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CONFIDENTIAL 15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM Giving Life Back to Native Americans CPAWS Group Plan Contact information: John D. Woolf (402) 580-6965 / [email protected] John R. Dabels (704) 544-9907 / [email protected] CPAWS, a compact micro-utility that purifies water, sanitizes waste and generates electricity CPAWS = Compact Power and Water System

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Page 1: CONFIDENTIAL Giving Life Back to Native Americans · 2/17/2017  · Native Americans CPAWS Group Plan water Contact information: John D. Woolf (402) 580-6965 / jwoolf09@gmail.com

CONFIDENTIAL

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

Giving Life Back to Native Americans CPAWS Group Plan

Contact information: John D. Woolf (402) 580-6965 / [email protected] John R. Dabels (704) 544-9907 / [email protected]

CPAWS, a compact micro-utility that purifies water, sanitizes waste and generates electricity

CPAWS = Compact Power and Water System

Page 2: CONFIDENTIAL Giving Life Back to Native Americans · 2/17/2017  · Native Americans CPAWS Group Plan water Contact information: John D. Woolf (402) 580-6965 / jwoolf09@gmail.com

CPAWS OVERVIEW CONFIDENTIAL PAGE 2 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

Contents LETTER FROM A NATIVE AMERICAN ..................................................................................................... 3

CPAWS CAN HELP GIVE LIFE BACK TO NATIVE AMERICANS ......................................................4

What Can CPAWS Do for Native Americans? ........................................................................... 5 CPAWS MICRO-UTILITY HUB GENERAL FEATURES ............................................................................... 6

Target Price .............................................................................................................................. 6 Market Potential ...................................................................................................................... 6 General features/Innovations of CPAWS HUB ......................................................................... 6 Fuel Flexibility: Diesel to Wood Chips Can Power Same Unit Same Day .................................. 7 Variable Output ........................................................................................................................ 7 Plastic Components for 3-D Printing ........................................................................................ 7 Technical Assessment: Overview .............................................................................................. 8

HUB DEVELOPMENT TIMELINE, DECISION GATES AND COST ................................................................... 8 Commercialization. .................................................................................................................. 9 Future Products/Applications ................................................................................................... 9

MANAGEMENT TEAM AND ADVISORS ................................................................................................ 10 John Woolf, Co-Founder ......................................................................................................... 10 John R. Dabels, Co-Founder .................................................................................................... 10 Sebastian B. DiMauro, Co-Founder ........................................................................................ 11 L. Wayne Henegar .................................................................................................................. 11

ADVISORS ..................................................................................................................................... 12 Ada M. Fisher, MD .................................................................................................................. 12 Stephen L. Terry ...................................................................................................................... 12

APPENDIX A: EXPANDED TECHNICAL DISCUSSION ................................................................................ 13 Why Distill Water (Steam) vs Reverse Osmosis? .................................................................... 13 What’s Really New with CPAWS vs an Older Design Steam Engine? ..................................... 14 Is a Steam Engine Really Necessary? ..................................................................................... 15

APPENDIX B: MORE INFORMATION ABOUT DEVELOPMENT TIMELINE ...................................................... 16 Table 1 Development Timeline Cost Overview .............................................................................. 9 Table 2 Commercialization Capital to Production .......................................................................... 9 17 02 02 CPAWS Group Native American Business Plan

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CPAWS OVERVIEW CONFIDENTIAL PAGE 3 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

LETTER FROM A NATIVE AMERICAN

Time 1800's. Native Americans are signing

treaties and being moved to reservations all

over the US. The treaties, as I was told, were

to be in place "As long as water flowed, grass

was green and the sky was blue.”

Now in the 2000's, our water is not flowing or safe or usable. Na-

tive languages have many words for sources and uses of water. One

word best describes these various words. That one word is “LIFE.”

The water of our ancestors is our water today. The water on our

Native Homelands has been damaged by misuse, by mining, by

farming and multiple other ways that have polluted it – our water,

our LIFE.

I became involved with CPAWS because it is a way to provide bet-

ter, clean drinking water from these polluted sources. CPAWS also

uses the same system to generate electrical power to Native people.

CPAWS offers a simple way to add LIFE back where it was lost. Our

goal is to enrich our people's lives now and for future generations.

CPAWS can give the LIFE back to water. Please join me in the effort

to bring LIFE back to our people.

