Board Summary California Business Environments, Inc. dba Franklin Armory 2241 Park Place Ste D, Minden, NV 89423

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1 Board Summary California Business Environments, Inc. dba Franklin Armory 2241 Park Place Ste D, Minden, NV Date: March 16, 2017 Main Location: Carson City, Nevada Karin Jacobson, President Firearm Assembly and Distribution Business Type: Expansion County: Douglas County Development Authority Representative: Andrew Haskin, NNDA APPLICATION HIGHLIGHTS - Franklin Armory has acquired further space to expand their Minden, Nevada facility. - The company's expansion is due to significant product development and patents obtained over the past couple of years. - Since locating to the state the company has enjoyed positive relationships with other Nevada businesses and regularly use the services of several vendors in Minden, Carson City, and Reno. PROFILE Franklin Armory is a majority woman owned firearms corporation specializing in manufacturing firearms for sporting, defensive, and tactical applications. The company supply firearms to military, law enforcement, and civilian personnel and also cater to civilians in restrictive jurisdictions. The company made an expansion from California to Nevada in May The company's Californian site manufactures most of the component parts sold by the company while the Nevada plant performs final assembly, quality control, and distribution. The Nevada facility also manufactures NFA compliant firearms. The company is in the process of expanding sales beyond the U.S. into Canada and exporting to Australia. Source: Franklin Armory SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND Franklin Armory selected Nevada for its business friendly climate. The company utilizes programs such as JobConnect and has received incentives through the State of Nevada Workforce 60 and Silver State Works Program. Franklin Armory has a commitment to inventing new products and plans to bring more ideas to the market. The abatements and incentives offered by Nevada will assist the company to facilitate further growth. Source: Franklin Armory REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation Yes 50% Average Wage $19.36 $19.80 Yes 2% Equipment Capex (SU & MBT) $620 $663,500 Yes % Equipment Capex (PP) $620 $663,500 Yes % INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. Abated to 2% for 2 years $33,839 Modified Business Tax Abmt. 50% for 4 years $23,226 Personal Property Tax Abmt. 50% for 10 years $24,483 Total $81,548 JOB CREATION Contracted 24-Month Projection 5-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements $0 $539,000 $200,000 ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported 62 8 Total Payroll Supported $22,734,706 $260,034 Total Output Estimate $65,437,500 $1,100,335 Estimate includes jobs, payroll & output by the company assisted as well as the secondary impacts to other local businesses. NEW TAX REVENUE ESTIMATES (10-Year Cumulative) Direct Indirect Total Local Taxes Property $103,690 $781,945 $885,635 Sales $24,498 $163,940 $188,438 Lodging $0 $3,895 $3,895 State Taxes Property $5,051 $83,509 $88,560 Sales $22,877 $140,955 $163,832 Modified Business $186,700 $66,737 $253,437 Lodging $0 $112 $112 Total $342,816 $1,241,093 $1,583,909 IMPACT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar $802 $19.42 EMPLOYEE BENEFITS - Percentage of health insurance plan covered by company: 100%. - Health care package cost per employee - $12,000 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Merit increases, Bonus. NOTES - Percentage of market outside of Nevada: 99%. - Expansion will also occur at the company's Californian facility.

5 Franklin Armory 2241 Park Place Ste D Minden NV Phone (775) INTRODUCTION Franklin Armory is an 07/FFL and Class II SOT Manufacturer that specializes in producing quality firearms for sporting, defensive, and tactical applications. As such, we supply firearms to military, law enforcement, and civilian personnel. We also cater to civilians in restrictive jurisdictions like California and Connecticut. Franklin Armory is a California corporation that specializes in manufacturing quality firearms for sporting, military, and law enforcement applications. We are very adept at creating products for restrictive jurisdiction such as our home state. We do have two facilities. Our California site manufactures most of the component parts we sell while the Nevada plant performs final assembly, quality control, and distribution. The Nevada facility also manufactures NFA compliant firearms. While some manufacturers take advantage of trade regulations that allow companies to use foreign forgings and still have a label that reads, Made in the U.S.A, every firearm produced at Franklin Armory is made with 100% American made parts & materials. Even so, it truly is the craftsmanship of our employees that sets us apart. Each rifle, pistol, and other that ships from our facilities is hand built with a custom tuned, single stage or BFS Franklin Armory trigger. We believe that products of quality have no fear of time, and we want your next purchase to be perfect right out of the box. LAW ENFORCEMENT SALES Franklin Armory is proud to provide law enforcement officers and agencies high quality duty weapons. To this end, we are willing to provide fantastic pricing to departments. Since agency sales are not subject to excise tax so long as proper documentation is filed, we are able to offer agencies pricing below what is quoted here in. Those who would give up Essential Liberty to purchase a little Temporary Safety deserve neither Liberty nor Safety - Benjamin Franklin

