Enhanced Electric Motor Solutions for Critical Applications

1. UP-TIME FOR CRITICAL ELECTRIC MOTOR APPLICATIONS Investor Pitch August27, 2013 Seeking $1,300,000 in Financing

2. Unmet Need Value Proposition Electric motors that don’t break down mid-shift We offer electric motors with improved up-time for users of critical motor applications where downtime costs thousands. Introduction Common Uses Pumps Compressors Appliances Fans Machine Tools Power Tools Conveyers Blowers HVAC

3. Common Causes of Failure The Problem WHAT IS THE PROBLEM? MOTORS FAIL!!! & FAILURES CAUSE DOWNTIME Yearly Cost of Bearing Failure Source: IEEE Paper PCIC-94-01 • What is being done to solve the problem? • Preventive maintenance • Replacement before failure • Nothing

4. THE PROBLEM PERSISTS & COSTS: The Problem Yearly Cost of Bearing Failure Common Causes of Failure $7.4 Billion Source: Internal Estimates Source: IEEE Paper PCIC-94-01

5. Who: End-users of “critical up-time” applications What: Looking for Motors with : Reduced Risk of Downtime Greater Reliability/ Longer lasting Competitive Price Point NEMA Premium & UL Standards UP-time & Low cost of ownership Why: Why it Matters: Unscheduled downtime Lost Production Idle Workforce & Machinery $10,000+ each occurrence Key Partners: Sales & Repair Shops (Phase 1) Approx. 4,000 Nationwide 88% of interviewed willing to buy Influencers & Recommenders Sample Problem & Target Customer Profile Meet Joe

6. The Solution: Unique Sales Proposition Remember Joe? What does he decide? • The Repair Shop recommends FXQ’s motor: • Don’t let a $250 motor cause a $250,000 problem • Only company to offer up-time solutions • Eliminate mid-shift breakdowns • Save $10,000+ per failure (90%+ Savings) • Energy efficiency meets NEMA Premium standards. • Offered at a competitive price point

7. Run Flat Bearings The Solution: Technology Overview Technology IP Status Benefits Differentiator Competitive Advantage Leverage & Scale Value Proposition Actively engaged auxiliary roller bearing system that eliminates a single point of failure and meets DOE energy efficiency requirements for electric motors Patents Pending (US 61/803,703) & (PCT/US2013/021398) Improved up-time, Lower cost of ownership & Sustainable Design We are only company with solutions geared towards up-time 90%+ reduction in cost per failure, Eliminate mid-shift shutdowns Scales to all motor types & generators. Can license to non-essential vertical markets. We offer electric motors with improved up-time for users of critical motor applications where downtime costs thousands.

8. Total Market SAM Size Opportunity: Market Size & Growth $29 Billion $4.5 Billion 10% YOY Growth Served Available Market What & Who: Retrofit market for critical up-time . ( Phase 1) applications. 1HP to 5HP. (Mining, Oil & Gas, Manufacturing) • Why this SAM? Controllable early stage growth • Supply chain refinement • Obtain performance/failure data • Building internal infrastructure & • product validation for future markets Future Markets: OEM’s & Licensing (Phase 2 & 3) 7

9. Competition: Competitive Matrix Operate with failed bearing Meets Gov’t energy efficiency standards 90%+ savings per motor failure event. Spin Top Rotor s FXQ Engineering Baldor Siemens TECO-Westinghouse WEG X X X X X X X X X X X X

10. Lower Cost of Ownership Competition: Uptime & Ownership Cost Comparison FXQ Engineering Downtime Up-time Siemens Baldor TECO WEG Higher Cost of Ownership

11. CURRENT STATUS Non-exclusive licensing agreement for South Korean market with Dai Young Motors Projected Annual Production of 9,000 to 12,000 Units Projected Annual Revenue: Year 1- $30,000 to $45,000 Year 2- $100,000+ Business Model: Sales, Marketing & Distribution Licensing (Phase 3) Retrofit Market (Phase 1) OEM Contracts (Phase 2) Commercialization Stages Key Sales Partners (Influencers & Recommenders) Licensing Agents Manufacturer’s Reps Sales & Repair Shops Manufacturer’s Reps Distribution Channels Direct to OEM’S N/A Retail & Wholesale Internal Sales Effort External Sales Effort Internal Sales Effort External Sales Effort Sales Effort Internal Sales Effort Face to Face Trade Shows Partner w/ Influencers Face to Face Trade Shows Partner w/ Influencers Face to Face Trade Shows Partner w/ Influencers Marketing Methods Manufacturing Outsourced Outsourced Outsourced

