Arête may encounter alternative and renewable energy projects that are suitable for custom-designed, complex, multi-party financings and take therein, participations in one or more of the custom funding features directly or through the earned-in interests after payments to third party financing sources. The Company's ability to participate in these ventures depends upon its funding capability or upon its ability to gain a role in the project to consult with project sponsors or technology providers, receiving a contract right to originate all or part of the project financing component.

Alternative and Renewable projects are generally situated as co-generation facilities in which natural gas is combined with waste conversion to hydrocarbons and augmented with solar, geothermal, or other natural energy sources to produce electricity which can be sold into the Power Grid. These projects involve Federal, State, or Municipal authorities, electrical utilities, gas producers, transportation facilities, technology providers, and the facility owner. Numerous complex relationships exist between these various parties, and several tax and other incentives as well as credit assurances and guarantees are usually provided.

There are many roles that Arête can play in this arena without excessive infrastructure, including project finance coordination, energy purchasing and marketing, and technology ownership. We see Arête's most likely roles as financing through bridge capital investment, energy purchase agreements, and acquisition of the technology provider or the project sponsor, i.e. the project itself.

Arête's initial opportunities include acquisition of a project sponsor and an owner of various technologies, directly or through licensing. Certain of these prospects can be acquired into a subsidiary of Arête and, once funded and operational, taken public through a registered rights offering and/or dividend spin off to its public shareholders.