6 To complete the offering, we can provide a two day armorer s course with most agency purchases. We are usually able to offer buybacks of existing agency firearms when departments desire to liquidate standing inventories. DEALERS AND DISTRIBUTORS Franklin Armory has an array of programs available to help you grow your business and increase your profit margin. Please contact one of our support professionals to find out which program works best for your company s needs. EXPORT STATEMENT Franklin Armory participates in legal exports across the world. All items offered for sale herein are subject to ITAR restrictions and will require US State Department export approval. Those who would give up Essential Liberty to purchase a little Temporary Safety deserve neither Liberty nor Safety - Benjamin Franklin

8 Incentive Application Company Name: California Business Environments, Inc. dba Franklin Armory Date of Application: January 6, 2017 Company is an / a: (check one) New location in Nevada Expansion of a Nevada company Section 1 - Type of Incentives Please check all that the company is applying for on this application: Sales & Use Tax Abatement Modified Business Tax Abatement Personal Property Tax Abatement Sales & Use Tax Deferral Recycling Real Property Tax Abatement Other: Section 2 - Corporate Information COMPANY NAME (Legal name under which business will be transacted in Nevada) FEDERAL TAX ID # California Business Environments, Inc. dba Franklin Armory CORPORATE ADDRESS CITY / TOWN STATE / PROVINCE ZIP 2241 Park Place Suite D Minden NV MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) CITY / TOWN STATE / PROVINCE ZIP TELEPHONE NUMBER COMPANY CONTACT NAME Jay Jacobson ADDRESS jjacobson@franklinarmory.com Section 3 - Program Requirements A capital investment of $1,000,000 in eligible equipment in urban areas or $250,000 in eligible equipment in rural areas are required. This criteria is businesses. In cases of expanding businesses, the capital investment must equal at least 20% of the value of the tangible property owned by the business. New businesses locating in urban areas require fifty (50) or more permanent, full-time employees on its payroll by the eighth calendar quarter following quarter in which the abatement becomes effective. In rural areas, the requirement is ten (10) or more. For an expansion, the business must increase employees on its payroll by 10% more than its existing employees prior to expansion, or by 25 (urban) or 6 (rural) employees, whichever is greater. In urban areas, the average hourly wage that will be paid by the business to its new employees is at least 100% of the average statewide hourly wage. in rural areas, the average hourly wage will equal or exceed the lesser of the county-wide average hourly wage or statewide average hourly wage. Section 4 - Nevada Facility Type of Facility: Headquarters Technology Back Office Operations Research & Development / Intellectual Property PERCENT OF COMPANY'S NEVADA LOCATION MARKET OUTSIDE OF NEVADA DESCRIPTION OF COMPANY'S NEVADA OPERATIONS Manufacturing of firearms and firearm accessories PROPOSED / ACTUAL NEVADA FACILITY ADDRESS President PREFERRED PHONE NUMBER Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development? Please check two of the boxes below; the company must meet at least two of the three program requirements: Note: Criteria is different depending on whether the business is in a county whose population is 100,000 or more or a city whose population is 60,000 or more (i.e., urban area), or if the business is in a county whose population is less than 100,000 or a city whose population is less than 60,000 (i.e., rural area). 99% NAICS CODE / SIC WEBSITE If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary): Not Sure. We have received incentives for training personnel and hiring individuals from Job Connect. franklinarmory.com COMPANY CONTACT TITLE 1 Service Provider Distribution / Fulfillment Manufacturing Other: EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR) March 2017 (Some personnel hired immediately INDUSTRY TYPE Firearm and accessory Manufacturing CITY / TOWN COUNTY 2246 #2 Park Place Minden Douglas County WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? Some expansion will also occur in our California facility. Yes ZIP No

