PROPRIETARY AND CONFIDENTIAL Belden‐Eco Products, LLC Recycled Fly Ash Brick Manufacturing Technical Overview

Executive Green Building Product Manufacturing (Ceramic Bricks and Pavers) from Summary Recycled Power Plant Fly Ash

Belden-Eco Products, LLC (“BEP”), an affiliate of The (“Belden Brick”), proposes an advanced manufacturing facility for the production of recycled-content brick and paver building products for the “green” building and stormwater infrastructure markets.

A combination of equity and tax-exempt bond financing will support the construction, and operation of the first in a series of manufacturing facility using a patent-pending innovative technology that will produce marketable building products, and will deliver the following benefits:

1. Fly Ash Bricks and Pavers. BEP will produce building products made from up to 70% recycled pulverized fly ash (“PFA”) feedstock (bottom ash and wastewater can be used in the BEP process as well) reclaimed from power plant emissions controls (the remaining feedstocks being clay and/or shale);

2. Solving Fly Ash Disposal. Through recycling of coal combustion residuals as a feedstock for BEP’s advanced ceramic product formulation and kiln technology, BEP will solve a major waste disposal and environmental liability problem faced by coal-fired electric power plants;

3. American Jobs and Rural Development. Each BEP plant will create up to 60 much-needed American manufacturing jobs, and will source raw materials and major fabrication locally, particularly benefiting rural areas.

4. Co-Location with Power Plant. The BEP facility can recycle nearly all PFA produced by a power plant co-located with, or regionally situated within transport distance of, a BEP manufacturing facility. The BEP facility can also accept stored ash mined from existing ponds, impoundments and unlined landfills, subject to testing for contaminants;

5. Energy Benefits. By exploiting the inherent fuel value of recycled PFA (embedded carbon content), BEP technology reduces energy consumption Confidentiality Note: These materials are confidential and protected by non‐disclosure agreements. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of these materials is prohibited. If you have received these materials in error, please notify us immediately by returning it to the sender and delete this document from your system. Thank you for your cooperation.

DISCLAIMER: None of the materials contained herein amounts to investment advice or a recommendation to enter into any proposed indicative transaction and does not constitute a solicitation of an offer to buy any security, nor does it constitute an offer to sell or a solicitation of an offer to buy such securities by anyone in any jurisdiction in which such offer or solicitation is not authorized, or in which the person making such offer or solicitation is not qualified to do so. in the brick manufacturing process by 50% compared to conventional brick manufacturing;

6. Climate Change Benefits. By displacing cement-based products (such as pavers) and avoiding the high greenhouse gas footprint of clinker used in Portland cement, BEP technology reduces greenhouse gas emissions by 30-50% compared to concrete-based products thanks to the BEP products’ superior performance, durability, low process energy requirements, and displacement of Portland cement emissions;

7. Environmental Benefits. By recycling the mineral content of fly ash, the BEP technology also reduces environmental impacts of virgin resource extraction, such as mining clay, shale, and limestone;

8. Non-Toxic Products. The BEP technology vitrifies and encapsulates the PFA, producing inert, safe, environmentally beneficial brick and paver building products for green-building construction and permeable paver systems that will meet a growing demand for LEED-certified buildings and “green infrastructure” to mitigate stormwater pollution affecting U.S. watersheds.

9. Waste Disposal Savings. The initial BEP plant will be co-located near a coal-fired power plant(s) with a long-term supply contract for PFA, thus avoiding significant costs of waste disposal and environmental control liabilities.

In sum, this project will establish a clean-tech, low-greenhouse gas, clean-coal resource recovery production process that has already been demonstrated at commercial throughput and that can be replicated throughout the United States.

Description of The Belden Brick Company has been a leading high-end architectural brick Project manufacturer in America for over 130 years. Belden and Eco-Ash LLC are joint partners in a demonstrated proprietary technology for use of recycled fly ash as feedstock for manufacturing of brick and paver building products using a state-of- the-art kiln process for beneficial use of fly ash and other coal combustion residuals from coal-fired power plants.