__________________________________

John D. Woolf

Cheyenne River Sioux Tribe

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CPAWS OVERVIEW CONFIDENTIAL PAGE 4 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

This Business Plan outlines how the CPAWS innovative, compact micro-utility (cleans water, generates electricity, provides heat and processes waste) could be a tool for Native Americans to improve health and pursue self-determenation more effectively. While the this plan focuses on Native Americans, the CPAWS micro-utility could be used: (i) by native peoples worldwide; (ii) in certain applications in developed countries: (iii) by organizations addressing disaster relief efforts. Cost to complete prototype and field test for 120 days is $500k. Cost for a high-probability simulation is $50k.

CPAWS Can Help Give Life Back to Native Americans

The CPAWS Group, based in Charlotte, NC (the “Company”), has designed an integrated, compact, transportable micro-utility system that filters and purifies water, generates electricity, pro-vides heat and sanitizes waste. The initial model offered by CPAWS (acronym for co-gen-eration power and water system) is designed to support a family or a smaller commercial oper-ation. The design for the “Home Utility in a Box,” or HUB system can be scaled to support multiple families, larger commercial establish-ments and/or smaller hospital.

US INDIAN RESERVATIONS. A high percentage of Native Americans living on reservations do not have ready access to clean water and/or electric-

ity1. In some areas, availability is so limited that water is delivered by truck. A report on CBS Sunday Morning discussed efforts of a single person, known as “The Water Lady,” to

provide clean water to many Navajo’s.2 There also was an article about “The Water Lady” in The New York Times.”3 While CPAWS cannot increase the supply of wa-ter, CPAWS can make potable, water from most any source, no matter how contaminated. In many areas on reservations, little, if any, water is filtered or processed prior to consumption, even where surface water is obviously contami-nated. Water from wells often is assumed to be

less contaminated than surface water and, therefore, not necessarily processed before drinking. While appearing safe, the well water might contain an unhealthy level of pathogens, minerals and/or chemicals.

1 http://indiancountrytodaymedianetwork.com/2011/10/25/arsenic-in-water-tables-is-a-grave-threat-to-indian-coun-

try-58455?utm_source=facebook&utm_medium=social&utm_content=arsenic-in-water-tables 2 http://www.cbsnews.com/news/the-water-lady-a-savior-among-the-navajo/ 3 http://www.nytimes.com/2015/07/14/us/on-parched-navajo-reservation-water-lady-brings-liquid-gold.html?_r=0

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CPAWS OVERVIEW CONFIDENTIAL PAGE 5 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

CPAWS can also help mitigate the effects of disasters on reservations. For example, in 2015, a spill at the Gold King Mine4 released an estimated 3 million gallons of highly contaminated water into the Animas River. Words cannot describe the level of contamination and disruption to those relying on the river, humans, animals and reptiles. Note the difference in the river before and after the spill.

WHAT CAN CPAWS DO FOR NATIVE AMERICANS?

First, CPAWS micro-utility can provide three key components to help Native Americans improve health and self-determina-tion: (i) make clean water readily available; (ii) provide a sys-tem for sanitation (if needed); (iii) generate electricity for personal and/or many commercial applications. Having these three key fundamentals available will allow the individual tribes to pursue self-de-termination more aggressively and more effectively. The CPAWS micro-utility should be viewed as a “tool” to help achieve self-determination, not as a solution for self-determination/economic development. How each tribe capitalizes on the benefits of the CPAWS micro-utility will be determined by the tribe. Some examples for the tribe to consider how CPAWS micro-utility can help:

1) Create Jobs. The list is in order of increasing complexity and number of jobs created. a. Assisting CPAWS with gathering data how a micro-utility could be used. We also

need data about required system capacities – e.g., ranges of daily water con-sumption per household and of daily electricity consumption per household.

b. Assisting with CAD (computer-aided design) to refine and simulate testing c. Assisting with field testing and data gathering once pilot system installed d. Completing final assembly of units for use on reservation, then other locations e. Installing infrastructure to deliver water and electricity, servicing CPAWS units

on the home reservation f. Installing and servicing units and infrastructure on nearby reservations g. Operating CPAWS as a revenue-generating micro-utility. Operating as a utility

could increase the number of people having access to clean water, electricity and a sanitation system.

h. Fabricating parts for CPAWS units i. Developing, designing, fabricating product enhancements to future CPAWS units

2) Grow Food Locally/Create Jobs. CPAWS’ sanitation system converts waste to compost. Compost can be used in reservation-based gardens and/or greenhouses. Availability of clean water and heat allows year-round hydroponic farming of vegetables. Growing veg-etables locally and distributing locally, including nearby reservations, would create jobs.

