I Step

Title
Page

CHARGEN
TECHNOLOGIES INVESTOR INFORMATION

Chargen Technologies
942 Sherbrooke Ouest
Montréal, QC H3A 1G3
Phone: 514-‐398-‐0000
Fax Number: 514-‐398-‐9999
Email: info@chargentech.com
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Website: www.chargentech.com

December 5, 2012

Apple Incorporated
1 Infinite Loop
Cupertino, CA 95014

RE: INVESTMENT IN PIEZOELECTRIC INSOLE CHARGER FOR APPLE iPhone 5

Dear Mr. Cook:

Chargen Technologies is a newly founded company developing products designed to enhance
the lifespan, quality and reliability of a consumer’s Apple iPhone 5. We are looking to launch
products for market penetration in Apple retailers across Canada and the USA in the first
quarter of 2013.

The first product we intend to launch is the iStep, a product that presents itself as a unique,
convenient alternative to conventional charging techniques consumers currently use to charge
their iPhone 5. Using an innovative piezoelectic insole charger, our mission is to provide the
general public with an effective, “on-‐the-‐go” iPhone charger that can generate electrical energy
for their device through the simple act of walking. This technology—the first of its kind—
presents an exciting opportunity for Apple to tap into a new market.

In light of Apple’s partnership with Nike+ and the introduction of the new Lightning connector
for the iPhone 5, it is evident that the iStep has the potential to expand to satisfy a variety of
niches. Compounded with a strategic and competitive price point, we believe that the iStep will
become a staple to Apple users worldwide.

The attached proposal provides detailed specifications regarding the iStep: its technology,
methodology, marketing strategy and projected timeline. In addition, please find information
about Chargen Technologies and the qualifications our management team possesses. Please
contact our head office in Montréal via phone at 514-‐398-‐000 or email at
info@chargentech.com should you have any questions. Thank you for your time, we look
forward to hearing from you soon.

Sincerely,

Andrew Jung
Chief Executive Officer
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The iStep, by Chargen Technologies

Investor Information

Andrew Jung, Chief Executive Officer
Farhan Hasan, Chief Technology Officer
Charles-‐Eric Desjardins, Chief Financial Officer
Daniel Wang, Chief Marketing Officer
Ali Alnashashibi, Chief Human Ressources Officer

December 5, 2012

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Table of Contents

1.0 Company Profile ..................................................................................................... 4
2.0 Executive Summary ................................................................................................ 5
3.0 Scenario .................................................................................................................. 6
4.0 Analysis of Alternatives .......................................................................................... 7
4.1 Conventional Charging ..................................................................................... 7
4.2 Public Charging Stations ................................................................................... 8
4.3 Charging Cases ................................................................................................. 9
5.0 Solution ................................................................................................................ 10
5.1 Design ............................................................................................................. 10
6.0 Methodology ........................................................................................................ 12
6.1 Concept Development .................................................................................... 12
6.1.1 Patents ............................................................................................. 12
6.2 Mass Production ............................................................................................. 13
6.2.1 Production Delivery Efficiencies ...................................................... 13
6.3 Market Research ............................................................................................ 14
6.3.1 iPhone 5 Sales .................................................................................. 14
6.3.2 iStep Niche ....................................................................................... 15
6.3.3 Cobranding with Nike+ .................................................................... 15
7.0 Budget .................................................................................................................. 16
7.1 Production Costs ............................................................................................ 16
7.2 Price Point ...................................................................................................... 16
7.3 Loan Disbursement ......................................................................................... 17
8.0 Timeline ................................................................................................................ 18
9.0 Key Operating Personnel ...................................................................................... 19
10.0 Contacts .............................................................................................................. 21
11.0 Closing ................................................................................................................ 22
12.0 Royalties Agreement .......................................................................................... 23
13.0 Appendices ......................................................................................................... 24
13.1 Appendix A: Sources Cited ........................................................................... 24
13.2 Appendix B: Energy Calculations .................................................................. 26
13.3 Appendix C: Full Budget ............................................................................... 27
13.4 Appendix D: GANTT Chart ............................................................................ 29
13.5 Appendix E: Personnel Résumés .................................................................. 30

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1.0 Company Profile

Founded in 2011, Chargen Technologies is a privately owned and operated company
based in Montréal, Canada. Initially composed of five engineering graduates of McGill
University, the company has expanded to a team of fifteen members contributing to the
fields of engineering, research, marketing and human resources.

Chargen Technologies was formed on the foundations of sustainable energy and the
understanding of the world’s growing dependency on electronic devices. These two
cornerstones form the crux behind the concept generation of each Chargen
Technologies product— the first being the iStep, a revolutionary way to charge an
iPhone using human kinetics and piezoelectricity.

Despite only being in operation for a year, the technical specialists at Chargen
Technologies have a combined twenty years of experience in the field of electronics and
energy sustainability, notably leading projects for Microsoft, Hydro-‐Québec, and
Samsung Mobile. Combined with strong project management and a keen eye for
upcoming trends, Chargen Technologies is committed to producing high quality
products and being the first of its competitors to lay claim to new and emerging
markets.

