Business “Pivot” Background

1. Business “Pivot” Background • Testing Assumptions Revealed Issues with Initial Business Plan • Substance Testing Equipment Purchase Problematic • Lab Certification more important than capability or individual skill set: Customers require ISO-17025 certification to be considered a viable lab analysis supplier (1 year + equipment + defined space + documented SOP & methods + Quality System Manual + working gathering data for evaluations) • Tough to get customer base established • Internal Intel business unit will NOT use uncertified labs • More of a commodity: Doesn’t leverage existing expertise • Uncomfortable making ‘cold calls’ for this service • Significant Investment • May question chemical knowledge/background • Resulting “Pivot” – Push this activity to Phase 2 or 3 when customer base is established and requesting analysis (sub out analysis?) Confidential

2. Business “Pivot” Background • Expertise Valued Internally @ Intel • Intel evaluating new environmental software and needing short term (12 -18 months) consulting expertise. • Teaching/Instruction emerging as a “Phase 1” service for the business • Long term desire • Values individual expertise over company certification • Dovetails with primary services offered • Intel offering Tuition for Teachers as a part of retirement benefits • Pay up to $15.5k in program costs (half Teaching Certificate Cost) • Teaching opportunity available for pre-requisite to program • Teaching Certificate Benefits the Long Term Business • Professional quality teaching aids (e.g. Presentations, lesson plans, etc.) • A chance to be philanthropic; paying it forward by teaching children about environmental issues • Requirement for teaching in the Oregon Public Schools • Great networking opportunity • Masters Degree in only one year in retirement • Encore only allows for ONE track…either Business or Tuition for Education • Lobbied for paying 100% of Encore Business Track – Denied • Contingent on acceptance into Tuition for Teacher’s Program • Dual paths until acceptance…requires volunteer teaching completion • Pivoting, but still committed to pursue creating a business Confidential

3. 2014 • Phase 1 • Teaching Certificate • Develop teaching materials • Kahn Academy • Consulting for Intel • Start Business (URGENCY) • Eliminate 2nd party • Intel specific guidelines • 2015+ • Phase 2 • Consulting • + Teaching • + Auditing Optional Phase 3 * Analysis Confidential

4. Phase 1 Confidential

5. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Confidential

6. Key Partners KEY PARTNERS • Supply Chain and/or ODM’s • Intel • University • **Competitors (incumbents) *** • Potential “Lego Partners”: SGS & Allion • Trusted Accountant/CPA: Financials • Tax Lawyer: Setting up the corporation, contract reviews, etc. • Business Insurance Broker (liability coverage) • PHILANTHROPIC: Public School tutoring: Virginia Garcia Medical Clinic & Mattel KEY SUPPLIERS • Thermo (XRF Supplier), • Outside Test Lab (that is certified) • Strategic outside lab that can do specific quantitative testing that we are not planning to do. CESI, CCIC, CEPRI Certified test labs in CHINA • Environmental Legal: Review of proposed regulations and minimum collateral expectations • Analytical Chemist – Provide consulting on testing methods or standards for newly introduced restricted substances. • Toxicologist – California Prop 65, CPSIA • Web publishing UNTESTED ASSUMPTIONS • (1) year waiver will be accepted by Intel (high probability and will be pre-approved by Intel senior management) • Acceptance into the Tuition for Teaching program (highly likely as all pre-requisites have been met and approval to switch from one track to another has been given). • Volunteer hours completed by mid year • Business details (e.g. business license, LLC formation, bank account, etc.) in place by EOY • Intel grants Portland Environment Consulting preferred supplier status • Will the electronics industry want to do business with a smaller, independent test lab or consultant (are those two separate questions)? • Will INTEL want to do business with us as a CONTRACTOR? What kind of restrictions (6 month wait period?) • Can we DIFFERENTIATE our services ENOUGH from larger, established labs that they are willing to pay? (i.e. faster, better service, offer other services unavailable from other labs, more expertise, etc.) • Is there enough VOLUME to remain profitable? Does the rate of new business coming on support cash flow requirements? Confidential

