INTRODUCTORY DATA FOR REQUEST FOR BIO DIESEL PROJECT FUNDING

NOTE:   where more space is required, note "attached" and attach information, labeled

Date submitted:  

To:   Peter Jessen:   peterjj@peterjessen-gpa.com

From:

INTRODUCTORY DATA FOR REQUEST FOR PROJECT FUNDING

NOTE:   where more space is required, note "attached" and attach information, labeled

Date submitted:  

To:   Peter Jessen:   peterjj@peterjessen-gpa.com

From:

PARAMETERS AND CRITERIA TO MEET

TO QUALIFY FOR BIO-DIESEL FUNDING CONSIDERATION

Complete at least #s 1   - 6 for project funding analysis and consideration:

  1. Site requirements :

• i. Controlled:   owned, leased or have an option  

• ii. Access to appropriate transportation for off take (barge and/or rail preferred)

• iii. Access to power (include any plans to hook up wind and/or local hydro)

• iv. Passed EIS and other government study requirements (Federal, state, county) or in process (so indicate, outlining remaining steps and expected completion dates)

•  Plant cost :   40 - 60 cents/gallon plant cost, "all in" (engineering, design, lease or buy, everything, not including feedstock)

  1. Off take margin: sold to market with margin of at least 45 cents
  2. Minimum investment:   $10MM.   Preferred "sweet spot" amount:   $20MM
  3. Minimum size:   10MM gallons, if rampable, with ramp up to 80MM - 300MM gallons
  4. Executive Summary:   Attach a 1-3 pages Executive summary answering the above and showing the following:

• i. Investment amount needed and by when

• ii. Indicate type of funding sought: funding only, turn key, joint venture)

• iii. Summarize financials, including status of proformas.

• iv. Feedstock plans (commitments or plans for obtaining, or help needed)

• v. Marketing plans (commitments or plans for obtaining, or help needed)

• vi. Core management team bios and company history (can be half page for each for now)

• vii. Statement of operations and administration of the bio-diesel plant

• viii. Biz plan or draft of one only if you have one already.  

IF possible, provide half page or less on the following to strengthen your case, although they are NOT mandatory at this time (be very general about anything that is proprietary).   But keep notes on these topics, as they will be needed for your business plan & business development:

Critical to financing:   explain or demonstrate how exposure and margins will be managed:

  1. Management of "Feed stock Risk" (and rationale for choice re soy, palm oil, canola, other)
  2. Management of "Costs to Produce"
  3. Management of "who to sell to" and at "what price"
  4. Management of "selling $1/tax credit" (especially if tax credit is not renewed)
  5. Management of "palm oil temperature cold flow property"
  6. Management of "glycerin" disposal or sale
  7. Management of Feedstock Access or contracts for feedstock and as cost center
  8. Management of off-take sales or contracts to sell off-take, and as cost center
  9. Infrastructure, including tankage and other facilities

Equity and Contractual Consulting Fee Protocols

Equity: how much will depend on your role and expertise (max available from any investor:   49%, unless special circumstances warrant negotiating higher or you negotiate a buy back).

Contractual protocols:   (1) Retainer, (2) Expenses, (3) Cost of additional advisors if needed (engineering, legal, CFO type, and other advisories as negotiated on a case by case basis);

(4) Performance Fee, and (5) a deal "breakdown" penalty for those unable to decide or who reverse course despite services having been rendered.

Services provided:   capital sourcing, guiding of due diligence of both sides, help developing business development strategies for growth, to exponentially increase growth and returns, and, as needed, sourcing candidate partners and/or finding joint ventures with others.

10-5-06,   www.jessenenterprises.com