Shaped-beam Technology™ from brightLeaf

the Power of simplicity

Concentrating Photovoltaics (CPV): A

Sound Legacy• Developed for NASA in the mid-1970’s by

Sandia Labs and Spectrolab (a Boeing Subsidiary).

• CPV cell efficiency>40%, going to 50% in next year.

• Conventional PV efficiency declines 15-30% on hot sunny afternoon, CPV 5-10%.

• Reduces chip volume by 99.7-99.9%.

• brightLeaf’s proprietary technology minimizes CPV complexity and cost with maximum efficiency.

Compare Traditional PV and CPV

=CPV

PV

The Power of 1000 suns?W/in² of exhaust

W/in² on brightLeaf’s cell

=

Parabolic Collectors

Fresnel lens collectors

Only Two Functional Parts

brightLeaf’s proprietary technology: Non-parabolic Collector

brightLeaf’s proprietary technology:

Auto-aligning geometry

brightLeaf’s proprietary technology: No Gaps, No Shadows™

Sun-eye view

Greater Complexity = Greater Co$t

The Potential of CPV and Shaped-Beam Technology™

• Industry-wide– Cell efficiency will reach 50% in near term

• brightLeaf– Independent tracking modules for flexible

configuration– Generate power from waste heat

• Goal-- Cost parity with utility electricity

without government support

Executive Team

• Douglas Kiesewetter, MBA – President– Founder of three companies of >$100 MM valuation, two

>$50 MM

• James Vander Mey, PhD – EVP/CTO– Founded two successful high-tech companies, Integral Data

Systems and Intellon, which sold in 2009 for >$300 million

• Michael Despres – VP Manufacturing– 25+ years experience in metal fabrication

management• John Virden – VP Sales and Marketing– USNA graduate with 25+ years of marketing

experience including IBM, AT&T and various start-ups

PV Market

• 2009 Global $40 BN; US $3+ BN• 2010 US expected growth rate >50%• US residences are 25-30% of total PV

market• US Markets with shortest paybacks

– Quality of Insolation- AZ, CA, CO, HI, NV

– State Incentives- CT, IN, MA, NJ, NY

Market Strategy

• Maximum Cost Avoidance– Residential, Light Commercial &

Industrial– Rural Electric Co-ops– Niches

» Military» Remote Telecoms» Agriculture» Third World

Competition

• All other CPV companies target 1+ MW utility-grade installations

• Conventional PV – brightLeaf 20-25% lower cents/kwh initially; 60-80%

lower with higher manufacturing volumes

• Utilities– With credits & rebates, brightLeaf lower

cost in 75% of US– Within 2 years, brightLeaf lower cost

without subsidies

Base Case Revenue & Income

Manufacturing Margins 70-75%

Year Volume Revenue Net After-tax

Income

(MW) ($ MM) ($ MM)

2010 0.1 $0.8 ($2.0)

2011 0.9 $8.0 $0.3

2012 2.3 $18.8 $3.4

2013 5.1 $39.5 $12.3

2014 10.5 $75.0 $27.8

2015 18.6 $124.0 $46.1

Investment

• $3 MM of 5-year,12% debentures ($100K min.

block)

• Projected Closing Date September 30, 2010

• Warrants for 25% equity when principal fully

repaid

• Projected Secondary Offering after full year

of profitability

-- fund product and market development

-- repay debentures

-- establish higher equity valuation

Return (Base Case)

• Simple Payout – 24 Months

• Internal Rate of Return – 108.77%

• 5.5 Yr. Cash on Cash Return –

$35:1

Downside Protection

• Asset Support– Cash Balances– Equipment (85% of cost)– Accounts Receivable (75% face value)– Inventory (25% of cost)

• Value of Asset Support (Base Case)

-- Average coverage years one & two – 78% of net investment

– Maximum exposure 2010-12 – 44% of net investment

-- Coverage >100% of net invested from Q1 2012

forward

-- Term of Exposure – 20 months

Shaped-beam Technology™ from brightLeaf

the Power of simplicity