JobsOhio Programs Western Ohio December 17, 2013

1. JobsOhio Programs Western Ohio December 17, 2013

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3. Today’s Overview • JobsOhio Philosophy • Project Management • JobsOhio Programs • Economic Development Grant • Workforce Training Grant • Growth Fund Loan • Additional Project and Program Details • Discussion 3

4. Philosophy • JobsOhio Philosophy • Promote economic development, business expansion, and job creation • Key factors: job creation, created payroll, fixed-asset investment commitment, project return on investment, and project location • Funds: fixed asset investment, infrastructure, and workforce • Fiscal Year July 1 – June 30 4

5. Project Management Process Project Vetting Deal Structuring

6. Deal Management • Deal Team Every project in the system has an assigned deal team including: • Lead Project Manager (either: JobsOhio or JobsOhio Network Partner) • Secondary Project Manager (either: JobsOhio or JobsOhio Network Partner) • JobsOhio Managing Director (as it relates to Project’s Industry Sector) • JobsOhio Credit Analyst • Project Coordinator • Lead Project Manager The lead project manager is determined with the following criteria: • Point of entry • Company’s project location (statewide or region specific) • Company’s presence in Ohio • Company or industry knowledge (relationships) 6

7. Sales & Project Vetting Offer Application Approval Agreement sent to company Agreement Executed Funds Disbursed JO Panel; JO investment committee or Board M/W/F PM Call JobsOhio Loans Technical Review (Early Stage) JobsOhio & DSA Project Review Loan Review Final Term Sheet, Outside Counsel Appointed, Organizational Call Draft Term Sheet M/W/F PM Call JobsOhio Grants JobsOhio & DSA Project Review JO Panel; JO investment committee or Board M/W/F PM Call Tax Credit Authority JobsOhio & DSA Project Review JCTC & Data Center Tax Exemption M/W/F PM Call Controlling Board IOLF Technical Review JobsOhio & DSA Project Review Loan Review Final Term Sheet, Outside Counsel Appointed, Organizational Call Draft Term Sheet 166 Direct & R&D Loans M/W/F PM Call Controlling Board JobsOhio & DSA Project Review Loan Review Final Term Sheet, Outside Counsel Appointed, Organizational Call Draft Term Sheet M/W/F PM Call Controlling Board 629 Grants JobsOhio & DSA Project Review JobsOhio Project Flow 7

8. Deal Structuring Process • Collect all pertinent company and project info • Develop initial recommended deal structure • If financing is an option financials should be uploaded • Schedule time for MWF Project Call • JO PM updates JO MD • JO PM presents project at JO Project Review Meeting • Monday at 1:00 pm and Thursday at 9:30 am • DSA also present to approve state program recommendations • JO and DSA leadership scrutinize each project • Unanimous consent of deal structure required • Offer Letter signed, uploaded to Salesforce • Lead PM sends Offer Letter to project contact 8

9. Project Vetting • Critical Information to Gather • Metrics: Jobs created, created payroll, jobs retained, retained payroll, capital investment, training budget and number to be trained • Company details: Company legal structure (subsidiaries, parent, etc.), filing structure, financials of the company and pro-forma (if private), key executives/board of directors • Project details: Project description and location, sources and uses for project including partners (banks, investors etc), collateral / security, project barriers • Contact details • Market information • Major factor statement / justification for support (Ohio’s competition for project) • Training plan * 9

10. Be Nosy / Ask Questions Questions to ask • What is the biggest challenge the company faces, or most difficult obstacle • What factors ultimately will drive this project decision • What keeps you awake at night as it relates to your business • What are the other locations for the company • What do they make / produce • Is there extra capacity at those locations • Do these other facilities serve the same markets as the Ohio facility • What is driving the growth for the company / product • New contract, if yes with who and length • New product, if yes what are the growth projections and who is the customer(s) • How does the company transport raw materials and finished product • Consolidation from other locations • Market entry to Midwest / East • Project Decision Process • How is this decision going to be made • Who will be making the decisions • Will it need to be approved by a board • Timing of the decision 10

