Whew - what a busy first part of the year!  We have already exhibited at the Atlantic City, Southeast, and Orlando Pool &amp; Spa Shows, and held two Master Dealer Kick-off meetings!  At the tradeshows we have seen a marked increase not only in number of attendees, but overall interest in solar pool heating.  A good sign indeed for the coming year!

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After two straight years of National Master Dealer Meetings, this year we held separate Eastern and Western Kick-off Meetings to give more of you an opportunity to attend. Thanks to all of  you who did - we appreciate you taking time out of your busy schedules. Your participation is an enormous asset to the success of these meetings!

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For those unable to attend, here is a recap of the meeting topics:

Dave started off each meeting with an update and review of 2011

&nbsp;
<ul>
	<li>Polar Bear Plunge - Last year      Rich Bonte and Ethan joined in the fun and Ethan even won 10 free      collectors for his company, Solar Living. This year we are offering 20      collectors for a first timer - the plunge is on Feb. 25th. The video of      one of last year's participants was priceless!</li>
</ul>
<ul>
	<li>While other competitors and      their dealers have lost focus over the past few years, Aquatherm has      remained focused on our core competencies and had many accomplishments in      2011 including:
<ul>
	<li>First and only US solar       manufacturer to be ISO 9001:2008 registered.</li>
	<li>Continued focus on efficiency       and quality control.</li>
	<li>Launched the new SI site -       will be the model going forward.Continued our investment in re-tooling.</li>
	<li>NSF-50 listing; now both 1       ½" and 2".</li>
	<li>2" dual durometer       couplers introduced - 30k in the field already.</li>
	<li>Re-tooled 2" VRV</li>
	<li>Achieved CSA certification -       the strictest certification in North America</li>
	<li>Exhibited at seven tradeshows       across the country</li>
</ul>
</li>
</ul>
Dave also showed us the presentation he gave at November's Solar focus 2011 Conference in Washington, DC on open-loop vs. close loop systems for solar pool heating. Regardless of climate or whether the pool was indoor or outdoor, an unglazed system returned an investment in 4 to 7 seven years, compared to 17 to 23 years for a glazed collector system.

Kevin updated us on Engineering projects:
<ul>
	<li>ISO - What is it and what does it mean to you ?</li>
	<li>ISO 9001 is an international standard that states      the requirements for a Quality Management System. It is published by the      International Standards Organization and is recognized around the world.
<ul>
	<li>ISO provides you additional       assurance that we are supplying you with quality goods and services</li>
	<li>Every collector has       approximately 76 inspections during production</li>
</ul>
</li>
</ul>
<ul>
	<li>Warranty Statistics
<ul>
	<li>Warranty data review shows       that total returns as a percentage of sales have decreased dramatically       since 2005 and the trend is continuing.</li>
</ul>
</li>
</ul>
<ul>
	<li>Aquatherm has completed an      online commercial survey form for use by all dealers.  From this      survey we can provide you with a DOE RSPEC Program analysis as well as      sizing and plumbing design. You can find this survey at <a href="http://r20.rs6.net/tn.jsp?et=1109342884640&amp;s=1&amp;e=001Hyj7ONHcURjcsQO1k8tRA-VAz6GCsOw55gghlAdBWp1HTA1HDMcVr2CWY2djLN5M7NMD6nQewwwAlyT7eDAnmyFiz7303VHqguxuOV4sTKjPOagP38fkVXsFsLey6an7OldMZcJIuG8=" target="_blank">www.aquathermindustries.com/survey</a></li>
</ul>
<ul>
	<li>As part of the Eagle Claw™ Mounting      System we will soon be offering our patent-pending "Snap Clip"      mounting covers which will cover the stainless steel bracket for a uniform      black look on the roof, as well as protect the sealant.</li>
</ul>
<ul>
	<li>By pass Check Valve testing
<ul>
	<li>The purpose of this testing       was to find a check valve that could be installed in a high flow-rate       system as a by-pass so as not to exceed the maximum 10 gpm flow rating of       a collector.</li>
	<li>This new single union check       valve will be available going forward and will ship with a ½ lb spring       for use as a system check valve, but will also include a 6lb spring for       single story by-pass applications and a 10lb spring for two-story       installations.</li>
</ul>
</li>
</ul>
<ul>
	<li>Aluminum Racking System
<ul>
	<li>We have been working with a       leading PV rack manufacturer to custom design a mounting rail to       accommodate Aquatherm mounting hardware that will be compatible with the       balance of their components.</li>
	<li>Aquatherm is also working with       the same manufacturer for wind load approvals with engineering approval       for multiple states. The design will be compliant with the building       standard "Minimum Design Loads for Buildings and Other       Structures" (ASCE 7-10).</li>
</ul>
</li>
</ul>
<ul>
	<li>Sun-Swim FR
<ul>
	<li>This will be a replacement       collector that matches the size and pressure drop of a Fafco collector.       This will allow you to replace a collector on a Fafco install without       affecting the hydraulics of the system.</li>
</ul>
</li>
</ul>
Sales &amp; Marketing Review
<ul>
	<li>New Industry Associations  - Aquatherm joined      two new Associations last year to continue to put our name in front of as      many opportunities as possible
<ul>
	<li>World Waterpark Association</li>
	<li>Silver IPSAA Membership
<ul>
	<li>We have a list of all the        chapter President's names should you want to reach out to your local        chapter</li>
	<li>Portal
<ul>
	<li>I walked everyone through         the portal again in "real time" to review the benefits and         information located in each section.</li>
	<li>Located in the news section,         you can also find a <a href="http://r20.rs6.net/tn.jsp?et=1109342884640&amp;s=1&amp;e=001Hyj7ONHcURj2-C8u5XoOjonZsU9PZFQ_Co0ICNsYvG_AJBWEaiIE9HNWzdqz5FgULlk1CGE5hKQlqVCZU4UlW-KQUw_xgkAhMsbxHuvYFR8lRfrDLC3uuQ-ZG2VLlqgL9Mbf30ThPgONuYO_kwT13599gtPPYU3V" target="_blank">Portal         Tutorial</a> to review the portal on your own time.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<ul>
	<li>Dealer Survey Results
<ul>
	<li>In December, we conducted a       Dealer survey to get an understanding of the current residential and       commercial markets and drivers.  The overall feelings for the market       are positive with growth expected over the next five years.  We will       show the results on the portal for review.</li>
</ul>
</li>
</ul>
<ul>
	<li>New Sales Presentation
<ul>
	<li>We walked through each slide       of the new sales presentation introduced in 2011.  There is a       webinar on the portal for each brand that reviews the sales presentation       for your review.</li>
</ul>
</li>
</ul>
<ul>
	<li>Warm-up CD
<ul>
	<li>Having a bad day?  Just       pop in our warm-up CD on the way to a sales call and experience a quick       13 minute review of the sales presentation to put you in the right       mindset.</li>
</ul>
</li>
</ul>
<ul>
	<li>Squareup.com
<ul>
	<li>Do you have a       Smartphone?  We showed everyone how you can now take credit card       payments using your Smartphone in the field.  Go to <a href="http://www.squareup.com">www.squareup.com</a> to learn       more.</li>
</ul>
</li>
</ul>
<ul>
	<li>QR Codes
<ul>
	<li>You see them everywhere -       including public restrooms these days.  QR codes can be added to any       piece of literature, clothing and even your trucks to take a potential       customer to your website, video, or a form to fill out to get more       information.  They are free to create  - visit <a href="http://www.qrstuff.com">www.qrstuff.com</a> to create       your own.</li>
</ul>
</li>
</ul>
<ul>
	<li>Facebook
<ul>
	<li>Tag you're it!  Tagging       happy homeowners is just one of many ways to create exposure for your       business on Facebook.  We set one up at the meetings, but if you       don't have one and want help in creating one for your own business,       contact us for help and we would be happy to walk you through the       steps.</li>
</ul>
</li>
</ul>
At the Eastern Meeting, Richard Good gave us an overview of his new thermosiphon system for third-world markets using unglazed Sunlite collectors.