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2.0 Executive Summary

Chargen Technologies proposes a unique alternative to current iPhone 5 charging
methods found in today’s market. The revolutionary innovation, known as the iStep, is a
shoe insole that uses human kinetics from walking to generate charge for a user’s
iPhone 5. It is assembled using piezoelectric ceramics, which generate electrical charge
from deformations brought through pressure.

Shortcomings of current charging alternatives, such as conventional charging and
charging cases, are analyzed. The iStep’s design and charging capabilities are directly
compared to these alternatives, and the competitive advantage brought through the
iStep’s convenience and independence from an external electrical source has the
potential to mark a significant change in the Apple accessory industry.

Chargen Technologies has already invested over $125,000 into the market realization
and concept development of the iStep. We were also approved of an $8 million loan to
cover costs of operation in the first two years. Discussion on the loan disbursement and
financial prospects of the iStep are detailed in the proposal.

A fully functional design and prototype is ready for production, and Chargen
Technologies is seeking an official endorsement from Apple to have the “Made for
iPhone” logo imprinted on each iStep produced. Chargen Technologies would like to
give Apple exclusive rights for the iStep to be sold only in Apple retailers, and in return
would receive a competitive $5 royalty for every pair sold.

Leading the iStep movement is an executive team possessing a comprehensive
background across a multitude of fields in engineering, design and project management.
Each executive is motivated to ensuring the success of the iStep and guaranteeing
Apple’s endorsement to be worthwhile and beneficial to the future of both parties.

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3.0 Scenario

In a society where much of our daily activities and communications are dependent on
electronic devices, such as phones, music players and tablets, it is crucial to ensure that
these devices remain charged or can be conveniently recharged as we go through our
daily routines.

However, the current methods to charge these devices are neither convenient nor
efficient for our mobile lives. Most methods require us to use an external electrical
source, stop what we are doing, and connect our devices through a myriad of cables and
outlets. As demonstrated by natural disasters such as Hurricane Sandy, this dependence
on an external electrical source proves costly, as our ability to charge our devices—and
ultimately communicate with the outside world—are at the whim of factors beyond our
control.

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4.0 Analysis of Alternatives

Three principal alternatives exist for charging an iPhone 5:
• Conventional Charging
• Public Charging Stations
• Charging Cases (specific to iPhone)

4.1 Conventional charging
Conventional charging uses a USB or Lightning connector where one end of the
connector is plugged into the iPhone 5, and the other end is plugged into a laptop or
external electrical outlet (Figure 1a & 1b).

Figure 1a: iPhone charging via Figure 1b: External outlet connector [1]
USB connected to laptop [1]

Although charging times vary between iPhone, iPod and iPad generations, it takes on
average 7.63 hours to fully charge an iPad and 2.67 hours to fully charge an iPhone or
iPod by connecting it to a laptop via USB [2].

While the external outlet connector in Figure 1b allows the convenience of charging
without a laptop (which also requires its own power source), the conventional charging
technique is an ineffective and inefficient method to charge an iPhone 5. Not only does
it depend on an electrical outlet and cables to connect the device, but also consumers
simply do not have the free time required during their day to charge their device for
prolonged periods of time. Doing so would force the consumer to remain stationary and
wait while his or her device charges, which is inconvenient to the consumer’s personal
daily schedule.

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4.2 Public Charging Stations
Public Charging Stations are stations typically placed in frequently
trafficked areas where individuals are free to charge their
electronic device from the station.

First introduced in 2011 by Samsung Mobile, over 500 Mobile
Charging Stations placed in various airports and malls in the USA.
Equipped with six electrical outlets, two USB charging outlets and
four micro USB mobile phone charging plugs, the charging stations
cost upwards of $600 to produce and install [3].

The Mobile Charging Stations provide convenience to airplane
passengers waiting at a gate to board a flight, as electricity is
readily available for them to charge their devices. In addition, the
stations double as a marketing tool, as an estimated 935 million
people see the charging stations annually across ten airports in
Figure 2: Samsung
the USA [3].
Mobile Charging
Station [3]

From an investor’s perspective, however, the marketing of the company name is at the
significant expense of having no revenue generated directly from the production of a
charging station. In addition, the charging stations are rendered useless to users if he or
she does not have a USB or power cord to connect to. Moreover, like conventional
charging, the stations require the user to be immobile, which might not pose a problem
in airports (when people wait at their gate), but proves ineffective and inconvenient at
malls and other public places where users do not remain stationary in one place for
prolonged periods of time.

