1000 Lit Per Hour, With Lps, Revised Proposal, 12 May 2016.docx

PESCO BEAM Date:12 May 2016 Page 1 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt This is a revised proposal made to Mr. Marwan El Newehy, Executive Manager, Arabian

Company for Services (ACS), 12 Elmurshedy Towers, Bavaria City Ring Road Katameya, Cairo, Egypt (Tel: +201003222332) for a Used lubricating Oil system that can process 1000 lit/hr of Used lubricating oil as feed. The proposed plant is complete with all processing equipment that will recover one cut of lube (distillate) after separating the water, light fuel and asphalt extender in the Short path distillation system. The proposal includes a regenerative media based lube polishing system that will polish the distilled base lubes to produce a stable base lube product that will not darken on keeping. The proposal also includes the utility packages of Thermic fluid heater, Evaporative cooling tower and Instrument air compressor. The plant will be fully automated and controlled through a control computer (PLC) which is included in the scope of PESCO BEAM. Environment mitigation to handle the VOC’s from the process is part of the system proposed. However, no system to handle the recovered water is included as part of the scope quoted for. PESCO BEAM is an international organization having its primary offices in Roanoke, Virginia, USA and Chennai, India. The plant that is proposed is performance guaranteed and the guarantee is based on our experience of having supplied more number of operating used oil re-refineries, worldwide, than any other company. The system offered is the result of this global experience. All information and details given in this proposal are confidential and should not be copied or shared with anyone without the express permission of PESCO BEAM except for the purpose of ordering the system with PESCO BEAM. PESCO BEAM will be pleased to answer any questions on this proposal and thank ACS, Egypt for the opportunity to participate in this project. For PESCO BEAM Environmental Solutions Pvt Ltd

A.Subramaniam Managing Director & Co-Founder.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 2 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt

ONE VIEW OF A PESCO BEAM USED OIL RE-REFINERY

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 3 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt

BASIS PROCESSING CAPACITY: The plant is designed and sized to process 1000 lit per hour of used lube oil feed on a continuous basis (8000 hrs per year). FEED CHARACTERISTICS: The output specifications are based on a typical feed which will be Used motor oil and having mostly about 5% water. The product recovery percentage given in this proposal is however based on an average 5% water and calculated on dry basis (after removal of 5% of water) so that the percentage of water in feed, will not influence the recovery data. PRODUCTS: From a typical feed as specified above, the plant will produce the following on dry basis: ~ 14% Lights [Mixture of Naphthalene, Gasoline, Kerosene, Diesel]; ~ 70% or more of medium and longer chain hydrocarbons as one cut of distillate; ~ 16% Asphalt extender which will contain the solids and Asphaltenes. Note: The product rate and characteristics are completely dependent on the feed properties. Thus if the feed is predominantly long chain hydrocarbons or lube oil of heavier grade, such will be the distillate.

TYPICAL KEY PARAMETERS OF FEED Typical key data of feed considered is as follows: Water content

Not more than 5%

Viscosity at 40 deg C

83 to 85 cSt

Viscosity at 100 deg C

10 to 12 cSt

Sulfur

0.89%

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 4 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt

PRODUCT SPECIFICATIONS Based on a typical feed, typical product data is as follows: 

Lights [a mixture of naphthalene, toluene, benzene, xylene, Kerosene & Diesel]

Parameter Kinematic Viscosity @ 40 deg C max. Cst Cetane Flash Point, deg C Calorific Value, Mj / kg, minimum Sulphur % wt, maximum Water % vol., maximum Color, maximum Density @ 15 deg C, kg/l, maximum Carbon residue, % wt, maximum Pour point, maximum, deg C

Method ASTM D 445 ASTM D 93 ASTM D 1551 ASTM D 95 ASTM D 1600 ASTM D 1298 ASTM D 189 ASTM D 97

Value 3.3 60 – 70 <10 45 0.7 0.25 4 0.8 1.0 15

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 5 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt 