12. Projected Financials Business Model: Revenue, Costs & Customers Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Revenue COGS Net Revenue Gross Margin OPEX Op Profit Op Margin $12.9M $7.0M $5.9M 46% $2.0M $3.9M 30% $21.4M $10.7M $10.6M 50% $2.9M $7.6M 36% $30.1M $15.1M $15.0M 50% $3.9M $11.0M 37% $212K $141K $188K 39% $337K $(267K) (126%) $3.4M $2.3M $1.1M 33% $757K $384K 11% Revenue Driver: Expanded Sales New Markets New Markets Global Reach Expanded Sales Expanded Sales New Markets Expanded Sales Commercialization Phase 1Phase 2&3 Stage Sales & Repair OEM’s & Shops Licensing Average Account Size : $16,500 $2M to $5M Acquisition Cost: $385 $42,000 Pipeline: 9 Repair Shops willing Siemens Database of 900 prospective Oriental Motors clients Lucas-TVS

13. The Ask Key Milestones Use of Funds Round Status Pre Money Val Amount to Raise Equity % Friends Closed $950,000 $50,000 5% Build Prototypes Basic Testing IP Filings 1st Tranche: $225,00010% Obtain UL & NEMA IP Filings Pilot & Soft Launch Seed/Series A In Progress $3,700,000 2nd Tranche:$1,075,000 15% Wholesale Channel PO Financing Hiring/OPEX/Growth Series B/ Debt Q2 2014 TBD $1,500,000 TBD OEM & Licensing PO Financing Hiring/OPEX/Growth

14. Recent M&A Activity EXAMPLES WITHIN LAST 3 YEARS 9.5X EBITDA

15. Exit

16. Filipe Goncalves, Co-Founder & CEO Education: B.S. Economics from Bentley University Prior Startup: Co-Founder & COO of a financial services firm. Experience: Built and managed a multi-channel international sales network that secured $85 Million in contracts from 3,000 clients in 3.5 years. Chong Kyu Kim, Co-Founder & CTO Education: B.S. Electrical Engineering from the Polytechnic University at NYU. Prior Startup: Co-Founder &Chief Engineer for a wind turbine manufacturer. Experience: Patented and developed the generator technology for a wind turbine firm that he Co- Founded. The company successfully markets these turbines throughout Asia. Management Team & Key Advisors Key Advisors Suzy Taherian: Finance Advisor Education: B.S. Mechanical Engineering UC Davis & MBA Kellogg School of Management Current Role: CFO at LanzaTech & Professor of Int’l Finance at UC Davis, MBA Program Joseph F. Daniels: Legal & Investment Advisor Education: B.A., University of California at Berkeley & J.D., University of Southern California, Current Role: Partner at Loeb & Loeb, LLP Sam Bae, PhD: Engineering Advisor Education: B.S. Engineering Physics from UC Berkeley, M.S. Heat Transfer from Purdue University, M.S. & PhD Biomedical Engineering from UCLA. Current Role: R&D at NASA’s Jet Propulsion Laboratory. 15

17. Management Team & Key Advisors Who’s Missing? (Business Development Advisor/ Future C Level Business Development Position) Key Skills: 10+ years manager/director level experience in electric motor sales Supply Chain Manager Key Skills: 10+ years experience in motor manufacturing and supply chain management 16

18. Summary “Don’t let a $250 motor cause a $250,000 problem” Asking Projected ROI Unmet Need Our Solution Funding to Date Early Awards $1,300,000 23.5 X Electric motors which don’t break down mid-shift Run-Flat Bearing System Co-Founders: $75,000 Private Investors: $50,000 Grants: $40,000 Total: $165,000 Autodesk Cleantech Partner ($90,000 in Software) State of CT SBIP Grant & Voucher ($40,000) First Runner-Up “Peoples Choice Award” CTO Global Forum

19. Appendix A- Projected Product Line Card Notable 3rd Party Testing Data

20. Appendix B- Manufacturing Cost & Sales Price Manufacturing Cost Projected Sales Price

21. Appendix C- Ownership & Governance Type of Organization Date of Organization State of Organization Ownership Structure Notable Stakeholder Rights Manager-Managed Limited Liability Company October 4th 2011 Connecticut See Capitalization Table OctavioGoncalves (first right of refusal)