From: jimpaul@montereybay.com Sent: Tuesday, May 05, 2009 7:47 AM To: Hamilton, Andrew Cc: Bellingham, James; kcharette@airflowsciences.com; abanka@airflowsciences.com Subject: Update on DARPA Station Keeping Project Business Arrangements Andy, I contacted ASC's Accounting Manager, Kim Charette, and she provided the accrued charges through 30 April 2009 for the Station Keeping Project (ASC Project Designation: MSK). You provided authorization to begin work on this project in an e-mail dated 11 February 2009. The following key tasks were completed during the time period (a full description of tasks completed will be included in the invoice to be submitted by ASC): 1. Research into reaction foil modeling. 2. Preparation for project kick-off meeting held in Moss Landing on 11 March 2009. 3. Participation in kick-off meeting with MBARI, Marine Innovation and Technology, and Bill Webster in Moss Landing on 11 March 2009. 4. Review of collected papers on flapping foils, dynamic stall, power extraction methods, etc., and interviews with researchers in this field. 5. Preparation for project review meeting with DARPA sponsors. 6. Participation in DARPA review meeting in Moss Landing on 16 April 2009. 7. Follow-up e-mails and discussions with DARPA consultants and other researchers on flapping foil dynamics and modeling. The charges include engineering time and travel expenses and the accumulated amount through 30 April 2009 is $15,966.15. Please let Andy or me know if you have any questions. Thanks. We are looking forward to the next phase of the modeling work. Sincerely, Jim James C. Paul, P.E. Senior Engineer Airflow Sciences Corporation Western Region Office Tel.: 831-624-8700, e-mail: jpaul@airflowsciences.com