3) Enhance Efficacy of Health Programs. Having clean water will increase the effectiveness of vaccines and other efforts to improve health of tribal members.

If interested, the CPAWS Group can provide more detail about these and other ideas how the CPAWS micro-utility can be a tool for enabling Native Americans to achieve self-determination.

4 https://en.wikipedia.org/wiki/2015_Gold_King_Mine_waste_water_spill

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CPAWS OVERVIEW CONFIDENTIAL PAGE 6 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

CPAWS MICRO-UTILITY HUB GENERAL FEATURES The CPAWS HUB (Home Utility in a Box) – is designed to meet water, electricity, heat and sanita-tion needs of a family of 5-6 people or needs of a small commercial operation. The HUB system is also designed to operate separately from but link to existing structures with minimal modifica-tions to the structure. The operating components of the HUB system fit in a box with a roughly 36’2 footprint. Additional storage tanks for water and battery pack for electricity (optional) would be housed outside the HUB box.

TARGET PRICE The base HUB model is configured recognizing that: (i) income for many prospects is limited; (ii) not every user needs the sanitation and/or the home-heating feature. As such these features are considered optional, along with a battery pack that can be used to store electricity for periods when the system is not generating electricity.

$10,000 MSRP base model target $ 2,500 MSRP optional sanitation system $ 2,500 MSRP optional heating system $ 250/mo. operating cost target for pure water, electricity, heat and sanitation Installation cost. Will vary by application.

MARKET POTENTIAL

The potential market for the CPAWS HUB micro-utility is very difficult to determine. Intuitively, the market appears very large. Each day there are 6+ billion people (yes with a “b”) who each day face shortages of clean water and/or electricity and/or basic sanitation. There are also multiple natural disasters that occur annually worldwide. For many of these disasters, CPAWS HUB could be deployed quickly and dropped from an airplane or helicopter. A small share of the “personal-use” or disaster markets would result in significant annual sales.

GENERAL FEATURES/INNOVATIONS OF CPAWS HUB

Power system – Proprietary, highly efficient, 21st Century “steam engine.” Yes, steam engine. The steam engine will function to: (i) turn a crankshaft linked to an electric gen-erator; (ii) purify water from most any source. The boiler will be have separate chambers so steam associated with purified water will be separated from steam used to power the engine.

Compact footprint – Key operating components – steam engine, boiler and generator housed in a roughly 36’2 container than can be delivered by a pick-up truck. Larger water tanks and battery pack (optional) housed require additional space.

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CPAWS OVERVIEW CONFIDENTIAL PAGE 7 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

High efficiency – based on analysis of preliminary design, efficiency of the steam engine will exceed engines of comparable output that are fueled by diesel, gasoline or natural gas

Primary material for engine block and some other components – high-strength plastic

Torque and horsepower vary with load Lower-pressure steam for safety Multiple fuels to create steam – firebox for boiler

can be fueled with diesel, natural gas, or solid ma-terials with reasonable energy density

FUEL FLEXIBILITY: DIESEL TO WOOD CHIPS CAN POWER SAME UNIT SAME DAY

As a steam engine, combustion for HUB is “external” – i.e., outside the piston chamber. In a diesel or gasoline engine the combustion is “internal” – i.e., occurs inside the piston chamber. The “ex-ternal” combustion configuration is more flexible with regard to fuel. Rather than being restricted to just a single fuel to heat the steam – diesel, e.g. – HUB can use diesel, propane, natural gas and/or any number of solids with reasonable energy density – wood chips, e.g. Fuel can be switched on different days and even different times during the same day. The flexibility to use solid fuels is important in remote areas or in developing countries where availability of liquid fuels is limited and such fuels are expensive. Other applications where avail-ability of liquid fuels may be restricted include natural disasters and forward military operations.

VARIABLE OUTPUT

HUB steam engine is designed to have up to 8 opposing pistons (4 sets). Output of the steam engine varies depending on the stroke of each piston and whether 2, 4, 6 or 8 pistons are used. The stroke of each piston and number of pistons in operation adjusts automatically based on load.

