THE COMPANY

1.Business proposal

Artemar S.A.C. (ARTEMAR) is a company that has developed

a biotechnological product that is 100% biodegradable with the property of eliminating the
bad smell, the bacteria and viruses contained in contaminated waters.

DAC-1 is a high-performance bioenzymatic disinfectant complex, extremely

effective for the treatment of wastewater, allowing its reuse, improving
its quality (LMP) and making it optimal for the irrigation of green areas with the following
additional advantages:
• Efficient use of WATER resource in the maintenance of green areas
• Elimination of marine pollution through the company's collectors.
sanitation.
• Use of appropriate clean technology.
• Low cost
• Eradication of groundwater pollution and preservation of the environment.
• Prevent its discharge into the sea (contamination of fresh water with sodium) through
soil irrigation for its RENEWABLE effect due to filtration to the groundwater.

This product has been made using clean technology, according to

established in the Kyoto Protocol, for the reduction of greenhouse gases
greenhouse.

1.2 Production & Development Process

ElDAC-1 is a clear, odorless liquid solution, formulated in dioxide of

hydrogen, to which an enzyme is added that acts as a catalyst
ionization

The enzyme is a ferment from plants and residues of hydrobiological species that is
they are processed in batches, over a period of 15 days, obtaining the bacteria that in turn
the enzyme complexes are produced (amino acids, carboxylic acid). This process is
Conduct in laboratories that have aseptic areas to avoid chemical reactions.
inappropriate for their qualitative performance.

To find the appropriate dosage for each treatment of contaminated water, first
A protocol for physical-chemical-microbiological analysis of the effluent to be treated must be followed.
(pH, hydrogen sulfides, ammonia, fecal coliforms, putrescine, BOD, COD), is
to say, identifying its total composition in ppm.

From these results, the amount of the dose to be applied of the enzyme is determined and
of hydrogen dioxide (mL/m3), based on an efficiency table provided by the
Lima Sanitation and Potable Water Company - SEDAPAL.

The formulation of DAC-1 from ARTEMA is owned by Artemar/Guillermo.

Flores G. The research and development of this product took 14 years, financed
with its own resources and currently holds the Acute Toxicity Certificate and
Microbial confrontation awarded by the quality control laboratory of the
Cayetano Heredia Peruvian University and the Sanitary Authorization issued by
Director's Resolution of the General Directorate of Environmental Health - DIGESA, agency
from the Ministry of Public Health of Peru (No. 0141-Digesa/2006).
1.2.1 Providers

Currently, hydrogen dioxide is obtained from local importers and in the

the quantities that have been available in the market have always been found so far
they have needed, according to the level of operation and sales they have been having
ARTEMAR. This product is manufactured by BAYER and is imported into Peru from its
different plants in Germany, Brazil, Turkey, Spain, Mexico, etc.

To improve the supply of Hydrogen Dioxide, its importation has been considered.
directly, through annual supply contracts (120 tons.), in shipments
quarterly (40 tons.), starting from 2008; which reduces the cost of inputs in
approximately 15%.

To cover the costs of supply of inputs and proposed operations, it will be

a working capital injection of around US$ 280,000.00, the
which will be obtained through bank loans or venture capital funds.

1.3 Market structure and analysis

1.3.1 Target market and customer base

Currently, different types of water treatment systems are used.

residuals, with effluent retention systems in oxidation lagoons and/or
stabilization, using large tracts of land, skilled labor, and more
30 days of processing. These systems have already become obsolete and in the
Currently, these waters are not being treated and are being directly discharged into the sea or to
the rivers, polluting them.

Likewise, the green areas are being watered with potable water for consumption
human (urban area), which must be reversed by recycling contaminated effluents
by means of methods that use reagents of natural origin, instead of chemical ones, in order to
protect the environment for now and the future.

Additionally, another source of pollution in the sea and rivers is silos and wells.
septic systems for homes, hotels, clubs, hospitals, and industries; those who limit themselves to
evacuate the contaminated effluents in raw form in tank trucks, which
they transport and dump in places where environmental pollution is maintained, with
bad odors and pathogenic bacteria. This also needs to be reversed.

In this regard, our clients would be the entities responsible for the green areas.
public, as well as from the private sector.