The initial Belden-Eco Products plant will be the first of a series of facilities that are co-located near coal-fired electric generating stations that generate pulverized fly ash (“PFA”) and other coal combustion residuals as waste product, which BEP will recycle as a feedstock to produce advanced ceramic building products containing up to 70% PFA. BEP will self-construct proprietary equipment used to manufacture patent-pending advanced ceramic products, including molded and extruded pavers, masonry units (blocks), and bricks in a DeBoer soft mud press process or J.C. Steele & Sons extruder using Direxa Engineering-designed dryers and kilns. 100% of the equipment can be dedicated to the production of eco- products, but the plant can manufacturer conventional products as well.

The BEP technology will solve a previously intractable waste disposal and liability problem at coal-fired power plants by recycling nearly the entire volume of fly ash

Page | 2 generated from electricity production rather than landfilling. (According to the American Coal Ash Association, power plants in the U.S. landfill over 50 million tons of fly ash each year). The BEP technology will provide an alternative, environmentally preferable waste management option.

The BEP process produces green building products with a low energy footprint compared to comparable ceramic products, and a lower carbon footprint and superior performance as compared to concrete-based products. The patent- pending BEP technology uses a new type of high-efficiency kiln system that vitrifies (sinters) the PFA within the ceramic matrix and fully encapsulates the recycled mineral content of PFA. Kiln-firing of fly ash encapsulates the waste material, rendering the bricks and pavers environmentally inert and easily meets the definition of encapsulated beneficial use approved in EPA’s December 19, 2014 coal ash final rule. BEP products satisfy EPA TCLP/SPLC, ASTM and other specifications.

Due to latent energy in the fly ash and innovate kiln technology, the BEP process uses 50% less energy than conventional brickmaking with lower carbon footprint and superior product performance (longer life, no fading) compared to concrete- based products, yet at comparable price. Waste material is converted into saleable bricks and pavers that qualify as recycled products for the LEED green building market and as permeable paver systems for stormwater control applications.

The BEP process is supported by ten years of research and development conducted at TCKI, the world’s leading brick and ceramic research center in The Netherlands, with upscaled simulated production trials at Cleia, S.A. kiln manufacturer in France, and commercial trials at The Belden Brick Company manufacturing facilities in Sugar Creek, .

The BEP kiln facility for the initial plant has been designed for 300,000 on a 34- 40 acre footprint with a capacity of 80 million high quality standard brick or paver equivalent products annually for the first kiln, doubling to 160 million with a second kiln, assuming 350 annual operating days at one 10-hour shift for a single kiln and two 10-hour shifts per day with two kiln, each operating 7 days a week. A diagram of the plant layout (Appx. A) and rendering of the process equipment and product photos (Appx. B) are attached.

The facility will incorporate advanced technology across all phases of production, including the ability to batch mix numerous industrial waste byproducts, the pressing and/or extruding of the unfired body brick, innovative handling equipment, a state of the art energy efficient kiln designed by Direxa Engineering, and proprietary variable firing trays (VFTs) made of silicon/silicon carbide (SiSiC) beams and cordierite legs to increase longevity. The technology has been extensively tested in R&D facilities in the U.S., France and The Netherlands (the world’s leading brick center which has natural clay and shale deposits similar to PFA), and successful commercial-scale production trials were completed in Belden Brick’s facilities outside of Canton, Ohio. Tests of various Class F fly ashes from different U.S. coal-based power plants (plant names are confidential at this time) have confirmed suitability for the BEP process. BEP holds patent- pending rights to this innovative, proprietary technology (Pat. Pending #2005/0109242) (Appx. C, Fig. 1).

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The BEP ceramic products are preferable in multiple ways compared to conventional clay bricks and concrete-based products.

