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To, Mr. Anurag Saxena Hyderabad Kind Attention:

Ref: D\EP\2010\0269 25 June 2011

Mr. Anurag Saxena, Consultant

Subject: Proposal for EcoPool Climate Control System Reference: Heat Pump for 67 KL Swimming Pool Dear Sir, In thanks to your keen interest in saving energy and cutting operating costs by installing an eco-friendly and an energy-efficient solution to your Pool water heating requirement, we are pleased to present to you EcoPool the advanced solar water heating systems that use the Heat Pump Technology.

Please find herewith an offer document describing: > How the technology works a technical write up > Why it saves energy Unique features > Enjoy your pool round the year; heating it in winters and cooling it during summers, all with a flip of a switch on the same system > The lowest operating cost to heat your pool > Produces free cool air while heating the pool water, > Does not depend on weather, works efficiently in all weather conditions We have performed a needs analysis specific to your requirement, and are submitting our model selection parameters, the system that we recommend, its technical specifications, operating cost comparison with savings analysis and a commercial quote for your kind perusal. We trust your decision of choosing EcoPool will bring added value to your swimming pool, giving you a unique, comfortable and complete experience during any season. Also, your contribution to the environment by adopting a green energy product will perfectly lead the way for others to follow.

All the information needed to purchase and install an EcoPool system is included in this offer document, however, should you have any additional queries, please feel free to revert to us, and we shall be more than eager to get them answered. Truly yours,

Umar Shamshiri Executive Director Damas Technologies Pvt Ltd Manufacturer of Air Source and Water Source Heat Pumps (0) 9966715667 x

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EcoPool
Why enjoy your pool only during summers? Presenting EcoPool A round the year pool climate control system that does both; heat your pool during winters, and cool it in the summers, so you enjoy your pool the way you always wanted to. EcoPool systems use a reversible operating mechanism that heats when you want it to, and at the switch of a button, turns into a water cooling system. All this, at a single one time investment for a single system.

The operating cost to heat or cool the water is so low that it makes your investment in building a swimming pool worth all you put in. To your added comfort, and as a measure of safety, the water temperature is raised/lowered at a gradual pace so you dont feel temperature shocks of opposite extremes, unlike gas/oil fired boilers.

Heat Pumps the Advanced Solar Heat Extraction Technology

While solar panels were invented to capture the suns energy, and to a great extent perform the intended function, they have a serious limitation they can only capture the active solar energy, energy from sunlight when the sun is up, and shining. As the sun sets, solar panels are reduced to just glass and steel, with no functional output at all, becoming a liability instead. Heat Pumps focus on the active, as well as the passive solar energy, stored in the air around us, even after the Sun has set, and this particularly makes sense considering that 60% of a day has only passive solar energy. Heat Pump is actually based on a very simple, well known principle. It works in a similar way to any airconditioner or a refrigerator, using the Vapor Compression Cycle. The key is circulating an organic fluid with a very low boiling point (around -40 C) through a closed loop, allowing it to evaporate, thus picking up free heat energy from the ambient air. This hot liquid, now evaporated into vapor is now compressed with a vapor compression pump, thereby further raising its temperature. Then the hot vapor is brought into thermal contact, with the feed water that needs to be heated. As a result of a temperature difference between the two media, the heat flows from the hot vapor to the cooler water, till a thermal equilibrium is established, and the water temperature is raised to the required level.

What does it all mean?

Quite simply put, it means that up to 75% of your heating will come for free, from a clean, renewable source; the air around you. To get 4 units of heat energy with a conventional technology, you need to have an input of greater than 4 units (considering conversion and efficiency losses). But with a Damas system, the input is only 1 unit, and the other 3 units required are extracted from the ambient air, any time of the day, any day of the year.

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Model Selection Parameters

Operating Conditions Geographical Location Pool Location Dimensions (feet) Total Volume Operating Temperatures (C) Maximum Heat Up Load Hheat up (Kcal) M (Water Storage Volume; Liters) C (specific heat of water; cal/gm) Total Heat Up Load (Kcal) Total Heat Up Load (Kwh) Inlet 15 Length 55 Hyderabad Outdoor - Sheltered Width 10 70,084 Set Outlet 30

Average Depth 4.5 T 15

M x C x T 70,084 1 10,51,263 1,226

* Maximum Heat Up Load is the heating load required to heat the body of the pool from the minimum ambient temperature in December to the required set temperature. This is the first time start up load, and thereafter, the pool needs to be heated only as much as to compensate for the surface heat loss

