Sustainable Investment Initiative Green & Climate Neutral BuildingsReduced Risk & Higher Valued Collateral Green Mortgages Cheaper Cost of Capital / Increased Liquidity Green Building SecuritiesGreen Convertible Securities Green Building Underwriting Standards Improves quality of life FSC Certified Wood Stops Illegal Logging & Irreversible Dangerous Climate Change

Capital Markets Partnership (CMP) - Partial List City of San Francisco City of Chicago City of Dallas City of Denver City of Miami City of New York City of Oakland City of San Jose City of Santa Monica City of Seattle

Capital Markets Partnership CMP Officers Green Building Underwriting Standards Committee EMERGENCY Consensus Standards Launched in April 2008 by JPMorgan Chase, Wells Fargo Wachovia. Unanimously Approved Sept. 2, 2008 & Amended Sept. 4, 2009 Market Tested by JPMorgan, Jones Lang LaSalle, CB Richard Ellis, Comerica, Transwestern. Officers Johanna Partin, Director, Climate Change Initiatives, San Francisco Mayor Gavin Newsom Steve Hoffmann, President, Hoffmann & Associates Rich Pietrafesa, Managing Director, Destiny USA Tomek Rondio, President, Mortgage Green Michael Schneider, Vice President, Marxa Kubo Mario Silvestri, Vice President, Wells Fargo Wachovia Ken Willis, Vice President & Director, Federal Home Loan Bank of Boston Dan Winters, Managing Principal, Evolution Partners

Develop / Finance / Occupy Green Buildings

Sustainable Investment Initiative Capital Markets Briefing Paper: Business Case for Commercializing Sustainable Investment © Summarizes four years of Wall Street due diligence with investors, investment banks & rating agencies concluding that green buildings and SMaRT certified sustainable products are: More profitable Less risky Preferred by investors in Survey initiated with S&P covering over $3.3 trillion in assets National statistically valid data Peer Reviewed Briefing Paper was released for top management at CMP New York Stock Exchange Press Conference, Aug. 18, 2009

Sustainable Investment Initiative Green Building Securities (GBS) are bonds backed by green building mortgages. GBS & Green Value Score are part of Rebuilding America’s call for 50 million green buildings in the next 10 years. There is substantial latent investor demand for GBS. Based on successful precedent, investment banks expect GBS Pilots to start a resecuritization of the building stock providing cheaper cost of capital for green building renovations facilitating: Refinancing addressing commercial real estate crisis Substantial climate pollution reductions Green jobs / economic stimulus Capital markets’ increased liquidity & confidence

Sustainable Investment Initiative Green Building Securities (GBS) LEED Certified Apartments have been identified as GBS candidates with leading financial institutions for pilot single property / asset securities. Moody’s & S&P has been briefed with Leading financial institutions and the method identified for Green Value Score © alignment with Moody’s financial factors for rating GBS Pools and potential higher ratings. Single asset Pilot GBS and pools are under development. Partners include DOE, the States, FHLB, Fed, House Financial Services, investment banks.

Sustainable Investment Initiative Green Value Score © Equity Loan Refinancing Program. Based on a property’s Green Value Score ©, commercial refinancing is available through the a program of CMP, Environmental Bankers Association, and TD Bank. There are about $500B in commercial loans that need refinancing in 2010 with very few options according to EBA and the Congressional Joint Economic Committee. The Program: is available for renovations too commits to have the appraisal fully reflect the added value from the Value Score

Electricity Transportation Heating Allocation of 6.2 GtC/yr Electricity: 40% Fuels used directly: 60% Green Building Securities (GBS) Carbon Reduction in 5-10 yrs Enhances Energy Security & Stops Imminent Irreversible Dangerous Climate Change Fossil fuel use in 2000 (IEA) Allocation of 6.2 GtC/yr. (Princeton) Buildings generate most of world’s climate pollution from electricity and heating. On average, certified green buildings have 40% less conventional energy & climate pollution.

Economic Benefits Projected* 70% US Commercial Green Building Market Penetration * Projected* 70% US Commercial Green Building Market Penetration * Energy Savings & Daylighting: $36 Billion/yr Construction Waste Reduction: $6.7 B/yr Water Pollution Savings from Water Conservation: $20 B/yr Energy Savings from appliances & Lighting: $24 B/yr Added Value from Increased Occupant Productivity Energy Savings & Daylighting: $36 Billion/yr Construction Waste Reduction: $6.7 B/yr Water Pollution Savings from Water Conservation: $20 B/yr Energy Savings from appliances & Lighting: $24 B/yr Added Value from Increased Occupant Productivity (5%), IAQ & Reduced Absenteeism: $632 B/yr Health Care Savings $75 B/yr Emission Reductions’ Market Value: $ 1.1 B/yr Total $795 Billion/yr. value added Emission Reductions’ Market Value: $ 1.1 B/yr Total $795 Billion/yr. value added * 1. Leonardo Academy / MTS Projections 2003, Surgeon General 2006 (certified bdgs). 2. Green retail buildings will also accrue increased retail sales. 2. Green retail buildings will also accrue increased retail sales. 3. Excludes overwhelming benefits from avoided climate damages, & originator profits. 3. Excludes overwhelming benefits from avoided climate damages, & originator profits. 4. Dollar benefits are $200B/yr. for UK, $200B/yr. for rest of Western Europe, $87B/yr. 4. Dollar benefits are $200B/yr. for UK, $200B/yr. for rest of Western Europe, $87B/yr. for Canada & $80B/yr. for Australia. GBS is a $4 trillion market (SEC 2003). for Canada & $80B/yr. for Australia. GBS is a $4 trillion market (SEC 2003).

