CEO Group by tyndale


									   We are in the process of providing a new web-based calculator, which will be
  available shortly. This document is provided in the interim for your perusal and


  Thank you for visiting our website and the interest shown in our Group.

We recommend that a QPower Green energy generating Power Company is
structured to manage energy generation, billing, maintenance and day-to-day
administration for all homeowners in the development. The developer will receive a
royalty engagement fee per unit from QPower. The royalty offsets part of your
power provision costs and provides you with an additional profit per unit. The
benefit to you or your company and the occupants are:

   1.       The occupants (or buyers) will pay substantially less for electricity over
            the next 30 to 50 years. They will also have will have automatic load
            shedding protection
   2.       Property can be sold as a “Green house” thus attracting as higher margin
            of profits as homeowners will have substantial savings over the life cycle
            of green power purchased.
   3.       Lower reticulation costs.
   4.       The engagement royalty fee will help offset your building costs, providing
            you with an additional profit per unit.
   5.       Much shorter lead-time to implementation and power provision.

The estimate figures below will give you some insight into our solution cost and the
engagement royalty fees that can be expected. An official quotation will be provided,
after we have discussed your unique requirements with you.

We have provided a financial overview based upon a 100 unit development with the
following structure:

        Low Energy Consumption Units:                                  70
        Medium Energy Consumption Units:                               20
        High Energy Consumption Units:                                 10
        Total Units                                                   100
                                       Superstrike Investments 68 (Pty) Limited
                                               Trading as QPower (Africa)
          2nd Floor, West Tower, Maude Street, Nelson Mandela Square, Sandton, Johannesburg, South Africa
         P.O. Box 55860; Northlands, 2116 (Business) P.O. Box 785553, Sandton, 2146 (Corporate & Suppliers)
         Tel: +27 (0) 11 881 5863 Fax: +27 (0) 11 (0) 881 5611 (Business) Sales & Marketing +27 (0) 85166 300
                                            Call Centre 0860 QPOWER
All figures below exclude VAT. In order to provide a financial insight we have
provided gross and Net Present Value figures (NPV). Our model is based on solar
geysers and low energy globes being installed in each unit.

     The Gross figures are the total amounts, escalated by inflation or a cost
      factor, that have been totalled for a period of 30 years.
     The NPV is the same calculation, but where a factor of 12% has been used to
      discount the figures so that they can be viewed in today’s equivalent in
      Rands. For example something that costs R100.00 per month toady will cost
      R404.56 in 10 years time if costs went up at 15% per annum. The total paid
      over 10 years would amount to R24,364.46. However money devalues over
      time. If we assume a 12% discount factor the R24,364.46 is only R12,355.97
      in today’s money. Another way of looking at it is, if we banked R12,355.97
      and received 12% interest per year, we would have sufficient money to pay
      the R24,364.46 over 10 years, deducting the monthly amount and adding the
      interest to the balance in the account.

Client Savings per Unit:

It is assumed that prices will be calculated by applying a 10% discount to what
would have been paid to Eskom. If we take a 30-year view we get the following:

              Energy Consumed    Client Saving          Client Saving
                                 Gross                  NPV
              Low                            125,886.10             10,907.74
              Medium                         394,210.15             34,157.40
              High                           812,604.40             70,410.30

Pricing per Unit

Our pricing model can be evaluated against the typical cost of providing
conventional power to a unit by determining the following for the development:
     The cost of providing power to the border or perimeter of the development
     Substation building costs
     Reticulation from the border to the substations
     Supply Connection fees
     The total of this is the cost of providing power to the development and the
        initial reticulation to the substations. This total can then be divided by the
        number of units to get to the Conventional Cost. The differential between
        the Conventional Cost and the QPower cost is subsidised by us.

              Consumed   QPower Price Conventional Price QPower Subsidy
              Low           38,000.00          27,500.00        10,500.00
              Medium        95,000.00          40,000.00        55,000.00
              High         242,000.00          70,000.00       172,000.00

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It should also be noted that Developers are able to make additional savings on their
cabling costs, as a result of deploying our solution.

Engagement Royalty Fee per Unit

The engagement fee will be paid to your company on the registration of the units
into the names of the buyers. Table below is based on royalty per house unit.

                     Energy Consumed Engagement Royalty Fee
                     Low                          2,0000.00
                     Medium                        9,500.00
                     High                         24,200.00

Total Price and Engagement Royalty Fees for the entire Development

The prices and the QPower subsidy as well as the engagement royalty fees that will
be paid to your company are as set out in the table below:

      Energy                                 Engagement
      Consumed No of Units     QPower Price Royalty Fee      QPower Subsidy
      Low                 70.00 2,660,000.00    1,400,000.00       735,000.00
      Medium              20.00 1,900,000.00      190,000.00     1,100,000.00
      High                10.00 2,420,000.00      242,000.00     1,720,000.00

                          100.00   6,980,000.00   1,832,000.00     3,555,000.00

Engagement Conditions

To enable QPower to provide the occupants with a discount on their power
consumption and to fund the maintenance of the Solar City over a 30 to 50 year
period, as well as recovery our subsidy, QPower needs to secure its rights. The
agreements would be conditional upon the following:

     The title deeds and body corporate rules for the development must be
      structured to protect and grant sole and exclusive rights in respect of power
      provision to QPower. QPower will provide the format of this to the
     All units will be obliged to obtain their power from QPower for the full term.
     The land that the Solar City will be erected on, will be sold to QPower at
      cost, and transferred into the name of the QPower Electricity generation
     Solar Geysers and low energy globes must be installed in the units.
     Client must engage QPower holding for professional services and the QPower
      Renewable Energy Engineers Co for design and planning.
     QPower is currently at an advanced stage of contractual negotiations with
      one of the largest conventional power groups whereby QPower will sell a

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         minority interest to this organisation. As a consequence, all offers as
         presented on our web application or by direct contact with clients, are subject
         to withdrawal without notification.

Please do not hesitate to contact us if you have any queries or questions. In
conclusion, we look forward to meeting with you in order to commence with the
next steps in engaging with your company.

Yours Faithfully

For & on behalf of: CEO QPower Group

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