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Inland Empire Renewable Energy Regional Center

Riverside EB-5 Regional Center Renewable Energy Investment Opportunities


Inland Empire Renewable Energy Regional Center The Inland Empire Renewable Energy Regional Center, hereafter known as (IERE) recently won approval from the United States Citizenship and Immigration Services, hereafter known as (USCIS) to offer investment opportunities to foreign investors who desire to fast track their permanent residency applications through the EB-5 Immigrant Investor Program. The headquarters of the IERE are located in Riverside, a growing metropolis with unlimited investment potential. Riverside is well known as the economic and cultural hub of the Inland Empire. We selected Riverside as our headquarters because of its centralized location in the inland empire as well as ease of accessibility to many of the freeways in all of southern California to include freeway 10, 15, 60, 57, 91, 210 and 215. Our operating philosophy is one in which we dedicate ourselves to assisting you and your family fulfill your dream of immigrating to the United States. The primary focus of our investment opportunities are in renewable energy resources. We like to think that besides helping you realize your dreams, we are also doing our part to make our country a better place to live through our environmentally friendly programs. When looking at our name, we are putting our efforts into renewable energy. At the present time, renewable energy is in its second generation. The first generation

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includes stable technologies like hydroelectricity, biomass, geothermal power and heat. We are specializing in second generation renewable energy which includes solar heating, photovoltaic, wind power and the use of environmentally safe light emitting diodes (leds). There is a cornucopia of uses for solar power, however, as of 2008, less than 0.02% of the world’s total energy supply originated from solar power. The initial drawback is the capital cost for installation. To assist consumers in capturing some of the return on investment, the state of California offers a number of subsidies and incentives to consumers. By investing in renewable energy sources of the future, we can pave the way for a brighter and cleaner tomorrow.

Nevada

• Los Angeles County • Riverside County • Orange County Arizona • San Diego County

Mexico


SolarMax Technology, Inc. SolarMax Technology, Inc. is a Solar Electric Systems Integrator aspiring to increase renewable energy awareness. We specialize in design, manufacturing, financing and delivery of affordable, high performance solar electric systems for residential and commercial consumers worldwide. Through the company’s unique business model and affiliation with reputable solar companies and government agencies, SolarMax aims to become a leading solar integrator by delivering innovative and high- value solar solutions to our customers. With our robust client base, we have designed photovoltaic systems ranging from residential, non-profit organization, and commercial clients. At SolarMax Technology, Inc. we understand the adverse effects of traditional energy production may have on the health of our planet. In an effort to preserve our world, SolarMax strives to provide sustainable and cost-effective solar solutions that help reduce the effects of global warming and environmental degradation. With headquarters in the City of Industry, California, SolarMax was established with the premise of creating a clean and inhabitable earth through collaborative global effort in utilizing renewable energy. Our extensive knowledge and experience in the design and installation of solar electric systems allows us to provide clients with a complete solution to all their energy needs. By choosing SolarMax, the client is selecting a reliable company who shares the vision of a greener earth by integrating clean, renewable energy. What makes SolarMax an industry leader in the field of solar technology? SolarMax has an impressive array of suppliers, factories and financial specialists whose only goal is to offer you today’s most advanced design in solar power. SolarMax offers the consumer many years of solar expertise.

Our engineers and technicians will design the ultimate solar system for your home, non-profit organization, and/or business and you can begin to immediately save money on renewable resources. We are your solar partner for life.

