Executive Summary

The Hex-Pak
Economical Segregated Bulk Storage

Process Equipment & Design LLC
413 29
th
Ave N, Fargo, ND 58102-1508
dwight.kinzer@gmail.com - 701.388.3645

This business plan is intended solely for informational purposes to assist you with a due-diligence investigation of this project. The
information contained herein is believed to be reliable, but the management team makes no representations or warranties with resp
ect to this information. The financial projections that are part of this plan represent estimates based on extensive research and on a
ssumptions considered reasonable, but they are of course not guaranteed. The contents of this plan are confidential and are not to
be reproduced without express written consent.
Page 2 of 4 The Hex-Pak 1/22/2012
Executive Summary
Business Concept Summary
The tremendous value proposition of this business venture is a considerable cost-effective solution to
what may be the greatest impediment of modern agriculture and biotechnology, which is the
extraordinarily high turnkey cost of segregated bulk storage systems for trace-ability, identity preserved
commodities, specialty crops, organic crops, grades, classifications, and holding bins for trait testing.

The Hex-Pak business venture is for developing economical segregated bulk storage that will be sold to
commercial grain warehouses, seed companies, animal feed manufacturers, nut processors, as well for
chemical and mineral storage. The Hex-Pak concept, which has been granted five US and numerous
international patents, reduces turnkey costs by up to 70%. See Appendix A for a summary fact sheet of
the Company.

Concept Description
The Hex-Pak is a revolutionary new patented design (5 USA, 1 Chinese, & 1 EPO) of economical
segregated bulk storage that solves not only a major impediment to crop improvement faced by modern
biotechnology but also the need for trace-ability that is desperately needed by post-harvest (grain, nut,
seed) handling facilities, large farming operations, flour millers, agricultural processors, seed companies,
animal feed manufacturing, and nut handling facilities. The Hex-Pak significantly reduces the turnkey
cost of multiple bulk storage bins for commodities that are currently constrained by their increasing
variance of characteristics and resulting need for identity preservation. In addition to the Hex-Pak, a
novel method of conveyance has also been designed.

Opportunity
A major roadblock to the progress of biotechnology in agriculture is the current grain handling and
storage infrastructure, which is comprised of large storage bins that do not provide for economical
segregation of grains based upon grower, variety, genetically modified organism (GMO) status, protein,
and moisture levels. Current material handling systems also have inherent flaws that commingle the
grains. Traditional building technology can only provide a high purity level of segregation at low storage
volumes and handling capacities similar to seed production facilities, which are very expensive to build
and make all but the most lucrative identity preserved opportunities unfeasible. The combined
advantages of the Hex-Pak and the novel method of conveyance that reduce turnkey costs by up to 70%,
a cost reduction that provides a cost-effective solution for segregating bulk commodities while eliminating
commingling issues.

Innovative Solution
The Modular Load-Bearing Structural Column, a primary component of the Hex-Pak, provides several
unique features that when combined with the novel conveyance method compound the turnkey cost
savings of the hexagon-shaped bins with hopper-bottoms. Features of the Hex-Paks structural column
include:
Fabrication of parts from coil steel using high-speed roll forming equipment can cost 40% to 70%
less than conventional fabrication techniques.
A plurality of hexagons has up to 40% less sq ft of sidewall than shared wall square bins
A plurality of hexagons has up to 39% less sq ft of sidewall than a plurality of round bins
Jack construction is up to 70% less costly than crane construction,
Jacks allow the structure to be built at grade, which is safer, and
Jacks can be used to build a complicated facility in remote locations without a crane.

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Executive Summary, continued

The track-and-trolley conveyor guidance system dramatically reduces the capital cost of conveyance,
energy, maintenance, and commingling of grains compared to conventional systems. Features of this
novel conveyance system include the following:
Up to 94% less linear-feet of distribution conveyance
Up to 85% less linear-feet of reclaim conveyance
All intermediate discharge gates (sources of cross-contamination) are eliminated
Significant reduction in energy and maintenance
Lends itself to computer automation for trace-ability documentation
Provides a conveying system in which product quality is preserved

The Hex-Pak reduces turnkey costs from $12 to $22 per bushel for conventional systems down to $6 to
$10 per bushel, which industry can afford.

Value Proposition
There is a tremendous need for economical segregated storage facilities without inherent cross
contamination issues. The Hex-Pak will have an important, enviable, and profitable role to play in
domestic and international agriculture from seed genetics, to animal feed manufacturing, to farm and
commercial storage facilities for the foreseeable future as it demonstrates and applies its unique design
features that radically reduce turnkey costs while eliminating typical points of cross-contamination. No
other technology will likely affect as wide a spectrum of applications around the globe as one that results
in a substantial cost reduction in post-harvest identity preserved segregated storage structures.

Competitive Advantage
Six US patents along with numerous international granted patents (Australia, Canada, Chinese, European,
and India) and pending in Brazil. This intellectual property provides monopolistic protection for the key
components of the Hex-Pak that insures a 40% to 70% cost reduction advantage compared to
conventional designs. The Track-And-Trolley Conveyor Guidance System does not require traditional
intermediate discharge gates required for multiple silos, thus eliminating a source of cross contamination.
An 80% to 94% reduction of linear-feet of conveyance significantly reduces energy usage and
maintenance requirements. See Appendix B for a competitive matrix comparing the Hex-Pak with
conventional round and square bin systems.

Entrepreneurial Team
The inventor and company founder Dwight Kinzer has twenty-eight years of experience with designing
and project managing the construction of commercial grain handling, seed conditioning, and feed
manufacturing facilities, domestica and international, for private and leading agricultural processing
corporations. Dwight will conduct or manage several roles such as design, sales, and company
management. Consulting engineers specializing in bin failure analysis will conduct the initial investigation
using proprietary calculations that will be peer reviewed during Round A. During Round B a civil engineer
with a background of structural engineering will be added to the staff as well as a manufacturing
engineer. Each of these two engineering managers will need one or two design technicians/engineers.
International marketing personnel will also be added during Round B.

Recognition
The Hex-Pak was honored to be vetted and selected by The Worlds Best Technology showcase (WBT) as
one of the top 100 emerging technologies in the world for 2010.

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Executive Summary, continued

Financial Highlights and/or Offering
It is estimated that the Hex-Pak can generate $20 million to $50 million of revenue per year, per
continent, which translates to $100 million to $300 million in annual global sales in 7 to 10 years.
Estimated sales for the first six years are as follows:


Round A: No sales during engineering, opportunity analysis, and focused marketing
Round B:
Year 1: $900,000 2 small Hex-Pak sales at a reduced margin
Year 2: $4,000,000 6 Hex-Paks (12 bin) or 2 Hex-Paks (36 bin)
Year 3: $6,721,862 12 Hex-Paks (12 bin) or 4 Hex-Paks (36 bin)
Year 4: $13,847,037 24 Hex-Paks (12 bin) or 8 Hex-Paks (36 bin)
Year 5: $24,959,283 42 Hex-Paks (12 bin) or 14 Hex-Paks (36 bin)

NPV cash flow valuation of the Hex-Pak is between $2.7 million and $3.7 million.

Round A - $750,000 of investment in exchange for 35% equity.

Round B - $2,500,00 investment in exchange for approximately 35% equity based upon re-valuation at
end of Round A.

A Pro Forma balance sheet and cash flow valuation are available in Appendix K, L, and M.