9 Section 5 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below) Check the applicable box when form has been completed. 5 (A) Equipment List 5 (B) Employment Schedule 5 (C) Evaluation of Health Plan Section 6 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both.) New Operations / Start Up - Plans Over the Next Ten Years Part 1. Are you currently/planning on Part 1. Are you currently leasing space in Nevada? Yes leasing space in Nevada? If No, skip to Part 2. If Yes, continue below: If No, skip to Part 2. If Yes, continue below: What year(s)? What year(s)? How much space (sq. ft.)? 3,800 How much space (sq. ft.)? Annual lease cost at current space: $1, Annual lease cost of space: Due to expansion, will you lease additional space? yes Do you plan on making building tenant improvements? If No, skip to Part 3. If Yes, continue below: If No, skip to Part 2. If Yes *, continue below: When to make improvements (month, year)? Part 2. Are you currently/planning on buying an owner occupied facility in Nevada? If No, skip to Part 3. If Yes *, continue below: Purchase date, if buying (month, year): How much space (sq. ft.)? Do you plan on making building improvements? If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? Part 3. Are you currently/planning on building a build-to-suit facility in Nevada? If Yes *, continue below: When to break ground, if building (month, year)? Estimated completion date, if building (month, year): How much space (sq. ft.)? Expansions - Plans Over the Next 10 Years Expanding at the current facility or a new facility? New What year(s)? 2017 How much expanded space (sq. ft.)? Annual lease cost of expanded space: Do you plan on making building tenant improvements? If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? Part 2. Are you currently operating at an owner occupied building in Nevada? If No, skip to Part 3. If Yes, continue below: 9,800 Yes Feb-2017 How much space (sq. ft.)? 3,800 Current assessed value of real property? Due to expansion, will you be making building improvements? If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? Part 3. Do you plan on building or buying a new facility in Nevada? If Yes *, continue below: Purchase date, if buying (month, year): When to break ground, if building (month, year)? Estimated completion date, if building (month, year): $58, yes $239, no yes Jan-2017 How much space (sq. ft.)? 9,800 * Please complete Section 7 - Capital Investment for New Operations / Startup. * Please complete Section 7 - Capital Investment for Expansions below. BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary): 2

10 Section 7 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both.) New Operations / Start Up Expansions How much capital investment is planned? (Breakout below): How much capital investment is planned? (Breakout below): Building Purchase (if buying): Building Costs (if building / making improvements): Land: Equipment Cost: Total: Building Purchase (if buying): Building Costs (if building / making improvements): Land: Equipment Cost: Total: $539,000 $200,000 $0 $663,500 $1,402,500 New Operations / Start Up end of the first eighth quarter of new operations?: Average hourly wage of these new employees: Is the equipment purchase for replacement of existing equipment? Current assessed value of personal property in NV: (Must attach the most recent assessment from the County Assessor's Office.) Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both.) How many full-time equivalent (FTE*) employees will be created by the Expansions How many full-time equivalent (FTE*) employees will be created by the end of the first eighth quarter of expanded operations?: 15 Average hourly wage of these new employees: $19.80 no $3,102 How many FTE employees prior to expansion?: Average hourly wage of these existing employees: Total number of employees after expansion: 14 $ * FTE represents a permanent employee who works an average of 30 hours per week or more, is eligible for health care coverage, and whose position is a "primary job" as set forth in NAC OTHER COMPENSATION (Check all that apply): Overtime Merit increases Tuition assistance Bonus PTO / Sick / Vacation COLA adjustments Retirement Plan / Profit Sharing / 401(k) Other: BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary): Our Chrismas bonuses are based upon corporate performance. Individuals that worked full time all year received a $2000 bonus. This would increase our existing hourly average hourly rate an extra dollar Section 9 - Employee Health Insurance Benefit Program Is health insurance for employees and an option for dependents offered?: Package includes (check all that apply): Yes (copy of benefit plan must be attached) Medical Vision Dental Other: Qualified after (check one): Upon employment Three months after hire date Six months after hire date Other: sixty days after hire Health Insurance Costs: Percentage of health insurance coverage by: Cost of health insurance for company (annual amount per employee): $ 12, Company: 100% Health Plan annual out-of-pocket maximum (individual): $ 5, Employee: 0% No [SIGNATURE PAGE FOLLOWS] 3

12 Site Selection Factors Company Name: California Business Environments, Inc. dba Franklin Armory County: Douglas County Section 1 - Site Selection Ratings Directions: Please rate the select factors by importance to the company's business (1 = very low; 5 = very high). Attach this form to the Incentives Application. Availability of qualified workforce: 4 Transportation infrastructure: 1 Labor costs: 5 Transportation costs: 1 Real estate availability: 5 State and local tax structure: 5 Real estate costs: 5 State and local incentives: 5 Utility infrastructure: 3 Business permitting & regulatory structure: 4 Utility costs: 4 Access to higher education resources: 3 OTHER FACTORS & RATINGS: 5