Bill Long also gave a presentation showing how he and Scott now use iPads during their presentations. Using an iPad connects with consumers who either already have one, or wish that they did.

Moving forward in 2012:
<ul>
	<li>Ultrasun is in pre-production with a release      scheduled for the second quarter.</li>
	<li>S.1858 which includes adding commercial solar pool      heating to the ITC has support of SEIA/Hotel-Motel industry/campgrounds.</li>
	<li>Wind load approval.</li>
	<li>2" molded system hose.</li>
	<li>Revisions of Lessons Learned for the Sales      Presentation</li>
</ul>
For more information on any of the above meeting topics please do not hesitate to contact me directly! Thank you again to all that made the meetings this year, we appreciate your time and efforts.

Now that 2011 has closed, I'd like to congratulate two Master Dealers for achieving lifetime status.
<ul>
	<li><strong>Broward Solar</strong> - now a Gold Master Dealer for      life</li>
	<li><strong>Tryon Pool Heating</strong> - now a Silver Master Dealer      for life</li>
</ul>
You will see these changes reflected on this current report.  Again, congratulations to both of you and thank you for your business!

Before we get to the January numbers, you will be seeing the sales numbers in a slightly different format.  We have added two columns to the report to allow us all a quick comparison of monthly and Year-To-Date sales to 2011. The "YTD 2011" column will be cumulative to the progressing year.  I hope that you will find this a welcome change and an easy way for you to compare your sales from month-to-month and year-to-year.

Congratulations to <strong>Stilwell Solar, FL</strong> who claimed the top dealer spot with 266 collectors installed for January. What a fantastic month for Bill Long and his team!  <strong>Mark Naylor Solar Specialists, CA</strong> came in 2nd for January with 210 collectors - way to go Mark!  And the 3rd place finish goes to <strong>Naylor Solar Specialists, NV</strong> with 89 collectors for January. Nice job Terry.

<strong>Mark Naylor</strong> from Mark Naylor Solar Specialists is the top salesman in the country with 29 sales for January.  Congratulations Mark!  <strong>Bill Long</strong> from Stilwell Solar is 2nd with 22 sales for January and <strong>Scott Bologna</strong> from Stilwell Solar claims the #3 spot for the month with 16 sales.   Great job Scott and Bill, that is 38 total for Stilwell for the month, eight more than last year!

Best to you all,

Molly