4.3 Charging Cases
As its name suggests, charging cases are iPhone
cases designed to hold charge and transfer the
charge to replenish an iPhone’s battery life
throughout the day. Immediately, this alternative
provides much more flexibility to a user in that this
method does not require an electrical outlet and
that the user is free to go about his or her daily
schedule. Most cases also offer the stored charge
to be “trickled” to the iPhone periodically, or all at
Figure 3a: Eton Mobius Black
once, depending on the user’s preference.
Charging Case, $89.99 [4]
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Further analysis of the charging cases, however, reveals both performance and
marketing setbacks. Foremost, prices for a charging case range from $80-‐$150, a steep
price compared to most iPhone cases that sell for $20. In addition, many iPhone users
will have already purchased an iPhone case before considering a charging case, reducing
the likelihood that one will be purchased. Furthermore, charging cases are generally
more bulky, heavier and limited in aesthetic design—factors that heavily dictate an
iPhone users’ choice in case, if any.

Figure 3b: Mophie Juice
Pack Pro, $129.95 [4]

Performance-‐wise, charging cases must also be charged everyday before put to use.
Hence, without an external electrical source, the cases’ charging capabilities are non-‐
existent. In addition, the full charged capacity of the battery declines to 75% after
approximately 500 uses, meaning that less charge is available to replenish an iPhone’s
battery life after each consecutive use [5].

From these alternatives, it is apparent two re-‐occurring problems exist when charging
an iPhone 5:
• Dependency on an external source of electricity, such as an electrical outlet
• Lack of user mobility and convenience
Chargen Technologies’ iStep is a solution that not only fully responds to these issues,
but is also the first of its kind in the competitive market of Apple accessories.

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5.0 Solution
In its most fundamental sense, the iStep is a shoe insole with the capability to recharge
an Apple iPhone 5. The iStep eliminates the need for connectivity cables, and more
importantly, the iStep is self-‐sustaining—it does not, and will never, require an electrical
outlet or external source of electricity to charge an iPhone 5. The principal components
of the iStep are detailed below:

5.1 Design

1
2 3

4

Figure 4: iStep Component View

1. Piezoelectric ceramics are crystals with a complex ionic structure. Within the
ionic structure, oppositely charged ions are arranged geometrically such that the
overall charge of the structure is zero. Changes to the structure’s geometry
cause an imbalance of charge and in turn generates a voltage [6].

Using this principle, the piezoelectric ceramics were strategically placed such
that the ball of the foot makes contact with the ceramic. During a step, the ball
of a foot exerts maximum pressure, allowing for maximum deformation and
voltage generation [7]. Current piezoelectric ceramic technologies allow for the
iStep to replenish up to 70% of an iPhone 5’s charge from an average day of
walking. Full calculations can be found in Appendix B: Energy Calculations.

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2. The rectifier regulates the amount of voltage that passes onto the battery, only
allowing a particular amount of voltage to flow to the battery in the charger so
as to not over-‐charge the battery. The rectifier converts the alternating current
from the piezoelectric ceramics into usable direct current, where the regulator
smoothens the voltage output for the charger to store.

3. The insole charger is shaped uniquely to blend in
with the shoe sole. It fits into an opening
at the heel of the shoe and a simultaneous
click from the two sides of the insole
releases the charger. The charger consists of
a 1440 milliamp-‐hour (mAh) lithium polymer
battery, consistent with the iPhone 5’s own
lithium battery capacity [8]. The battery has a
life span of 600 cycles before losing
approximately 20% of its charge capacity and
comes with a one-‐year warranty from Chargen
Technologies’ supplier in Guangdong, China.
Figure 5: iStep Insole Charger

4. Waterproof microfiber polymers are the principal synthetic material encasing
the vital components of the iStep. The microfiber polymers protect the
piezoelectric ceramics and rectifier from heat generated by friction between the
foot and the insole in addition to variations of water damage such as foot
perspiration and rain. Layers of microfiber polymers cushion the insole charger,
acting as shock absorbers. Initial tests by Chargen Technologies show that the
insole is fully functional after withstanding forces of up to 2000 N.

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6.0 Methodology

6.1 Concept Development
Since Chargen Technologies was founded,
over $125,000 of our own money was
invested towards the concept development
and market realization of the iStep. Through
the generosity of the McGill Faculty of
Engineering, much of the initial prototyping
and concept development was completed
in technical labs and workshops on campus
at no additional cost.

Two initial prototypes of the iStep were
created: one with the piezoelectric ceramics
at the ball of the foot, and the other with
the ceramics located at the heel. Following
tests completed by the faculties of
Kinesiology and Electrical Engineering,
placing the ceramics at the heel led to an
uneven distribution of force on the
ceramics, generating less voltage and often
physically damaging the ceramics after
repeated tests. The final prototype, which
has the piezoelectric ceramics at the ball of
Figure 6: iStep Prototype ready for production
the foot (displayed in this proposal), is the
final design ready for production.