As for the Public Sector, it would be the municipalities and the regional governments.
In this sense, ARTEMAR has successfully started the treatment of effluents.
irrigation contaminated that is used by the District Municipality of San Miguel in the city of
Lima, who have expanded their green areas without incurring expenses
additional and rather, the DAC-1 has allowed them to achieve significant savings in their costs
for water, from a monthly expense of US$ 0.90 per m3, now spends monthly
US$ 0.30 per m3.

Regarding the Private Sector, ARTEMAR provided the comprehensive service (disinfection and
evacuation of up to 5,000 m3 per day) from 8 septic tanks of 80 m3 each in the
facilities of the Beach Club at El Bosque Country Club, allowing the club to reduce
their sanitation maintenance costs to 1/3 of what they were spending before using
our services and additionally, it has allowed you to expand your green areas without incurring
in additional costs and only with the reuse of their treated effluents.

Since 2006, the main beneficiaries of the ARTEMAR system have been...
tourist hotels in the northern area of Peru (Punta Sal, Mancora, and Los Órganos).

Other potential clients would be:

• The artisanal fishing landing sites (which has already been tested in the plant
Las Delicias pilot, in Sechura, owned by FONDEPES.
• Oil Refineries (PETROPERU, Talara)
• Fish Meal Plants
• Mining camps
• Oxidation Lagoons
• The urban drainages that are discharged into the rivers
• Irrigation channels for agriculture (for example, the Surco River and the Rimac in Lima)
• Disaster zones due to the collapse of public collectors
• Percolation silo treatment in areas of extreme poverty (populations
minors and human settlements
• Wetlands and swamps adjacent to urban areas

1.3.2 Competition Analysis

ARTEMAR's services in Lima compete with 4 companies that use trucks.

tanks to evacuate the contaminated effluents, which are discarded in any
desert place, without any treatment and at high costs (US$ 12.00 per m3 in the city and
outside of it, the surcharge is an additional 30%.

There are also 3 companies that carry out disinfection work based on chlorine.
chlorobenzenes and sodium hypochlorite, which are chemical pollutants of the environment
environment and currently these compounds are banned worldwide for
the treatment of wastewater, because these compounds upon contact with
organic solids in suspension form trihalomethanes and these in turn release
phenols, which are highly carcinogenic and mutagenic (Pan American Center for
Engineering and Environmental Health - WHO.

1.3.3 Scope and Market Potential

The DAC-1 is a new and unique product in its category in the treatment market.
from contaminated waters and with only a year of introduction, it already has a list of
around 20 clients, including the main hotels in Mancora and
Tumbes, Fondepes, the El Bosque Country Club, the San Miguel District Municipality and
the chain of chicken shops ROCKY'S.

Initially, to introduce the DAC-1 into the market, ARTEMAR used as a strategy
the direct sales system, to previously selected customers in terms of size
the importance in the Peruvian economy; in order to build an image that could be
backed by testimonials from prestigious companies belonging to various sectors
from the economy, thus highlighting the versatility of capacity and
effectiveness of DAC-1.

Given that the DAC-1 is presented as the best technological alternative for recovery
contaminated water resources (sewage and wastewater), allowing their
reuse in the irrigation of parks and gardens, cultivation of plants, fish farming
ornamental, floriculture, and in construction (ceramic bricks and pavers and
cement); the DAC-1 has a broad potential market, especially because of its benefits
they are not limited simply to solving the problem of pollution, but rather
additionally, it transcends the problem of origin when transforming a product of
degraded into a productive element, being perfectly suitable for a series of
collateral activities, in addition to protecting the natural resource WATER and making it renewable.

The DAC-1 is a natural product that will displace those with chemical composition, whenever
what is biodegradable and 100% ecological, that is, it is non-toxic and protects the environment
environment.

1.3.4 Advantages over the competition

The sale of the DAC-1 is a technical sale, as it requires an analysis protocol.
prior to its use and its accuracy is very important for the calculation
of the dosing of its elements.

Thus, for the dissemination of the advantages of the DAC-1, participation will be sought from
ARTEMAR at technical events of different business, public and private sectors
private, in which the advantages of using the DAC-1 can be adequately highlighted
in the management of their PAMAs (Program for Environmental Adjustment and Management, required by
the health laws); with which companies will improve their competitiveness at all levels.

