1. CHICAGO CLIMATE EXCHANGE, INC. © 2006 Chicago Climate Futures Exchange ™ www.theccx.com U.S. Sulfur Financial Instrument Futures and Nitrogen Financial Instrument Futures on CCFE

2. CHICAGO CLIMATE EXCHANGE, INC. © 2006 Sulfur Dioxide (SO 2 ) Market Foundation  The Acid Rain Program was created by Title IV of the 1990 Clean Air Act Amendments and is administered by the EPA  Calls for a 10 million ton reduction in SO 2 emissions from 1980 levels, primarily through a cap and trade program  Effected Sources: Primarily Electric Generating Utilities  Annual cap set at 8.95 million allowances  Approximately 10 million allowances transfer annually (between unrelated entities), representing a cash market value over $5 billion

3. CHICAGO CLIMATE EXCHANGE, INC. © 2006 Nitrogen Oxide (NOx) Market Foundation  NOx Budget Trading Program was implemented in 2003 to address the formation of ground level ozone in the warm summer months (Ozone Season)  Federally mandated cap and trade program, caps emissions at State level  Currently 19 Eastern U.S. states + D.C. in participation  Effected Sources: Electric Generating Utilities, Pulp & Paper Industry, Cement Manufacturing Industry, Oil & Gas Industry...  500 thousand allowances allocated annually  Approximately 500 allowances transfer annually (between unrelated entities), representing a cash market value over $500 million

4. CHICAGO CLIMATE EXCHANGE, INC. © 2006 SO 2 Emission Allowance Price History ($/ton)

5. CHICAGO CLIMATE EXCHANGE, INC. © 2006 NOx SIP Call Emission Allowance Price History ($/ton)

6. CHICAGO CLIMATE EXCHANGE, INC. © 2006 Chicago Climate Futures Exchange™  Chicago Climate Futures Exchange (CCFE ™ ) is a CFTC designated contract market - futures exchange - which offers standardized and cleared futures contracts on emission allowances and other environmental productsCFTC  Clearing services - The Clearing CorporationThe Clearing Corporation  Market surveillance - National Futures AssociationNational Futures Association  CCFE currently lists Sulfur Financial Instrument (SFI ™ ) futures contracts on Environmental Protection Agency (EPA) Sulfur Dioxide (SO ² ) emission allowances and Nitrogen Financial Instrument (NFI ™ ) futures contracts on EPA Ozone Season (OS) SIP Call Nitrogen Oxide (NOx) emission allowances

7. CHICAGO CLIMATE EXCHANGE, INC. © 2006 CCFE SFI ™ Key Features  Contract Size – 25 U.S. EPA SO 2 Emission Allowances  Minimum Tick Size - $0.10 per allowance or $2.50 per contract  Underlying Contract Value $11,725 (03/12 Settlement $469/contract * 25 tons)  Current Margin Requirements Prompt Month (Mar 07 ) $1,475 per contract Pre 2010 contract expiration $975 per contract 2010 & later - $400 per contract Spread Margin Credit – 80%  Trading Hours: 7:00 a.m. – 3:00 p.m. CST  Transaction Fees $2.00 per contract per side (Non-Member); $1.60 member

8. CHICAGO CLIMATE EXCHANGE, INC. © 2006 CCFE NFI ™ Key Features  Contract Size – 5 U.S. EPA NOx SIP Call Emission Allowances  Minimum Tick Size - $1.00 per allowance or $5.00 per contract  Underlying Contract Value $5,250  Current Margin Requirements Expiration Month (Mar 07 ) $825 per contract Non-Expiration Month $550 per contract  Trading Hours: 7:00 a.m. – 3:00 p.m. CST  Transaction Fees $2.50 per contract per side (Non-Member); $2.00 member

9. CHICAGO CLIMATE EXCHANGE, INC. © 2006 CCFE SFI Volume

10. CHICAGO CLIMATE EXCHANGE, INC. © 2006 CCFE SFI Open Interest

11. CHICAGO CLIMATE EXCHANGE, INC. © 2006 CCFE Clearing Members