SolarMax Tech., Inc. provides a wide range of services including: 1. Electrical Efficiency Consulting 2. Site Assessment and Evaluation 3. Customized System Design 4. System Engineering and Equipment Specifications 5. Installation Project Management 6. Rebate Processing 7. Operation and Maintenance

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Approval letter from USCIS

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City of Riverside With a vibrant population of over 300,000, Riverside is the economic and cultural heart of the inland Southern California region, and is quickly becoming one of the California’s most diverse and successful cities. Riverside’s historic legacy begins with its citrus heritage. After the city’s incorporation in 1883, it quickly became the economic leader of southern California’s booming citrus industry. By 1885, Riverside was one of the wealthiest cities in the nation. Riverside’s success in attracting national interest and investment during this period left a lasting imprint and is celebrated today in the citrus groves along Victoria Avenue and in the California Citrus State Historical Park. Fast forward to the 21st century and Riverside continues to thrive, experiencing growth as a university community of more than 50,000 students, as an innovative community of hi-tech and bio-tech companies, and as the Justice Center of the Inland Empire. Its ideal location 50 miles east of Los Angeles and 30 miles north east of Orange County make it an ideal place for doing international business. Adding to Riverside’s international appeal is the city’s diverse population. The city is home to a variety of different cultures, with a rich Hispanic, African American, Korean, and Chinese presence. Through its diversity, Riverside lives up to its reputation as a world-class city and reasserts its role as an international hub. The city’s continued development is being secured by Riverside’s Renaissance Project, a $1.57 billion initiative, which is improving infrastructure, cleaning up the environment, and making sure that the Riverside of tomorrow lives up to its rich, historic past.

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Letter from Riverside Mayor

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Riverside is proud to be one of the California’s most prominent academic centers, with several institutions of the higher leaning including the University of California, Riverside, La Sierra University, California Baptist University and Riverside City College. These institutions enrich the community by providing educational opportunities to all of the region’s residents. They also guarantee the city’ future prosperity by creating a talented workforce equipped with 21st century skills.

Riverside University Community Riverside’s educational institutions attract international attention, with students from across the globe coming to the city to engage themselves academically and culturally.

University of California, Riverside 8


Comparison of Legal Immigrants in the US VS Studying in the US With same costs, different results Plan your children’s education early Immigration

Studying

Total Expenses

$500,000 USD invested into an approved regional center in an Targeted Employment Area

Tuition, cost of living, estimated at $80,000-100,000 USD, costs are higher for private schools (costs based on California tuition fees).

School Entry Requirements

Same as US citizens

Depending upon schools, require TOFEL score of at least 80 (highest score 120). Better schools require a higher score to be admitted.

Time Required To Apply

• 4-6 months to obtain conditional green card approval • 8-12 months to obtain conditional green card

1. Time preparing for the test 2. Applying to the school and being admitted 3. Applying for Visa (The above processes will take at least 2 years)

Condition of Status

• Green card for entire family • 8-12 months-conditional green card • 21 months-permanent green card • After 3 years-can apply for U.S. citizenship

Foreign student status (requires further education or employer sponsorship for H1-B visa to stay in the US).

Social Benefits

• Same benefits for US citizen/US residence. • May apply for government tuition subsidy & scholarship.

No benefits

Advanced Degrees & Career Opportunities

Same as US citizens

Not permitted to work during studying, even if you obtain H1-B visa through work, it requires a complicated and strict process, and the approval ratio is decreasing every year.

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EB-5 Overview The US government has relaxed the policy on the EB-5 program. “EB-5” has attracted many financially capable investors from all over the world, especially in the past two years and continues to gain in popularity. EB-5 has a number of characteristics which does not require specific investor’s education, language skills or working experience. As long as you can lawfully prove your source of funds, and also provide at least 10 full time employment positions in the US, you can meet basic eligibility requirements. Once the investment is approved, the investor, his or her spouse and their unmarried children under the age of 21 are all eligible to receive a two year conditional green card. During this two year period, the investor must continue to satisfy all EB-5 requirements in order to qualify for a removal of conditions. If everything goes smoothly, the investor can change the status from conditional green card to permanent green card. The EB-5 (Employment Based Fifth Preference) immigration investment program was established in 1990, with the goal of attracting overseas investors to invest and create employment opportunities in the United States. Each year the USCIS makes 10,000 visas available to the investors hoping to obtain their permanent residency in the United States through the EB-5 program. According to the immigration law, there are two types of EB-5 programs. They are the Traditional/Standard EB-5 and the Regional Center EB-5.