PLASTIC COMPONENTS FOR 3-D PRINTING

CPAWS HUB is designed to use high-strength plastic for the engine block and other components. As heavier-duty plastics continue to evolve over the coming years, additional components will be converted to plastic. Our goal is to design the engine and components to be able to use a 3-D printer and print the engine at sites near the end user. Using “3-D printing” for components, whether plastic or some metals, would ensure rapid re-placement of service parts and long-term availability of service parts. 3-D printing would allow users to custom-fit certain features of the system to meet specific local needs.

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CPAWS OVERVIEW CONFIDENTIAL PAGE 8 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

TECHNICAL ASSESSMENT: OVERVIEW

As we developed the CPAWS system, a number of people asked us…and we asked ourselves:

What’s the value of this approach? What’s makes it worth pursuing?

When making water potable, why use distillation, which is energy intense? Contaminated water can be made potable by using say reverse osmosis or using chemicals.

When generating electricity, why use a steam engine to generate electricity? A simple off-the-shelf generator will work. Besides, steam engines are old and clunky. Steam en-gines became obsolete in the 1930’s.

The short answer to these questions/concerns – CPAWS steam engine design: (i) is significantly more efficient, more powerful and lighter weight than earlier steam engines; (ii) creates water than is cleaner than other methods, using little additional energy; (iii) allows multiple fuels to be used, ranging from liquids to gases to solids. For additional information about why the CPAWS system is superior, please see Appendix A: Ex-panded Technical Discussion.

HUB DEVELOPMENT TIMELINE, DECISION GATES AND COST CPAWS has made every effort to develop a practical, affordable “steam-engine”-based design that can be built with minimum tooling. Next steps in the design are transferring the base design to CAD, simulating performance and then tweaking the design. If the results of the simulation are not satisfactory, the program can be terminated. Results are expected in 90 days from start of transferring existing design to CAD. Once satisfied with the base design, CPAWS will proceed to fabricate specific parts, finalize pur-chase of appropriate off-the-shelf components and construct what we are labeling a “pilot pro-duction” model. The “pilot” unit will then be sent to the field for testing. If test results meet or exceed performance targets, the recommendation will be to ramp up for limited production. Time for the fabrication and testing program is estimated at 350 days. A decision gate would be following bench tests, or about 50.0% through the cycle. Based on results, the decision could be continue as planned, a major redesign or terminating the program. Cost for the “simulation” phase with no hardware is estimated at $50k. During the simulation phase, management has agreed to forgo any compensation other than reimbursement of direct expense. Cost for the hardware and testing phase is estimated at $450k. The first portion of that phase is about $300k; the testing portion about $150k. Key executives will receive compensation during the period. The compensation is well below market rates. Total staff is less than four (4) full-time-equivalent employees. For those interested, CPAWS can provide documents detailing cost assumptions for development and personnel. Additional discussion about development timeline available in Appendix B.

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CPAWS OVERVIEW CONFIDENTIAL PAGE 9 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

Table 1 Development Timeline Cost Overview

Cost Period Results Comments

$ 50k 90 days Simulation, no hardware Excellent assessment of whether design meets performance specs. Management no compensation beyond reimbursement for expenses.

$450k 350 days Hardware and 120 day field test Fabrication, bench test, design modifica-tions and field test with extensive data col-lection. Management compensation but only 4 FTE staff.

$500k 440 days Decision to production Will secure orders during testing so if pro-ceed to production, have sold-order bank and some deposits.

COMMERCIALIZATION. CPAWS Group does not intend to produce the HUB system. CPAWS will

consider selling the designs, licensing the designs, and/or forming a JV. Whatever the relationship key staff at CPAWS will assist with making introductions to key prospects, helping secure initial orders and being available to address and help solve any modifications required to the system. While the amount required will vary by company, we believe that once the system has completed successfully the development phase, including field-test results that meet or exceed performance targets, then capital required to begin limited production and sales should be about $500k. Pro-duction and sales could begin within three (3) months following completion of the field test for companies currently offering a product line with similar production requirements. Table 2 Commercialization Capital to Production

$500k Capital to production Capital required to begin production is esti-mated at $500k for a company that has a complementary product line. Capital would be higher for company without comple-mentary line. WC would be reduced by or-ders received during testing phase.