Re-refined and Polished base lube analysis* Tests

Appearance Density @ 15oC, Kg/Lit Conradson Carbon Residue, % wt ASTM Color Flash point (COC), oC Copper strip corrosion @ 100oC Total Acid Number, mg KOH/g Total Base Number, mg KOH/g Pour Point, oC Sulphur, % wt / ppm Viscosity, Kinematic at 40oC, cSt Ash Content, % wt

Method

Results Distillate Polished product

Visual Gravimetry ASTM D 189-06

Dark honey colored ~0.85 0.14

Clear brown liquid ~0.85 0.14

ASTM D 1500-07 ASTM D 92-05a ASTM D 130

~6 >210 1a

~4 >210 1a

ASTM D 974-07

0.11

0.11

ASTM D 974-07

1.63

1.63

ASTM D 97-07 ASTM D 4297-03 ASTM D 445-06

Less than minus 15 ~ 0.83% ~ 45 -50

Less than minus 15 ~ 0.75% ~ 45 - 50

ASTM D 482-07

0.01

0.01

*These data may be used as guiding values and are not performance guarantees. Depends on feed properties. Performance guarantee figures are given later in this proposal as an annexure.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 6 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt 

Residual: #6 Industrial Boiler Fuel or Asphalt extender

Parameter Viscosity @ 40o C: CsT, maximum Density at 15o C, kg/l, maximum Sulphur % wt Water % vol., maximum Flash Point, oC, minimum Color Carbon Residue % wt, maximum TAN mg/KOH/g Pour Point, maximum Calorific Value, MJ/Kg, minimum

Metals Lead Calcium Barium Zinc Iron Phosphorus Magnesium Copper

Method ASTM D. 445 ASTM D.1298 ASTM D. 1551 ASTM D. 95

ASTM D.4530 ASTM D.974 ASTM D.97

Value 95 0.98 1.5 0.1 70o C Black, opaque 12% Nil 18o C 43.8

Ppm 10-120,000 6000-38000 20-16000 6000-15000 100-6000 1100-6000 350-5000 10-1200