6.1.1 Patents
There are no existing copyrights or patents on shoe insoles capable of generating
electrical charge. We are anticipating filing a patent for all shoe insoles capable of
generating electrical charge and the idea of a shoe insole to charge a mobile device
using piezoelectricity. We also plan to trademark the name of our company, our
company’s logo, as well as the logo and name of the iStep. Since we are beginning
distribution of our product in Canada and the USA, we have chosen to apply initially for
a national patent. However, as business expands, we plan to gain international patents,
and thus attempt to establish a perpetual monopoly. Within our company, we plan to
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create legal agreements with owners and employees regarding various trade secrets.
Our nondisclosure agreements include using piezoelectric ceramics as our principal
electrical generator to create our product.

6.2 Mass Production
Chargen Technologies has leased office space in Montréal, which will serve as
headquarters of the company. The primary manufacturing plant and warehouse building
will be located in the Guangdong region close to Shenzhen, China. The facilities will be
approximately 10,000 square feet, and will have loading bays among other modern
equipment. The property will be built and owned by Chargen Technologies. Significant
equipment at our facility used to manufacture the iStep include inline dispensers, screen
printers, chip shooters, placement systems and assembly equipment, which will also be
owned by the company. Another 10,000 square feet warehouse will be leased in
Kingston for temporary storage of the products. We chose to build our manufacturing
plant China, since labor and transportation costs can be reduced as all of the suppliers
are in close geographically to the manufacturing plant.

6.2.1 Production or Service Delivery Efficiencies
Chargen Technologies is based in Montréal, Québec, which is in proximity to the
“Golden Horseshoe” of Canada, the most heavily populated area of the country [9].
Here, it can draw from the hi-‐tech advantages of a developed nation, which include
superior infrastructure and relative advantages in production and transportation
efficiency. Montréal’s Pierre Trudeau airport receives and departs flights stretching
from Vancouver, British Columbia, to New York, New York on a regular basis, allowing
easy access for businesspeople and cargo.

In addition, Highway 401 runs throughout Southern Ontario and Québec, stretching
from Windsor to Montréal, where it meets Québec Autoroute 20, which leads all the
way through Québec City until the Gaspé Peninsula. Access to the United States, the
world’s largest economy, is available through Interstate 81, which meets Highway 401
east of Kingston [10].

Canadian National Railway (CNR) and Canadian Pacific Railway (CPR) also have extensive
infrastructure for freight railways in this transportation corridor, with connected routes
to Western Canada, the United States, and Mexico. These railways can be used to ship
the iStep to retailers throughout Canada and the United States.

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6.3 Market Research
According to a study conducted by ABI Research, the iPhone accounts for $6 billion of
the $20.8 billion global smartphone-‐accessories market forecasted for 2012. On
average, a smartphone owner will spend $60 on accessories per device, and 75% of all
iPhone users will purchase an accessory for their iPhone [11].

Figure 7: Apple iPhone Sales

6.3.1 iPhone 5 Sales
Based on the estimates provided by Reuters, the iPhone 5 will continue to reach record
sales up to and including the final quarter of 2014. By this time, the use of the Lightning
connector will have become more prevalent than the previous 30-‐pin connector, and it
is anticipated that iStep sales will follow this growing trend. More importantly, the
Lightning connector is expected to proliferate to future Apple devices and stay in
production for at least ten years [12], allowing Chargen Technologies to bolster its
existing products such as the iStep to be compatible for the iPad and beyond.

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6.3.2 iStep Niche
Developing a product for a device as ubiquitous as the iPhone allows Chargen
Technologies to work with a variety of niches. Regardless of the user demographic or
personal iPhone preference, the problem of losing battery charge is a common issue
shared by all users. Because the application of the iStep is literally as simple as walking,
virtually any and every iPhone user is capable of using the iStep without having to
change his or her routine or lifestyle.

In particular, the iStep is attractive for users whose primary mode of transportation is
walking. The iStep is ideal for university students, businessmen and women who work in
metropolitan areas, and individuals who lead active lifestyles.

6.3.3 Cobranding with Nike+
After at least one year on the
market, Chargen Technologies
plans to increase its market share
by co-‐branding with a company
more closely established with
Apple, such as Nike.

In 2006, Nike released the Nike+
Sports Kit, a device which
measures and records the distance
and pace of a walk or run through
a small transmitter device
attached or embedded in a shoe
and synced to a user’s iPhone. By
integrating the iStep into Nike’s
collaboration with Apple, such as
having the iStep produced into
Nike shoes with Nike+ capabilities,
Chargen Technologies would
considerably increase its market
share to over 5 million runners
[13], and in doing so, bring mobile
Figure 8: Nike+ Shoe with embedded transmitter [13]
technology and online and athletic
communities closer together and
help expand fields for co-‐creation.