The DAC-1 is protected by being its own patent through its registration at the Institute.
of Consumer Defense, Patents and Inventions - INDECOPI and currently is
he is in the process of his final qualification. Additionally, it will proceed to
its registration in other Registry Organizations worldwide, in order to venture into
external markets. Likewise, we must point out that the DAC-1 is the only product
non-chemical disinfectant registered in DIGESA - General Directorate of Health
Environmental of Peru.

1.4 Marketing & Sales

4.1. Sales
From August 2006 to August 2007, a total of 7,500 liters have been sold.
for an amount of US$28,570.00 (US$3.81 per Liter), without having made advertising in
mass media, only and exclusively visiting selected clients
and prestigious in the country, such as:

• Catholic University of Peru - irrigation of 8 hectares of gardens and rose bushes -

• State-owned Fish Artisan Landing Dock -
Fondepes /Fishing Development Fund in Sechura-Piura-,
• Peruvian Union University - irrigation of 40 hectares of cornfields
and its internal gardens-,
• Main Tourist Hotels of Piura – Punta Sal, Máncora, Los Órganos -
• Main oil company of the country - Petroperú - El Alto de Talara project
-720m3./day,
• Country Club El Bosque - 23,000 members, 16 hectares facing beaches - 5,000
m3/day weekend during the summer season (December-April).
• ROCKY’S restaurant chain, in Lima (36 locations), processing 15 m3
monthly.

All of which does not represent even 1% of the potential demand for services of
treatment of disinfection and evacuation of domestic wastewater and
residuals.
With the financing obtained (US$280,000.00), it is anticipated to achieve annual sales
ancestors to:

• 80,000 liters, for a value of US$539,320.00, for 2008

• 190,000 liters, for a value of US$1,260,800.00, for 2009 and
• 300,000 liters, for a value of US$2,100,150.00, for the year 2010

1.4.2 Marketing & Communication

Currently, selected clients are approached through visits to their
facilities providing them with a brochure that contains technical information and the
economic proposal for the treatment of your contaminated water. Likewise,
participating as exhibitors in Universities, at the College of Engineers of Peru, in
Training seminars related to irrigation communities and officials
services to the city of municipalities.

As we explained earlier, the sale of ARTEMAR products is a

technical sale, so we would continue with the marketing strategy until the
moment used, only this time it will be done with greater aggression and strengthening these.
efforts through television advertisements and weekly ads in the
most circulated newspapers.

1.4.3 Distribution

The DAC-1 is sold in a 65-kilogram (60-liter) drum and is delivered to your home.
order. A VAN-type truck is used for delivery to customers in
Lima or, in the case of provinces, to the transport agency that the client indicates in their
purchase order. The container is made of plastic with a lid and safety valve.

In the event that the client requires our comprehensive service, ARTEMAR has a
1 HP electric pump, 1" diameter x 5 meters in length, that carries a
1" foot check valve and 50 meters of 1" diameter hose.

For the evacuation of treated water to areas adjacent to the company, they use
plastic cubes and a steel chassis with two rubber wheels, which finally
they are towed to the irrigation area.

At the time of increasing sales outside the city of Lima, the...

possibility of entering into distribution and/or concession contracts for services
integrated, with duly accredited companies in each province, setting the commission
the profit margin based on monthly sales volume.

1.5 Structure of the Company

1.5.1 Management

The DAC-1 is a finished product, duly authorized for marketing and

direct use of contaminated water, the workers are previously trained and use a
procedure manual that is easy to handle. The container is printed on the part
post the user instructions and the safety measures approved by the Management
General of Environmental Health. In some cases, it is the clients who carry out the
disinfection and evacuation process using their own installed equipment in their
buildings. (See Directoral Resolution No. 0141-Digesa/2006 – attached annex page).
The technical staff of our company is made up of the following professionals:

• Engineering Manager: Senior Chemical Engineer Raúl Izquierdo Gonzáles.

• Quality Control Manager
• Main officials:
• Economic Mrs. Carmen Santiago Saldaña
• Development and Technology Manager: Mr. Guillermo Flores Gavidia
• Planning Manager

1.5.3 Partners and sponsors

The company currently needs working capital in the amount of US$280,000.00

to cover the operations of the initial three months and achieve the stated objectives in
our projected cash budget for 2010. The business plan includes
obtain a loan from a banking entity or from Venture Capital Funds. Without
embargo, it will be important to find one or more partners who are interested in investing
and/or participate in our Peruvian business society.