13 5(A) Capital Equipment List Company Name: California Business Environments, Inc. dba Franklin Armory County: Douglas County Section 1 - Capital Equipment List Directions: Please provide an estimated list of the equipment [columns (a) through (c)] which the company intends to purchase over the two-year allowable period. For example, if the effective date of new / expanded operations begins April 1, 2015, the two-year period would be until March 31, Add an additional page if needed. For guidelines on classifying equipment, visit: tax.nv.gov/localgovt/policypub/archivefiles/personal_property_manuals. Attach this form to the Incentives Application. (a) Equipment Name/Description DMG Mori Eco Mill Tooling (End Mills, Cutters, Tool Holders, Etc.) Later this year we will be purchasing a live tool, twin spindle lathe Tooling (End Mills, Cutters, Tool Holders, Etc.) for the lathe Office furniture for new personnel Forklift Pallet Racking New accounting software Additional computers Design software ( b) (c) (d) # of Units Price per Unit Total Cost 1 $113, $113, ,000 $ $100, $250, $250, ,000 $ $100, $1, $15, $10, $10, $ $20, $20, $20, $1, $20, $15, $15, TOTAL EQUIPMENT COST Is any of this equipment* to be acquired under an operating lease? *Certain lease hold equipment does not qualify for tax abatements 6 Yes $663, No

14 5(B) Employment Schedule Company Name: California Business Environments, Inc. dba Franklin Armory County: Douglas County Section 1 - Full-Time Equivalent (FTE) Employees Directions: Please provide an estimated list of full time employees [columns (a) through (d)] that will be hired and employed by the company by the end of the first eighth quarter of new / expanded operations. For example, if the effective date of new / expanded operations is April 1, 2015, the date would fall in Q2, The end of the first eighth quarter would be the last day of Q2, 2017 (i.e., June 30, 2017). Attach this form to the Incentives Application. A qualified employee must be employed at the site of a qualified project, scheduled to work an average minimum of 30 per week, if offered coverage under a plan of health insurance provided by his or her employer, is eligible for health care coverage, and whose position of a primary job as set forth in NAC (a) (b) ( c ) (d) (e) (f) New Hire Position Title/Description Machine Programmer Machine Operator Product Designer Product Manager Armorer Trigger Assembler Shipping Number of Positions Average Hourly Wage Average Weekly Hours Annual Wage per Position Total Annual Wages 1 $ $54, $54, $ $43, $131, $ $62, $62, $ $52, $104, $ $37, $149, $ $29, $58, $ $29, $58, TOTAL 15 $19.80 $617, Section 2 - Employment Projections Directions: Please estimate full-time job growth in Section 2, complete [columns (b) through (c)]. These estimates are used for state economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these estimated levels of employment. (a) Year (b) Number of FTE(s) Projected (c) Average Hourly Wage (d) Payroll 3-Year 30 $20.50 $1,279, Year 49 $21.00 $2,140, Year 49 $22.00 $2,242,

NEVADA STATE BUSINESS LICENSE CALIFORNIA BUSINESS ENVIRONMENTS, INC.

pursuant to proper application duly filed and payment of appropriate prescribed fees, the above named is hereby granted a Nevada

Valid until the expiration date listed unless suspended, revoked or cancelled in accordance with the provisions in Nevada Revised

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Great Seal of State, at my office on March 23, 2016 BARBARA K.

16 NEVADA STATE BUSINESS LICENSE CALIFORNIA BUSINESS ENVIRONMENTS, INC. Nevada Business Identification # NV Expiration Date: April 30, 2017 In accordance with Title 7 of Nevada Revised Statutes, pursuant to proper application duly filed and payment of appropriate prescribed fees, the above named is hereby granted a Nevada State Business License for business activities conducted within the State of Nevada. Valid until the expiration date listed unless suspended, revoked or cancelled in accordance with the provisions in Nevada Revised Statutes. License is not transferable and is not in lieu of any local business license, permit or registration. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Great Seal of State, at my office on March 23, 2016 BARBARA K. CEGAVSKE Secretary of State You may verify this license at under the Nevada Business Search. License must be cancelled on or before its expiration date if business activity ceases. Failure to do so will result in late fees or penalties which by law cannot be waived.

4645 Van Nuys Blvd. #201 Sherman Oaks, CA 91403

Board Summary Virtual Guard, Inc. 4645 Van Nuys Blvd. #201 Sherman Oaks, CA 91403 Date: September 19, 2017 Main Location: Las Vegas Dror Soref, Director of Marketing and Public Relations Perimeter Security,