Treadmark will continue working with Fountain Tire developing and purchasing suitable properties.

A) Interest Rates
Interest rates used in the Partnership financial model are assumed to average 4.5%. In a rising interest rate environment there may be a mismatch for a time period in lease terms and underlying debt instruments for specific properties. The Board believes this risk to be mitigated by the terms of leases (typically a five year term with a second five year term at an
escalated rental rate), staggered maturities in the portfolio and general views on where interest rates are headed in North America in the near term.

B) Property Values
The properties are appraised for insurance replacement cost and updated on a regular schedule for current values.

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C) Responsibility for Capital Improvements
As in a typical lease is that the Partnership is responsible for capital improvements associated with the properties leased. This includes HVAC systems, roofs, parking lots, etc. If these capital items are not maintained properly there could be financial exposure to the Partnership. The Board believes this risk is mitigated by intimate knowledge of the properties and related capital improvements including age and condition prior to purchase by the Partnership, allowing for appropriate adjustments to the purchase price and the knowledge that Fountain Tire follows stringent repairs and maintenance policies in keeping its properties in operating condition. A number of the properties in the portfolio are new builds, and as such should not face major repairs or costs during the anticipated term of the Partnership. In the financial model for the Partnership $200,000 per year has been provided for unanticipated costs associated with capital improvements.