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7.0 Budget

7.1 Production Costs
Element Cost per unit ($) Quantity Total cost ($)
Piezoelectric ceramics 0.02 400 8.00
Aluminum Sheets 0.005/cm2 200 cm2 0.10
Metal casing 0.12 2 0.24
Wires 0.01 -‐ 0.01
Rectifier 0.10 2 0.20
Board 0.01 -‐ 0.01
Diode 0.25 4 1.00
Female lighting connector 0.14 2 0.28
Easy-‐plug battery 5.50 2 11.00
Polymer casing 0.18 2 0.36
Cushion sheet 0.70 -‐ 0.70
Assembly 3.60 -‐ 3.60
Total 25.50
Figure 9: iStep Production Costs

Given current supplier quotes, and taking into account transportation and delivery
costs, each iStep (one pair of two insoles) will cost approximately $25.50 to make. The
most expensive production materials are the piezoelectric ceramics and the easy-‐plug
battery, which account for 31% and 43% of the total cost, respectively.

7.2 Price Point, Profit Margin, and Royalties to Apple
Based on market research and iPhone consumer spending habits, the iStep will be sold
at the competitive market price of $69.99. Apple’s exclusivity as the only retailer to sell
the iStep was taken into consideration, and the price was set for the intention to make
the iStep the unanimous alternative to the considerably more expensive, less effective
charging cases, which are Chargen Technologies’ immediate competitors.

With the current price point, each iStep will yield a $44.50
profit, translating to a profit margin of 274%. If Apple
approves our product and endorses it by permitting the
“Made for iPhone” logo to be imprinted on each iStep, Apple
will receive a royalty of $5 for every iStep sold. With sales
Figure 10: Apple
projected to an average of 230 000 units a year, Apple will Endorsement Logo [1]
receive upwards of $1.2 million in royalties at the end of 2013.
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7.3 Loan Disbursement
In October 2012, Chargen Technologies was approved of an $8 million loan from the
Royal Bank of Canada. The loan will be used to pay expenses and production costs
incurred in the first two years of production. Figure 11 shows the disbursement of the
$8 million loan by quarter beginning in 2013.
1.6
Salaries
Millions
1.4
Loan Amoount ($)
1.2 Rent
1
Marketing
0.8
0.6
Research and Development
0.4
0.2 Manufacturing, Construction

and Maintenance
0
1 2 3 4 5 6 7 8 Variable Costs by Quarter
Time 2013-‐2014 (Quarters)
Figure 11: $8 million loan disbursement by quarter

Costs associated with the construction and manufacturing of our production facilities
has been spread out across the first four quarters. Because we are constructing our
own facilities and purchasing our own equipment as opposed to renting or leasing them,
the facilities and equipment will retain their asset value of $1.9 million at the end of
2014. This can be considered as retained earnings to be reinvested into the company.
The cost of the production of the iStep, represented by “Variable Costs by Quarter,”
accounts for a small portion of our expenses. The low production costs make us able to
allocate more money to marketing and research and development, critical components
in the first two years of operation. A complete Balance Sheet, Projected Profit graph,
and Break-‐Even Analysis of the iStep can be found in Appendix C: Budget.

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8.0 Timeline

The remaining time within the final quarter of 2012 will be mostly spent on finalizing the
iStep’s design. As the technical aspects of the iStep have already been prototyped and
tested to be fully functional, our focus will be on the aesthetic appeal of the iStep, in
particular the ergonomics of the insole.

Selection of manufacturing personnel and additions to the management team are also
to be completed before the end of 2012. Selection and training of our personnel will
take approximately two weeks, and we anticipate increasing our company size from
fifteen members to thirty.

The first batch of the iStep will be released at the end of January 2013. Mass production
will commence a week before the product’s commercial launch and maintain a steady
growth in production throughout the eight quarters. Current estimations project to a
production of 30,000 units per quarter.

Marketing will continue to be an important process for Chargen Technologies. Our
marketing campaign will be year round as soon as the first batch reaches the market. In
addition, to account for the quick depreciation of technology, a sizeable quantity of time
and money will be focused into research and development. This initiative is to ensure
our product remains up-‐to-‐date with the latest advancements regarding the key
components of the iStep. Maintaining a constant focus on Marketing and Research and
Development are crucial to developing a reputable name out of the iStep and
establishing a firm foundation for our future products. Further milestones and operation
deadlines are outlined in Appendix D: GANTT Chart.

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9.0 Key Personnel

Chargen Technologies’ founding executives will be in charge of overseeing and
implementing the iStep operations outlined in this proposal. The figure below outlines
the structure of our company organization, and summaries of the qualifications of the
executive team and the key responsibilities designated to each executive are described.
Detailed credentials and qualifications can be found in Appendix E: Personnel Résumés.

Andrew Jung, Chief Executive Officer:
Andrew Jung has led Chargen Technologies since it was first established in 2011. With
an extensive background in project management from both large and small-‐scale
companies, Mr. Jung will oversee the operations and personnel of Chargen
Technologies. He will ensure the company’s strategies and objectives are implemented,
and will be responsible for administering the internal and external operations of the
company to ensure profitability, quality and efficiency.