Maximum Heat Loss Load Hheat loss (Kcal/hr) A (Surface area of Pool; Sq. m) Ks (Heat Loss factor; Kcal/hr.m.c) Heat Loss Load/hour (kcal/hr) Heat Loss Load/hour (Kwh)

A x Ks x T 51 70 53,652 62.59

* Maximum Heat Loss Load is the heating load required to maintain the pool at the required set temperature, after it has been heated for the the first time from the minimum ambient temperature in December to the required set temperature. This is the recurring load for every hour the pool is required to be used at the required set temperature.

Seasonal Heating Requirement Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec T1 16 18 21 24 27 24 23 23 22 21 17 15 T2 30 30 30 30 30 30 30 30 30 30 30 30 T avg 22 24 27 30 33 29 28 26 25 24 22 21 Mode ON ON ON OFF OFF OFF OFF ON ON ON ON ON Load 1145 981 736 0 0 0 0 572 654 736 1063 1226 Q heat up Time Energy 13 392 11 336 8 252 0 0 0 0 0 0 0 0 7 196 7 224 8 252 12 364 14 421 Cost 1962 1682 1262 0 0 0 0 981 1121 1262 1822 2103 Q heat loss / hour Load/hr Energy Op. Cost 55 19 94 51 17 87 47 16 80 0 0 0 0 0 0 0 0 0 0 0 0 43 15 74 44 15 76 47 16 80 54 19 93 58 20 99

Recommended EcoPool Capacity EcoPool Capacity (Kw) Quantity Combined Heating Capacity (Kw) x Max. start up heating time (Hours)

87.5 1 87.50 14.01

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Technical Specifications EcoPool Climate Control Systems

Parameter Heating Capacity Power Consumption Power Supply Vapour Compression Pump Rated Water In Temperature Rated Water Out Temperature Maximum Water Outlet Temperature Operating Temperature Range Water Connections Diameter Net Weight Dimensions (l x w x h) Noise Space Occupancy Proposed number of Heating Units Unit Kw kw V/ph/Hz nos. C C C C Inches Kg mm dBA Sq. ft. nos. EP - 88 88 30 380 / 3 / 50 4 18 27 40 3 ~ 45 3 650 2180 x 1070 x 2090 60 45 1

*Performance Measuring Conditions: Ambient temperature: 15 C, water inlet temperature: 15 C, target set temperature: 28 C

Total Space Occupancy for the project

The total space required by EcoPool Climate Control Systems (1 nos) shall not exceed 45 square feet

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Operating Cost
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec * Load/hr kw 55 51 47 0 0 0 0 43 44 47 54 58 Q heat loss Energy kw 19 17 16 0 0 0 0 15 15 16 19 20 Cost/hr Rs. 94 87 80 0 0 0 0 74 76 80 93 99 Daily Operating Cost 4 hrs 8 hrs 12 hrs usage usage usage 375 750 1126 350 700 1050 321 643 964 0 0 0 0 0 0 0 0 0 0 0 0 298 596 894 302 604 906 321 643 964 371 742 1113 397 795 1192 Monthly Operating Cost 4 hrs 8 hrs 12 hrs usage usage usage 11255 22511 33766 10497 20994 31491 9644 19287 28931 0 0 0 0 0 0 0 0 0 0 0 0 8939 17878 26817 9062 18124 27186 9644 19287 28931 11132 22265 33397 11920 23839 35759

The above mentioned values are operating costs/hour, to maintain the pool at the set temperature after it has been heated up to the set temperature initially We strongly recommend a Pool Blanket to avoid heat loss during periods of non-use, and have considered its use in the calculations above

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Initial Heat-up Cost Comparison

General Operating Cost comparison to heat 1,000 Liters of water from 15 to 28 C using different systems: Parameter Energy Required Fuel Consumption Fuel Cost Operating Cost Savings Savings Unit KW Kw/Kw/L/ Nmh Rs. Rs. Rs. % 5.20 5 26 17.84 5 89 63 70.86% AquaHeat Electric Boiler Diesel Boiler LPG Boiler

