Ann: Appendix 4C, page-11

Hi @jwt,

The below extract is from an article published by our finance partner, which suggests the project is financed on the credit worthiness of the borrower, not Isity.

Efficiency bonds

"Lance Capital, a longtime non-bank private lender in commercial real estate finance, stumbled on this creative approach to financing municipal energy efficiency through its experience in financing custom interiors for tenants of major office buildings.

I spoke with CEO Richard Podos about how his company developed its unique approach: "Johnson Controls [one of the world's largest managers of commercial property, with deep expertise in building energy efficiency] called us and said, 'We've got a lot of clients who want energy efficiency stuff and you guys seemed to have an innovative way to bring capital into real estate deals. Can you do the same with efficiency?' "

So far, Lance Capital has issued about $1 billion worth of bonds, and has a pipeline of over $2 billion to finance such projects for Johnson Controls. Unlike green bonds, these bonds are backed by the creditworthiness of the borrower, not by the project. That makes the instruments a good match for major municipalities, which typically have good credit ratings, with major infrastructure needs. For example, if New York City decided to proceed with building a seawall to protect it against the next Hurricane Sandy, Lance Capital could organize a bond to pay for it, backed by the creditworthiness of the Big Apple."

The article then goes on to explain how they can match the term of the loan to the project through their solution, the full article is in the link below:

http://www.zdnet.com/article/releasing-the-kraken-of-energy-transition/

This article was published in 2013, as we all know an industry will only grow at the rate capital can become available in that industry.

When I spoke with Paul Bettie recently, he mentioned our finance partner said they would be able to lend $10B right now if we had the projects for them; so there is plenty of money around for the deals, we just need to find them & get them over the line.