Farhan Hasan, Chief Technology Officer:
Farhan Hasan is a very experienced product designer with an HND-‐HNC from London
and an engineering degree from McGill University. Prior to Chargen Technologies, Mr.
Hasan was head product designer for both Samsung and Huwaie Mobile. As Chief
Technology Officer of Chargen Technologies, Mr. Hasan will be responsible for
continuing to develop and test novel designs. His avant-‐garde designing personality will
be crucial for future products launched by Chargen Technologies.

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Charles-‐Eric Desjardins, Chief Financial Officer:
A recognized financial manager, Charles-‐Eric Desjardins was named Chief Financial
Officer at Goldman Sachs after only two months as a simple financial advisor. Breaking
the firm’s investment records during recession caught the executive’s attention. After
obtaining his Master of Business Administration Mr. Desjardins joined the Chargen
Technologies team, where he will be responsible for the accounting and budgeting
aspects of the company. He will assess market conditions and determine strategies to
help Chargen Technologies succeed in its competitive market. In addition, he will aid in
the development of further innovations by Chargen Technologies by evaluating and
balancing costs, expenses, markets, sustainability and impact.

Daniel Wang, Chief Marketing Officer:
Daniel Wang is an experienced professional designer and consultant. Possessing an MBA
from the University of Toronto in management as well as a bachelor's degree in
Mechanical Engineering from McGill University, he harmonizes experience from both
fields of study in his position as Chief Marketing Officer. Having worked as a marketing
consultant for YG Entertainment and Google, Mr. Wang will specialize in advertisements
and promotions of Chargen Technologies’ products. He will also be developing
customized distribution channels based on the iStep, its market niche and pricing point
so that product potential is maximized.

Ali Alnashashibi, Chief Human Resources Officer:
As Chief Human Resources Officer, Ali Alnashashibi will draw from his experiences as
Chief Human Resources Officer of Hydro-‐Québec and Chief Administrative Officer of
Reebok Canada to develop workforce plans and programs in line with Chargen
Technologies’ overall objectives. As Chargen Technologies expands, Mr. Alnashashibi’s
expertise in Human Resources and Information Technology management will be vital to
the smooth, growth transition of our company. More importantly, Mr. Alnashashibi will
use his strong communication, public relations and interpersonal skills to foster a
company culture built on innovation and sustainability.

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10.0 Contacts

Our head office is located in the heart of downtown Montréal, situated ideally between
McGill University and Rue St. Catherine. All written enquiries and signed documents can
be mailed to:

942 Sherbrooke Ouest
Montréal, Québec, H3A 1G3

Chargen Technologies Management Personnel:

Andrew Jung Charles-‐Eric Desjardins
Chief Executive Officer Chief Financial Officer
514-‐398-‐0000 ext. 104 514-‐398-‐000 ext. 223
ajung@chargentech.com cedesjardins@chargentech.com

Farhan Hasan Daniel Wang
Chief Technology Officer Chief Marketing Officer
514-‐398-‐0000 ext. 343 514-‐398-‐0000 ext. 488
fhasan@chargentech.com dwang@chargentech.com

Ali Alnashashibi
Chief Human Resources Officer
514-‐398-‐0000 ext. 521
aalnashashibi@chargentech.com

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11.0 Closing

The scenario outlined in this proposal today is very real. Many iPhone users experience
the issue of an iPhone running out of batteries and the associated problems and
hindrances a dead iPhone causes to his or her daily routine. Current charging
alternatives are costly and ultimately ineffective in being able to charge an iPhone
efficiently while allowing the user independence from an external electrical source.

By endorsing the iStep, iPhone 5 users will experience a revolutionary, self-‐sustaining
product that conveniently and freely charges his or her iPhone. Being the first of its kind,
the iStep has a significant market advantage and is specifically designed to target a
multitude of niches. Due to the novelty and universality of the iStep, Chargen
Technologies is able to guarantee a return on investment within the first two years of
production and ensure Apple continually receives a competitive royalty on each iStep
sold. The iStep’s exclusivity to Apple and our projected plans for the future of the iStep
promise co-‐creation between industries and advancement in the mobile charging world.

Thank you for taking the time to consider this exciting new endorsement opportunity.
We look forward to working with Apple and revolutionizing the way consumers charge
their iPhones, Apple products and beyond.

Sincerely,

Andrew Jung
Chief Executive Officer

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12.0 Royalties Agreement

THIS ROYALTIES AGREEMENT, signed on the ____ day of _________,_20__, will serve as
the agreement with Chargen Technologies (hereinafter referred to as the “Producer”),
with respect to Producers production of the iStep (hereinafter referred to as the
“Product”) on behalf of Apple Incorporated (hereinafter referred to as the “Endorser”).

