DURASEALDouble Block &

Bleed Plug Valve

FRANKLIN VALVE CHRONICLE2003 - Franklin Valve & Supply

•Company founded by Walter Randy Ray and his son Justin.•Repair center for DBB plug valves (General TwinSeal).

2005 - Franklin’s DuraSeal DBB• Due to demand, the decision was made to design and cast a “Franklin” DBB plug valve.• Design & Patterned after GTS Series 800.•Interchangeability with the GTS Series 800.•DuraSeal initial offering: 2”-16” ANSI Class 150#.•Valve Systems & Controls signed on as the exclusive FV distributor.

2006- Franklin Acquisition •Franklin Valve & Supply acquired by Valve Systems & Controls (Owned by John Brennan).•Company renamed Franklin Valve, LP. •VSC expands customer base throughout the United States, Indonesia, South America and Israel.•Chevron HI, BP, Ecopetrol, Magellan, Kinder Morgan, Pertomina, CITGO, Transmontaigne, Plaines among others.

2007 – VSC Acquisition• Curtis Wright purchases VSC. FV not part of the acquisition.

2009 – New Company Direction/Brand Re-launch•John Brennan hires Lenny Pereira as the new GM of Franklin Valve.•Expands 150# product offering through 24”.•Launches 2”-12” Class 300# and 600# .•Established business model (stocking model), implements supplier quality metrics and upgrades drawings to AutoCAD.

2010 – New Sales and Market Approach •Company founders resign•New facility at 7720 Bluff Point Rd (25,000 SF facility).•VP Sales hired, Todd Howard, to formulate and implemented sales and marketing strategy.•Establish price list and tiered discount schedule (multiplier), revamped web site and literature (another revamping underway).•Phased out representative network towards a limited stocking distribution & OEM network. •Company’s experienced 900%+ growth from ‘09-’12 •In the testing stages of adding the Franklin - 4 WAY Diverter valve – a complementing product line that is grossly underserviced in the measurement (prover) market globally. Q413/Q114 product launch.

John BrennanCEO / Owner

Since June 2006

Lenny PereiraPresident

August 2009

Kelly SterankoFinancial Controller

October 2008

Andre SolomonQA Manager

11/2005

Volley SeymoreShop Foreman

07/2005

Lisa Van HoffAccount Manager

11/2009

Brittani CollinsAccount Manager

09/2012

Leslie ManjackAccounting

Clerk01/2011

Christy CantuAdministrative

Assistant08/2012

William SimpsonMaterial Handler

09/2011

Matt MorganValve Technician

06/2011

Al LiraQC Inspector

01/2012

Sedric SandersValve Technician

01/2007

Jason PrinceMaterial Handler

02/2012

Arthur CoyerValve Technician

01/2012

Carlos FuentesValve Technician

02/2012

Casey CarterValve Technician

02/2012

Marcus Carouthers Valve Technician 02/2012

Lemonte EatonValve Technician

03/2012

Greg SterankoOperations Manager

09/2012

Todd HowardVice President-Sales

June 2010

Ramone KeyesValve Technician

08/2012

Franklin Valve

Organizational Chart

CONSTRUCTION OF THE DURASEAL DBB

Click icon to add picture

DBB Consists of 5 Major Component Parts

DESIGN & MATERIALS OF CONSTRUCTION•ASTM A216 Grade WCB Cast Carbon Steel

• Body, Bonnet, Lower Plate & Plug

• WCC & LCC Available •Body & Plug chrome or electroless nickel plated (ENP)

•Ductile Cast Slips with vulcanized seal. Wide range of elastomer materials

•17-4SS Investment Cast Packing Gland

•Graph oil type packing

•Full Ball Bearing Gear Operator

HOW DOES THE DBB WORK?

WHY IS DBB BETTER FOR ISOLATION?

DBB Provides Lower Cost, Less Maintenance, In-Line Repair , lower torque requirements and Better Performance for Critical Applications

DTR FUNCTION AND ACTUATION

Standard DTR (as shown). Alternative DTR configurations such as Safety Block, Welded & DTR with Gauge are available upon request

Generally, Multi-Turn Electric Actuation. Rotork, Limitorque & EIM Typically Specified

APPLICATIONS & PRODUCT OFFERING

Pressure Class & Size Range Class 150

2”-24” Class 300

2”-12” Class 600

2”-12” Applications

Product Isolation Pipeline Pumping Stations Bulk Loading Terminals in

Refineries Aviation & Naval Fueling

Stations (Jet Fuel ) Crude Oil & Refined Product

Metering Stations Measurement

FV DURASEAL DBB CERTIFICATIONS

API 6FA Firesafe Recertified October 2010

RP 591-Destructive August 2010

API 622-Emissions October 2010

API 6D Monogram Certified in 9/07, recertified 10/10

Facility ISO 9001 Certified via API 6D joint certification.

