1. Solar Motor Works 90% of the fuel load gone 1)Engine 2)Solar collector 3)Thermal energy storage Solving our energy needs All three together is Engine system Brian Gunn 801-829-8202 brian@solarmotorworks.com

2. Solar Motor Works2 Possibilities Engine System Electricity coal and nuke Boats Hydraulic equipment Trucks Renewable energy Airplane Cars Real estate

3. Solar Motor Works3 Target Market of First Product Real Estate Engine Systems Commercial Houses Apartments

4. Solar Motor Works4 How the Engine alone makes Money In High Utility States Grid elec. income $9,600 / year Tenant elec. Inc. $5,700 / year Building elec/h/c $1,000 / year Heating cooling $7,200 /year Total value $23,500 / year ROI on engine 235%

5. Solar Motor Works5 How the Engine alone makes Money In low Utility States Grid elec. income $ 800 / year Tenant elec. Inc. $1,000 / year Building elec/h/c $1,000 / year Heating cooling $7,200 /year Total value $10,000 / year ROI on engine 100%

6. Solar Motor Works6 Why Apartments? Ownership critical during R & D Sell engine heat and electricity Bank leverage based on cash flow Maximum ROI during R&D – self funding

7. Solar Motor Works7 Market Opportunity Install Engine in apartment complexes Gross revenue increase by 1.6 time base Maximum ROI is OWNING No outside sales during first 7 years.

8. Solar Motor Works8 Market Entry Apartments Engine only - $10,000 - ROI 225% Engine & solar collector - $20,000 – ROI 120% Engine, solar collector, and storage - $30,000 – ROI 88% and 24/7 solar

9. Solar Motor Works9 Competition - potentially bloomenergy.com Power companies Infinia.com Solyndra You name it...(list is long and distinguished)

10. Solar Motor Works10 Grid Competition Engine system (solar) 2.6 c/kw-hr Engine (Nat. Gas)5 c/kw-hr Coal plant 5 c/kw-hr Bloom Energy 14 c/kw-hr Infinia 30 c/kw-hr Diesel 35 c/kw-hr TypeCost

11. Solar Motor Works11 Wind Competition Wind 4 times engine system installed cost Wind produces only ¼ of 24 hour cycle Wind costs 20 times more than engine system for the same value to grid Wind not 24/7 Value of wind electricity less than 2.6 cent/kw-hr

12. Solar Motor Works12 Solar Competition PV solar is 12-24 times engine system PV produces ¼ of 24 hour cycle PV costs 30 times more than engine system for the same value to grid PV not 24/7 solar Value of PV solar less than 2.6 cents/kw-hr

13. Solar Motor Works13 Barriers to Competition Acceptance by Grid regulators IBC building codes Local city regulations National regulations UL listing

14. Solar Motor Works14 Investment Opportunity Right to production line Right to buy and install engines $10k engine = increase $100-140k in value Best Option: Hold 18 months, 1030 tax exchange. Capture $100k value for $10k cost

15. Solar Motor Works15 Use of funds Apartment Acquisition $2-3 million as down payment at 25% LTV Brian invests up to $400k $400,000 residual income per year Result of Apartment Acquisition

16. Solar Motor Works16 Additional funds after first prototype $1.5 million for 50 engine systems for testing $200k for 4-5 patents for IP. No marketing needed until proven out

17. Solar Motor Works17 What your investment buys Access to the next wave of innovation - energy Access to new company possibilities Access to great ROI – up to 235% on engine

18. Solar Motor Works18 Exit Strategy Options Sell apartment (capital return) Hire team to convert more apartments Enlist others and be middle man - leverage Why exit? 20 years of deals await you...

19. Solar Motor Works19 Possibilities Engine System Electricity coal and nuke Boats Hydraulic equipment Trucks Renewable energy Airplane Cars Real estate

20. Solar Motor Works 90% of the fuel load gone 1)Engine 2)Solar collector 3)Thermal energy storage Solving our energy needs All three together is Engine system Brian Gunn 801-829-8202 brian@solarmotorworks.com