The Endorser hereby acknowledges to Producer each of the following:
1. The term of this agreement shall commence on the date hereof and continue
until the completion of two years of production
2. The approval of “Made for iPhone” logo to be imprinted on each Product
produced by the Producer
3. The sale of the Product in each of the Endorser’s retailers in Canada and the USA
4. The use of the Endorser’s name and brand in marketing campaigns by the
Producer

Acknowledging the terms listed above will grant the Endorser $5 from the sale of every
Product, paid at the end of each calendar year via direct deposit.

____________________
Producer
Andrew Jung,
CEO, Chargen Technologies

_____________________
Endorser
Tim Cook,
CEO, Apple Incorporated

Please sign and return with relevant banking information within seven (7) business days.
23

13.0 Appendices

13.1 Appendix A: Sources Cited

[1] Apple Incorporated, “Lightning to USB Cable, Apple 5W USB Power Adapter,” Apple Online
Store. [Online]. Available: http://www.store.apple.com [Accessed Nov. 12, 2012]

[2] ivvadmin, “How long does it take to charge an Apple iPad?” Internet View Reviews,
February 8, 2011. [Online]. Available: http://internet-‐viewer-‐reviews.com
[Accessed Nov. 10, 2012]

[3] Samsung Mobile, “Samsung Mobile Charging Stations,” Samsung Articles & Insights, July 1,
2011. [Online]. Available: http://www.samsung.com/us/article/samsung-‐mobile-‐
charging-‐stations [Accessed Nov. 12, 2012]

[4] K. Rosen, “7 iPhone Cases That Charge On-‐The-‐Go,” Mashable Lifestyle, September 24,
2012. [Online]. Available: http://mashable.com [Accessed Nov. 8, 2012]

[5] Mophie, “ Juice Pack Plus FAQ,” Mophie Articles, 2012. [Online]. Available:
https://www.mophie.com/articles.asp?id=145 [Accessed Nov. 13, 2012]

[6] Noliac Group, “Piezo Ceramics,” The Noliac Group, 2010. [PDF]. Available:
http://www.noliac.com/Files/Billeder. [Accessed Nov.10, 2012]

[7] Harvard University and Vibram USA, “Biomechanical Differences Between Different Foot
Strikes,,” Biomechanics of Foot Strikes & Applications to Running Barefoot or in
Minimal Footwear, 2010. [Online]. Available: http://barefootrunning.fas.harvard.edu/.

[8] Apple Incorporated “Apple iPhone 5-‐ Full phone specifications,” iPhone, 2012.
[Online]. Available: http://www.apple.com/iphone/specs.html [Accessed Nov.14, 2012]

24

[9] Golden Horseshoe Ontario, “Greater Golden Horseshoe,” 2009. [Online]. Available:
http://www.goldenhorseshoe.biz [Accessed Nov. 19, 2012]

[10] C. Beavers, “The King’s Highway 401,” 2012. [Online]. Available:
http://thekingshighway.ca/Highway401.htm [Accessed Nov.19, 2012]

[11] H. Kelly, “Timing is everything for iPhone 5 accessory makers,” CNN Tech, September 20,
2012. [Online]. Available: http://www.cnn.com/2012/09/18/tech/mobile.

[12] C. Smith, “Analyst: iPhone 5 Lightning connector here to stay,” Tech Radar: Phones,
September 21, 2012. [Online]. Available: http://www.techradar.com.com

[13] Nike Incorporated, “FY 2012 Q1 Earnings Release Conference Call Transcript,” September
22, 2011. [PDF]. Available: http://www.phx.corporate-‐ir.net [Accessed Nov. 17, 2012]

25

13.2 Appendix B: Energy Calculations

Energy created from one iStep insole:

Number of Joules of energy required to 34,225 Joules
charge an iPhone 5 from 0% to 100%
Piezoelectric ceramic sensor output 0.012 Joules per step [One step= 1000 N]
Number of ceramic sensors per insole 200
Number of steps taken on an average day 10,0000

Energy from one insole:
0.012 Joules per sensor per step X 200 sensors X 10,000 steps= 24,000 Joules
Percentage of iPhone battery replenished from one insole: 70%

Each insole has the capability of replenishing up to 70% of a dead iPhone 5’s battery.
Combined, each pair of iStep is capable of replenishing 140% of an iPhone 5’s battery
from one day of walking.

26

13.3 Appendix C: Full Budget

End of the year projected balance sheet 2012 2013 2014
ASSETS
Financial Assets
Cash 5500000 4269000 11559000
Receivables 300000 220000
Total Financial Assets 5500000 4569000 11779000
Non-‐Financial Assets
Land & Buildings 1750000 1750000
Plant & Equipment 750000 750000
Depreciation 30000 30000
Total Non-‐Financial Assets 2500000 2470000 -‐30000
Other Assets
Patents 200000 200000 180000
Depreciation 20000 18000
Total Other Assets 200000 180000 162000

Total Assets 8200000 7219000 11911000
LIABILITIES
Current Liabilities
Long-‐Term Debt 8000000 8000000 8000000
Total Interest Bearing Liabilities 8000000 8000000 8000000

