec.		Camaro Concepts		E & R Grinding
B & B Performance		Xxxxxx Design		East Coast Chevy
B & M Performance		Xxxxxxxx Xxxxxx		Eastcoast Performance
Ballistic Cycles		Xxxxxx’x Powder Coating		ECP Powdercoating
Banzai Motorsports		CH Motorcars LLC		ECR
Barloworld		Xxxxx Xxxxxx		Xxxxx Xxxxx
Baton Rouge Powdercoating		Xxxxx Xxxx		Elan Motorsports
Bavarian Motorsport		Xxxxx Xxxxxx Restoration		Electro Forming System
Beach Hawg		CJC Auto Parts		Xxxxxx Xxxxxxxx
Xxxxxx’x Powder House		Clean Air		Xxxxxxxx Machine Service
Xxxxxxxx Custom		Clients Racing		Elyria HD

Xxxxxx Motorsports		Haledon Auto Parts		Jersey Muscle Cars
ESP Products		Xxxxxx’x Xxxxxx Xxxxxxxxx		Xxx Xxxx Racing
European Service Center		Harbor Restoration		Xxx Xxxxx
Xxxxx Automotive		Harley Davidson Cool Springs		Xxx Xxxxxxx
Every Last Detail		Harley Davidson of Reno		Xxx Xxxxxx Engine
Exotic Cars USA		Xxxx Xxxxxxxxxx		Xxx’s Cycle & Performance
Exotic Performance		Xxxxx Power Sports		JMS Chip & Performance
F Body Central		Haulin Speed		Xxx Xxxxxxx
F Body Motorsports		Hawaya Racing		Xxx Xxxxx
F.E.N. Enterprises		Xxxxxxx Auto Stores		Xxx Xxxx
Fast Forward Motorsports		Xxxxxxx Performance		Xxx Xxxxxx
Fast Xxxx Race Cars		Xxxxx Xxxxxx		Xxx Xxxxxxxxx
Xxxxxx Racing		Xxxxx Xxxxxx		Xxxx Beekely
Fig Speed		High Country Xxxxxx		Xxxx Deere
Finish Line Performance		High Speed Composites		Xxxx Xxxxxxxx
First Class Rides		High-Tech Performance		Xxxxxx’s Custom Shop
Flames Unlimited		Hill Side Street Rods		Xxxxxx’s Rod Shop
Xxxxxxxxxx’s		Hollywood’s Specialty		JW Customs
Force Motor Products		Horsepower Freaks		K & M
Ford Six Performance		Horsepower Unlimited		K & S Auto Stores
Forged Performance		Hot Rod Construction		K.L.J. Automotive
Xxxxxxxxx’x Chrome		Hot Rod Garage Parts		Xxx Xxxxxxx
Fortress Performance		HP Performance		Xxxxxxx XxXxxxx
Fourintune		HP Products		Xxxxx Xxx Restorations
Xxxx Xxxxxx		Xxxxxx Air Aviation		Xxxxx Fiber Corp
Full Tilt Auto		Xxxx Xxxxxxx		Xxxx
Xxxx Xxxxxx		Humble Equipment		Xxxx Xxxxx
Xxxx Xxxxxx		Huntsville Engine		Xxxxx Xxxxxx Auto
GDLS		Hurricane Motorsports		Lane Custom Products
Gearhead Garage		ICS Motorsports		Xxxxx Xxxxxx
Xxxxxxx Engineering		Icy Phoenix Racing		Xxxxx’s Hot Rod
General Atomic		Insane Custom Cycles		Xxxxx Xxxxxxxx
Xxxxxxxx Machine		Intense Motorsports Racing		Xxx on Track Performance
Xxxxxxx Head Porting		Iron Man 4WD		Xxxx’x Exhaust
G-Force		ISIS Imports		Xxxxx Enterprises
Xxxxxxx Performance		Island Racing		Levy Racing
Xxxxx’x Alignment		J & S Performance		Xxx’x Xxxxxx Auto
Gollers Hot Rods		JAE Lotus Parts		LG Motorsports
Xxxxxx’s Speed		Jaguars Unlimited		Lizzard Racing
Great Lakes Diesel		Xxxxx Xxxxxxx		Xxxxx Xxxxxx
Xxxx Xxxxxxx		Xxxxxx Marine Performance		LM Performance
Xxxxxxx Custom		JBZ Race Cars		Loop LLC
Gruppe-s Engineering		XX Xxxxxxxx		Xxxxxxx Xxxxxx
GT Spec Auto Sport		Xxxx Xxxxxx Restoration		Lucky Charm Chopper’s
Gulf Coast Powder Coating		Xxxxx Xxxxx		Lucky Cycle
GVs Racing		Xxxxx Xxxxx		Lucky’s Race Cars
H & J Motorsports		Xxxxx’s Speed Shop		Xxxx Speed & Custom