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 7 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt THE PROCESS AND PLANT: BRIEF NARRATIVE Distillation & Evaporation System The feed pump will pump the used lube oil feed stream into the forced circulation evaporator loop. In this loop the water, aromatics and diesel / kero fractions will evaporate. These fractions will exit the loop, condense in the condenser, and drop into the decanting light ends receiver circuit. The lights which will be a mixture of naphtha, kero and diesel fractions, and recovered water will be pumped to storage via a differential density level controlled arrangement. The dirty de-watered feed will be pumped into the wiped film evaporator. The medium-and long chain hydrocarbons will vaporize and will exit through a condenser to a product receiver and will be pumped to storage. The residual, which contains the solids and tars (asphalt extender), flows by gravity out of the evaporator to a pump, from where it will be pumped to its storage. A vacuum skid consisting of vacuum pumps and boosters and several accessories will supply vacuum as required, to the different stages of the process. The source of process heat will be thermic fluid heater, which will be supplied by PESCO BEAM. Cooling water at the required temperature and flow will be supplied using a Cooling tower, also part of PESCO BEAM’s scope of supply. Compressed Instrument grade @ 20 cfm at 7 bar pressure will be required for operating the pneumatic instruments of the system and will be supplied by PESCO BEAM. The plant offered is complete with a thermal oxidation system for preparing the VOC emissions from the process to be fed to the heater box of the thermic fluid heater for complete combustion before being exhausted to the stack. The system will be supplied fully assembled on several painted carbon steel skids with all hot surfaces insulated. The skids will be prewired and piped complete with the instruments and controls with flanged terminal connections that will be ready to be hooked to field piping. The plant will be PLC controlled for automatic operation through a control computer. All the electrical and electronic components on the skid will be flame proof, suitable for gases in Groups II A & B. Included will also be non-explosion proof control panels containing all the necessary thermal overloads and control modules, all for remote location [more than 50 feet from the skid]. All the wetted surfaces will be Carbon steel (Boiler quality) unless otherwise specified. The system will come insulated and ready to hook up to the infrastructure of Thermic fluid, cooling water, electricity, instrument air, and storage tanks. The system can be located outside even though we recommend a roof and side cover for protection from winds and sand storms.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 8 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt Lube polishing system (LPS): The LPS offered will polish the distillate recovered from the system. At rated feed rate of wet oil at 1000 lph, lube fraction distillate recovered will be ~ 700 lph and the polishing system will accept this as the feed rate. Reduction in color from a feed rate color of ~ 6 to a product color of 4 and removal of odour will be the performance of the LPS offered. The recovered oil will be a stable base oil. It should however be noted that lighter colored product can be achieved but at the cost of capacity. About 10 - 12% of the feed to the LPS will not be available as polished product. Less than 2% will be the invisible loss as vapor during the reactivation process and the balance will be collected as the liquid residue during the reactivation phase. This will be recycled to the feed tank. It should be noted that this recycle is needed as the system removes color and other odour causing ingredients. It should also be noted that when the plant is operated for lower polished product color, shorter polishing times, more frequent drains/reactivation will be required and therefore more material will be recycled. The LPS operates in two phases: 1. Processing Phase: In this phase, the oil is polished by forced percolation through "adsorptive media" columns. The system comprises of multiple banks of multiple columns each. 2. Reactivation Phase: After the polishing cycle, the media beds are usually quite saturated and the feed and product color approach each other. This justifies reactivation. The media is reactivated in the columns and a quantity of oil is collected and pumped for reprocessing (drain). VOC’s that are generated during this reactivation phase are treated in the Thermal oxidizer and fed to the fire box of the thermic fluid heater for complete combustion. The system shall be fully assembled on heavy duty steel bases. The system will be designed to be operated through a PLC. It needs to be noted that when the media is spent, it needs to be replaced. Such replacement of the media will be once in ~180 days depending on the type of oil being processed and the care with which the system is operated. The spent media is a non-hazardous land fill and will have no oil – it will pose no disposal issue and the quantity will be a small amount as it needs to be disposed only once in 4-6 months. Combined with the excellent quality & stability of the polished base lube, this feature renders the regenerative lube polishing system offered, unique and of very special design. It also needs to be highlighted that this system is very different from the standard systems offered by others, both in its process, design, fluid mechanics and operation.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 9 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt ENVIRONMENTAL IMPACT Exhaust from the plant: 1. The exhaust from the vacuum pump vent, and Lube polishing system: These will consist of VOC’s and some sulfur compounds. The total flow rate is low, and will depend on the types of oil being processed, but because they can cause odor they will be handled via a thermal oxidation piping train (TOX) and sent to the fire box of the thermic fluid heater for complete combustion. An active carbon filter alternative is provided and the vent will be automatically diverted to the carbon filter if the Thermic fluid heater trips.

Recovered water: At 5% water in feed, ~ 50 lit/hr water (recovered from the feed oil) containing trace (<2%) hydrocarbons needs to be disposed off by the client in the existing ETP or as appropriate. No equipment is included in the scope of this proposal for this disposal.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 10 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt SCOPE OF PESCO BEAM (Please see attached PFD for further clarity) Item head System Engineering (to be provided in a phased manner after commercial closure of contract) Supplies