 First, the BEP ceramic kiln process fires the recycled PFA at 1800F, which renders the product inert (essentially turns it into glass) and convincingly passes the EPA “leaching test” for screening non-toxic constituents. (Appx. D, Table 1);  Second, BEP’s technology produces a ceramic building product made from up to 70% recycled feedstock (PFA) from power plants, which promotes federal and state recycling goals;  Third, by using the inherent fuel value of the recycled PFA (carbon embedded and “left over” in the fly ash feedstock is combusted and produces internal heat during kiln firing), BEP’s equipment will reduce energy consumption in the manufacturing process by 50% for the same quantity of conventional clay building products produced, thus significantly reducing use of fossil fuels (natural gas). BEP’s advanced sintering process uses only 550 BTU/lb of finished product compared to 1300 BTU/lb for typical conventional clay bricks;  Fourth, by displacing cement-based products (and the high greenhouse gas footprint of clinker in cement), BEP’s manufacturing process will reduce greenhouse gas emissions by 30-50% compared to concrete-based products or conventional brick products displaced by BEP advanced ceramic products;  Fifth, recycling PFA as a feedstock for beneficial use solves a major waste disposal and environmental liability problem faced by coal-fired electric power plants. The BEP facility will recycle large volumes of PFA produced by or stored at power plant(s) located near a BEP manufacturing facility, which will avoid the physical hazards and potential groundwater contamination issues faced by ash impoundments (such as the 2008 spill in Kingston, TN and 2014 Dan River spill) and will conserve valuable landfill space;  Sixth, BEP’s use of recycled mineral content from PFA displaces the need for virgin mineral resources like clay, shale and limestone, and the associated environmental impacts and landscape degradation caused by virgin resource extraction;  Seventh, BEP will promote “green building” goals by providing a highly recycled building product, which is stronger, more durable and better performing than traditional products, and which will reduce transportation energy use and life-cycle energy and greenhouse gas profile. BEP eco- products are ideal for structures and permeable paver systems that will meet a growing demand for LEED-certified buildings and “green infrastructure” to mitigate stormwater pollution affecting U.S. watersheds.

The ceramic building products produced in the BEP manufacturing process are superior in performance to concrete-based products in terms of compressive strength, modulus of rupture, weight-carrying capacity, weight of product (which reduces transportation costs and opens up new applications), durability (3-5x longer lasting), freeze-thaw cycle, and color-fastness. The longer life-span and durability of BEP products will deliver additional energy and greenhouse savings

Page | 4 on a life-cycle basis compared to concrete pavers (which experience erosion of their binder and need to be replaced more frequently).

BEP has already prepared detailed preliminary engineering plans for construction of the facility. Plant construction will be managed by Belden Brick’s experienced management team. The grinding and mixing processes, production, product handling, as well as dryers and kilns will be engineered by Direxa Engineering (Lakewood, CO). The plant will be erected under the supervision of Belden Brick and Direxa Engineering as the main contractor using local labor and contractors. Various items of equipment for the facility are anticipated to be purchased from the following suppliers: Raw Material Prep: JC Steele & Sons (NC), Stedman Machinery (OH), Bivi-Tec (PA); Mixing Equipment: JC Steele & Sons (NC); Extruders: J.C. Steele & Sons (NC); Press: DeBoer (Netherlands); Products and Kiln Cars Handling Equipment: Cleia (France); Kiln furniture (variable firing trays): Direxa Engineering and Schunk (Germany); Dryers and Kilns: Direxa Engineering (CO); Scrubber: Encertec (US) or McGill (US). Commercial Belden-Eco Products, LLC is a joint venture of The Belden Brick Company, LLC Viability of Canton, OH, and Eco-Ash, LLC of Baltimore, MD. Belden Brick has been a solidly profitable family-owned American business since 1885, and together with its subsidiary Redland Brick, is the fifth largest ceramic brick manufacturer in the U.S. Based in Canton, Ohio, Belden Brick owns and operates seven plants in Tuscarawas County, Ohio, employs approximately 500 people, and has an annual production capacity of nearly 250 million standard brick equivalents (SBE). Redland Brick manufactures 220 million SBE/yr with 250 employees at four additional plants in South Windsor, CT (Hartford area), Harmarville, PA ( area), Hagerstown, MD, and the oldest plant in the United States in Williamsport, MD. Belden Brick is providing operating capital as well as over 100 years of technological and business expertise. Four generations of the Belden family, including former Chairman and current Director William Belden, II, Chairman, President & CEO Robert F. Belden, and VP of Sales John Belden, have led the company through the construction of numerous facilities over the past 26 years, each of which was a multi-million project. Plant 3 was built in 1980 with brick capacity of 46,000,000 SBE/yr; Plant 2 was built in 2000 with brick capacity of 31,000,000 SBE/yr; and Plant 5 was built in 2009 with thin brick capacity of 4,000,000 SBE/yr. Belden Brick’s affiliated companies also contribute project development expertise having built a Redland Brick plant in Harmarville, PA in 2000 with a 60 million SBE/year capacity, as well as Brick & Tile of Lawrenceville, VA which built a 60 million SBE/yr plant in 2003. Belden Brick has an established distribution network, including two wholly-owned dealerships and over 300 distributors, that will integrate these new eco-products with existing product lines.