7. Key Activities • Substance Testing • Internal (testing performed by PEC): XRF Screening to ensure company compliance • External (testing managed by PEC, but performed by partner lab): Ex: Phthalates • R&D – Research Regulations – Keep abreast of what is going on • Subscribe to services that report back on new environmental regulations around the world • Conferences – Speaking and attending to learn/network • Investigation: We have a substance, determine the METHOD of testing (i.e. – How are we going to test this new substance?) • Join Environmental Working Groups – I-NEMI, IPC 1753 WG, etc. • Consulting • Analysis of current environmental systems (hourly) • Information Sharing • Level 1: FREE (blog or web content, videos) – As advertising/marketing • Level 2: Paid Report or instruction (specific area customized for specific customer) • Teaching/Instructions • Various Classes: Information, training, or customized content. • Instruction manuals – Dis-jointmentInstructions • Audits: IEC-Q (QC-080000) Format (ISO 9001 audit primarily focus on environmental quality system, but expandable to Mfg process and EHS focus. ) • ODM Environmental • Supplier Audits • Customer Audits • Corrective Action Follow Up for Gaps & Observations: Manage and ensure the closing of audit findings (additional fee) • Marketing/Advertising • Philanthropic Substance Testing as advertising/marketing • Test children’s toys for hazardous substances (Feb 2013 CPSIA) • Partner with toy company or toy store for replacement toy • Level 1 information Sharing: FREE (blog or web content, videos) – As advertising/marketing • Speaking at Conferences UNTESTED ASSUMPTIONS • Creating curriculum during the first year of • Is this an interest to our customers and would they PAY for any of these services? • Each activity has a positive ROI or tangible gain? Need to do cost analysis for EACH Service, including certifications. • What should we concentrate on for Phase 1? Confidential

8. Key Resources • Substance Testing Equipment ($30K) • XRF + other equipment • Office space • Fluent Technical Mandarin Speaker • Website • Logo Artist • Computer • Certifications • EG – ISO 17025, CPSIA, ODM, Sony “Green” etc. • International Access – Email, phone number, etc. • Credit Card machine for payment • Working Capital for incidentals • LOANS – Small Biz Administration, Gov’t grant for handicapped, etc. UNTESTED ASSUMPTIONS • We can get an SBA Loan? • We can get a gov’t grant (handicapped biz loan)? • We can successfully fund our first year (cash flow)? Confidential

9. Value Propositions • We Keep you Legal! • Eliminate your ‘pain point’ • Risk Mitigation • Global Regulation and Audit Experience (we know where the bodies are buried) • Minimum requirements defined (efficiency, not wasting your time) • Preferred Supplier Status - “Certified Green” • Understand OEM green programs and can assess a customer’s quality system against the OEM requirements. • Faster Time To Market • Quick turn around time, expertise • Maximize Customer Asset utilization • Provide ‘burst capacity’ • Provide “expedited responses” to meet critical timelines • Provide targeted expertise to augment their existing staff • Increase Companies Environmental IQ…on a budget • We can help the customer assess which regulations apply to their customers • Training and information on ALL regulatory initiatives including latest/greatest regulations • Knowledge of Intel processes, procedures and key contacts Untested Assumptions • We will have access to OEM green partner updates (if we are not a customer, will they give it to us? • Can we remain independent (not become an Intel Green badge) • We can find a lawyer that meets our quality and financial requirements. • Is there a subscription service that meets our needs? C2P, Young & Global Partners, etc. • Can we join INEMI, IPC WG as contributors, voting members? • What are they willing to PAY for these Value Propositions? • Competitive Differentiation – What value propositions do we have that DIFFERENTIATE us from the others (Intel knowledge?)…and different markets such as food, toys, etc. • Survey potential customers on THEIR requirements – Have them weigh the importance of these factors Confidential

