Contents are proprietary property of Proton Power and may not be shared in any form without written permission from Proton Power. Qualification: Maximizing Your Time Jim Bierkamp, John Wilson

2 Objectives To help you to target where to focus your efforts To help you to spend your time efficiently To maximize your chances for success

3 Has This Happened To You? Question: “So, how will you be paying for this project?” Answer:

4 Agenda Customer Qualification Project Qualification Process Qualification Wrap-Up and Summary Reference material: –Project Information Workbook –Strategic Opportunity Evaluation

5 Score Yourself

6 CUSTOMER QUALIFICATION

7 Customer Qualification Customer Background Compelling Event (Business Agenda) Personal Drivers (Personal Agendas) Source Of Funds Appetite For Risk Customer Matrix

8 Customer Background Customer = Person with whom you have the initial relationship What is the customer’s role relative to the project? –Owner –Project packager (e.g., project developer) –Advisor to the owner (e.g., consulting engineer, another supplier, etc.) Why? Owner Is Typically Decision Maker

9 Roles Internal To Owner’s Organization Roles: Decision-maker Influencer Veto power Each can be: Supporter Opponent / Skeptic

10 CEO CFOCOO EngineeringManufacturingProcurement Sales / Marketing Roles Internal To Owner’s Organization Veto Power Influencer Decision Maker Supporter Opponent Who wins? What should you do?

11 Roles External To Owner’s Organization Roles: Decision-maker  Rare Influencer  Engineer Veto power  Bank, Local Government Each can be: Supporter Detractor / Skeptic

12 Owner Background Is the customer a Government entity? –Will contract be for produced product vs. purchasing a plant? Build, Own, Operate Maintain (BOOM) model is not PPI’s business model –Will want a resume of multiple completed projects running for x years –Likely a bid/spec process Why? Low Probability For Success

13 Owner Background What products, services does customer offer? Who are the owner’s customers? Why? Identifies Useful Insights As To What Is Important To Customer

14 Compelling Event What has changed in the customer’s organization to make this opportunity arise? –Conscious, strategic play –Response to its competition –Nothing –You think it would be good for them Why? Sense Of Urgency Drives Action

15 Compelling Event What are the financial consequences of doing the project? –Does the ROI meet its hurdle rate? –Are there financial implications beyond just the project proforma? Example: Allows shutdown of weaker business/division (improves portfolio) Why? ROI Is Always Important

16 Compelling Event What are the consequences of not doing the project? What is the sense of urgency? Is there a date associated with the financial implications or the consequences of not doing the project? Why? Sense Of Urgency Drives Action

17 Personal Drivers Who personally stands to gain and who stands to lose if the project goes forward? –Consider money, power, ego, satisfaction –Match to internal roles to determine who is most important and where to spend your efforts Why? Helps ID Supporters, Opponents

18 Source Of Funds How will the project be funded? –Self-funded + have the $ –Mostly self-funded + borrow some –“We have relationships with billionaires who want to do energy projects.” –“Funding won’t be an issue.” –Set project up as an LLC and go public “Peel the onion” about project funding Why? No Money = No Project

19 Appetite For Risk What does the customer need to proceed? –To be first or to be considered a leader –Has to work it into budget cycle –OK with seeing the system demonstrated –To be comfortable with the people of PPI –Has to know how technology works in detail –X installations operating for Y years –Performance guarantee Why? Identifies Pace Of Your Efforts

20 Customer Matrix Why? Degree Of Difficulty For You

21 PROJECT QUALIFICATION

22 Project Qualification Location Type / Application Size Biomass Feedstock Phased Time Frame Address Compelling Event Address Personal Agendas Competition

23 Project Location Where is the project located? –North America –Desert areas –Terrorist nations, areas –China, India  Not now –ROW (Rest of World) What business peculiarities are required? –Business/ownership structure –Local manufacturing requirement

24 Project Type / Application What PPI system will be required? –CHyP fuels –Electricity –Hydrogen PSA system required typically –CHyP gas as heat source Kilns, furnaces Typically competing with natural gas

25 System Size Minimum system sizes –CHyP Fuels: 10,000 liters/day or 1M gal/yr –Electricity: 250kw –Hydrogen: 30 kg/hr –PPI will not build below these minimums Optimum sizes –CHyP Fuels: 50k LPD or 5M gal/yr and above –Electricity: 5MW and above –Hydrogen: 625 kg/hr and above

26 Biomass Feedstocks Grassy feedstocks –Ex: Switchgrass, miscanthus, etc. –Rice hulls do not work well Woody feedstocks MSW Plastics –Must be mixed 50/50 with woody or grassy biomass Human/animal sludge See also “Biomass Session”

27 Other Considerations “We’d like to start with a small system and add to it later.” –Small systems less attractive financially –Adding infrastructure for later even worse Customer time frame > 18 months Does project address compelling event? Does project address personal agendas?

28 Competition Is customer evaluating other suppliers? Who are they? How long have others know of this project? What are competitors’ relationships with the “deciders”? How are competitors’ differentiating?

29 PROCESS QUALIFICATION

30 Process Qualification Customer Buying Process Informal Buying Process

31 Customer Buying Process Negotiated –Sale negotiated directly between customer or customer + advisory team and PPI –No competition Competitive bid –Customer evaluating multiple technologies –If you aren’t in at the front and influencing the process throughout, forget it

32 Customer Buying Process Learn the details –What is the evaluation process? –How will project be purchased? –What legal steps need to be executed? –What are the levels of approval? –Other steps?

33 Informal Buying Process Learn what really happens internally –What happens behind the scenes that influences the buying process? –Who has influence? Who will make the decision and the rest will follow? –How is the decision committee formed? –How will the decision really be made?

34 WRAP-UP & SUMMARY

35 Scoring – How Did You Do? >>  High Chance Of Success! –Work to flip the reds to greens >>  Punt! ~=  More work needed –Work to flip reds to greens, make greens “greener” –Weigh the investment of time vs. other opportunities

36 Closing Comments Answer as many of these questions as possible before advocating solutions Doing these activities and finding this information qualifies you for customer exclusivity extension Use the following to help you with your “elevator speech” when you talk to people about Proton Power…

37 Elevator Speech Proton Power, Inc. (PPI) has developed a unique and new system to produce renewable liquid fuels from biomass and waste sources at attractive financial returns. The patented process utilizes a totally different and simpler fuel conversion technology than anything currently available. The same core technology platform can also be used in systems to produce electricity or to produce hydrogen.

38 QUESTIONS/DISCUSSION