Eco-Ash, LLC is a technology development company that has spearheaded the extensive R&D conducted at facilities in the U.S., The Netherlands, Cleia (City of Nolay) France, and Belden Brick’s manufacturing facilities in Canton, OH. Robert Ittmann, founder of Eco-Ash, and President of the Belden-Eco Products joint venture, was a pioneer in the development of technology for recycling road asphalt which is widely used today throughout the world. In the 1970s, when Mr. Ittmann became involved with asphalt recycling, the industry recycled almost none of its waste material, but now – largely because of the technology

Page | 5 championed by Mr. Ittmann and others – America recycles 99% of waste asphalt from roads, which previously was buried in landfills, amounting to 66.7 million tons of recycled asphalt and saving 21.2 million barrels of liquid asphalt binder (source: National Asphalt Pavement Association).

Market research shows that demand for green products will continue to increase, particularly the market for permeable paver systems (used in parking lots, sidewalks, driveways and alleyways) used to manage pollution runoff into rivers, lakes and streams as the U.S. as EPA continues to tighten its watershed and municipal stormwater regulations. BEP’s “green” brick and paver products will meet this demand and qualify for points under the United States Green Building Council Leadership in Energy & Environmental Design (LEED) program based on high recycled material content and local sourcing. The federal government General Services Administration requires federal buildings to be LEED-certified and the green building market has expanded continuously each year. Belden Brick’s 300 authorized distributors report growing demand for products contributing sustainability and LEED points to jobs under bid.

Extensive testing has shown that the BEP eco-products are aesthetically and mechanically superior to concrete-based products that currently supply the green building market in absence (until now) of a competitive ceramic product. As noted, the BEP kiln technology produces a ceramic eco-product with lower material input costs (PFA, clay and shale), shorter processing time, and lower energy consumption, which together constitute the principal manufacturing cost components. (Appx. C, Fig. 2).

The potential market for BEP eco-products is enormous, particularly as green building is moving toward permeable paver systems for stormwater control. In 2005 (representative year prior to the 2008-09 real estate downturn), the clay brick market was 9.5 billion bricks worth $2.1 billion. The paver market is proportionately large, with 5.27 billion SBE valued at $1.25 billion sold in 2005 for use in residential, commercial, municipal, and airport/industrial/port applications. In 2005 the U.S. produced 600,000 million tons of asphalt, 120,000 million tons of which was used for driveways and parking lots. The average FOB price of asphalt was $35.00/ton, translating to an asphalt private market of $4.2 billion per year.