1.6 Riesgos

Risks Ways to combat them

Similar biotechnological products Increase in concentration level
Similar selling prices Product diversification and discounts
Unfair competition from Chemists Advertising and complaints to the Commission of
Environment - CONAM. DIGESA, MINSA.

1.7 SWOT Analysis

ADVANTAGES WEAKNESSES
• Technological innovation • Lack of working capital
• Clean technology • Actual lack of knowledge of the application
• Ecological and biodegradable product of clean technologies
• Unique product in the market • The regular use of
• Excellent quality low-cost chemical products, such as
• affordable prices Chlorine

OPPORTUNITIES RISKS
• Current global campaigns for the • Indifference on the part of companies
preservation of the WATER resource and choose chemicals
• The signing of the Kyoto Protocol by the • That the government decides to give more support to
Peruvian Government other treatment systems, due to
• Wide potential internal markets to the technical ignorance of their
y externals y Broad demand authorities
dissatisfied
• Government protection through
PAMA
• Revenue generation from Bonds of
Decontamination.

1.8 Potential cash prize

a) Buy a set of instruments for laboratory rehearsals.

b) Buy a vehicle for the transportation of bins, for comprehensive service to clients.
c) Acquire raw materials and basic supplies.
2. THE BUSINESSMAN

1. Personal motivation and individual qualities

At 18 years old, I began studying economics at the best private university.

from my country and at the same time I started working as a management assistant of the
Vega Industrial Group (Peruvian Steel Industry S.A., Distributor
Vega S.A., Pesquera América S.A., Centro Automotor del Perú S.A.
Industrial Promotora S.A., América Real Estate S.A., América Financial
S.A.) representatives of General Motors in Peru. I continued studies in
ESAN - Business School for Graduates - now University - Sciences
Social Sciences at UNAM in Mexico, Business Administration at School
Business Administration – New York University, and at the School of Sciences
from the Sea – Valparaíso - UC of Chile.
I have been General Manager of Fundición Ventanilla S.A. (stainless steel in
electric induction furnaces) 1976-1979, Chairman of the Board of Directors of
Mutual Asincoop financing for affordable housing 75,000
associates), Director of the Housing Bank of Peru, Credit Manager
of the Bank of the Andes, General Manager of Mares Pacífico S.A.-
maritime agency and vessel chartering, Presenter of the College of
Engineers from Peru, from the National Agrarian University La Molina.
Affiliated with the Institute of Biotechnology at Johannes Kepler University
from Linz-Austria (2004-2009).
My experience with fishing companies that produce flours and oils from
They made me sign a research contract with the Faculty.
of Fisheries from the National Agrarian University La Molina and leasing
from its pilot plant of German technology (Schlotersten - steam drying
indirectly) for 5 years, managing to obtain high-quality products, but at the
You will see the deficiency of industrial activity when producing water.
waste from processing that ended up being discharged into the sea with
high degree of contamination (oxidized fats and oils, organic solids,
high demand for dissolved oxygen, hydrogen sulfide, and gases
ammoniacal nitrogen), starting research studies y
scientific development with professionals in genetic engineering (Msc. Felipe
Pérez López - University of La Plata - Buenos Aires/Argentina) (Msc.
Jorge Reyes Arrollo - National University of Trujillo / Denver University
achieving the development of complex enzymes based on plants, roots and
waste from hydrobiological species (cooking-semi-pressing processes)
and fermentation) applying their qualities in water bioremediation
contaminated (filter-bag made of polypropylene with solid enzymes).
Later, on his own initiative, assisted by various professionals in
biotechnology I managed to develop a new product capable of destroying everything
type of microorganisms in sewage and waste water
organic, in the same way, neutralize and control volatile nitrogen
ammonia and hydrogen sulfides (oxygen deficiency in masses and
water).

I believe that the experiences lived over the last 40 years have me
they will allow to carry out and with singular success this new activity
business collaboration with suitable professionals to face the
challenge and achieve our goals in a very short time, with minimal risk, just
with drive and dynamism in our managerial work.