15.17 2.35 41 96 70 72.98% 3.38 20 67.6 41.6 61.54%

Initial heat up Operating Cost Comparison for 70084 Liters^ Parameter Pool Volume Energy Required Fuel Consumption Fuel Cost Operating Cost Savings Savings Unit Litres Kw Kw/Kw/L/ Nmh Rs. Rs. Rs. % 420.51 5 2103 1442.91 5 7215 5112 70.86% EcoPool Electric Boiler Diesel Boiler LPG Boiler

70,084 1,226 189.82 41 7783 5680 72.98% 273.33 20 5467 3364 61.54%

^ The comparison made above is to heat the pool water volume from the minimum temperature of 15 C in December to the final target temperature of 30 C

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Operating Cost Comparison & Savings Analysis

No. of hours of usage / day: Seasonal Heating Requirement Load/ Load/ hr day Jan 16 30 22 ON 55 218.9 Feb 18 30 24 ON 51 204.1 Mar 21 30 27 ON 47 187.5 Apr 24 30 30 OFF 0 0 May 27 30 33 OFF 0 0 Jun 24 30 29 OFF 0 0 Jul 23 30 28 OFF 0 0 Aug 23 30 26 ON 43 173.8 Sep 22 30 25 ON 44 176.2 Oct 21 30 24 ON 47 187.5 Nov 17 30 22 ON 54 216.5 Dec 15 30 21 ON 58 231.8 Annual Consumption (HSD; Electricity) Fuel Cost Annual Operating Cost Month T1 T2 T avg Mode Annual Savings Annual Savings % Initial Cost of Diesel Boiler Initial Cost of EcoPool Simple Payback Simple Payback Years Months Diesel Boiler
HSD / day HSD / month

EcoPool
kwh / day kwh / month

32 30 27 0 0 0 0 25 26 27 31 34

953 889 817 0 0 0 0 757 767 817 943 1,009 6,952 41 2,85,043

75 70 64 0 0 0 0 60 60 64 74 79

2,251 2,099 1,929 0 0 0 0 1,788 1,812 1,929 2,226 2,384 16,418 5.1 83,734 2,01,309 70.62% 4,81,250 6,87,500 1.025 12.295

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Price & Payment Specifications EcoPool Advanced Solar Water Heating System using the Heat Pump Technology
S No. Particulars 1 EcoPool Climate Control System - 88 Quantity 1 Price 6,87,500 Line Total 6,87,500

Sub Total VAT @ 4%

6,87,500 27,500

Grand Total Amount in words: Rupees Seven Lacs Fifteen Thousand Only

7,15,000

Note: > The tax rates and other charges mentioned above shall be charged as per the rates prevailing at the time of delivery > The price(s) mentioned above are ex-factory, Hyderabad, and exclude Transportation charges from factory till site, and lifting charges at site till the installation spot

Payment Schedule
> 50% advance along with Purchase Order > 50% balance against Pro-forma Invoice prior to dispatch of equipment, or a maximum period of 12 weeks from date of Purchase Order > Payments made after 12 weeks from date of Purchase Order will attract an interest of 15% PA > All Payments to be made via bank transactions, in favor of "Alliance Marketing Corporation", the authorized distributor for Damas Technologies Pvt Ltd.

Delivery
> Please allow 60 days from the date of advance payment and Purchase Order

Validity
> This terms of this offer are valid till 30 days, and the price valid till a 2% rise in raw material cost

Warranty
> All equipment supplied by Damas Technologies carries a fully comprehensive warranty of 12 months from the date of delivery, on-site, parts and labor included

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Appendix 1

Scope of Supply
EcoPool Temperature Control System for Swimming Pools consists of: Scroll Compressors, thermally insulated shell & tube heat exchangers, fans with safety grilles and pre-wired electronic controls All the above mentioned components mounted in a Mild Steel enclosure with water inlet and outlet connections for drawing in water, heating, and supplying it back to the source Fans top discharge type, to allow for optional air passage ducts to open areas for free comfort cooling while the system heats the water Phase indicators and voltage stabilizer with built-in surge protector Electronic temperature display and sensors to display Inlet and Outlet water temperatures Exclusions: Lifting and handling of equipment till the place of installation Water circulation pump to circulate water from pool till heating system and back All electrical connections All plumbing connections Civil and structural work, if any required Hot water piping and insulation of hot water pipes Water treatment system Any other items not specifically included in the scope of supply

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Appendix 2

Piping and Instrument diagram (P&I)

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EcoPool Swimming Pool Heating System Based on Air Source Heat Pump Technology Model No: EP 88 Heating Capacity: 88 KW