Because of the scale of the market, BEP will need to capture only a small sliver of market share to be successful. The BEP eco-product will be introduced at distributor forums, held each spring, which include plant visits and introduction of new products. Pricing will be competitive with existing product lines of conventional bricks and concrete-based pavers to compete “head to head” without expectation of a price premium. BEP anticipates it can produce 80 million standard brick equivalents per year for each kiln in the form of recycled fly ash bricks and pavers from its initial plant, which will be a higher performance product, with a “greener” environmental footprint, but in the same price range as concrete pavers. BEP’s economic model conservatively anticipates that BEP would need to capture only less than 1% of the paving market to be commercially successful, which as noted is a conservative estimate given Belden’s extensive distribution network and sales history.

Page | 6 Barriers and risk have been studied and are well understood. The primary consideration is arranging for an adequate supply of PFA feedstock. Despite some PFA being currently recycled in the ready-mix concrete market and other beneficial use applications, only 41% of the 71.1 million tons of PFA produced annually is recycled (the other 59% is disposed in landfills), leaving an excess supply. (Appx. C, Fig. 3). Moreover, the BEP technology can use both Class C and Class F fly ash, the latter of which normally cannot be used in concrete and other construction material applications because of its high carbon content. BEP can also mine already-landfilled PFA depending on the condition of the stored ash. Power plants currently pay in the range of $16-60/ton for disposal of PFA, and the BEP facility will capture a portion of this value. (EPA estimates current average disposal costs of $59/ton – 75 Fed. Reg. 35212 (June 21, 2010)). BEP will enter into long-term supply contracts with major power plants to secure feedstock supply. Other project development elements that have been addressed are: (i) obtaining necessary permits from regulatory bodies, which will be managed by Belden Brick’s experienced regulatory staff; (ii) transport of PFA to the facility, which costs are included in the economic model and PFA can be readily transported by truck, rail, barge and even pneumatic handling, all of which are options at most identified locations; (iii) control of emissions from firing product formulations, which will be similar to conventional emissions within the clay industry, with state-of-the-art emissions controls (scrubber); (iv) disposal of any residue that may result from the process, which under current law can be landfilled with less regulatory restriction than municipal solid waste; (v) natural gas fuel prices, which will be mitigated by long-term supply contracts and/or hedges as well as the inherently efficient nature of the manufacturing process; and (vi) interruption of PFA supply, which is mitigated by design of the plant to accommodate 100% clay or shale if PFA is unavailable. Technological The Belden-Eco Products process is an evolution of conventional building product Innovation manufacturing to utilize higher levels of recycled content (up to 70%), which had been heretofore limited to 20-30% recycled content. The BEP process can also recycle PFA with characteristics that are unusable by conventional methods such as concrete-based cementitious curing which does not use a kiln process.

This benefit is achieved through the combination of firing an entirely new ceramic formulation based upon PFA together with the use of a new patent-pending kiln and stacking process that utilizes “variable firing trays.” The combination of an ash‐based brick (up to 70% coal fly ash) with the variable firing trays reduces the time for the building products in the kiln. Typical firing times with the standard technology of the brick industry would be on the order of 120 hours, while the proposed approach will be on the order of 55 hours to produce the same quality of brick. The BEP process is capable of manufacturing a variety of products that meet or exceed ASTM standards, including: C216 - Face Brick; C279 - Chemical Resistant Brick; C902-09 (light vehicular) Paving Brick; C1272-07, Type F (flexible paving system) and Type R (rigid paving system) (heavy vehicular) Paving Brick; C1088 - Thin Brick; C126 - Glazed Brick; and C652 - Structural Brick.

The BEP technology offers a significant advance over previous approaches to recycled-content building products, where the product can accommodate only limited quantities of PFA. Those previous approaches have focused on a concrete- based brick using a pozzolanic reaction of Class C fly ash and water to form a

Page | 7 “cementitious” bonded product, which must be colored with metallic oxides or synthetic pigments. These cement products must be autoclaved for ~24 hours at low temperature to accelerate the pozzolanic reaction inherent in Class C fly ash. As such, the PFA in these inferior products is not encapsulated in a ceramic matrix, in contrast to the superior BEP process. These cement “bricks” lack the durability and colorfast properties achieved by a kiln-fired brick.

