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FAQ on the COVID19

		Company stability

		Concerning WaterStation Technology’s stability in this environment, our CEO has stated the following:

		The company has an exemption to continue the assembly operation due to the criticalness of needed safe and chemical-free drinking water services

		No shortage of parts to maintain the assembly operation (currently being done in Everett, WA and Chicago, IL)

		Proactively assembling WaterStations® and storing them in inventory in four different locations (Everett, WA, Chicago, IL, Phoenix, AZ and San Antonio, TX) due to the projections of a significantly high number of orders over the next 90 days (we are currently in discussions with over 100 active investors)

	National Accounts

	After two years of effective marketing to the large retail chains, several of them have committed to WaterStation Technology for placements in their locations. Just to name a few:

Kroger – largest grocery store in the United States

7 Eleven stores • H-E-B out of San Antonio, TX - privately held supermarket chain with more than 350 stores in Texas and parts of AZ and NM

Family Dollar stores

Dollar General stores

Many others in the final stage of substantial commitments for placements exceeding 1,000 locations

QUESTIONS AND ANSWERS

Question: How is WaterStation Technology doing, and do they see increases or decreases in their revenues?

Answer: We must have water daily. Many stores have found a hoarding of plastic water bottles, which requires shoppers to look for alternative sources for their water.

We are finding our investors’ WaterStations® are having a higher usage of customers during this unfortunate time
WaterStation Technology stands ready to supply investors with inventory for placements in new locations
The lack of plastic water bottles is allowing new customers to discover the favorable taste difference with the alkaline water
o Investors read up on the alkaline water benefits versus drinking reverse osmosis filtered water found with conventional water vending machines (references available)

Question: If people are in lockdown, but the investor’s business location is inside grocery stores, how is that affecting the business owners of both the investor and sites?

Answer: The majority of our placement locations are in essential establishments, meaning they are open for business:

Grocery stores
Convenient stores
Gas stations

Thanks to Amazon purchasing Whole Foods, it established a new precedent to provide home deliveries; this then made all major retail and grocery stores to offer this service. Even though customers at lockdown in their homes, they can order home

delivery to bring the 5-gallon alkaline water containers, along with groceries and household needs to their home.

So, in answering that question, no, it is not negatively impacting our investors, but, often performing positive results.

Question: What are the marketing plans for WST to drive more adoption?

Answer: We are in a pilot study to implement our advertising program. The projected launch is on or before the end of this year. Here are some highlights of how this will drive up the revenues of each WST-700® higher by adding four additional revenue streams (Note: investors operational on or before 12 months of operation are at or exceeding 18% - 20% for alkaline water sales only:

1. Patent-pending LCD Monitor brings multiple benefits via its digital display (10, 15, 30 seconds or 1-minute time slots)

Educate customer

On the status of their water contamination in the zip code they live in (https://www.ewg.org/tapwater/)
Alkaline vs. reverse osmosis water.
Patent-pending filtration system to eliminate unwanted contaminants from the drinking water
Filtration of unwanted microplastics coming from our home faucets or found in plastic water bottles (https://orbmedia.org/stories/Invisibles_plastics/multimedia)
Elimination of plastic water bottle pollution on the environment (> 50 billion annually – only 23% are recycled)
Reduction in need of recycling plastic water bottles (enormous cost savings to our communities)

Advertising revenue

Local advertising from businesses (controlled by WSM National advertising)
National advertising from AAA Brand advertisers (controlled by corporate – working with media groups)

2. WST-700 WaterStations® provide, on each side, billboard advertising

a. $200 - $400 revenue opportunity on each side of investor’s WST-700 WaterStations®

Multiple advertisers on each side can bring even more revenue dollars

Question: If I am purchasing a machine and getting revenue streams, is that a sellable asset, could I sell it to a different person later?

Answer: Yes, there are multiple options for an investor’s exit strategy:

WST has First Right of Refusal to purchase investor’s half of the partnership
WST has a 10-year buyout formula in the Management Operating Agreement that would be mutually agreeable between the two parties
WST will let the other Business Alliance Owner investors know investor’s half of the partnership would be for sale
If an investor were to find a buyer for their half, WST has the right to either accept or refuse the buyer (WST will carry out a background check and creditworthiness since this would be a new investor)
WST will list, on the broker network of IFPG and FranServe (over 1,000 brokers), the sale of investor’s half ownership; investor would need to pay a 10% brokerage fee (WST will carry out a background check and creditworthiness since this would be a new investor)

Question: With WST having such a strong growth, I am having a problem in getting any response from corporate to reply to my prospects

Answer:

Field Infrastructure:

Corporate has focused on establishing an infrastructure for field operations by acquiring 6 Vending Dealers, representing up to 150 full-time employees, to focus on:

Finding proper locations for WaterStation® placements
Signing up a 3 – 5 year NDA with locations with an automatic renewal
Service team to meet appropriate city codes for proper site preparation for electrical and plumbing requirements
Install, calibrate and turn over installed WaterStations® to our BOA investors
The Vendor Dealer carrier oversees the operational management of the BOA’s WaterStations® and provides service needs, when required
Corporate wire transfers each monthly Net Revenues to the BOA’s checking accounts the middle of each month along with a Profit and Loss statement

Corporate Infrastructure:

Hiring new team members to address the assembly growth needs along with administrative requirements for smooth operations of shipments, installation coordination and responsive interface with current and new investors.

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FAQ on the COVID19