All my friends and collaborators know me as a man of

noble principles with the appropriate academic and business training for
to steer them to a safe harbor.
2.2 Experience

In the companies where I worked, I held managerial positions, and for that reason, I offer my
professional services as an external consultant and speaker on related topics
reengineering and development of administrative procedures manuals and
manufacturing operations in the casting and machining of ferrous and non-ferrous metals,
fish processing plants, specializing in management programs and
environmental adaptation (PAMAS), Environmental Impact Studies for new companies
industrial. The personnel who are part of the functional aspect of the company are very young but with
the academic knowledge necessary to perform your work obligations with
efficiency and dedication in this new stage of the company's growth.

2.3 Personal Function

What will its role be when carrying out its business? Will it establish or expand it?
Will he/she act on his/her own or cooperate with others?

My role in the company will be to provide biotechnological products to the company and
diversify the initial activity to take advantage of higher profit margins than
They offer comprehensive wastewater treatment processing services.
industrial (mining, fishing, food, baking, agribusiness). The first
commitment is to grow in the next three years and re-examine the possibility of expanding the
company under corporate modality that is the postmodern trend that I consider is
the way to establish more dynamic and profitable business partnerships to meet
globalized markets.

4.References

• First and Last Name Guillermo Flores Gavidia

• Passport No. 2500962
• Date of Birth October 28, 1947
• Place Lima - PERU.

Personal references:

Ec. Juan Galdo Sturla Martir Olaya 129 –Office 1601 /Miraflores –Lima
Phones: (51-1) 241-6600
(51-1) 241-5858 Celular: 9755-5208
[email protected]

Dr. Luis H. Zazzali Carrera Republic of Panama 4085 /Surquillo – Lima

Phone: (51-1) 213-7900
(51-1)475-5140
[email protected]

2.5 CV of the Entrepreneur

Name and surname Guillermo Flores Gaviria

Age 59 years old.
Identity Document ID No. 07955109
Marital Status Married
Nationality Peruvian
Address Colmenares Park 248, Apt. 301. Pueblo Libre/Lima 21.
Number of dependents Rosa María Balta H. (50) spouse.
Guillermo Flores Balta
Gisella Flores Balta

Studies conducted:
Economy Pontifical Catholic University of Peru
Administration ESAN - Graduate Business School
Social Sciences UNAM - National Autonomous University of Mexico
Business Administration: School of Business Administration – New York University
Water Sciences School of Marine Sciences - Valparaiso - UC Chile

Previous jobs:
Vega Industrial Group Management Assistant
Economic Advisor (1971-1974) Peruvian Steel Industry
SA – Pesquera América SA –Automotive Center of Peru SA
Planning and Development Manager: 1975-1976.
Mutual Asincoop Chairman of the Board (1976-1978)
Ventanilla Foundry SA General Manager (1976-1979)
Vega Industrial Group Planning and Development Manager (1982-1984)
Fishing Consortium SA Manager of Administration and Finance (1990-1994)
Gulf Fisheries SA Export Manager
Pacific Mares SA General Manager (1995-1998)
Artesanos Maricultores SA: Managing Director (1998-2006)
Ecological Engineering Artemar S.A.C.: Manager of Development and Technology (2006-2007).
Exhibitor on water engineering topics, management and adaptation programs
environmental, ecology-economics and values, industrial fishing reengineering, biotechnology.

Deportes que practica: tenis, futbol.

Cities visited abroad: Arica, Santiago de Chile, La Paz, Buenos Aires,
Montevideo, Rio de Janeiro, Sao Paulo, Bogotá, Cali, Medellín, Quito, Guayaquil, Loja,
Machala, Panama, Guatemala, Costa Rica, Mexico, Tasco, Cuernavaca, Acapulco, Los
Angeles, San Juan de Puerto Rico, Ohio, New York, Pennsilvania, Buffalo, New Jersey,
Newark, Delaware, Washington, London, Paris,Tokio.