Services

Deliverables Plant layout on plot plan. Foot print with load data Electrical lists Final documentation of all supplies which will include Operation & Maintenance manuals which will include ordering specifications for all spares. 1. Skid mounted processing plant complete with equipment and interconnecting piping within each of the skids. 2. All measuring and control instruments for the processing plant within each of the above skids. 3. All electrical and instrument cabling inside each of the skids terminated in skid junction boxes on the skid. 4. Thermal oxidation system consisting of the piping train and alternate carbon canisters to handle the VOC and feed it into the thermic fluid heater of client. 5. Regenerative Lube polishing system, skid mounted complete with its internal wiring, instrumentation, controls. 6. Motor Control Center (panels) for remote location for the processing plant supplied by PESCO BEAM. 7. PLC controller and control computer for the processing plant fully integrating the plant with utilities and tank farm operation. 8. Used oil feed pump with its motor for location in the tank farm. 9. Thermic fluid heater (Hot oil generator) complete with modulating burner and controls. 10. Evaporative cooling tower. 11. Cooling water circulation pump with its motor for location near the Cooling tower. 12. Thermic fluid circulation pump with its motor for location near the thermic fluid heater. 13. Thermic fluid expansion tank with all necessary piping. 14. Thermic fluid dump tank. 1. Discussion with your project engineer at site for finalizing the site layout. 2. Start-up and Commissioning of the plant. 3. Training in plant operation: Will be provided during commissioning. We expect that adequate numbers of properly qualified and experienced crew will be available to receive this training in the process and control of the plant. 4. Follow-up visits to site if needed on per diem basis. 1. 2. 3. 4.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 11 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt BATTERY LIMITS OF PESCO BEAM (Please see attached PFD for further clarity) The following narration is to clearly mention the battery limits of each unit that is being supplied to you as part of this proposal. Please refer PFD attached for additional clarity: Item head Process skids

Feed pump Thermic fluid heater

Thermic fluid heater circulation pump Cooling tower Cooling water circulation pump Motor Control Center (Process MCCs)

Battery limit  Flanged connections for the entry and exit of process fluid, Thermic fluid, Cooling water and Instrument air.  Electrical and Instrumentation junction box(es) that will have all the instrument and electrical wiring of that skid, terminated as per terminal strip numbering  Stand alone pump with motor mounted on a base frame for location in the tank farm.  Flanged entry for the fuel;  Flanged entry for the VOC’s from the TOX;  Flanged connection for the entry and exit of the Thermic fluid;  Flanged exit for the exhaust from the heater.  Flanged entry and exit of the Thermic fluid.    

PLC Controller (Process)



Regenerative Lube polishing system (LPS)

 

Thermal Oxidation system

 

Entry and exit of the water to and from the tower; Blow down valve outlet Flanged entry and exit of the water from the pump. Fully wired stand-alone control centers with all wiring terminated inside the MCC according to terminal strip numbering. Fully wired center, stand alone, with control computer and control card. Flanged connections for the entry and exit of the oil to be polished, Cooling water, Recycle, exhaust gases to Thermal oxidation system; Marshalling box(es) that will have all the instrument and electrical wiring of that skid, terminated as per terminal strip numbering. Flanged connection for the entry of VOC vapours from Vacuum skid, Tank farm and LPS; Flanged connection for the exit of these vapours into the fire box of thermic fluid heater / fail safe-carbon canisters.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 12 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt CLIENT SCOPE OF WORK (Please see attached PFD for further clarity) Item head Engineering

1. 2. 3.

Tank farm

4. 5. 6. 7. 1. 2. 3.

Yard piping

1.

2.

Field electrical and Instrumentation wiring

3. 1.

2.

Deliverables Supply of plot plan of site; All civil engineering designs, foundation designs, building designs; Electrical design and engineering for incoming power, and electrical house ready for distribution of this power; Plumbing and sanitation engineering for the project; Fire safety design and engineering; Air conditioning design and engineering; Laboratory design and engineering. Fabrication and erection of all tanks in the tank farm; Supply and erection of all tank farm pumps as per process requirement to be discussed and agreed upon; Supply and mounting of all tank farm instruments that will be integrated with the PLC, again as per P&ID to be provided. Fabrication and erection of Interconnecting piping between thermic fluid heater, Cooling tower and Instrument Air compressor and the processing plant; Fabrication and erection of Interconnecting piping between tank farm, utilities and processing plant; Insulation as required, of the above piping Laying and termination of electrical wires and cables from electrical house equipment to the various points in the plant and to the plant MCCs. Laying and terminating all instrumentation cabling between panel/PLC and skids/tank farm/utilities/piping as needed. Fabrication and erection of main chimney and any other auxiliary chimneys of the plant.