In contrast, the BEP process will reduce energy consumed in brick production by 50% with an innovative new kiln, using optimized brick chemistry and production methods. BEP has performed extensive research and development that has proven it can produce a PFA-based brick (up to 70% Class F fly ash) in a kiln-fired process with superior performance characteristics that will retain its rich color quality (Appx. D, Tables 2-3). By combining the modified brick chemistry with the use of the advanced kiln and variable firing tray, the new PFA-based brick can be produced with a 50% reduction in energy required, as the unit will be fired in less time with less fuel. The variable firing tray (VFT), another innovation in the BEP process, is a type of kiln “furniture” based on silicone-silicon carbide (Si/SiC) beams and cordierite legs, which increases the exposed surface of the bricks, allowing more uniform heat distribution and transfer, thereby lowering the energy requirements. When PFA-based bricks reach a certain temperature in the kiln, an exothermic reaction occurs involving the embedded carbon from fly ash, releasing a significant amount of energy, thereby reducing the amount of outside fuel necessary in the overall firing process. The most critical aspects of bricks that make them unique in the construction market are their mechanical and aesthetic qualities, specifically color intensity, colorfastness, and durability. Bricks must be able to retain their color for the life of the building or paver system, which can be more than 100 years. Brick products are able to do this because they are fired in a kiln at very high temperatures. The sintering process causes chemical reactions within the brick’s raw materials that recombine within the ceramic matrix, crystallize and oxidize the mineral components (whether clay, shale or fly ash) and determine the appearance and color of the product. By contrast, the concrete industry makes colored concrete products, such as block, concrete brick, and specialty cast-in-place concrete, by adding pigments for coloring. Pigments are expensive, and cannot achieve the desirable and durable colors produced by brick, and the concrete-based products will fade under ultraviolet exposure, resulting in a loss of aesthetic beauty and are expensive to repair/replace.

Other technological advances of the BEP process include: the plant has been designed in partnership with Direxa Engineering (CO) and Cleia (France) to produce brick seven days per week using two shifts, which reduces the capital investment that would be necessary if production was confined to five days, and increases the number of jobs created; two interchangeable forming processes allow for seamless transition from production of one product size and/or style to another, with minimum downtime; drying brick set one brick high on trays, and dry-setting them on drying pallets will allows us to produce structural facing brick with the quality our customers expect; setting equipment allows for simultaneous production of both face brick and shaped products or simultaneous production of special pressed units from the accessory press. Compared to an existing production plant, using Belden Brick Plant 2 in Sugarcreek as a comparison, which

Page | 8 currently produces 31 million SBE/yr with 34 employees equating to 438 BE per man hour, the BEP technology employed in the new facility will require 34 employees for the first kiln and 25 additional employees when the second is added. In addition, Belden Brick currently achieves a 95% recovery at Plant 2, built in 2000, but by contrast the BEP technology will enable the new plant to achieve a 99.5% recovery for a savings of 4.5%, which at 80 million SBE/yr consuming 550 Btu per pound of product, translates to approx. 15 billion BTU/yr energy savings. Also, because refractory products represent a significant annual expenditure and degrade over time, the advanced kiln furniture will save $800,000 per year investment despite a larger upfront investment for the SiSiC rods. American As described above, the BEP technology solves a major waste disposal issue faced Manufacturing by coal-fired power plants across the U.S. and can be deployed throughout the U.S. anywhere within transport distance of a PFA supply. The demand for green building products, such as bricks and pavers, is also found throughout the U.S. BEP facilities will create skilled jobs and pay living wages, and combine traditional manufacturing with high-tech improvements such as robotics and computerized controls. Financing of the initial kiln project will be followed by the build-out of a series of kiln projects at plant locations across the country wherever power plant fly ash is available and facing disposal challenges. The BEP technology offers the great advantage of consuming much higher volumes of fly ash than the use of PFA in concrete, even if the PFA is beneficiated to be compatible with concrete products. For example, the following calculations are based on a 2-1/4” thick paver, but whatever the thickness, the ratio between the fired fly ash paver and concrete paver remains the same: assuming a fired paver at 4.55 lb and 70% of fly ask by weigh, yields 14.3 lb of fly ash used per square foot of paving. If a comparable concrete paver contains 8% of fly ash by volume, assuming a 45 lb/cf packed density of the fly ash, it leads to 0.675 lb of fly ash used per square foot of paving. If the concrete paver is 8% by weight, it is 1.638 lb of fly ash per square foot. In conclusion, if talking about 8% by volume in the concrete paver, the BEP technology consumes 21 times more fly ash in the fired paver. If talking by weight, the BEP process consumes 8.75 times more fly ash in the fired paver than concrete products. American Jobs As noted, the potential for the BEP process to be replicated in building products plants across the United States is significant, because the economics of high recycled content building products using BEP technology will be advantageous wherever a supply of PFA is available and currently being disposed of in landfills or impoundments. BEP has identified nine coal fired power plants for its initial round of investment that emit and collect in baghouses one million and a half ton of PFA. The proposed BEP plants will consume between 125,000 to 250,000 tons of PFA per year. As such, BEP anticipates that five to ten manufacturing facilities can be fitted with BEP technology over the next ten years.