PED/CE European Market

CRN Ontario & Alberta

Certificates Available on FV Web Site

TESTING CERTIFICATES

Franklin provides MTR’s and related documentation upon customer request

INSPECTION REPORTS FROM VENDORS & INTERNAL REPORT EXAMPLES

100% Component Incoming Inspection to Print

Franklin DuraSeal Vs. the Competition

Franklin Privately held company

Focused on 1 Brand: DuraSeal Designed & patterned-General Twin Seal C 800

Industry leader and proven design Full interchangeability with the General Twin

Seal C800 All sizes and pressure classes: one design

70% Components LCC Sourced India Foundry Poured & Machined Full Traceability

30% Domestic Content All internal components of Gear Operator

FV builds all gear operators Qualify under the “Buy American Act”

100% Incoming Inspection Assembly and hydrostatic testing conducted in

Houston, TX. Body chroming, plug ENP & slip seal

vulcanization performed in Texas Industry Leader in Serviceability

Price, quality, lead time & responsiveness Size Range & Pressure Class

2”– 24” ANSI 150 2”– 12” ANSI 300 2”-12” ANSI 600

General Twin Seal Owned by Cameron

1 of 54 Brands Market share leader

Quality valve 3 Different Designs. Zero Interchangeability.

C 800 Series design limited 28”-36” Class 150 8”-30” Class 300 6”-24” Class 600

After Cameron acquisition, C800 Series ‘value engineered’ to the 8800 series

8”-24” Class 150 6” Class 300 Lighter weight and less robust in bonnet and

gear housing than C 800 “TruSeal” Series 200 design

2”-6” Class 150 2”-4” Class 300 & 600

Performance Issues: Non-existent serviceability Long lead times Continual strategy shifts on how to service the

market (reps/distributors). Size Range & Pressure Class

2”- 36” ANSI 150 2”-30” ANSI 300 2”-24” ANSI 600 2” – 10” ANSI 900 Some sizes in ANSI 1500

Franklin DuraSeal Vs. the Competition

OmniSeal Formally Array

Turco Valve Supply Former sole Array distributor Obtained Array intellectual property and

rebranded ‘OmniSeal’ 100% commodity valve

LCC import 100% LCC manufacturing, assembly and

testing Zero domestic content

Marketed as a cheap alternative to the Twin Seal, DuraSeal and Danex.

Repeated quality issues Limited knowledge and service levels to

support the product line Europe & Middle East focused Size and Pressure Class

2”–36” ANSI 150 2”-30 “ANSI 300 2”-24” ANSI 600

Western Valve DAN-EX Brand

Quality product Target Market:

Rocky Mtn. Region Western US Latin America

Strong Domestic content Manf. in California Good technical support

Negatives High cost Long lead times Zero interchangeability with the GTS Focus on airport jet fuel terminals. Not looking to expand footprint

Size and Pressure Class 2”-20” ANSI 150 2”-16” ANSI 300 2”-8” ANSI 600, ANSI 900

3Z (Korea), Control Seal (Netherlands) & Econ (Spain) other competitors European & ME market focused

APPROVALS &REFERENCES

ITSITEPPCO/ EnterpriseFMC Systems Welker Flow MeasurementCenturion PipelineOxyKinder MorganShell PipelinePlainesBPValeroWood GroupNuStarAngus MeasurementExxonMobilIntercontinentalPetrobrasTesoroBuckeye MRCEnergy Transfer

Williams CITGONobleFMC Measurement Oil TankingU.S. Oil SemcrudeSunocoHusky Energy Deeprock EnergyMurphy OilPTpertominaPEMEXTransMontaigne Energy ServicesU.S. Department of Defense (DoD)EcopetrolVopak

Franklin Customer Service Contacts

Lisa Van Hoff-Account Manger lvanhoff@franklinvalve.com Office: 281-453-7412 Cell: 713-289-4027

Brittani Collins-Account Manager bcollins@franklinvalve.com Office: 281-453-7409 Cell: 832-381-6729

Greg Steranko-Operations Manager gsteranko@franklinvalve.com Office: 281-453-7406 Cell: 713- 689- 9019

sales@franklinvalve.com Lenny, Todd, Greg, Brittani & Lisa all receive email message