EQS Inc.EQS Inc.

ENERGY QUANTIFICATION SYSTEMS

EQS Vision & Mission

Our Vision is to become the premier global green mortgage product & financial software technology innovator.

EQS calculation model is the global blueprint and the nexus platform for the sustainable building and financial industries.

EQS MISSION

Our mission is to develop & execute baseline formulas that facilitate energy & financial independence by:

• Measuring & quantifying real-time energy usage

• Bundling financial incentives &• Creating viable financial payback

mechanisms

EQS BUSINESS MODELEQS BUSINESS MODEL

Business StrategyBusiness Strategy• Technology Partner – Database has numerous

applications for green industry roll outs. Capacity to capitalize on repackaging green information for global markets represents a $1 trillion market.

• Capital Funding Partner – Funding $20 b in first five years 3% minimum spread on loan, $600 m.

• An investment of $8m to capitalize the company, hire core staff, develop, back-fill the database, research & implement marketing educational components.

• Our goal in the next five years is to exceed global market potential of 335,000 green buildings, achieving energy reduction of greater than 70%.

EQS BUSINESS EQS BUSINESS MODELMODEL• Global unit/blueprint for green capitalization; Financial

& real estate markets will pay fees for licensing, royalties & creating baselines for their green financial models.

• Adding value to existing business & industry; Revenues from membership fees & product override/marketing fees for green products.

• Fees from EQS database technology usage and global rollouts for Google applications. Additional fees for mortgage loans & servicing opportunities for our financial strategic partner.

• EQS and our strategic partners will receive cash, tax incentives, & fees from applications of our commodity based model.

EQS Investment SummaryEQS Investment Summary

• EQS Capital Investment $8m, first stage capitalization of $1m for EQS Database prototype development & EQS Financial Product development

• Access to $1 Trillion market, cap & trade investment model, mortgage , financial modeling for all applicable industries

• EQS projected revenue over five years: $1.9b (conservative)

WHAT EQS DATABASE WHAT EQS DATABASE DOESDOES • Develops formulas for energy efficiency on all utilities

& translate information to financial markets.

• Database blueprint for managing green-information.

• Real time interfaces for energy usage measurements.

• Facilitates tracking systems identifying all regional & federal tax/green credit incentives to be applied toward energy efficient investments & mortgages.

• Provides development cost & energy savings analysis for regional climates to determine installation for most appropriate technology & building upgrades.

WHAT EQS Financial Product WHAT EQS Financial Product Modeling DOESModeling DOES

• Creates accelerated financial paybacks on buildings upgrading to energy generating technology.

• Provides a financial model for risk assessment, facilitating capital funding to retrofit or “green up” buildings.

• Streamlines processes for capitalization & securitization of mortgage loans for environmental buildings.

• Interfaces applications and quantification processing for financial transactions/ financial markets.

Overview of EQS Overview of EQS • Measures & quantifies energy usage for

conventional & non-conventional utilities improving energy efficiency.

• Identifies financial incentives for economic viability in buildings, regionally.

• Differentiates “ALL” current utility savings models & renewable technologies accelerated cost outlay with dramatically reduced paybacks.

• Standardizes a method for applying utility savings to a transaction for investments in securities, mortgage acceleration, & credit analysis.

WHO WE SERVEWHO WE SERVEHomeowners & Commercial Building OwnersHomeowners & Commercial Building Owners

•Offering mortgage acceleration & early pay offs, lowering monthly overhead by reducing energy costs.

•Facilitation of cumbersome tax incentives to further reduce cost outlays & closing costs on loans.

•Identifying the most affordable, highest performance energy efficient, renewable generating technology through a seamless automated system.

•Providing cost absorption of energy efficient upgrades, creating affordability for retrofits & new construction loans.

•Facilitating energy & financial independence.

WE SERVE:WE SERVE: Lending Lending InstitutionsInstitutions

•Risk reduction -- lowering deferred maintenance costs & reducing defaults.

•Viable positioning in capital markets,opportunity to trade globally in carbon credits & green tags.

•Visibility & transparency in advertising & public relations in emerging market.

•Major distribution channel of “green financial” product to markets & existing customers.

•Tax deductible community based incentives for reducing interest rates to consumers from utility and commodity spreads.

WE SERVE:WE SERVE: DevelopersDevelopers

• Capture financial & tax incentives on infrastructure cost outlays.

• Ability to be an energy co-producer, dramatically absorbing infrastructure costs with utility spreads.

• Facilitate zero-net energy building production, reducing carbon footprint.

• Provide a marketing strategy for increased sales & & for green builders to become leading-edge innovators.

WE SERVE: WE SERVE: Green Technology IndustryGreen Technology Industry

•Accelerated payback & absorption of cost outlays for equipment creating affordability.

•Real-time monitoring, calculation & quantifying systems providing consumers & industry with baselines for highest performance measurements.

•Access to green database & mass marketing potential.

•Municipal/regional retrofit and new construction product distribution.

EQS Drives the MarketsEQS Drives the Markets

• Revolutionizes green development & financial industries through patented breakthrough technologies designed to identify, measure, & quantify financial mechanisms.