11. Be Nosy / Ask Questions • Project Timing • When will investments begin • When will the project be complete • Workforce • How do you plan to get your workforce • Training the workforce? • Who will be doing the training; in house, vendor, outside trainer • Financing • Who is the Borrower • What are uses of funds (Real Estate or M&E ) • What are sources of funds • Who is your current lender • Fixed Asset Investment Real Estate • Is it new construction or expansion of the building • Does the company lease or own their current building • Is it a special purpose building • Is there a mortgage on the building • Will the company lease or own the building they're considering • Expected lease or construction costs • What is the construction timeframe M&E • Expected M&E investment • What type of M&E is going to be purchased • Life of the asset • When will the company order the M&E and what is the lead/delivery time needed for the M&E 11

12. Project Determination and Deal Structuring • Key Component to Project • Clearly defined competitive project with job creation and/or capital investment • Other Components Amount of funds per job created (or employee trained) Number of new jobs created Created payroll (median salary of project greater than county median wage) Number of jobs retained (unaffected by the project) Retained payroll (median salary of project greater than county median wage) Retained jobs at risk Retained payroll at risk Capital investment for project (land, building, machinery and equipment) Project Break Even Point Relocation of employees within Ohio Number of employees trained (new and retained) Project location in the State of Ohio (county unemployment rate and Median Wage) Local Participation in the deal Improvement of operational efficiencies and production expansion Industry sector Financial strength of company Previous assistance: either active or within a reasonable amount of time from expiration and performance during such time 12

13. JobsOhio Programs Eligible Applicants Economic Development Grant Workforce Grant Growth Fund Loan

14. Program Determination and Deal Structuring • Eligible Applicants • Aligns with targeted industry and / or business function • For–Profit Company (C-Corporation, sole proprietorship, limited liability company, partnership, and an S-Corporation) • Public Entity • Average wage at least 150% federal minimum wage • Ineligible Applicants • Retail • Population-driven Companies • Non-Profit Entity • Pre-Revenue Company 14

15. Economic Development Grant • Eligible Costs • Building : e.g., building new, purchasing existing building or leasehold improvements • Land: e.g., purchase of land, site development costs • Machinery and equipment: e.g. purchase of new machinery and equipment • Moving and relocation costs of machinery and equipment related to the project; including freight shipping, furniture and fixtures, tooling, etc. required for project (limited to a 3 month timeframe) • Infrastructure: (including utility, telecommunications, information technology) • Demolition of building and other structures • Installation or relocation of on-site water, storm water and sanitary sewer lines, water and wastewater treatment facilities, pump stations, water storage mechanisms, and other similar equipment or facilities • Construction of roads, bridges, traffic control devices, parking lots, and facilities; and utility infrastructure such as natural gas, and electric 15

16. Economic Development Grant • Eligible Costs • Improvement to rail access • Technological improvements; Information Technology, Software/Hardware, Fiber optics, Instruments and controls used in the upgrade and/or installation of industrial or research and development infrastructure • Utility Improvements: Electrical Infrastructure, Substation, Redundant Power, Gas line • Fees and material costs related to planning or feasibility studies • Engineering Services 16

17. Economic Development Grant • Ineligible Costs • Administrative costs (including salaries and travel expenses) • Bonds or other debt instruments issued by company to finance completion of the site improvement project shall not be retired or otherwise serviced with grant funds • Contributions and donations by the company to individuals or to other organizations • Costs resulting from violation of or failure to comply with federal, state, and local laws and regulations • Goods and services for personal use by the company’s officers, directors, board members, and/or employees • Interest on borrowed money • Lease and rent payments • Organized fundraising • Relocation expenses such as long-term housing and personal living expenses for officers, directors, board members, and employees may be ineligible • Rolling stock (defined as anything that has to be registered with a government entity and/or travels on a public right-a-way) • Taxes • Travel expenses, meals and entertainment 17

18. Workforce Grant • Eligible Costs • Information technology: training in the use of the company's information technology systems (e.g., specific software, programming, support, maintenance, and administration of internal systems) • Maintenance: training in a specializedarea or expertise(e.g., skilled trades,electronics, manufacturing systems, material science, mechanical, hydraulics, etc.) • Leadership: training to improve the ability and effectiveness of employees to lead, manage, and supervise projects and teams (may include communication skills) • Product knowledge: training about the products and services of the company • Quality: training in company’s quality management and processes (e.g., business process re-engineering, benchmarking, 6-Sigma, LEAN) • Safety: industry specific safety training • Technical: training that focuses on the company's technical processes and procedures • On-the-job training: training that is structured, takes place at the work site and is supervised by a manager or experienced coworker • Equipment: equipment costs associated directly with training • Materials: material costs specific to eligible training (e.g., practice welds) • Transportation: transportation costs associated directly to eligible training activity, either domestic or international 18