Aficionado a: la música = saxo tenor,lecturas = drama, intriga, tecnologías limpias,

environment.
3. THE FINANCIAL PLAN

Statement of profits and losses

STATEMENT OF INCOME AND EXPENSES

Detail 0 1 2 3
Net sales 539,320 1,260,800 2,100,150
Cost of sales -61,000 -117,500 -188,000
Gross Profit 478,320 1,143,300 1,912,150

Administrative expenses -244,224 -436,470 -797,185

Depreciation -5,608 -12,563 -27,913
Operating income 228,489 694,268 1,087,053

Financial expenses 0 -19,476 -14,753

Profit before tax 228,489 674,791 1,072,300

Income tax -68,547 -202,437 -321,690

Net utility 159,942 472,354 750,610
Income tax rate 30% 30% 30%

Cash movement

CASH FLOW
Description 0 1 2 3
Income
Cash Sales 539,320 1,260,800 2,100,150
Credit sales
Total Income 539,320 1,260,800 2,100,150

Expenses
Cash purchases -61,000 -117,500 -188,000
Credit purchases
Total purchases 0 -61,000 -117,500 -188,000
M/O and administrative expenses. -244,224 -436,470 -797,185
Taxes -68,547 -202,437 -321,690
Total expenses 0 -373,771 -756,407 -1,306,875

Operational F.C. 0 165,549 504,393 793,275

Investment flow -29,400 -35,500 -165,000

Financing flow.
Shareholder Contribution 4,800
Income from loan 0 299,600
Payment of bank debt
Debt Service 0 -86,954 -86,954
Total Financing Flow. 0 304,400 -86,954 -86,954

Total Cash Flow 0 440,549 381,938 541,321

Balance sheet

BALANCE SHEET
ACTIVE 0 1 2 3

Cash - Banks 440,549 822,488 1,363,808

Commercial Accounts Receivable

Inventory
Looms
Finishes
Total Current Asset 0 440,549 822,488 1,363,808

Machinery and equipment 29,400 64,900 229,900

Accumulated depreciation -5,608 -18,170 -46,083
Total Non-Current Assets 0 23,793 46,730 183,818

TOTAL ASSETS 0 464,342 869,218 1,547,626

LIABILITIES AND EQUITY

Tax payable
Suppliers
Bank debt short term
Vcto Cte Long-term Debt 299,600 232,122 159,920

Total Current Liability 0 299,600 232,122 159,920

Long-term debt
Total Liabilities 0 299,600 232,122 159,920

Social Capital 0 4,800 4,800 4,800

Retained earnings 159,942 632,296 1,382,906
Tax savings
Total Assets 0 164,742 637,096 1,387,706

TOTAL LIABILITIES and EQUITY 0 464,342 869,218 1,547,626

Analysis by Ratios or Indicators

Financial Ratios 0 1 2 3

Liquidity indices

General Liquidity 0.08 3.54 8.53

Acid test 1.47 3.54 8.53
Defensive test 1.47 3.54 8.53
Working capital $140,949.45 $590,365.98 $1,203,888.44

Solvency ratios

Level of indebtedness 64.52% 26.70% 10.33%

Degree of ownership 35.48% 73.30% 89.67%
Equity indebtedness 181.86% 36.43% 11.52%
Financial expense coverage. #DIV/0! 3564.73% 7368.57%

Sales and Employment Growth $32,000.00 $539,320.00 $1,260,800.00 $2,100,150.00

4 10 20 25
Sales 1685.38% 233.78% 166.57%
Jobs 250.00% 200.00% 125.00%

Profitability indices

Net margin 29.66% 37.46% 35.74%

Return on equity 97.09% 74.14% 54.09%
Return on assets 34.44% 54.34% 48.50%

Planning

This table does not correspond to the case of INGENIERIA ECOLOGICA ARTEMAR S.A.C.
because this is an ongoing business and has been operating for a year.
 4. THE IMPACT ON DEVELOPMENT

The population growth of Peru in the last 40 years maintains a rate

equivalent to 3 percent annually, the political decisions of previous governments,
a de facto (military government 1968-1976) that ordered the expropriation of the lands
(land reform) distributing the fields for cultivation in plots of 60 hectares to
the farmers without providing them with working capital, technology, and tools
necessary (without planning) resulted in a few years in the migration of people from the countryside
towards the cities, the same ones that today are overcrowded, such as the
situation of the capital of the country: The city of Lima has a population of 9 million
of inhabitants and all sewage and wastewater services suffer from systems
of treatment and crude spills into the sea contaminating it (deoxygenation and
sedimentation of fatty and organic solids on beach beds). The use of the DAC-
1 presents itself as a viable alternative to initiate decontamination programs for
the wastewater, branching out the urban effluents (installation of small plants of
treatment for its use in irrigation of green areas of the city in each
district in such a way that the effluent that ends up in the sea decreases in flow.
allowing treated water to filter into the groundwater and purify itself (resource
renewable) instead of increasing its pollution with sea salts (resource of
slow renewal due to evaporation effect.