The anticipated domestic job creation from just the initial proposed facility will be up to 59 new hourly or non-exempt salary permanent domestic jobs as well as 6 exempt salary positions: 1 Quality Control Foreman; 1 Production Foreman; 1 Kiln Forman; and 3 Salespersons. The BEP plant will utilize skilled labor and technical proficiency in robotics programming and maintenance of automated production equipment, in addition to learning how to operate traditional brickmaking equipment. Such technical skills are highly transferrable in an

Page | 9 industrial job market, as well as within our multi-plant operation. Construction jobs are estimated at 280,000 man hours by calculation 140 annualized jobs @ 2000 hrs/yr. Project The BEP plant can be completed in 18 months from purchase order to Schedule commissioning, including all earth work, civil work and building as well as process equipment erection. The first BEP eco-products will roll off the line roughly 16 months after start of the work on-site. An illustrative project construction timeline is included (Appx. C, Fig. 4). Environmental As explained above, BEP “green building” products using BEP kiln technology Benefits and recycled fly ash (PFA) have a significant process energy savings of approximately 50% lower embodied energy, compared to manufacture of ceramic products using a conventional kiln and virgin feedstock. The savings is due largely to the inherent carbon content of the recycled PFA that can be beneficially used for the sintering of the products thanks to the heat recycling equipment supplied by Direxa Engineering.

For a technical comparison, a conventional state-of-the-art kiln (such as the existing kiln at Belden Brick’s Plant 2 in Canton, OH built in 2000) has an average fuel efficiency of 1300 BTU/pound assuming an average brick (based on product mix of ~4.78 pounds). The proposed new BEP facility has a production capacity of 142 million SBE per year at an energy level of 663 BTU/pound. At full capacity, the energy savings in the advanced BEP kiln compared to the existing conventional kiln would equal 235 billion BTU/year, or 223,781 Mcf (natural gas), as well as associated air emissions reductions. This savings would represent 15% of Belden Brick’s total company-wide energy consumption (if all operations were as efficient as Plant 2 ~1300 Btu/lb). Note that these calculations conservatively assume a product mix of equal quantities of 40% PFA face brick, 40% PFA paving brick, and 20% PFA structural brick; however, energy and emissions savings will increase proportionately as the PFA content of the products is increased to 70% recycled content, and the savings will be replicated for every eco-product plant that is built to use recycled PFA.

Moreover, the extraction of clay and delivery to the kiln consumes 100,000 BTU for every 2600 pounds of clay delivered. Assuming the product mix above, the BEP technology saves a net 27% mined material, avoiding an additional 3.8 billion BTU/year in mining energy. In sum, the total net energy savings for the first facility alone is estimated at 239 billion BTU/year.