19. Workforce Grant • Ineligible Costs • General equivalency diploma (GED) or college degrees • Meals and entertainment • Preparation or travel time • Compliance and regulatory training (e.g., Occupational Safety an Health Administration – Regulatory training) • Membership dues and license fees • Infrastructure • JobsOhio reserves the right in certain circumstances and with pre-approval by JobsOhio President/Chief Investment Officer to include the below as eligible training costs: • Trainees wages: during training, maximum of eight hours per day (ineligible; overtime, bonuses) • Co-Op • Apprenticeship • Hotel 19

20. Examples • Workforce Grant Company Project • Ohio is only US operation • Creating 39 jobs, investing $9M Project Driver / Need • Financing Structure • JCTC already in place • JOW requested 20

21. Examples • Workforce Grant Company Project • Significant company in Ohio • Creating 45 jobs, investing $28M Project Driver / Need • Workforce and Cost of doing business vs competition Structure • JCTC • JOW to address Operator training, the company’s biggest issue 21

22. Examples 22

23. Examples • JobsOhio Economic Development Grant Company Project • Company creating 72 new jobs, investing $4.2M for expansion project Project Driver / Need • Infrastructure Structure • Infrastructure Estimate received • ARC and JOG to cover infrastructure costs 23

24. Financing Continuum JobsOhio Growth Fund Loan Early Stage Growth Stage Late Stage 166 Direct Loan Program* Ohio Enterprise Bond Program* R & D Investment Loan Fund* Minority Direct Loan Energy Efficiency Loans Innovation Ohio Loan* Targeted Investment Program Collateral Enhancement Program Capital Access Program Commercial Acceleration Loan Fund *State of Ohio Capital Programs 24

25. JobsOhio Growth Fund Loan • Eligible Costs • Building: building purchase, construction, renovation, and long-term leasehold improvements; • if the project involves new construction, the company must occupy at least two-thirds of the premises • if the project involves the purchase of an existing building, the company must occupy more than half of the premises • Land • Machinery and equipment (e.g., purchase of new) • Capitalized costs directly related to a fixed-asset purchase 25

26. JobsOhio Growth Fund Loan • Program Details • Funds: $500,000 to $5,000,000 • Percent of Investment: up to 50 % • Term: 15 years Building, 10 years M&E • Interest Rate: Based on risk, fixed at closing • Borrower Contribution: 10 % or greater • Program Fees • Processing fee $10,000 • Annual servicing fee .25% • No Pre-Payment penalty 26

27. JobsOhio Growth Fund Loan • Security / Collateral • Senior or shared-senior lien position • Second mortgage and/or subordinate lien position may be considered • Additional Collateral may include: • Personal guarantees from owners of the company • Corporate guarantees from related companies • Full or partial letter of credit • Life insurance on key business owners and/or managers • Other types of credit enhancement (if necessary) 27

28. JobsOhio Growth Fund Loan • Deal Structuring with Loan • Who is the borrower? • Income Statement, balance sheet and cash flow statement for most recent three years (audited financial statements preferred) and accompanying notes • If audited financial statements are not available then reviewed, compiled or internally generated financial statements (in that order) would be sufficient for initial financial review of company • Most recent year-to-date income statement, balance sheet and cash flow statement • Project description including • Description of assets to be financed (type of equipment, is it special purpose etc.) • Timing of proposed investment (when are funds required) • Estimated life of proposed asset • Proposed sources of funds • Name of other lenders involved in project funding • Sources of funds with commitment levels, conditions and financial terms • Conditional bank commitment and/or term sheet (if available) 28

29. Revitalization Program Guidelines 29

30. Eligibility • Eligible Applicants • Businesses including developers, non-profits, and local governments • Cannot be responsible for environmental contamination • Must have legal access to the property • Eligible Sites • An eligible site is an abandoned or under-utilized contiguous property where redevelopment for the immediate and primary purpose of job creation and retention are challenged by significant redevelopment constraints. 30