Plant chimney

1.

Other Supply

1. Developed land with all civil and structural works, access platforms, walk ways; 2. Electrical house with necessary switch gear and panels ready for distribution of power to all points in the site; 3. All civil works and foundations; 4. Cable trenches as required for piping, wiring distribution; 5. Concrete slabs as necessary; 6. Water storage sump/tank; 7. Used oil receipt arrangement; 8. Product load out arrangement;

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 13 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt 9. Fully functional laboratory; 10. Lighting and air-conditioning for 24 hr operation; 11. Fire safety equipment and all related accessories as erected and conforming to local regulations; 12. Continuous feed to plant, fuel, water, all lubricants and greases as per PESCO BEAM recommendation, Feed oil of appropriate quality and quantity; Thermic fluid; 13. Activated carbon as per quantity and quality to be specified. Services

1. Erection of all PESCO BEAM supplies. 2. Connecting PESCO BEAM supplies to utilities and tank farm. 3. Furnished air-conditioned accommodation for two/three engineers/technicians near site during their visits for preerection site discussions, supervision of erection/loop checks/start-up/commissioning/training of your operators; 4. Transport for our engineers to and from site during visit and their stay at site; 5. All applicable taxes, duties and permits at destination country; 6. All required licenses, permits for the project; 7. Dealing with all local authorities on all issues related to the project and site work; 8. Transport from Chennai Port, Shipping insurance, Receipt at port of destination, clearing, local transport, receipt at site, unloading and safe keeping of all PESCO BEAM supplies; 9. Providing adequate and appropriately skilled personnel pre and post start-up. 10. Providing appropriate communication facilities like internet connectivity and a working desk to our site personnel during project tenure.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 14 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt SUPPLY CONDITIONS 1. The various items in the scope of supply of PESCO BEAM will be skid mounted or if shipped as loose items [like instruments that will damage during transit], packed carefully for seaworthy transport. 2. These will be sent in container, as per a packing list that will accompany each supply and also be provided with the shipping documents. 3. The skids will be loaded in PESCO BEAM shop [Chennai, India] on local road transport for transport to Port of Origin (Chennai, India). 4. As freight costs vary based on several conditions, it is our usual practice to forward actual costs to the client prior to shipment. PESCO BEAM has not included in its scope, the following: a. Sea Freight from Port of origin to Port of destination. b. Shipping / Transit insurance. c. Receipt and clearance at Port of destination. d. Transport from port of destination to site. e. Any and all related insurance. 5. For purposes of estimating freight, the shipment can be considered to involve: a. 7 Open top 40 foot containers (out gauge); and, b. 1 Open top 40 foot container (in gauge).

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 15 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt UTILITY REQUIREMENT No 1 Space

Item head

Quantity 15m x 15m RCC Pad for Distillation – needs no roof

Period One time

16m x 15m RCC pad with roof for LPS.

Side walls of the shed needs to be open to allow cross ventilation.

2 Electric power 2.1 Connected load, 440V, 3ph, 50Hz

~ 150 kW

One time

2.2 Consumed power

~110 kW

Per hour

3

80 lit

Per hour

5

Fuel as LDO for the Thermic fluid heater First fill & Make up water for Cooling tower Instrument air (Client scope)

6

Caustic for dosing

4

Remarks Does not include space required for tank farm, utilities, control room.

Only for PESCO BEAM scope of supply. Only for PESCO BEAM scope of supply.