Today, thanks to the advertising done by the country's leading newspaper regarding me
participation in the Challenge 2007 contest (see page in attached document), the response
The response from clients has been impressive and shows the interest that my ... is gaining.
technological proposal regarding the DAC-1.

The indirect benefits are those that the customers using the product will obtain.
significantly reduce their wastewater maintenance costs and their
reuse in the creation of new green areas, taking care of a natural resource on roads
due to exhaustion from the effects of global population growth, will create a position of
work for every 1,000 square meters of green areas and for every 10 tons of
production of bricks for the construction industry.

4.1 Employment and/or local income

In August 2006, the company began its economic activity by participating in

the management of administration and sales of two employees, in the current year, the payroll
includes 4 full-time employees (8 hours/day).

The number of indirect jobs cannot yet be precisely indicated (Example: the
hotels that buy our product treat their effluents in the
septic tanks with their own sanitary maintenance staff and with their electric pump
suction, pouring the treated water into their gardens. In contrast, in the case of the
San Miguel Municipality used construction services for the pilot plant
(design architect, civil engineer, 6 construction workers, one carpenter for the
enforcer, site supervisor), hiring of a Biologist Engineer and two operators of
plant by shift of 8 hours each, likewise the irrigation of berms was increased
District with water tank trucks in two shifts/day (2 drivers and two operators of
irrigation).

4.2 Improvement in the quality of life

The action of eliminating penetrating foul odors (hydrogen sulfide - nitrogen

volatile/ammonia) and the presence of flies, mosquitoes, and pathogenic bacteria will protect the
health primarily of the smaller populations that are living near the
oxidation lagoons, wetlands, and the terminals of the drainage collectors
that end up spilling into the sea. The treated effluents intended for agriculture to
the position of the Associated Irrigation Commissions will allow obtaining agricultural products
of better quality, free of fecal coliforms and should contribute to protecting health in the
food consumption of the general population.

4.3 Knowledge and transmission of capabilities

Each body of water is different; while it contains the same elements, that is not the case.
with the parts per million contained in it. To identify the elements different from the
the chemical composition of water (H2O) must follow an analysis protocol through
laboratory tests according to international technical standards (it is determined the
Acidity or pH (hydrogen potential), ppm of nitrates, sulfates, nitrites, metals
heavy metals, Biological Oxygen Demand, BOD, total coliforms, fecal coliforms
putrescine, cadaverine (mL/100mL). Once the contaminating elements have been identified
the necessary dose of DAC-1 (mL/100mL) for your treatment is calculated,
taking as the basis for the calculation a record table of efficiency that indicates the
certificate granted by the main public company of Water and Sewage Services
Lima – SEDAPAL (see attached sheet).
User clients have access to a procedure manual and standards.
approved safety regulations by the General Directorate of Environmental Health - DIGESA - agency
competent public of the Ministry of Public Health.

4.4 Impacts and improvements in the environment (if applicable)

Water resources as a vital element for humanity are in serious danger.

of reduction due to the effect of overpopulation in the world and due to the
thawing of glaciers caused by the warming of the Earth due to the
emission of greenhouse gases (carbon gas), which has led nations
to sign international treaties for the protection and conservation of resources
natural and mainly water (Kyoto Protocol). The wastewater and residual waters
industrial facilities contain organic waste loads that deteriorate the quality of
water body every time they consume the oxygen contained in it and that deficiency
(DQO-DBO) produces hydrogen sulfide (penetrating foul odors) and methane gases
(22 times carbon dioxide) creating a negative impact on the environment to its direct detriment
of the human being. Our product DAC-1 meets all legal requirements and
technical-ecological measures to address the problem for the benefit of humanity by protecting
the natural resource and overcome the current negative impact caused by water
contaminated to the detriment of the health and life of people in the third world.