Compared to concrete-based building products which will be displaced by the BEP technology, the BEP building products will provide a greenhouse gas saving of 45%. Assuming the standard figure of one ton of cement creates approx. 1 ton of carbon dioxide, the greenhouse gas emissions reductions from just the initial plant will be 2500 tons of direct carbon dioxide emissions per year, compared to conventional concrete products for the same production capacity. On a life-cycle basis, additional savings of indirect greenhouse gas emissions will be realized from the reduction in transportation costs, mining and extraction activities, and lifetime replacement emissions. Thus, on a cradle-to-cradle basis, the greenhouse gas emissions from the initial plant will be on the order of 10,000 to 35,000 tons per year depending on the emissions profile of the cement-based products being

Page | 10 displaced, and can be multiplied by the number of BEP advanced kilns that are eventually installed.

In 2005 the U.S. used 120,000 million tons of cement, demonstrating an enormous opportunity for a series of advanced ceramic building product manufacturing facilities using recycled fly ash to displace more energy intensive and greenhouse gas emitting materials.

Page | 11 Appendix A - Plant Layout

[proprietary plant layout schematic is available for viewing during in-person meetings]

Page | 12 Appendix B – Production and Products

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Appendix C

Fig. 1 – Patent Pending Fig. 2 – Cost Components Fig. 3 Profile of PFA Supply PFA Production and Use of Brick Mfg 90

80 Other 2% 70 Maintenance 11% 60

Depreciation 16% 50

40

Millionsof Tons 41.0% Materials 20% 30 34.8% 38.7% 39.6 % 32.3 20 %

Energy 23% 10

0 2001 2002 2003 2004 2005

Concrete / Products Structural Fills

Labor 28% Cement / Clinker Feed Waste Stabilization

Other PFA Pr oduc tion

Figure 4 – Project Construction Timeline

Page | 14 Appendix D – Testing References

Table 1 ‐ TCLP & SPLP Results

Metal Arsenic Barium Cadmium Chromium Lead Mercury Selenium Silver

EPA Limits 5 100 1 5 5 0.2 1 5

70% Fly TCLP 0.352 0.032 <0.010 <0.010 <0.010 <0.0005 0.064 <0.010 Ash and (mg/l) 30% Clay SPLP 0.210 <0.010 <0.010 <0.010 <0.010 <0.0005 0.043 <0.010 (mg/l)

70% Fly TCLP 0.115 0.030 <0.010 <0.010 <0.010 <0.0005 0.181 <0.010 Ash and (mg/l) 30% Shale SPLP 0.039 <0.010 <0.010 <0.010 <0.010 <0.0005 0.032 <0.010 (mg/l)

Table 2 ‐ Firing shrinkage and product qualities for products fired at 1130o C

Formula Firing Net dry Water Flexural tensile Abrasion resistance Skid/slip resistance shrinkage density absorption strength (unpolished/polished)

% linear kg/m3 mass % N/mm2 mm3 ‐

70/30 7.2 2120 6 17 390 74/56

90/10 3.9 1890 12 12 840 75/71

90/10/0.3 3.9 1870 12 15 890 70/68

Table 3 ‐ Product characteristics of masonry bricks and paving bricks

Parameter Masonry bricks Paving bricks

1050 ºC 1150 ºC

Firing shrinkage (% linear) 2 8

Net dry density (kg/m3) 1800 2190

Water absorption (EN771‐1) (mass %) 14 3

Compressive strength (EN772‐16) (N/mm2) 34.2 ‐1)

Transverse breaking load2) (N/mm) ‐ 230 (horizontal) / 650 (vertical)

Bending tensile strength3) (N/mm2) ‐ 15 (horizontal) / 10 (vertical) 1) The compressive strength will be above the limit of the TCKI press, this means more than 100 N/mm2.

2) The limit value for the highest class in the European standard is 80 N/mm.

3) The limit value for Dutch application is 6 N/mm2.

Page | 15 Appendix E - Promotional Material

(featured at the Society of Architects 2010 Build Boston Innovation Pavilion)

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