First fill will be 7500 lit and evaporation loss make-up will be 250 lit per day. 20 cfm compressed air at 7 bar and minus 40 deg C dew point. 3.5 lph of 25% caustic in water (Sp Gr of 1.25)

First fill and make-up requirements of other major consumables; No Item head 1 Thermic fluid first fill 2 Polishing media

Quantity ~ 5000 lit ~9,000 kg

Period

3 Activated Carbon 3.1 First fill

660 kg

First fill

3.2 Replacement requirement

330 kg

3 months

Once in ~120 to 180 days

Remarks Assumes a particular layout. Actual cycle time can be more or less depending on feed. First fill with supply. $ 4.00 per kg F.O.B US Port. US$ 2.00/kg F.O.B. Chennai, India. Cyclic replacement

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 16 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt COMMERCIAL TERMS OF OFFER BASIS OF PRICES

All prices are in US Dollars, FOB Chennai, India. All applicable duties in country of destination, shipping charges, transit insurance, freight from port of discharge to site, any insurance for such carriage will be extra to your account.

SHIPPING

The system will be ready for shipping within six months from the start date as defined below. This includes 1 week of QC at our shop by engineer from the US.

START DATE

The Start date of the contract will be the later date of the following events: 1. Signing of the contract by both parties 2. Receipt of down payment and Letter of Credit

PAYMENT TERMS

All remittances shall be by wire transfer to PESCO-BEAM Environmental Solutions as per transfer information to be provided:  10% as down payment with your order Balance through a transferable, irrevocable letter of credit drawn on a first class bank. The letter of credit will allow transshipment as all shipment from Chennai will get transshipped at other ports on their voyage. This Letter of Credit will pay as follows:  10% against completion of engineering as witnessed by an engineering meeting at Chennai. Engineering documents will be handed over and signed off as complete and will be the document witnessed by the LC for payment;  30% when work on the manufacturing is 50% comp0lete and witnessed by the following:  All major raw materials will be ordered and fabrication work on all the equipment will be under progress;  All pumps, valves and instruments will be ordered.  30% when complete plant is ready for shipping and inspected by your engineer at our shop. The inspection will also be signed off by our US engineer and such inspection report will be the document that will trigger the payment through the LC;  5% when the plant is erected at site and is ready for commissioning;  5% when the plant is commissioned or 120 days from shipping, whichever is earlier and against an Indemnity bond issued by PESCO BEAM, indemnifying ACS against defects in performance, for a period of 12 months from the date of commissioning.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 17 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt WARRANTY/ GUARANTEE

The system is guaranteed to generally perform as specified in this offer. Specific performance guarantee parameters will be agreed to after feed quality is tested and will be demonstrated over a 24 hr run during commissioning. An indicative document is annexed with this proposal. The following provisions will have to be made while checking the guarantees:  All customer supplied utilities match requirements specified.  A PESCO BEAM representative is present during start-up for 2 weeks  The customer’s employees will work as per instructions given by our commissioning engineer, follow good engineering practices and follow the operation and instruction manual in running and maintaining the plant. The plant supplied is Guaranteed to perform as specified in this proposal. Components will be guaranteed by PESCO BEAM for a period of One year from the date of receipt at Port of destination plus 30 days to allow for erection and start-up, or from the date of commissioning – whichever is sooner - normal wear and tear exempted. If commissioning is delayed due to fault of PESCOBEAM then the date of commissioning will be the start date of the warranty period, no matter when that is. Seals and bearings and indicating lamp bulbs will carry only a limited warranty of 60 days unless specified otherwise by the manufacturers. If they fail within this period they will be shipped free of any cost. The warranty on component and accessory items not manufactured by PESCO BEAM is that extended by the manufacturer of such component or accessory. Our liability is also limited to replacement or repair of any defective components and we are not liable for any damage to personnel, property or loss in production.

SYSTEM INSPECTION

The manufacture is envisaged under our stage-wise internal inspection. Your company representatives are welcome and encouraged to inspect the completed system prior to shipment. That way all questions can be answered and any last minute changes made, prior to the system leaving our plant. No third party inspection is envisaged unless specifically accepted by PESCO BEAM.