FUTURE PRODUCTS/APPLICATIONS

LARGER SCALE SYSTEMS. CPAWS HUB design can be scaled easily to higher-outputs. A larger system could support a cluster of homes or businesses. Larger CPAWS systems could also be combined in a central location to serve as a complete utility for a smaller community. Once the HUB system is tested, the time and cost required to develop a larger scale system would be less than the time and cost for completing the HUB system. NEW APPLICATIONS. The business plan has centered on applications for clean water for humans. A larger HUB system could be ideal for processing waste from animals raised in confined areas. In eastern North Carolina, for example, hog waste is held in holding ponds. A larger CPAWS system could clean the water in the ponds and also use dried hog waste as fuel.

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CPAWS OVERVIEW CONFIDENTIAL PAGE 10 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

MANAGEMENT TEAM AND ADVISORS Key members of the team have widely divergent, but complementary backgrounds. The team evolved based on a common goal – develop and introduce an affordable, effective water and power system that could be used in the US and over time, worldwide. The team includes advisors and others who share the vision and could join the team as operations expand. JOHN WOOLF, CO-FOUNDER

Mr. Woolf is a member of the Cheyenne River Sioux Tribe. Mr. Woolf is sometimes described as a “professional story teller.” He is also very committed to face-to-face contact and high customer

satisfaction. His career includes a wide variety of projects and ventures. Mr. Woolf currently owns two businesses that deal directly with a number of Na-tive American tribes: (i) Six Points, which he and Virginia Johnson started in 1992. Six Points sells meat throughout the US; (ii) Thunder-cloud, founded in 1993, which addresses the niche for lower-cost eye-glasses among Native Americans. (http://www.thundercloudopti-cal.com/about/) Both businesses have won a number of awards.

Prior to starting Six Points and Thundercloud, Mr. Woolf’s career included being a very successful sales rep for two cell-phone companies as well as successful stints at Xerox, Herbalife and Sears-Roebuck corporations. Mr. Woolf has a strong and widespread network of contacts among the Native American commu-nity. One of his goals is to encourage and help other Native-Americans capitalize on opportunities to become successful entrepreneurs and/or to take advantage of numerous educational oppor-tunities. He currently resides in Lincoln, Nebraska.

JOHN R. DABELS, CO-FOUNDER

Mr. Dabels has extensive experience with technology-based start-ups, as a founder, senior exec-utive and board member. Mr. Dabels serves as president of Dabels & Associates, Inc. Current projects include assisting with: (i) developing and introducing new, lower-cost military aircraft; (ii)

increasing production of oil and natural gas from existing fields; (iii) introducing a new, lower-cost process to render benign toxic waste from mining. Mr. Dabels also serves on the Board of Directors Dura-Trac Motors, Inc. (Fort Wayne, IN). Among other positions, he served as CFO, EV Global Motors, a Lee Iacocca-owned company based in LA and CFO of a large industrial distribution company with multiple product lines sources from different countries.

Much of Mr. Dabels’ career was with General Motors serving at Cadillac Division, Treasurer’s Of-fice (New York) and Buick Division as Director of Marketing, responsible for development and implementation of new product introductions, advertising, sales promotion, and customer re-search. Following Buick Mr. Dabels became Worldwide Director of Marketing GM EV1 (electric

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CPAWS OVERVIEW CONFIDENTIAL PAGE 11 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

vehicle) program. In addition to marketing, he was responsible for creating worldwide product awareness, as well as managing government relations and media relations. Educational: BS, Drake University (Des Moines, IA); SM, Massachusetts Institute of Technology (Sloan Fellow); Adjunct professor, Univ of Michigan. http://www.linkedin.com/in/johndabels.

SEBASTIAN B. DIMAURO, CO-FOUNDER

Mr. DiMauro is co-founder of i Energy Systems, Inc., which provided the design concept for CPAWS. Mr. DiMauro has been involved with founding start-up technology companies and has extensive experience in product development for a number of equipment-manufacturing compa-nies, both US and internationally based. For example, management positions include Vice-Presi-dent and general Manager of North American Operations for Depac, Inc., an industrial sealing

device manufacturer, with HQ in Austria. Mr. DiMauro was Product Manager for A.W. Chesterton Co., a pump and sealing device manufacturer. At Romicon Corporation, Mr. DiMauro was a R&D engineer, responsible for development of state-of–the-art ultra-filtra-tion systems. Projects included designing and patenting a double diaphragm, air-operated pump, which pumped whole blood through a filtration system without damaging the hemoglobin.