• EQS method drives economic & social market trends toward energy & financial independence with zero-net energy model buildings, communities, cities & entire continents.

EQS Technology EQS Technology

Our patented method standardizes energy units to a common unit & converts the savings values on one or more utilities into a monetary value, quantifying savings on utilities & energy efficiency.

We capture calculations of baseline data for energy into kilowatt hours, creating measurement formulas of energy savings evaluations & financial paybacks.

EQS Formulas & TheoriesEQS Formulas & Theories

• All energy can be quantified & transferred from kilowatts to dollars.

• Higher loan amounts & improved energy features transfer to greater savings & market value increases.

• Mortgage acceleration & bundled financial incentives capture capital investment & absorb capital cost outlays

Current Industry Energy Current Industry Energy Efficient Appraisal Calculation Efficient Appraisal Calculation

ModelModel

• Energy savings on building (Monthly payment)

• Interest rate (Current Interest Rate)

• Weighted average physical life of improvements (Amortization determined by rating)

= Energy efficient valuation is = Energy efficient valuation is added onto the lesser of appraised added onto the lesser of appraised value or purchase pricevalue or purchase price

Example of Current & New Example of Current & New Appraisal Calculation Appraisal Calculation

ModelModelOld Model EEM

$100 Energy Savings (pmt)6% Interest Rate24 years (Amortization)

=$15,244

$200,000 Appraised Value Appraised Value w/o w/o

improvementsimprovements

$ 15,244 Energy Savings Energy Savings ImprovementImprovement

$215,244 $215,244 Property Value Property Value

EQS New Model (Same Formula)$376 Energy Savings (pmt)6% Interest Rate20 Years (faster payback)

= $52,319 $200,000 Appraised Value (WI)Appraised Value (WI)

$52,244 Energy Savings Energy Savings

ImprovementImprovement

$252,244 Property ValueProperty Value

EQS Financial Product EQS Financial Product Valuation PotentialValuation Potential

• Current appraisal evaluation model does not factor renewable energy quantification

• All calculations are based on present value (inflation, fuel price increases, tax incentives, & decreased technology prices due to mass production capacity are not factored)

• The return on investment & property appraisal valuations are greatly improved using standard model formulas & incentives

EQS Financial Product vs. Industry EQS Financial Product vs. Industry Energy Efficient MortgagesEnergy Efficient Mortgages

EEM• Reduced Interest Rate• Only allowable on first

mortgages• Recognizes energy

improvements w/o renewables

• Allows appraised value or energy improvement calculation, “whichever“whichever

is lower”is lower”• Manual underwriting

& lack of market &qualifying procedures

EQS Financial Product• Reduced Interest Rate• First, second mortgage

product, commercial or residential capacity

• Recognizes “ALL” energy improvements

• Accelerates capital improvement outlay for maximum value & ROI

• Streamlined automated process & interfaces with energy industry, utilities & loan servicing

EQS Database & Product Flowchart

Building Questionnaire1. Upgrade Calculation: • What simple payback period would you like to use for selecting upgrades? • 2. Which city has the most similar climate to your house?   • 3. Year your house was built:   • 4. What is the conditioned floor area:    sq. ft.• 5. How many stories above ground level are there?   • 6. The front of your house fEQS:    • 7. What type of foundation does your house have?    • 8. How much attic floor or roof insulation do you have?   • 9. Does your house have wall insulation?   Yes    No/Don't Know • 10. Does your house have foundation or floor insulation?   Yes   No/Don't Know • 11. Do you have a clothes washer?    Have Don't Have • 12. How many refrigerators do you have?    • 13. How many freezers do you have?    • 14. What is your water heater fuel?    • 15. What kind of heating equipment do you have?    • 16. What kind of cooling equipment do you have?    • 17. Starting with the front of your house, how many windows are on each side

(Assume each window is 12 square feet)• Front:    Left:    Back:    Right: • 18. What price do you pay for your energy?

• Consult your utility bills to update the statewide averages shown below.

• Electricity Piped Natural Gas$/therm or $/100 cubic foot Use Average price per kWh$/kilowatt-hour Liquid Propane Gas$/gallon Select an electricity tariff(Click Save, a new page will open with a list of utilities) Fuel Oil$/gallon

• 19. Please tell us how many people living in your house fall into the following groups: 0 to 5 years  6 to 11 years  12 to 18 years  18 to 25 years26 to 59 years60 + years 

Flowchart Flowchart Construction/Retrofit Loan Construction/Retrofit Loan

ProcessProcess

EQS Financial Product EQS Financial Product Special Features Special Features

• Lenders innovatively apply energy savings directly to the loan balance; re-amortizing borrowers loan

• Appraisers add energy features, including renewable technologies, factoring increased market values

• Renewable Energy Credits, & Carbon Tax credits incentives bundling offsets interest rates, closing costs & loan balances

• Capability to capture cap & trade incentives through market penetration regionally and continentally

We Appreciate Your Contribution & Support In Financing Sustainable,

Energy Efficient Projects

THANK YOU!