AMENDMENTS OR CHANGES

Should any changes in scope of supply be required after the contract is signed / LOC released, we reserve the right to have the price and terms adjusted to accommodate the change. If the changes required are of major nature and cannot be implemented, we reserve the right, not to implement such changes.

FORCE MAJEURE

The performance of this Agreement, except for the payment of money for services already rendered, may be suspended by either party in the event the performance of obligations are prevented by a cause or causes beyond the

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 18 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt reasonable control of such party. Such causes shall include, but not be limited to, acts of God, acts of war, riot, fire, explosion, accident, flood, or sabotage; lack of adequate fuel, power, raw materials, labor or transportation facilities; governmental laws, regulations, requirements, orders or actions; breakage or failure of machinery or apparatus; national defense requirements; injunctions or restraining orders; labor trouble, strike, lockout or injunction (provided that neither party shall be required to settle a labor dispute against its own best judgment). The party asserting a right to suspend performance under this Section must, within a reasonable time after he has knowledge of the effective cause, notify the other party of the cause for suspension, the performance suspended, and the anticipated duration of suspension. Upon receipt of such notice advising of a material or indefinite suspension of performance, and if such suspension substantially impairs the value of this Agreement to him, a party may, within a reasonable time (not to exceed thirty days), terminate this Agreement. If such notice of termination is not provided, this Agreement will lapse with respect to any performance suspended hereunder. The party asserting a right to suspend performance hereunder shall advise the other party when the suspending event has ended, and when performance will be resumed.

JURISDICTION

The contract resulting from this proposal will be governed by the laws of the Republic of India.

VALIDITY

This offer is valid till 27 May 2016 and will be valid beyond this date only if it is duly extended in writing by PESCO BEAM.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 19 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt PRICE SCHEDULE All figures in US Dollars Item head Used motor Oil re-refining system as described in this proposal complete with Lube polishing System and utility package of Thermic fluid heater, cooling tower and Instrument air dryer.

Value in US$

996,000 [ US$ Nine hundred and ninety six thousand]

Per diem rates for the deputation of engineers / technicians beyond what is contracted Compensation for our Engineer/Technicians for site work, beyond what has $500 per day (8 hrs) been stated as part of this proposal will be Travel expenses, Supplies and Materials, Special Handling, Subcontract and Specialty services will be at Cost + 12% Payment terms for above service: 100% as an advance for the time you require them Other conditions: If it is an extension of their stay at site, no to and fro charges will need to be paid. Otherwise, to and fro economy class air fare, boarding and food for the period of stay as well as free local transport will be paid by you. They should also have access to international telephone(s), fax and internet facilities.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com

PESCO BEAM Date:12 May 2016 Page 20 of 20 Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity Client: Arabian Company for Services, Cairo, Egypt ANNEXURE 1: PERFORMANCE GUARANTEES Such guarantees will be the average data from a 24 hour run of the plant during commissioning and after the plant stabilizes. These data will be based on operator log/field data and laboratory analysis. 1. Capacity of the distillation section of the plant: 1000 lph feed rate on a continuous basis with a lube distillate yield of 70% on a dry basis. 2. Lube polishing System capacity: Feed rate of 700 lph 3. Lube oil distillate / Polished lube key properties based on feed data given in this proposal:

Tests ASTM Color Flash point (COC), oC Viscosity, Kinematic at 40oC, cSt

Method ASTM D 1500-07 ASTM D 92-05a ASTM D 445-06

Results Distillate Polished product ~6 >210 50

~ 4.0 >210 50

4. Utilities: 4.1. Fuel consumption: 80 lph 4.2. Power consumption: 110 kW/Hr averaged over 24 hrs.

PESCO BEAM Environmental Solutions Inc., US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791. India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502 Web site: www.pescobeam.com