Other R&D projects include linear encoder design, satellite tracking station design and cryogenic pump applications and design. Mr. DiMauro also worked in research, development at MIT Instru-mentation Labs (now Draper Labs) building, testing inertial guidance systems for NASA. Mr. Di-Mauro has conducted many seminars on pump and seal design and operation for customers in the chemical processing industry, paper mills and water treatment facilities. He was also a guest lecturer at The US Merchant Marine Academy and Lowell Technical College. Education: Boston University, Northeastern University

L. WAYNE HENEGAR

Mr. Henegar has extensive domestic and international experience in manufacturing, finance and product planning. He also has experience in organizations focused on assisted living for seniors and hospice care.

Some of Mr. Henegar’s many accomplishments as a key executive include: (i) negotiating and implementing a joint venture between General Motors and Isuzu Motors to build and operate an innovative international diesel en-gine manufacturing facility; (ii) Director, Development, GM Asia-Pacific Op-erations; (iii) CFO, GM operations, Indonesia; (iv) product planning GM EV1 (first modern electric vehicle and precursor to array of current electric vehi-cles); (v) operations-related positions at separate GM assembly plants in New York and New Jersey.

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CPAWS OVERVIEW CONFIDENTIAL PAGE 12 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

Following General Motors, Mr. Henegar helped restructure and reorganize Hospice of Dayton, OH. In addition, he has held various executive positions with senior assisted-living facilities in Florida. In his spare time, he has become an accomplished amateur racecar driver. Mr. Henegar holds degrees from The University of the Cumberlands (BS) and Central Michigan University (MSA) as well as certificates from executive programs focusing on quality, project man-agement and leadership.

ADVISORS

ADA M. FISHER, MD

Dr. Fisher has extensive experience in medicine at the public level – Veterans Administration and public clinics -- and at the corporate level – former medical director for Amoco. Dr. Fisher has been a strong advocate for the CPAWS project, frequently “pok-ing” us to accelerate progress. Her perspective has helped the group understand why this-type product, i.e., providing a system for cleaning water and sanitation, is a necessary component of efforts to improve health worldwide using vaccines. With both systems, vaccines will be far more effective. Dr. Fisher also has been helpful introducing the group to possible partners and/or sources of financing. She first worked with Mr. Dabels when he was de-veloping a neighborhood electric vehicle.

Fisher is the granddaughter of a former slave and his Seminole/Crete Indian wife. Fisher’s educa-tion includes University of North Carolina, Greensboro (biology), University of Wisconsin (medical) and Johns Hopkins (masters in public health). Fisher is also a licensed secondary teacher in math-ematics and science.

STEPHEN L. TERRY

Mr. Terry is a Projects Design Services Business Officer and Facility Planner at the University of North Carolina – Charlotte. Prior to UNCC, Mr. Terry accumulated significant experience in con-struction and management of commercial facilities. Positions in major construction companies

included COO, Project Manager and Senior Estimator. Mr. Terry also held General Contracting licenses in California, Oregon, Washington and Kansas. He has been an integral part of the design and development of CPAWS, assisting with initial designs, diagrams for assembly, component specifica-tions, cost estimates and recommended solutions to overcome perfor-mance and infrastructure issues likely to be encountered as CPAWS is de-ployed in difficult and demanding field locations.

In addition, Mr. Terry has worked with Mr. Dabels on several other innovative products, including a retrofit hybrid-electric drive system for trucks and an innovative all-electric neighborhood vehi-cle built from automotive components. Mr. Terry has also designed a series of innovative auton-omous all-electric transit and delivery vehicles for use on college campuses and other confined and defined areas.

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CPAWS OVERVIEW CONFIDENTIAL PAGE 13 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

APPENDIX A: EXPANDED TECHNICAL DISCUSSION

WHY DISTILL WATER (STEAM) VS REVERSE OSMOSIS?

CPAWS goal was to design a system that convert to potable, even purified water, local source water with a wide range of contaminants. The system also needed to perform efficiently and effectively in many operating conditions. Reverse osmosis (RO) is an effective approach if the incoming-source water quality known and the operating environment stable. Even with these conditions, RO requires heavy filtration and much of the input water is not converted to potable water. CPAWS accepts a wide range of contaminants and the type and level of contaminants can vary day-to-day, or even within the same day. While some pre/post-filtration might be required for certain conditions, the output of the CPAWS system is distilled water. Distilled water can be used for many applications from human consumption, to animal consumption to medical. The design of the CPAWS steam engine recycles heated water, thereby reducing fuel consump-tion and increasing efficiency. Further, once the water enters the system, it is separated so wa-ter distilled for consumption never mixes with water used to power the steam engine and gen-erate electricity.