LEED EB CERTIFIED National Geographic Society Headquarters, Wash., DC The Society added $16M in value from this LEED certification from a higher appraised value, raising tenant rents, lower operating costs, increased credit rating from Moody’s, & lower interest rates on large loans secured to the building. Presentation at 2003 Congressional Green Building Luncheon by Chris Liedel, CFO, National Geographic Society.

US Conference of Mayors Support Resolution June million green and climate neutral buildings & 1.2 million certified sustainable products needed by 2015 to prevent Dangerous Climate Change From going Irreversible

Stops Imminent Irreversible Unmanageable Dangerous Climate Change

Jim Hansen of NASA, the world’s leading climate scientist, speaking of business as usual stated, “[climate change] threatens not only the millions of species on the planet but also the survival of humanity itself--and the timetable is shorter than we thought…. Today’s climate is not terribly far from the runaway situation…. If the world does not make a dramatic shift in….policies over the next few years, we may well pass the point of no return.” (2009) Before It’s Too Late

UK – Stern Review – Nov ‘06 Report analyzes economic global impacts of climate change –“Business as Usual” vs. global innovation and market-based intervention –QUOTE: “Climate change…greatest and widest ranging market failure ever seen…” Relates costs/risks on economic, environmental, and social scales –Floods / Storms –Agriculture Yields –Fresh Water Access –Disease Bush White House 2008 Climate Report Concurs with these Impacts –Mass Human and Species Migration –Species Extinction –Heat Waves / Cooling / Doughts PROJECTED GLOBAL WARMING ECONOMIC IMPACT - Up to 20% of Global GDP

Occupancy Rates Energy Star Buildings vs Market Comparables Occupancy Rates – Office Source: CoStar Analytics

Occupancy Rates – Office Source: CoStar Analytics Down Market – Flight to Quality Energy Star Buildings vs Market Comparables

Rental Rates Energy Star vs. Market Comparables Direct Rental Rates – Office Source: CoStar Analytics Difference = $2.32 Difference = $3.80

Rental Rate Separation Doubled in Two Years From $2.30 to $4.60 Direct Rental Rates – Office Source: CoStar Analytics

LEED Certified Rental Rates vs Peer Group Early Returns on Minimal Data Points Source: CoStar Analytics

Occupancy Rates – Office Source: CoStar Analytics Occupancy Rate Superiority Significant Outperformance in Down Market

Academic Studies – Similar Results over 3,000 green buildings compared to their peers - statistically validated CoStar Building Peering Study (2007) Miller, Spivey, Florance (2008) –EPA Energy Star Partner of the Year –American Real Estate Society Best Paper 2008 CoStar Building Peering Study – Update 1 (2008) Fuerst and McAllister (2008) Eicholtz, Kok & Quigley (2008) CoStar Building Peering Study – Update 2 (2009) Pivo & Fisher (2009) Note: CoStar continues to make its data set available to academic researchers for further analysis

Green Building Underwriting Standard Principles 1.Performance based 1.Easy to analyze / simple to implement 1.Disciplined Tangible financial impacts showing green building attributes increasing cash flow Acknowledgement of intangible value 2.National Consensus Standard unanimously approved 1.Third-party verified & legally binding If you cannot measure, report, and verify…you cannot manage it.

CMP Score Distribution Properties with high CMP scores: Reduced exposure to conventional energy cost volatility Superior location attributes Reduced obsolescence risk Greater leasing prospects upon lease churn Reduced liability exposure to indoor air quality issues

CMP Green Score – Implementation Example 2000 Tower Oaks Blvd – Washington DC Suburban Office Washington DC SuburbsRockville Super Class A Office2008 LEED RatingPlatinum LEED Points48 pts Height9 Stories Gross SF198,000 Floorplate SF 23,000

2000 Tower Oaks – LEED Platinum

Implementation – 2000 Tower Oaks Capital Markets Partnership Green Score Formula Energy Star Score = 87 LEED Platinum Certified Some Proximity to Mass-Transit Energy / Water LEED Credits Various IEQ LEED Credits

Sustainable Manufacturing National Consensus Underwriting Standard CMP Corporate Green Value Score Value measured by increased share value Higher value at Silver, Gold & Platinum Levels Higher value for Green-e Power & Conventional Energy Reductions Higher value for higher reduction of pollutants Higher value for reuse – avoids disposal risks Covers multiple attributes & all products other than planes & vehicles Underwrites Green Convertible Securities (GCS) For manufacturers & retailers. GCS cover debt & equity. Launched at Aug. 19, 2009 MTS New York Stock Exchange Meeting

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