While there is currently significant investment in land conservation by both the public and philanthropic sectors, there is far greater demand for land protection and restoration than existing funds can support. EIP provides a private capital solution to this funding gap.

EIP creates value for investors through strategic acquisition of properties with critical environmental features, adding value in three ways:

• Development and realization of environmental value using new market mechanisms for conservation and environmental restoration
• Improved management of timber, agricultural and other real estate values that are consistent with overall conservation objectives
• Appreciation of core real estate values through active improvement, restoration and stewardship of under-valued properties

EIP utilizes a wide range of market mechanisms and landowner incentive programs to achieve its results. These programs and mechanisms can be thought of in the context of the EIP strategy as "components of value." Each component generates an income stream, enabling the EIP to provide an attractive, and diversified, overall return on investment.

Mitigation Markets
Under federal and state environmental laws, EIP is able to generate compliance with Clean Water Act, Endangered Species Act and other requirements for projects within a scientifically relevant distance from our projects. These projects achieve regulatory compliance through the purchase of credits from EIP because we offset or "mitigate" their unavoidable environmental impacts. Under this framework, EIP generates revenue through:

• Wetland and Stream Mitigation Banking
  Selling credits generated through the restoration of aquatic systems
• Conservation (Endangered Species) Banking
  Selling credits generated through the protection and restoration of habitat for federal or state listed endangered or threatened species

Conservation Finance
Working with conservation organizations and agencies to identify, secure and conserve properties in need of protection and restoration, EIP generates revenue through the sale of conservation easements, fee simple, transfer of development rights and other economic transactions.

Sustainable Harvest
Selling sustainably grown and harvested forest and agricultural products.

Tradable Development Rights
By extinguishing the right to develop in designated TDR 'sending areas' credits are earned that can then be sold to entitle higher density infill development or development along transportation corridors. There are currently 142 counties in the U.S. that make use of this planning implementation tool that works within the structure of a community's zoning code to encourage the voluntary redirection of growth away from places that communities want to save and to places that communities want to grow.

Developing Markets
There are a number of additional new market mechanisms that are either in use in selective markets, or which have the potential to become widely used. Demand for carbon sequestration and water quality improvements through land protection and management, while not currently at the scale of the mitigation markets, have the potential to be real market drivers for ecosystem values in the near future. Through its property acquisition and restoration abilities, EIP is uniquely positioned to capitalize on these markets as they emerge.

EIP brings value to the nation’s land conservation goals by:

• Providing ready capital that can invest in projects with capital requirements in excess of public or philanthropic capacity
• Managing non-traditional and complex conservation activities, such as:
      - Ecosystem restoration
      - Mitigation Banking
      - Sustainable silviculture and agriculture
      - Limited conservation development
• Being a private conservation buyer of properties that may not be suitable or appropriate for public or non-profit ownership

EIP blends these economic and environmental goals to achieve superior results for both its investors and its conservation partners.