Self-invested Projects • The minimum amount required to invest is $1 million of capital, which may be reduced to $500,000 if the investment is made in a rural or high unemployment area or; • The creation of an original business or; • Expanding an existing business or; • Investing in a trouble business. • Must create full-time employment for at least 10 US workers. • Investors must be involved with day-to-day management and operation. Regional Center EB-5 • The minimum amount required to invest is $1 million, although that amount is reduced to $500,000 if the investment is made in a rural or high unemployment area. • Congress created an EB-5 Pilot Program in 1993 and it became the Immigration and Nationality Act. • It focuses on a specific geographic area within the US. • The program makes 10,000 visas available each year, from which 3,000 are set aside for those who apply under a “Regional Center”. • Job creation can be used in “direct” and “indirect” methods. • Investors in a Regional Center do not have a day-to-day management responsibility.

Approximately 95% of the EB-5 filed each year is under Alien Investors who are investing in Regional Center-affiliated commercial enterprises. Regional Center EB-5 Program is the fastest approval and least requirements among all immigration categories. 10


Flow Chart of EB5 Visa Application Process EB-5 investor receives confidential offering memorandum of EB-5 investment project

Investor signs subscription agreement and provides background information to IERE

Investor deposits USD$500,000 into secure bank escrow and pays IERE administrative fee

Investor’s attorney submits I-526 application to USCIS

Declined

4-6 months after filing of I-526 Petition

Escrow account returns 100% of USD$500,000 and administrative fee of USD $50,000 to investor

Upon a USCIS receipt notice is received

Escrow account releases USD$500,000 to partnership account

4-8 Months, interview with U.S. consulate in Guangzhou

Two year conditional green card Issued (within 2 months after the interview)

File I-829 remove conditional green card (21 months after conditional green card was issued)

Receives Unconditional/Permanent Green Card ( 2 months after I-829 is approved)

Investor is divested of EB-5 investment project (USD$500,000 capital returned after 4 yrs)

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IERE Regional Center Phase 1 Project Company Name:

Inland Empire Renewable Energy Regional Center (base in California)

Total Investors: 36 Institutional Funds:

SolarMax Technology, Inc. (“SolarMax”)

Project Phase 1:

To develop a renewable energy center

Project Introduction:

IERE Regional Center plans to fund the development and management of a

“Renewable Energy Supercenter” Industry Cluster:

Retail, distribution, office and education uses related to renewable energy

Target:

To develop and manage a renewable energy center

Project Location:

3080 12th Street, Riverside, CA

Project Building Area:

Total 165,000 square feet of usable space, divided as 50,000 square feet for office

space, 50,000 square feet for retail space, 50,000 square feet for a distribution

center and 15,000 square feet for education facilities

Estimated total investment:

$18 Million USD

Estimated total investors:

36

Job creation analysis:

Based on RIM II input/output model which has been recognized by the USCIS as an

acceptable methodology. See chart below:

RIMS II Mult

New Jobs

NAICS Code

12.44

15.36

191.1

5611

25,000

8.44

18.38

155.2

5614

Retail Space

50,000

2.43

18.18

155.1

44-45

Distribution

50,000

2.43

16.75

40.6

493

Education

15,000

0.97

20.19

19.6

61

Total

165,000

Sq. Ft.

Activity

Rev/Exp (in millions)

Office Administration 25,000 Business Support Services

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561.6

Job Creation Opportunity:

15.6 jobs (by every investor)

Investment Period:

Four (4) years

Collateral:

Supercenter real estate, equipment, member of IERE-SolarMax Cashier’s check


Located in the greater Los Angeles metropolitan area, the Inland Empire Renewable Energy Regional Center LLC (“IERE”) set up a new enterprise in California (Clean Energy CTR LP, “CECLP”) in order to satisfy [the American immigration law] under the EB-5 pilot program. The IERE region center is the CLP’s general partner, the foreign investor is this limited partnership enterprise’s limited partner. The limited partner’s capital funds will be deposited temporarily into IERE’s secure escrow account. IERE is formed jointly by California’s SolarMax Technology, Inc. (“SolarMax”) and its four main shareholders. SolarMax Corporation will sign a lease agreement to lease the renewable energy super center described as the IERE first phase project. The lease also specifically states, when the four year lease agreement is due, SolarMax corporation will purchase this renewable energy super center at the market price of $18,000,000 US dollars. By doing so, this will insure the safety of the investors’ capital investment funds. SolarMax Corporation and its four main shareholders are 100% fully responsible by law to all of IERE’s management and its investment behavior. In addition, if IERE is unable to gather 36 qualified investors within the time schedule, SolarMax Corporation will take the motion to invest in voluntarily, to guarantee the implementation of the renewable energy super center project. SolarMax Corporation will prepare a $10,000,000 US dollars voluntary investment fund if EB-5 investment funds are unable to arrive as time scheduled.

Investment Method Future Home of SolarMax Renewable Energy Center

IERE Project Phase 1 Business Structure:

SolarMax Technology, Inc. (“SolarMax”)

SolarMax’s Four Main Shareholders

Invest EB-5’s 36 Investors (Each holding 2.75% share of CECLP)

Inland Empire Renewable Energy Regional Center LLC. “IERE” Lease

General Partner

Limited Partner

Clean Energy Center, LP “CECLP” Loan SMX Properties LLC (Owns the Super Center Property)

Invest

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IERE Regional Center Phase 2 Project Company Name:

Inland Empire Renewable Energy Regional Center

(base in California, Great Los Angeles Area)

Total Investors: 90 Institutional Funds:

SolarMax Technology, Inc. (“SolarMax”)

Project Phase 2:

Renewable Energy Projects

Project Introduction:

IERE intends to finance the installation, management and maintenance of Solar

Energy Projects throughout the Regional Center.

Industry Cluster:

Installation, Monitor and Maintenance, Administration, Project Engineering &

Design, Sales & Marketing

Target:

Construction and facility management of solar energy projects

Project Location:

Southern California Los Angeles County and San Bernardino County

Expenditure:

No less than $72,000,000.

Estimated total investment:

$45 Million USD (90 Investors)

Job creation analysis:

Based on RIM II input/output model which has been recognized by the USCIS as an

acceptable methodology. See chart below:

Rev/Exp

Activity

RIMS II Mult

New Jobs

NAICS Code

(in millions) Installation

65.0

14.38

934

23

Monitor & Maintenance

2.164

14.38

31

23

Administration

0.996

15.36

15

5611

Engineering & Design

3.284

11.84

39

5314

Sales & Marketing

1.350

18.39

25

5614

1,044

Total

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Job Creation Opportunity:

11.6 jobs (by every investor)

Investment Period:

4 years

Collateral:

Member of IERE-SolarMax Cashier’s check and Project Contracts


Located in the greater Los Angeles metropolitan area, Inland Empire Renewable Energy Regional Center LLC., (“IERE”) is formed jointly by California’s SolarMax Technology, Inc. (“SolarMax”) and its four main shareholders. This will insure the safety of the investors’ capital investment funds. In order to satisfy [the American immigration law] under the EB-5 pilot program, the IERE set up a new enterprise in California, namely Clean Energy Funding, LP, (“CEFLP”). IERE is the CEFLP’s general partner; the foreign investor is this Partnership enterprise’s limited partner. The limited partner’s capital investment funds will be deposited temporarily into IERE’s secure escrow account. SolarMax Corporation and its four main shareholders are 100% fully responsible by law to all of IERE’s management and its investment behavior. The CEFLP fund will be loaned to SolarMax’s subsidiary company SolarMax Renewable Energy Provider, Inc. (“SREP”), to be used in the design, sales, installation and maintenance of renewable energy projects. The repayment of this loan is guaranteed by SolarMax, simultaneously, the total sum of $80,000,000 US dollar contracts already signed by SREP provides reliable and stable safety insurance to repayment of the loan. SREP’s renewable energy projects needs total investment cost of $100,000,000 US dollars, from which $45,000,000 US dollars come from the EB-5 investors, only account for 45% of the total investment.

