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Task 2 Qualify TDP Manufacturers and Tire Feedstock Suppliers Under Task 2, DK Enterprises communicated with over 35 “targeted candidates” prior to May 9, 2016 with the objective of finding seven to 7 - 10 qualified manufacturers that had the ability to add tire crumb rubber as a feedstock to replace plastic, virgin rubber or other raw material in new or existing eligible products. The candidates also had to meet the Tire Incentive Program (TIP) guidelines. However, as per the Contract the candidates were not required to apply for TIP in the future. DK Enterprises then developed the FCS Candidate Questionnaire that required an interested manufacturer to complete the document within five days to show a pro-active approach. This process allowed us to qualify each candidate without having to go to their place of business in California resulting in budget savings. DK Enterprises then established connections between the tire-derived material (TDM) suppliers, some potential subcontractors and the FCS Candidates. A list of qualified FCS Candidates was provided to the Contract Manager on August 29, 2016. The FCS Contract did not allow contractor, DK Enterprises, to implement Task 3, Execute Individual Manufacturer Activity Plans, until CalRecycle accepted Contract Manager’s approval of the qualified manufacturers and contract budget and content revisions that were being made by CalRecycle management and the legal department. On July 11, 2017, DK Enterprises received its signed Agreement Amendment to move forward with Task 3 and Task 4, Crumb Rubber Testing . That delay of almost 11 months was costly to the contractor and to the companies that had understood they would be participating in the FCS in 2016. Though DK Enterprises had received the commitment from the seven manufacturers that they were still interested with the shorter window to manufacturer products there was a fall out of two of the manufacturers, VSS Emultech and Bothman Construction. V SS Emultech’s customer would require some testing and field work to be completed in the middle of winter within the east coast mile-deep mines, the project did not move forward. Bothman Construction did not come through in selecting a field for the project as school was in play and they were not able to find a school or location that could reschedule their games. Bothman also seemed to have lost interest due to the delay and commitment of the project . 1. Developed a list of California manufacturers with the capability to manufacture feedstock conversion producers that could secure a customer for the product and met other identified criteria. 2. Produced three-page digital announcement that was mailed to prospective candidates. Marketing material and execution of meetings with potential manufacturers 3. Provided Manufacturer Questionnaire to assist in qualifying the manufacturer and in preparation of producing the individual activity plans Task 2 Deliverables:

FCS Contractor Report – Confidential

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