The 2010-2011 year was a period of significant challenge. Increased material costs coupled with reduced construction activity, virtually worldwide, have created a difficult business environment for expansion. We have, however, been able to devote precious company resources toward new product development and testing, and the expansion of existing products into new areas.

We did see major strides from longtime friendships and connections that have brought our products to the forefront of important projects in the US and abroad. Our hands on approach to the business has kept our clients with us, even further cementing our relationships. Our distribution network did not grow substantially this past year but the growth that we did see was positive and will begin to show returns this year.

The purpose of the following report is to continue to pledge to our stakeholders and shareholders that we will uphold the principles of the UN Global Compact. But we know that actions speak louder than words. SINAK Corporation is committed to leading by example; through our integrity; by doing business fair and honestly with clients, by maintaining high standards for product quality; and through our daily choices about selecting our business partners.

We have issued this report each year since 2007-2008 and every year we find areas that can be improved, however small the improvements may be, and this year is no exception. The 2011-2012 year will put our previous reports to the test as I believe it is our time to take another step forward and finish tasks we have laid out for ourselves. We believe our future is bright.

S. S. Kuerbis

Principle 1 - Businesses should support and respect the protection of internationally proclaimed human rights.

We are committed to the highest standards of human rights protection. Although our Board of Directors has ultimate responsibility for decision-making and for compliance with all human rights laws and regulations applicable to our business, it is in the corporate culture at SINAK that no matter the seniority, every employee has the right to speak-up on any situation or in-house issue that concerns them. The results are seen at the office in that every employee enjoys a positive workspace each day.

Principle 2 - Make sure that they are not complicit in human rights abuses.

As we grow and expand into new markets we will continue to support and respect the protection of internationally proclaimed human rights regulations and make sure our employees on every level are never complicit in human rights abuses.

The posters for the Fair Labor Standards Act and the OSHA Job Safety and Health Protection are on display in our office.

SINAK conducts monthly team meetings to discuss office Standard Operating Procedures.

Principle 3: Businesses should uphold the freedom association and the effective recognition of the right to collective bargaining.

SINAK Corporation operates within the labor laws that allow freedom of association, including the right to engage in collective bargaining. We encourage every employee to be involved in our sustainable development program. Our employees are expected to carry out their work according to the highest ethical standards.

Principle 4: The elimination of all forms of forced and compulsory labor

SINAK is an equal opportunity employer. We offer all of our employees a competitive salary and benefit package. This package includes a basic salary, medical insurance, and the opportunity to earn a performance bonus. SINAK has a very low level of turnover, which we believe speaks to our high level of work ethic as well as providing a supportive and safe work place.

Principle 5: The effective abolition of child labor

SINAK Corporation dies not and will not employ children for labor. We will continue to encourage all of our stakeholders to adhere to the highest standard of decent work and labor practices.

Principle 6: The elimination of discrimination in respect of employment and occupation

Regardless of gender, race, religion or physical disability SINAK Corporation provides a supportive and safe work place in accordance with all applicable equal opportunity laws and regulations

Our corporate handbook that is issued to each employee lays out the corporate policy for employment regarding compensation, health insurance, and vacation policy.

Our low turnover rate speaks volumes about our corporate policies.

Principle 7: Businesses should support a precautionary approach to environmental challenges.

With the introduction of biodegradable packaging (totes) in 2006 we have been able to reduce the proliferation of plastics and steel thereby reducing landfill waste.

Principle 8: Undertake initiatives to promote greater environmental responsibility.

SINAK’s clear treatments have been tested and GREENGUARD® Indoor Air Quality Certified; and semi-annual product testing and qualification continue. Our corporate policies and procedures have been published for our employees, and in-house education will continue throughout the coming year. Whenever possible we us cd’s as a method of delivering our product data through the mail. We also continue to suggest the use of our biodegradable totes to our clients so that we can reduce waste on the projects that we supply.

Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

Conservation of water is a major topic and concern in most countries of the world. It is a challenge to bridge the gap between the ever-increasing demand and the decreasing supply of water. SINAK’s products allow dramatic water savings, and application procedures and techniques are always being improved. This has a positive effect on waste reduction, labor costs and the environment.

At SINAK our commitment to the environment has been integrated in our products as well as our corporate culture. We support a precautionary approach to environmental challenges. We commit to undertaking initiatives to promote greater environmental responsibility, which has been exemplified by our constant research and development to find the most efficient bio-friendly technologies. We have subscribed to Chemtrec for after hours safety measures for on site safety in case of product spills.

Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.

Fair dealing is at the heart of the SINAK Corporation Mission Statement. SINAK’s code of conduct has been expanded to incorporate a policy covering anti-corruption, extortion, bribery and conflict of interest.

MISSION STATEMENT

To develop, manufacture and market a unique family of products that protect, enhance and extend the life cycle of various surfaces in an environmentally friendly manner. To maintain a sterling reputation for integrity and fair dealing, and to provide superior technical support and customer service to ensure proper product application.