31. Three Program Tracks • Phase II Assessment • Asbestos & Lead Paint Abatement • Revitalization Loan & Grant Fund 31

32. Program Tracks • Phase II Assessment • Grants up to $200,000 per project • Phase I must be complete • Asbestos & Lead Paint Abatement • Grants up to $500,000 • End user commitment of job creation • Industrial, commercial, or mixed use w/office • Revitalization Loan & Grant Fund • Site improvement loans of up to $5 million • Payment deferral during site revitalization • Up to 75% of eligible costs up to 15 years, fixed rate TBD • Site improvement gap grants up to $1 million • Awarded based on demonstration of need • Must be coupled with site improvement loan 32

33. Phase II Assessment Fund 33

34. Asbestos & Lead Paint Abatement 34

35. Site Revitalization Loans 35

36. Additional Project and Program Details Project Timing Agreements Reimbursements Compliance

37. Project Timing and Dates • Effective Date: the date in which the Agreement is effective; the application submitted date (or prior approved date); DSA State Programs this is the formal approval date (TCA, CB) • Metric Evaluation Date: the date in which the Grantee/Borrower will attain all Metric Commitments; always December 31st • Metric Expiration Date: the date in which the Grantee/Borrower will maintain all Metric Commitments (typically 2 calendar years after the Metric Evaluation Date; however, JobsOhio reserves the right to use discretion) • As it pertains to a Grantee the Metric Expiration Date depicts the closure of the Agreement and Metric Commitment obligations • As it pertains to a Borrower the Metric Expiration Date depicts the end of Metric Commitment obligations; however, repayment obligations are open until final loan repayment is made back to JobsOhio • Loan Expiration Date: the date in which the Borrower is required to make final repayment of loan back to JobsOhio 37

38. Project Timing and Dates 38

39. Application and Approval • Application • EPA and Taxation Clearances validation statement in application (as well as agreement) • Relocation of Employees within Ohio • Program Beneficiaries • Approval • DSA programs go to either TCA or CB • JO Independent Review Panel and/or JobsOhio Investment Committee, Board • Agreement • Agreements will be emailed to the company point of contact indicated in the application • The company must execute agreement by electronic signature. Agreement must be signed by the Company’s chief elected official, chief executive officer, or other authorized signatory to act on behalf of Grantee/Borrower. • Failure to return agreements within a reasonable amount of time may result in cancellation of proposed assistance • Agreements must be executed by both parties prior to disbursement of funds • Once Agreement is fully executed the company becomes Grantee/Borrower and Program Funds will be encumbered 39

40. Reimbursement and Reporting • Reimbursement Details • Request for Reimbursement form • Eligible Costs between Effective Date and Metric Evaluation Date • Sufficient Documentation; (copies of checks, payroll records, electronic fund transfers, receipts etc) • Up to 3 Request for Reimbursement • Request required to be minimum of $50,000 (except for final disbursement) • JobsOhio Growth Fund; take-out financing • Annual Report Details • Annual Report from Effective Date through Metric Expiration Date • Report must be submitted no later than March 1st for previous (or partial) calendar year • JobsOhio will default to the DSA annual report if applicable 40

41. Compliance • Compliance Determination • Metric Commitments (attain/maintain) • Total jobs (jobs created plus jobs retained) • Total payroll (created payroll plus retained payroll) • Total Capital Investment • Submits annual report by deadline of March 1st • Maintains significant operations at project site • Failure to follow agreement representations and warranties at any time during the agreement • Timely repayment of JobsOhio Growth Loan Fund; if at any point during the term of the JobsOhio Growth Fund Loan the Borrower is late with repayment Borrower will be determined to be in default • Compliance Details • Compliance Considerations • Remedial Action 41

42. What is Different ? • Sustainable Funding • Flexibility • SalesForce.com • Deal Team • Application Process Streamlined • Performance Date Consistency • Approvals • Disbursements • Process Overhaul • Break Even Philosophy 42

43. Discussion 41 S. High Street, Ste. 1500 | Columbus, OH 43215 (614) 224-6446 | jobs-ohio.com 43