10. Customer Relationships • Customer Segments • Electronic OEM/ODM Large – With existing product ecology • Electronic Small/Medium – With limited or NO product ecology • Oregon small electric suppliers who may want to become Intel suppliers. • Expanded Scope Industries – Medical, Control and Instrumentation • NEW MARKETS – Food containers, toys, etc. • Competitors – Potential Lego Partners • Need additional Certifications • Electronics: Radiology certification, OEM Green partners, ISO 17025, • Toys – CPSIA • Food & Drug - ??? • REFERAL BASED – TRUSTED • Go to Market – YouTube Video with some delighted customer to mailing list Relationship Methods: F2F, Web-based, email, & Skype (See Channels) Untested Assumptions • We can partner with competitors and provide a value that they don’t possess OR may be outside of their business practice (ex – Auditing OR managing audit follow up). • We can provide value and they are willing to pay for it in NEW MARKETS ( Expanded electronics, toys & food containers) • Are our services understood well enough to know who our competitors are? (Analytical testing understood…other services need assessment) • What are our financial assumptions about new vs. repeat customers? Strive to have a group of ‘core customer client base’ and build key partnerships…ideally sustaining cash flow (90% business repeat customers). Confidential

11. Channels • Direct F2F • Audits, initial customer contact, etc. • Business Cards • Promotional Items • Pamphlet out of wild flower seeds, 100% recycled material • Pens, etc. • 100% recycled bag • Facebook Company Site (!) • E-Mail • Paper Copies and/or Electronic Copy (IPC-1753) • Linked-In • Web – Awareness (how do you drive people to your sight?) • Short Webinars on Various Topics • Pay Google Ad Works?? • Direct Mail • Develop a program with ODM’s • Blogging to provide FREE UPDATES • University lectures? Untested Assumptions • What are the BEST ways to reach our customers? Different for different target markets? • Is there a NEW MARKET that we are missing that uses NEWER communication strategies? • Is there a communication channel that SGS/Allion are NOT using effectively? • Where do clients in this field go to get their information? Important to help in focusing marketing outreach. • Analysis of Intel contacts – Who makes the decisions and who are the influencers? Opportunity to carve off project work like with Intel Tier 3 suppliers or Intel Reference Design Vehicles? Getting Intel to make recommendations directly to suppliers? • What does the sales cycle look like for the industry? • What messages will be most compelling? Confidential

12. Customer Segments • Customer Segments • Electronic OEM/ODM Large – With existing product ecology • Electronic Small/Medium – With limited or NO product ecology • NEW MARKETS – Food containers, toys, etc. • Company size • Geography may be a factor • OEM & ODM: May FOCUS on ODM because they get a 2-fer Untested Assumptions • Will the electronics industry want to do business with a smaller, independent test lab or consultant (are those two separate questions)? INTERVIEW TO TEST ASSUMPTION – Gather data • There is a market for food industry/toys. The market will support us…costing structure may be different…willingness to engage may be different. Confidential

13. Cost Structure Variable Costs • Travel • Communications • External Lab partner testing (lab fees, lawyer fees, toxicologist • Working Capital • Web • Hazardous Materials disposal fees • Shipping/Packaging costs Fixed Costs • Capital Equipment • Office Space • Salary • Telephone • Internet • Security Protocols (VPN) • Office Equipment: Furniture, Computer • Liability Insurance Untested Assumptions • Need to verify “Burn Rate”: We can successfully fund our first year (cash flow)? • Need to work out ‘salary’ with one FULL time, one PART time and how much goes into the business? • Pricing needs to align with our brand intention – are we a premium, mid-range, or value provider? Confidential

14. Revenue Streams • Substance Testing • Internal (testing performed by PEC): XRF Screening to ensure company compliance • External (testing managed by PEC, but performed by partner lab): Ex: Phthalates • Information Sharing • Level 2: Paid Report or instruction (specific area customized for specific customer) • Consulting • Analysis of current environmental systems (hourly) • Teaching/Instructions • Various Classes: Information, training, or customized content. • Instruction manuals – Dis-jointment Instructions • Audits: IEC-Q (QC-080000) Format (ISO 9001 audit focus on environmental quality system) • ODM Environmental • Supplier Audits • Customer Audits • Corrective Action Follow Up for Gaps & Observations: Manage and ensure the closing of audit findings (additional fee) UNTESTED ASSUMPTIONS • Review cost structures (Terry) – Create LIST PRICE for all of the services we provide (we are we pricing….15% below standard US rate?) – Note – need extra for RUSH • How are customers paying? • What is the preferred method of payment? Need to validate wiring instructions, credit card. • XRF gun will provide more and steadier income than audits. • Determine method of billing (audits – ½ now and ½ after audit report?) • Is this an interest to our customers and would they PAY for any of these services Confidential