Investment Method

IERE Project Phase 2 Business Structure:

SolarMax Technology, Inc. (“SolarMax”) Invest

SolarMax Renewable Energy Provider, Inc. (SREP) (Renewable Energy Projects)

Loan

SolarMax’s Four Main Shareholders

Invest Inland Empire Renewable Energy Regional Center LLC. “IERE” General Partner

EB-5’s 90 Investors (Each holding 1.1% share of CEFLP) Limited Partner

Clean Energy Funding, LP “CEFLP”

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SolarMax Renewable Energy Provider, Inc. (“SREP”)

SREP will invest the loan funding obtained from CEFLP to commercial and residential solar energy customers, to help customers with the installation and maintenance of the solar equipment sold by SolarMax. The implementation of this project will make the best use of the federal and state governments tax credit bill in promoting the use of green energy’s and utility companies’ cash rebates and incentives programs. Accordingly, after the completion of the project installation in about 90 days, SREP will receive a grant from federal government for 30% of the total project cost, and about a 40% cash rebate from local utility companies, with approximately 30% of the remaining project cost (including IERE 25-30% gross margin), to be paid by the customer in loan payments including interest on the loan.

Federal Tax Incentive -- On February 17, 2009, President Obama signed into

law the American Recovery and Reinvestment Act, and through it he also signed into effect the Residential Renewable Energy Tax Credit and the Business Energy Investment Tax Credit. The Residential Renewable Energy Tax Credit is described as a personal tax credit, whereas the Business Energy Investment Tax Credit is identified as a corporate tax credit. Both are quite different, specifically with regards to the way one accounts for utility rebates.

Utility Rebates -- In addition to the Federal Tax credit, utility companies in

most states offer rebates and this is treated as a purchase price reduction. This means that the value of the rebate is subtracted from the total purchase price, resulting in a net adjusted cost for the purpose of determining the value of the federal tax credit.

Depreciation -- The third major financial incentive is depreciation, which is

only for businesses. Solar projects qualify for a 5-year accelerated depreciation. The depreciation of these systems can be 50% the first year and 12.5% in each of the succeeding 4 years.

IERE’s renewable energy project is very clear and simple and does not

involve too many external factors. The founders of IERE are the also ones managing the specific project., Such an arrangement can ensure the smooth implementation of the project within two years, which will lay a solid foundation for investors to obtain the unconditional/permanent green card. The IERE regional center is investing in the company that has real projects and is operating positively. SREP is involved in solar projects throughout the process: from the design and installation of solar equipment for the customers to the maintenance and repair after the completion of project. This will ensure that the investor’s capital investment is in the operation of solar energy projects throughout the investment period. IERE will not be lending investors’ money to other projects that’s managed by a third party investment, which will not increase the 16

risk of the investor’s capital investment funds.


City of Riverside Residential Finance Model System Size: System Purchase Price: Utility Rebate: Customer Down Payment: Federal Tax Credit: Loan Terms: Monthly Payment:

5 KW DC $30,000.00 *$5,800.00 $5,000.00 $9,000.00 10 Years $199.00

(The utility bill was formerly $250.00)

System True Cost: System Revenue: System Recovery Time:

$20,000.00 $10,000.00 3.8 Years

* Cash rebates may vary by different utility companies.

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City of Riverside Commercial Finance Model System Size: System Purchase Price: Utility Rebate: Customer Down Payment: Federal Tax Grant:

200 KW DC $1,000,000.00 *$250,000.00 $10,000.00 $300,000.00

Loan Terms: Monthly Payment:

10 Years $4,800.00 (The utility bill was formerly $6,500.00)

System True Cost: System Recovery Time:

$700,000.00 2.5 Years

* Cash rebates may vary by different utility companies. 18


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Inland Empire Renewable Energy Regional Center 17700 Castleton St., Suite 488 City of Industry, CA 91748 T (626) 581-8858 F (626) 581-8830 www.iereregionalcenter.com


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