1. November 2005Presentation to Pegasus Corp. 1 GREENBERG TRAURIG, LLP | ATTORNEYS AT LAW | WWW.GTLAW.COM Biomass/Bioenergy Patent Landscape: Past, Present & Future Presented by: Barry Schindler, Esq. Lennie Bersh, Esq.

2. Cleantech Technologies: US PTO Statistics 2

3. Cleantech Technologies: US PTO Statistics (cont.) 3

4.  1998-2007: modest increase in biomass patents being issued  13.4% of issued patents in the biofiel/synfiel segment did not identify assignee  Major recipients:  Chevron (synfuels)  ExxonMobil (synfuels)  Energy BioSystems (biofuels)  The Lubrizol Corp.(synfuels)  U. Of California (synfuels)  BASF (biofiels)  Institut Francais du Petrole (biomass)  Metabolix (biomass)  Midwest Research Inst. (biomass) 4

5. Cleantech Technologies: PCT Statistics 5

6. Cleantech Technologies: PCT Statistics (cont.) 6

7. 7

8.  5x increase in the number of PCT filings for biofuel related technologies  PCT filings track closely US patent filings:  US patent filings comparatively grew 5x  Thermochemical conversion processes dominate  Since 1970, biomass-to-energy technologies developed to include:  production of biofuels  cogeneration technologies  CH 4 fermentation of organic waste 8

9. Biomass inventions: U.S. Patent Filings 9 (2010 number is extrapolated from data of granted patents since January 1 st.)

10. Biomass inventions: Technologies Related to Biomass conversion ~1200 patents10

11. Biomass inventions: Technologies Related to Fuels and Chemicals From Biomass Conversion ~ 700 Patents11

12. Biomass Inventions (cont.)  70% of technologies related to processes to produce fuels and chemicals from biomass  The rest:  Products from biomass (e.g. biodegradable coatings; “artificial” charcoal)  Systems (e.g. gas turbine plant using biomass as fuel; a food waste recycling system)  Devices (e.g. coal/organic matter fuel mixture grinding devices) 12

13. Biomass Inventions (cont.): Biofuel related patents issued in 2006-2007  Areas:  biodiesel (299)  agricultural biotechnology (110)  ethanol and other alcohols (42)  enzymes (35)  biomass (41)  U.S. states with highest number of biofuel patents:  Missouri (41)  California (25)  Iowa (15)  Illinois (13)  Minnesota (11)  Ownership:  57% Corporate  11% Universities  32% Individual 13

14. US PTO’s “Green” Technology Pilot Program  A year-long program: started in Dec. 8, 2009 and planned end on Dec. 8, 2010 (application must be submitted by this date)  USPTO said it would consider expanding the program beyond Dec. 8, 2010  The first 3,000 “green” technology applications chosen for evaluation during the Pilot will skip to the front of the line  a normal $130 application fee is waived  Covers:  29 categories of renewable energy technologies  23 categories of energy efficiency technologies  Pending patent application are eligible to participate  Reduces time to patent inventions by an average of one year 14

15. US PTO’s “Green” Technology Pilot Program Biomass related eligible classifications  agricultural waste  biofuel  fuel from animal waste and crop residues  harnessing energy from man-made waste  refuse-derived fuel  animal waste disposal or recycling  biodegradable  carbon-capture or sequestration  plants and plant breeding  using microbes or enzymes 15

16. US PTO’s “Green” Technology Pilot Program 16

17. Biomass Inventions (cont.) U.S. Patent No. 5,409,784, “Plasmatron-fuel cell system for generating electricity,” filed 1993  One the most frequently cited patents  Claim 1 recites: Apparatus for generating electricity comprising: a plasmatron for generating a gaseous molecular species; and a fuel cell connected to receive the gaseous species from the plasmatron to generate electricity, a portion of the generated electricity being supplied to the plasmatron. (Plasmatrons or plasma reformers are devices which employ an electric discharge in order to produce, for example, reducing gases including hydrogen from hydrocarbons.) 17

18. Biomass Inventions (cont.) U.S. Patent No. 7,682,811, “Systems and methods for producing biofuels and related materials" to U. Massachusetts, filed Jan. 26, 2007, granted Mar. 23, 2010  Claim 1 recites: A method of making a fuel, the method comprising: combining Clostridium phytofermentans cells and a lignocellulosic material in a medium; and directly fermenting the lignocellulosic material under conditions and for a time sufficient to produce a fuel. 18

19. Biomass Inventions (cont.) U.S. Patent No. 7,621,129, “Power generation system“ to Mine-RG, filed Mar. 4, 2008, granted Nov. 24, 2009  Claim 1 recites: A geothermal power generation system comprising: a first air inlet located at the surface of the earth; air entering said air inlet at an ambient temperature; a subterranean chamber located beneath the surface of the earth; ductwork located in said subterranean chamber; said subterranean chamber having a naturally occurring geothermal temperature; a first insulated conduit defining a first flow path for fluidly connecting the first air inlet to said ductwork in said subterranean chamber whereby the air entering said first air inlet passing through the ductwork is heated substantially to the geothermal temperature; and said ambient temperature is substantially cooler than said geothermal temperature; whereby a fluid flow is induced between the air entering said first air inlet at said cooler ambient temperature, and the air passing through the ductwork that is heated to said geothermal temperature, and, a turbine generator located in said first flow path that is powered by said induced fluid flow, said geothermal power system further including a tornado/vortex engine that includes a cyclonic chamber wherein warm air from the ductwork is introduced into a lower side wall of the cyclonic chamber at a plurality of hot air inlet ports, and, said tornado/vortex engine further including a second insulated conduit defining a second flow path for admitting cool ambient air from a second air inlet, located at the surface of the earth, to said cyclonic chamber; said second flow path opens into the cyclonic chamber in a central location near a bottom portion of the cyclonic chamber, whereby the warm air entering the side wall of the cyclonic chamber rises and collides with the cool ambient air entering the center of the cyclonic chamber that is descending to produce a high cyclogenesis effect. 19

20. Biomass Inventions (cont.) U.S. Patent No. 7,621,129, “Power generation system“ to Mine-RG, filed Mar. 4, 2008, granted Nov. 24, 2009 20

21. Biomass Inventions (cont.) U.S. Patent No. 7,604,744,“System and method for processing organic waste material” to Baswood, Inc. (Atlanta, GA), filed June 6, 2008, granted Oct. 20, 2009  Claim 1 recites: 1. A waste material processing system comprising: a plurality of bioreactors each having a bioreactor tank with a fluid inlet and a fluid outlet and having a microorganism biomass disposed therein, the bioreactor tank being adapted for receiving an influent through the fluid inlet, passing the influent through the biomass for removal of waste material from the influent to produce an effluent fluid, and dispensing the effluent through the fluid outlet; a piping arrangement adapted for interconnecting the plurality of bioreactors and for providing selective fluid communication therebetween, and a control system configured for monitoring wet cycle and dry cycle conditions in the bioreactor tanks, wherein at least one bioreactor of the plurality of bioreactors is adapted for being selectively removed from fluid communication with the other bioreactors and for establishment of a set of dry cycle conditions within the tank of each of the at least one bioreactor when conditions monitored by the control system meet predetermined criteria, the dry cycle conditions being selected to effect endogenous growth within at least a portion of the biomass of each of the at least one bioreactor. 21

22. Biomass Inventions (cont.) U.S. Patent No. 7,604,744,“System and method for processing organic waste material” to Baswood, Inc. (Atlanta, GA), filed June 6, 2008, granted Oct. 20, 2009 22