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 PartsbrightLeaf’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