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CPAWS OVERVIEW CONFIDENTIAL PAGE 14 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

WHAT’S REALLY NEW WITH CPAWS VS AN OLDER DESIGN STEAM ENGINE?

So, tell me what’s really new with the CPAWS steam engine design. Aren’t steam engines all pretty much the same? Think about progress made in the efficiency of internal-combustion engines (ICE’s). ICE’s used in today’s cars/trucks are lighter, more fuel efficient, lower maintenance and have significantly higher output per unit of displacement than engines of 50-60 years ago…even 10-15 years ago. The CPAWS designs results in significant gains for the steam engine. In fact, we believe the gains in efficiency and output with CPAWS, may be proportionately greater than with ICE’s. The keys to gains with CPAWS are: (i) opposed pistons, which provide more power and ensure the engine remains in balance’ (ii) more effective use of heat results from proprietary design for using energy from steam at three different stages and proprietary design to channel the steam between stages; (iii) smaller footprint of the engine reduces mass. Even if the engine is made from metal rather than plastic, the CPAWS steam engine will be lighter and transported in a pick-up truck.

OPERATING EFFICIENCY OVER RANGE OF RPM’S. The net effect of the design improvements is an engine that is compact, lower cost and highly efficient. Based on data developed so far, we esti-mate the current design CPAWS steam engine will operate at about 50% efficiency. As shown in the chart from a company presentation, the projected operating efficiency of 50% is significantly above a gasoline or diesel engine over all rpm’s. Unlike diesel or gasoline internal-combustion engines, steam engines have maximum torque (and max load) at start-up. Steam engines do not have the typical bell-shaped torque curve of an in-ternal-combustion engine. Maximum is available instantly. Also, unlike diesel or gasoline engines, maximum torque is maintained across the entire range of rpm’s.

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CPAWS OVERVIEW CONFIDENTIAL PAGE 15 OF 16

15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

IS A STEAM ENGINE REALLY NECESSARY?

The CPAWS system is a nice technical achievement but is the steam engine really necessary? We agree the steam engine is not necessary of the primary objective is to create potable water and there is little concern about job creation or cost. However, if the goal is to expand the opportunity for economic growth and job creation…and ensure water quality is adequate for most applications, including medical…then the CPAWS steam engine seems more appropriate. The CPAWS design allows a wide range of water-source quality, use of multiple fuels and results in lower-cost per unit of water and electricity. WANT MORE TECHNICAL INFORMATION? Download a white paper from our website. The CPAWS Group will be glad to discuss technical information and ideas how the CPAWS HUB system can be leveraged for economic development and to create additional jobs.

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15105-D JOHN J. DELANEY DRIVE, #348, CHARLOTTE, NC 28277 / WWW.CPAWSGROUP.COM

APPENDIX B: MORE INFORMATION ABOUT DEVELOPMENT TIMELINE Completed so far pending further review and analysis:

Concept design for all proprietary components Detailed bill of materials Project development timeline Personnel requirements Overall development cost

The primary steps to commercialization of HUB are:

Refine HUB concept design using CAD – the current design has been revised a number of times to simplify, increase efficiency and reduce cost. However, the design needs to be transferred to CAD to accelerate further possible refinements and simulate performance.

Simulate performance based on refined design. The initial simulation will focus on meet-ing performance requirements for use by Native Americans. The simulation can also es-timate performance for use in developing countries and in disaster relief.

Select partner for beta test of HUB. Modify design, if required, for beta test. 3-D print concept as “sense check” of design and establish baseline how difficult it might

be to use 3-D printing for limited production (Unlikely that all “printed” components will meet performance specs at this stage.) We believe the rapid advances in 3-D printing should allow CPAWS to be “built” in a number of remote locations. 3-D printing CPAWS will also provide some guidance re what portions of CPAWS could be modified easily.

Determine what commercially available components could be incorporated into HUB to reduce cost and shorten development time. The current BOM includes a number of com-mercially available components. The goal is to expand the list in order to reduce cost.

Refine preliminary design of specific parts, if necessary Run simulation with commercial components and specially designed parts Complete test units and begin field beta tests Seek additional customer input – efforts directed at markets beyond Native Americans –

assessment of markets in addition to Native Americans will be initiated as early as the first CAD simulation is completed.