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Gents,

Just spent a week in Tokyo with Roys and the staff of this power plant company Platinum has formed in Japan, ICC Energy. I began introducing his team to my network financing, senior management and other contacts there. Bottom line is this power plant project appears very attractive, is being run by very competent managers and could be a significant revenue generator for us should we decide to be involved. Here is the background:

Platinum bought a like new (one year of usage) 40Megawatt power plant from Toshiba. At 40mw, this will be the largest biofuel power plant in Japan. Palm oil will be the fuel. There is an energy shortage in Japan due to the Fukushima disaster and the subsequent shut down of all Japan's nuclear plants. Additionally, Japan consumes more power per capita than any country on earth. The Japanese government is providing incentives to power providers to develop alternative energy platforms (solar, wind, biofuel, etc). Basically, we are taking advantage of a feed-in tariff provided by the Japanese government which ensures a 20 year fixed price for power. This is a very profitable project as a result. The equity in this single plant (large enough to power a small city) could be worth $50 million or more. Once this plant is operational there is the opportunity to roll up several more and build a very large and profitable new power company.

Roys and I discussed doing this as an RS vehicle to mitigate potential issues with obtaining Japanese debt financing (upon which the success of this project depends) given the highly conservative and closed nature of Japan. I recommend we do so for the following reasons.

There is both a near term recap opportunity (in conjunction with the debt raise), fee opportunities as well as significant equity upside. Step one would be helping obtain $30 million of bridge and project finance capital to start the construction of the plant and recap some of Platinum's equity contribution. This step would occur immediately after MEDI approval is obtained, which could be as soon as mid December. All parties agree this would be easier under a RS SPV. As equity holders, my understanding is that this would not require us to be licensed (although I am licensed through another BD).

Roys is waiting for thoughts on how we structure the SPV, equity splits, fees etc. Platinum owns 100% of the equity and has committed about $20 million to the project to the project thus far.

Assuming we are all on board with moving forward on this, my suggestion is we start at 2 and 20 in a 5 year fund structure and see where it goes from there.

Lets do a call to discuss on Tuesday if possible.

Best,

John

Please excuse typos as this message was sent from my handheld device.