1. October 27, 2015 1 All Rights Reserved by Greenman Funding - 813-968-6867

2. $20 Million Loan or a guaranteed, 15 year payment stream of 191,000 E/mo. (PV of 20M Euros at 8%). OBJECTIVES OFFTAKER (loan guarantor) wants: 1. to obtain equity in a profitable project 2. to insure future supply of product 3. possibly obtain cash to be used for other purposes. 4. Not to assume any risks associated with plant construction and operation. 5. to make a risk-free profit Owner of the Wind Energy Plant wants: 1. to profit from the completed wind energy park, 2. to obtain financing guarantees to enable construction. October 27, 2015 2 All Rights Reserved by Greenman Funding - 813-968-6867

3. EXAMPLE - $63.9M Loan ($20M is equity – $43.9M is to offset risk) $20, 000,000 Project: 5-year term (can be longer) 9% interest rate (8% - 10% range) Payments made yearly at end of year (can be monthly or quarterly) 3.5 points to lenders and broker, paid at closing (lender’s ask for 3-5 points) $20M Construction Costs for Owner/Developer $22.1M funded Day 1; Interest only for the first 12 months $40M funded day 365 to offtaker (could be funded Day 1, but interest accrues) Result: $15,072,000 annual payment for five years. The total exposure is 5 x $15,072,000 = $75,359,000. The Present Value of this stream of payments using an 8% discount rate is : $60,177,000 $60,177,000 is the offtaker's total financial exposure (risk) that must be addressed. October 27, 2015 3 All Rights Reserved by Greenman Funding - 813-968-6867

4. PRESENT VALUE COMPARISON Offtaker’s Cash Flow Summary October 27, 2015 ($000)Yr 1Yr 2Yr 3Yr 4Yr 5TOT PV=8% Payments15,072- $75,359 60,177- Cash40,000 Depre- ciation 7,0004,2003,6091,890 18,589$15,123 Interest2,7952,2921,7161,0954166,2754,443 State Tax40125921711898716602 PV/8%35,1248,321-9,537-12,668- 10,779- + 491 Loan payments are spread equally over 5 years, while cash is paid up front and tax deductions are front-loaded. As a result, the Present Value discount rate of 8% produces a small (491) surplus). A surplus benefits the off-taker. $10,779 would be the risk if there was no time value of money (PV discount rate = zero). The loan documents must be structured so that the off-taker can take advantage of these IRS deductions. 4 All Rights Reserved by Greenman Funding - 813-968-6867

5. Total Exposure Example One -14 mgpy ethanol plant $60,177,000 Risk-Avoidance Components Recap October 27, 2015 The four risk-avoidance components total $60,668,000. The assumptions used are: 1) the off-taker has a corporate tax rate of 35%, 2) a 3% flat rate State tax based upon federal taxable earnings and 3) has the ability to use the IRS tax deductions. Future payments are discounted to PV using an 8% discount rate. 5 All Rights Reserved by Greenman Funding - 813-968-6867

6. Contract Structure There will be three agreements: October 27, 2015 Loan Side A loan agreement between the lender and the off-taker (owner will co-sign) guarantying a 15-year payment stream of 191,000 Euros/month. This agreement may be structured as a loan guarantee, or the repayment of a sales contract. Ask your tax people. A side-agreement between the off- taker and the owner that specifies that the off-taker will receive the $40M (e.g.) cash and all tax benefits relating to this project. Sales A sales contract between the off-taker and owner giving the offtaker 30% (e.g.) equity in the project and …. 6 All Rights Reserved by Greenman Funding - 813-968-6867

7. All rights reserved by Greenman Funding - 813-968-6867 All rights reserved by Greenman Funding - 813-968-6867 Offtaker’s/Guarantor’s Cash Flow & Profit SUMMARY Worst Case: - $491,000 Profit The off-taker receives $40M cash and well-established tax benefits up front. They will earn a fair profit ($491,000 in this example), even if the plant never produces ethanol. Typical Transaction: - $85M Profit over 5 years The off-taker gets $40M cash (e.g.) and tax benefits which earn him $491,000 and in addition; 1) 30% equity, 2) offtaker receives a electricity at a fair price; 3) etc. (whatever additional Perks are required). Summary: The offtaker will earn $85M over 5 years by simply guaranteeing a loan. There is virtually no risk because they receive cash and tax benefits totaling $60.6M that more than offset the total risk of $60.1M. There are no upfront fees – offtaker/guarantor receives $40M before the first debt service payment is due. See following Cash Flow and Profit Summary “Table” October 27, 2015 7 All Rights Reserved by Greenman Funding 813-968-6867

8. Offtaker’s/Guarantor’s Cash Flow and Profit Summary October 27, 2015 ($000) Yr 1Yr 2Yr 3Yr 4Yr 5TOT PV=8 % Worst Case ($491 Profit) if the Energy Plant is not completed Payments on 63.9M 15,072- $75,359 60,177- Cash Rec.$40,00040,000 Depre- ciation $7,0004,2003,6091,890 18,589$15,123 Interest$2,7952,2921,7161,0954166,2754,443 State Tax$40125921711898716602 Cash Flow Worst Case $35,1248,321-9,537-12,668- 10,779- + 491 Offtaker’s Likely Profit ($85,161) Owner’s Payments on 23.9M $5,637 $28,186$22,508 $.10/Gall 14M gpy $1,400 $ 7,000 5,590 $.04/Gall (Rate Adj) $ 560 $ 2,800 2,236 ROI on $40M (24%) $9,435 $47,175$37,670 TOTALS$17,032 $85,161$68,004 8 All Rights Reserved by Greenman Funding - 813-968-6867

9. Fair Deal Guarantor Owner (e.g. TAURON) (e.g. SANSUR) October 27, 2015 The scale is balanced. This same formula can be used for any project that has a BBB-rated company, or financial instrument to support the loan. The minimum loan size is $10M – no maximum. $85,161,000 profit 15-20% with Equity Financing Minimal Risk 9 All Rights Reserved by Greenman Funding - 813-968-6867