Investment Structure

A PRUDENT TREASURY MANAGEMENT TOOL

The combination of low cost equity and efficient, streamlined leverage strategies comprise the key components of cost effective development, acquisition and control of energy assets. We are committed to combining those efficiencies with lease structures that provide immediate lower opportunity costs. Opportunity costs arise from stringent and inflexible financing arrangements that result in lower potential corporate profitability and greater liability.

National Standard believes that our capital structure is an attractive alternative to conventional financing, due to the substantial reduction in negative covenants, revenue pledges, debt service reserves, credit enhancements and overall flexibility afforded under our structure in comparison to bond financing and traditional project financing methods. Replacing public financing with private capital provides a highly visible vote of confidence for the local economy, and transfers some financial risk from the public sector to the private sector under our Public Private Partnership structure.

Our leases are designed to enhance the operator's control of the asset by providing virtually the same authority over the asset as ownership, while keeping the potential for high profitability available. We can design a lease to meet both price and opportunity cost expectations, including friendly renewal options and purchase options.

National Standard Finance believes that its unique model offers important advantages compared to conventional bond structures and debt or equity financing:

• Our project delivery capabilities offer a true turnkey solution for each capital project, which
                 allows the tenant to focus on operating the business and exploiting better
                 investment opportunities.
• 100% long-term capital funding offers a lower blended cost of capital than conventional debt
                 and equity.
• National Standard's lease requires no revenue or tax pledge to support the repayment
                 required by bonds. Our investment model requires no minimum "debt service coverage
                 ratios," no "debt service reserves," and has virtually no covenants typically found in bonds
                 and loans.
• The tenant's sole obligation is a contractual real estate lease, not a debt obligation.
                 The tenant will not assume responsibility for the funding, but simply the lease.
• Project ownership liability is transferred to the investor and landlord during the lease term.
• Note that the investment could include reimbursement to the tenant of some amount of
                 the predevelopment equity and soft costs typically invested by developers prior to funding,
                 which would be absorbed in the lease or which could provide working capital.