M2 Race Systems		Northwestern Service		Xxx Xxxxxxxxx
M3 Motorwerks		Nostalgic Cars & Parts		Ray Palmantera
XXXX Tech		Ohio Dept. Of Transportation		RC Cycle
Marietta RV		OMC Services		RCE
Xxxxx’s Metalcraft		Paccar – and suppliers of		Red Hot Rides
Maryland Speed		Freightliner – and suppliers of		REF Unlimited
Xxx Xxxxx		Pacesetter		Xxxx-Xxx
Xxxxxx Motorsports		Paint By Xxxx		Xxxxxxxxx
Meineke of Mt Kisco		Xxxxxxx’s Antique Cars		Reno’s Yamaha
Melrose T-Top		Xxxx Xxxxxx Originals		Xxxx Powdercoating
Xxxxxx Motorsports		Pemco Engineering		Rev Extreme
Midwest Cobras		Performance Plus		Rhelm Automotive
Xxxx Xxxxxx		Performance Welding		Xxxxxxx Xxxxxxxx
Xxxx Xxxxxxx Customs		Xxxx Xxxxxxx		Xxxx Xxxxx
Xxxx Xxxxxx’x Restoration		Petro Classic Cars		Xxxxx Products – Volvo
Xxxx’s Custom		PJ Body		Xxxxxxxx’x Racing
Xxxxxxx Xxxxxx		PM Racing		RJ Cars
Moe’s Motorsports		Powder Xxxxx		XX Classic Cars
Xxxxxxxx Xxxxx Garage		Powder Tech		Xxxxxx XxxXxxxx
Motorcycle Parts & Service		Powdercoat Junction		Rocket Motorcycles
Motorsport Image		Xxxxxx Muffler		Rockwell Cycles
Mountain States Warehouse		Power Engineering		Rod 1 Shop
MP Motorsports		Power Flow Systems		Xxxxx Xxxxxxxxx
M-Squared		Power Play		Xxx Xxxxx’x Race Cars
Muncie Imports		Precision Autoworks		Xxxxxx Xxxxxx
Xxxxxx’x Classic		Precision Performance		Xxxx Xxxxxxxx
Muscle Car Specialties		Precision Powder Coating		Xxxxx Total Performance
Muscle Motors		Predator Performance		Ryken SPX Contech – Volvo
Xxxxxx Enterprises		Price Racing		S & H Chrome Plating
Xxxxxxx Race Kars		Pro Coat		S & S Headers
Xxxx Xxxxxxxx		Pro Dyno		S & S Motorsports
National Tube Form		Proformance/Xxxxxxx Xxxx		S & S Racing
Nevada Performance		Promar		Xxx Xxxxx
Xxxxxxx Racing Products		PVM Racing		Sand Bullet
Never Lift Motorsports		Qualified Fastener’s		Savannah Powder Coating
Niagara Custom Powder		Quality Tire Company		Xxxxxxx Aviation
Niagara Hydraulic		Quick Time Motorsports		Xxxxxxxx Premium Rides
Xxxx Xxxxxxx		Xxxxxxx Xxxxxxxx Auto		Xxxx XxXxxxxx
Nitemare Motorsports		R.R. Auto Supply		Xxxxx Xxxxxxx
No Limit Performance		Race Parts 2000		Xxxxx Xxxxx Hemi Shop
Xxxxx Xxxxxx		Race Pipes		Xxxxx’x Headers
North Shore Import		Race2win Motorsports		Xxxx Xxxxxx
North Wing		Xxxxx Xxxxxxxx		Xxxxxxx Xxxxxxx
Xxxxxxxx Xxxxxx		Xxxxx Xxxxxx		Skip Xxxxxx

Skyes the Limit		VAC Motorsports
SLP Performance Parts		Xxxxxxxxxx Race Cars
Xxxxxx Xxxx Restoration		Victory Mesa
SMS Products		X.X. Xxxxxx
Specialty Cars		Xxxx Xxxxx
Spectrum Powder Coating		Xxxx Xxxxxxxxx
Speed Engineering		Xxxxxx Engineering
Speed Unlimited		West Side Cycles
Speed Unlimited		Xxxxx Xxxxxxxxx
Speedsouth		Xxxxxxxx Werkstatt
Speedstar		Xxxxxx Headers
Sport Flight Int’l		Xxxxxxx Motorsports
Sport Shack		Wong’s Performance
Xxxx Xxxxxxxxxx		WS6 Stores
Xxxxx Xxxxx		Xtreme Restoration
Xxxxx Xxxxxxxx		Z & Z Restoration
Street Rod Concepts		Xxxx Xxxxxxx
Super Coupe Performance		Zemco
Superior Tube		Zitelles Auto Repair
T Xxxxx Motorsports		ZZAAPP Vintage Auto
T.A. Performance
Tamarack
Tampa Bay Aerosport
Xxxxx Xxxxxx
Xxxxx Xxx Xxxxx
Xxxxx Engineering
The Bike Works
Thunder Motors
Thunder Racing
Thunder Valley Auto
Xxx Xxxxxx The Fab Shop
T-Mac Machine
Xxx Xxxxxxxxxx
Xxx Xxxxxxxxx
Toms’s Auto Sport
Xxxx Xxxxxx
Xxxx’s Corvette
Total Performance
Touch of Class
Xxxxxxxx Racing Works
Toyotal Industrial
Tractor & Equipment
Triangle Speed Shop
Tube Specialties
Turbo Auto Diesel
Xxxxx’x Professional Auto
United Exhaust
University Motors
US ATV