Total Liabilities 8000000 8500000 9000000
EQUITY
Retained Earnings 200000 -‐1281000 2911000
Total Equity 200000 -‐1281000 2911000

27

Projected Profits and Costs, by Quarter

4.5

Millions
4

3.5

3

2.5 ProKits by quarter

2 Costs by quarter
1.5
1
0.5
0
1 2 3 4 5 6 7 8

Break-‐Even Analysis, by Quarter

14
12
Value ($) Millions

10

8

6
Total value
4
Total Debt
2
0
1 2 3 4 5 6 7 8

Time (Quarters)

28

13.4 Appendix D: GANTT Chart
29

13.5 Appendix E: Personnel Résumés

ANDREW JUNG
Chief Executive Officer, Chargen Technologies
ajung@chargentech.com
514-‐398-‐0000 ext. 104

EDUCATION
Master of Business Administration 2006-‐2007
Leonard N. Stern School of Business, New York University, USA

Bachelor of Mechanical Engineering, Honors 2003-‐2006
McGill University, Canada

PROFESSIONAL EXPERIENCE
Chief Executive Officer 2011-‐Present

Chief Operations Officer 2009-‐2011
Microsoft Corporation, East-‐Asia Division

Chief Executive Officer 2007-‐2008
FibreTech Innovations

QUALIFICATIONS/SKILLS
• Project Management
• Organizational Behavior

ACHIEVEMENTS
• Rising CEO (CEO to Watch) award by CEO Q Magazine, 2011
• Microsoft Partner Network Competency Award, 2010

30

FARHAN HASAN
Chief Technology Officer, Chargen Technologies
fhasan@chargentech.com
514-‐398-‐0000 ext. 343

EDUCATION
HND-‐HNC in Product Design 2001
University Of Greenwich, UK

Bachelor of Computer Engineering 1996-‐2000

Chief Technology Officer 2011-‐Present

Product Design Manager 2005-‐2010
Samsung Mobile

Product Designer 2001-‐2004
Huwaie Mobile

• Extensive experience in 3D Studio Max, Maya, AutoCAD, SolidWorks

ACHIEVEMENTS
• RoboCoup Japan Open Winner, 2010
• AutoDesk 3DS Max Design Hero Competition-‐ Top Design Award, 2008

31

CHARLES-‐ERIC DESJARDINS
Chief Financial Officer, Chargen Technologies
cedejardins@chargentech.com
514-‐398-‐000 ext. 223

EDUCATION
London Business School, UK

Charted Financial Analyst 2007-‐2008
Texas A&M University, USA

Bachelor of Civil Engineering 2005-‐2007

Chief Financial Officer 2012-‐Present

Chief Financial Officer 2009-‐2012
Goldman Sachs

Financial Advisor 2008
Goldman Sachs

• Market forecasting and analysis
• Operational strategies specialist

ACHIEVEMENTS
• Youngest employee to reach the Chief Executive Council at Goldman Sachs, 2008
• Top cumulative score of class at CFA examinations, 2007

32

DANIEL PING-‐AN WANG
Chief Marketing Officer, Chargen Technologies
dwang@chargentech.com
514-‐398-‐0000 ext. 488

EDUCATION
University of Toronto, Canada

Bachelor of Mechanical Engineering 1995-‐1999

Chief Marketing Officer 2011-‐Present

Marketing Director 2008-‐2011
YG Entertainment

Design Consultant 2006-‐2008
Samsung

Marketing Consultant 2003-‐2006
Google

• Video editing and print media specialist
• Expansive knowledge in consumer data—social-‐media platforms, mobile apps,
call centers, loyalty programs and registries

ACHIEVEMENTS
• CES Innovations Awards Honoree, 2011, 2009
• Adel S. Sedra Distinction Graduate Award, 2001-‐2002

33

ALI ALNASHASHIBI
Chief Human Resources Officer, Chargen Technologies
aalnashashibi@chargentech.com
514-‐398-‐0000 ext. 521

EDUCATION
Ph.D in Human Resources/Information Technology Services 2001-‐2005
Stanford University, USA

The Wharton School, University of Pennsylvania, USA

Bachelor of Electrical Engineering 1995-‐1999

Chief Human Resources Officer 2011-‐Present

Chief Human Resources Officer 2008-‐2011
Hydro-‐Québec

Chief Administrative Officer 2006-‐2008
Reebok Canada

• Producing strategic operations portfolios
• Keen eye for building a depth on talent and quality, focusing on succession and
leadership and employee development

ACHIEVEMENTS
• International Personnel Management Association Award Recipient, 2010
• Prix Vision Award Recipient, 2009
• ACA Gold Medal for Marketing and Business, 2007
34

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Figure 7: Apple iPhone Sales

0.2 Manufacturing, Construction

Figure 11: $8 million loan disbursement by quarter

Number of ceramic sensors per insole 200

Number of steps taken on an average day 10,0000

13.5 Appendix E: Personnel Résumés

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