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DURA-TRAC MOTORS INC. Disruptive Electric Motor Technology New Motors and Retrofit of Existing Motors Overview 2016:Q4 WESITE REVIEW

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DURA-TRAC MOTORS INC.

Disruptive Electric Motor TechnologyNew Motors and Retrofit of Existing Motors

Overview 2016:Q4

WESITE REVIEW

■ Introduce Dura-Trac Motor (DMI) patented technology

– General description and features

– Why technology disruptive, incl retrofits to existing motors

– Immediate and future applications

■ Review state of development and commercialization

■ Possible relationships with partner – license to purchase

■ FAQ’s (see website FAQ page for more extensive list)

■ Management Team

Website Review and Download2016Q4

Content of Presentation

2

Possible Links with Academic/Business Partners

Website Review and Download 3

Discuss Next

Few SlidesMechanical

EngineeringElectrical

Engineering

Fluid

Dynamics

Chemistry

Physics

2016Q4

What Is a Dura-Trac Motor?■ Dura-Trac (DMI) Electric Motor/Generator

– Permanent magnet

– Rotor and stator separate mechanically

– Separation is axial, allowing continuously variable magnetic field

■ Extensive patent coverage for:

– Mechanical shift to field weaken magnets –provides magnetic equivalent CVT

– Hub motor with axial shift

– Stator-tooth design and modular coil

DM

I Tra

dit

ional D

esi

gn

DMI Hub Motor

Website Review and Download2016Q4 4

Benefits of DMI Shifting (Decoupling)

■ Shifting functions as “transmission in a car”

– Excellent low-end torque

– Efficient top-end speed

■ Optimizes operation over wide range

■ Scalable over wide range of sizes and outputs

High

Torque,

Low

Speed

Low

Torque,

High

Speed

Website Review and Download

2016Q4 5

Patents Issued Worldwide

Website Review and Download2016Q4 6

US Patents: Descriptions

United States Patent Coverage –

Patent #’s 6,492,753 and 6,555,941 continue coverage of the P.M. motor or alternator with axial shift

Patent #’s 6,943,478 and 7,042,128 continue coverage of the P.M. hub motor or alternator with axial shift

Patent # 7,863,789 covers “Total rotor decoupling of motor or alternator to eliminate induced torque losses”

Patent #’s 6,880,229 and 7,042,130 continue coverage of the stator tooth construction method

2016Q4 Website Review and Download 7

Leveraging License/Purchase of Dura-Trac Patents

Patents Cover

Lower Cost Motor Mfging

In-Field Service, >Uptime

Increased Efficiency Exist Apps

Increased Efficiency New Apps

2016Q4 Website Review and Download 8

Immediate Cash Intermediate Cash Sustained GrowthROI Intermediate Cash

Is Dura-Trac Technology Disruptive?

Dura-Trac Disrupter Why Dura-Trac Disruptive

■ Optimizes motor performance over broad range of situations

■ Creates “mechanical” electric motor

■ Can be retrofit to existing PM motors

■ Reduces PM motor assembly time/cost

■ Increases PM motor life

■ Works with large/small PM motors

2016Q4 Website Review and Download 9

Disruptive Technology #1Axial Field Weakening of Rotor

Current Motors

■ Physics limits PM motor performance

■ Wide dynamic speed range may require transmission

■ Extending speed range electronically has performance penalties

Dura-Trac Technology Motor designed for MAX torque…and

Rotor field reduced for added speed

Functions as a magnetic CVT

Full decoupling for wind, hybrid uses

2016Q4 Website Review and Download 10

Disruptive Technology #2Stator-Tooth Construction

Current Construction■ Conventional stator construction

limits wire and coil optimization

■ Results in a higher resistance and inductance winding

Dura-Trac Technology Separate stator tooth stack for

optimum winding

Increases ROI by lowering cost and lowering assembly time

2016Q4 Website Review and Download 11

Disruptive Technology #3Stator Winding

Current Windings

■ Coil wire size and resistance dictated by stator-tooth gap

■ Design forces higher resistance and reduces efficiency

Dura-Trac Technology

2016Q4 Website Review and Download 12

Wire and copper fill optimized – not

limited by slot width

Form wound coil helps assembly

Increases motor efficiency/output

Disruptive Technology #4PM Motors Magnet Assembly

Current Assembly■ Assembling rotor into stator

involves very high forces

■ Hydraulics and massive fixtures required for production

■ Service problem: field bearing change often not possible

■ Result: much higher life cycle costs

Dura-Trac Technology Motor assembled with rotor disengaged

eliminating high-cost equipment

Optimizes DFM PM motor assembly

Service: easy field bearing change

Result: longer life and lower OpEx

2016Q4 Website Review and Download 13

Disruptive Technology #5Field Replacement PM Main Bearings

Current Technology

■ PM bearing failure requires:

– Motor removed from housing

– Repair at specialized facility

– High cost; long repair time

■ Reasons preventing field repair

– Motor design results in extreme magnetic forces

– High force requires special equipment to overcome

Dura-Trac PM Technology

2016Q4 Website Review and Download 14

Dura-Trac design

Allows full rotor decoupling

Decoupling eliminates magnetic

forces

Bearings replaced in field

Benefits to user:

Lower service costs

Increased up time

Longer motor life

Higher ROI

Disruptive Technology #6Dura-Trac Retrofit of Existing Motors!

■ Existing stator designs can add Dura-Trac shifting technology

■ Existing PM rotors can add splined shaft for field weakening

■ Changes result in increased speed, torque and efficiency.

2016Q4 Website Review and Download 15

Dura-Trac Category Applications

Hybrid Drive Systems

Hub Motors/Generators

Website Review and Download2016Q4 16

100% Electric Vehicles

Industrial Vehicles

Dura-Trac Category Applications

Wind Generators

Website Review and Download2016Q4 17

Industrial Conveyors

Ekoskeleton Suits Elevators

Applications: Stages of Development

Hub Motor

Conveyors et al

Wind Gen

Industrial

Hybrid Drive

Patent Issued Prelim POC Adv POC Demo Unit Commercialized

Website Review and Download 18

Licensee

with Order

Bank

2016Q4

Existing Commercialized Product

■ 6” stack tested and used by Cummins in hybrid-electric retrofit

– 10,000,000+ fleet miles, no failures

■ 1-12” stack length motors/generators

■ 10-250 kW peak power output

■ Thermally potted stator for liquid cooled outside diameter

2016Q4 Website Review and Download 19

Expanded Product Line with Additional Engineering, Tooling

■ Size range 1.0” - 110” OD

■ Peak power from 0.1 kW- 500 kW

■ Internal or external rotor with axial magnet decoupling

■ Stator tooth patents simplify large machines with high pole count

2016Q4 Website Review and Download 20

Possible New App: Micro-UtilityVertical Axis Wind Generator

■ Mechanical Engineering

– System design/durability

– Component integration

■ Electrical Engineering

– Component integration

– Link to energy storage

■ Fluid Dynamics

– “Wind turbine” design

■ Chemistry

– Battery chemistry for different applications

■ Physics

– Motor size for different applications

Website Review and Download

Dura-

Trac

ENERGY STORAGEUSER

No electric utility grid req’d

2016Q4 21

Academic/Engineering Partner

Micro-Utility usingVertical Axis Wind Generators

Vertical vs Horizontal

■ Vertical smaller footprint

■ Lower cost

■ Opportunity for Micro-Utility

– No expensive grid infrastructure for delivery

– Horizontal generators require grid to operate

– Store energy in battery pack

– Can combine with solar

Vertical as “Micro-Utility”

■ Remote locations where grid delivery expensive

– National parks

– Indian reservations

– Developing countries, etc.

■ Clusters of homes or small businesses

■ Lower-cost new installations for larger electric utilities

Website Review and Download2016Q4 22

Energy Storage: Lower-Cost Option

Flow Batteries Benefits of Flow Batteries

■ Lower cost

■ Long life

■ Decent energy density

■ Totally recyclable

■ No parasitic drain

■ Constructed as single unit

■ Environmentally benign (almost)

2016Q4 Website Review and Download 23

Wind: Relationship Options

Relationship Options■ Dura-Trac licenses technology

– Assists licensee w/ development

– Offers new apps to licensee

Dura-Trac partners with Licensee

– Shares right to technology

– Shares portion of profits

■ Dura-Trac sells technology

– Dura-Trac works with buyer during transition

Funding Source Options■ Private capital

Government funding

– DOE Wind Energy Projects

– Other Fed/state gov’t grants

■ User funding

– Utilities seeking alt energy

– US Indian Reservations

Website Review and Download2016Q4 24

Possible New App: Hub MotorMore Efficient Trains/Trucks

Website Review and Download

■ Physics

– Motor size /torque for different applications, especially rail, truck

■ Mechanical Engineering

– System design/durability

– Component integration

■ Electrical Engineering

– Component selection, integration

– Link to energy storage

■ Chemistry

– Battery chemistry for different applications

2016Q4 25

Academic/Engineering Partner

Hub Motor Applications

Transportation Benefits: Dura-Trac Hub

■ Smaller packaging than current systems

■ Configure hub motor as:

– Series hybrid w/ diesel engine

– 100% electric

■ Increased mpg over broader range of speeds

■ Retrofit existing chassis

– Heavy-duty trucks

– Possibly trains

Website Review and Download2016Q4 26

Hub Motor: Relationship Options

Relationship Options

■ Dura-Trac contracts with UNCC

Dura-Trac partners with UNCC

– Shares right to technology

– Shares portion of profits

■ Dura-Trac sells technology

– EPIC sponsor. buys

– Buyer works with UNCC

Funding Source Options

■ Dura-Trac private capital

Government funding

– EPA/DOE/DOT grants

– DARPA/DoD

– Other Fed/NC gov’t grants

■ User funding

– Truck/train OEM’s

– Truck/train owners

Website Review and Download2016Q4 27

Hub Motor: Relationship Options

Relationship Options■ Dura-Trac licenses technology

– Assists licensee w/ development

– Offers new apps to licensee

Dura-Trac partners with Licensee

– Shares right to technology

– Shares portion of profits

■ Dura-Trac sells technology

– Dura-Trac works with buyer during transition

Funding Source Options■ Private capital

Government funding

– EPA/DOE/DOT grants

– DARPA/DoD

– Other Fed/state gov’t grants

■ User funding

– Truck/train OEM’s

– Truck/train owners

Website Review and Download2016Q4 28

Thank You for Your Time

Questions?

■ Questions?

■ Possible Next Steps

– More information about projects?

– Physical review of motor?

– More info re applications?

Contact Information

■ Business Issues/Gen’l Questions

– John R. Dabels, (704) 544-9907 / [email protected]

– Michael Carpenter, 260) 341-7853 / [email protected]

■ Technical Issues/Questions

– Lawrence Zepp, (260) 348-0336 /

[email protected]

Website Review and Download2016Q4 29

The Dura-Trac Team

JOHN R. DABELS, President

Mr. Dabels has extensive experience with technology-based start-ups as a founder, senior executive and board member. Mr. Dabels expertise centers on implementing systems and structure. Dabels & Associates, Inc., formed in 1993, has been involved with a wide range of projects including: (i) implementing new analytic techniques to drilling for oil and gas; (ii) reducing fuel consumption of light and heavy-duty vehicles; (iii) designing and building low-cost, smaller- footprint, integrated system to purify water and generate electricity.

Mr. Dabels also serves on the Board of Deep Energy Exploration Partners, Houston, TX. Among other positions, Mr. Dabels 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 sourced from different countries.

Mr. Dabels’ career includes General Motors, serving on the financial staff at Cadillac Division, GM Corporate Treasurer’s Office (New York), Buick Division as Director of Marketing, and Worldwide Director of Marketing, GM EV1 (electric vehicle).

Education: Drake University (Des Moines, IA), Massachusetts Institute of Technology (Sloan Fellow). Mr. Dabels was also an adjunct professor at University of Michigan and periodic lecturer at MIT.

Website Review and Download2016Q4 30

The Dura-Trac Team

Website Review and Download

LAWRENCE P ZEPP, CTO

Mr. Zepp serves as Dura-Trac Motors Chief Technical Officer. He is principal inventor of the

patents used in the variable magnetics motor, along with Jerry Medlin and James Hendershot. This

includes (7) U.S. patents issued between 2002 and 2009 plus multiple foreign patents.

During 2004 – 2015 he lead the engineering team and corporate functions to develop a

commercial vehicle hybrid using this technology. This included Executive VP Engineering at Variable

Torque Motors (9 years) and Chief Technologist at Crosspoint Kinetics (3 years). Mr. Zepp has 40

years experience as an inventor and electromechanical engineer. He is currently president of L. Zepp

Technology, Inc. – developing products for vehicles and light aircraft.

Education – BA Physics; State University of New York at Geneseo

2016Q4 31

Website Review and Download

MICHAEL L. CARPENTER, Secretary/Treasurer, Dura-Trac Motors, Inc.

Mr. Carpenter has been an active owner of Custom Poly Packaging for 17 years. Over

these past 17 years, he has also been a principal/owner is a number of other business

including equipment sales, natural gas brokering, and tax preparation.

Prior to his business ownership, he worked at a number of local businesses in

accounting, finance, and operations. Most recently, Mr. Carpenter was the Vice President of

Operations in Household Goods at North American Van Lines from 1994-1998.

Education—Associates degree from Purdue in Computer Technology, Bachelors degree

from Indiana University in General Management, Certified Public Accountant in 1981.

The Dura-Trac Team

2016Q4 32