Business Type: New County: Clark County Development Authority Representative: Morgan Bunker - LVGEA

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Carmel Doyle
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1 Board Summary Vegas Sheets, LLC 1100 SW 27th Street, Renton, WA Date: July 17, 2017 Main Location: Carson City Mark Southern, Chief Financial Officer Manufacturing Business Type: New County: Clark County Development Authority Representative: Morgan Bunker - LVGEA APPLICATION HIGHLIGHTS - Vegas Sheets, LLC is considering leasing a 100,000 square foot manufacturing facility in Henderson, NV. - The company's Henderson facility is projected to have a service radius of 500 miles, servicing all the western states and east to Colorado and Texas. - The Vegas Sheets, LLC facility will respond to the market demand for short run, high graphics corrugated packaging. PROFILE Corrugated Synergies International, LLC (CSI), Vegas Sheets' parent company, was founded in 1982 and is headquartered in Renton, Washington. CSI is a Project Development and Operational Services Company Specializing in the Corrugated Packaging Industry. For the past 30 years the company has been the innovative leader in sheet feeding to the corrugated industry. CSI designs, creates, and operates industry leading corrugating and converting facilities for packaging and has developed and operated eleven highly successful sheet feeder operations and three full line box plants, employing 16 state-of-the-art corrugators. Source: Vegas Sheets, LLC SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND Recent strategic planning has the company focused on creating a presence in Nevada. A significant part of this consideration is the economic incentives offered by the state. The company undertook a review of projected operating costs and determined the State of Nevada provides significantly lower operating costs than surrounding states while still offering a central location to its market. Source: Vegas Sheets, LLC REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation Yes 38% Average Wage $21.35 $25.35 Yes 19% Equipment Capex (SU & MBT) $1,000,000 $19,245,687 Yes 1825% Equipment Capex (PP) $5,000,000 $19,245,687 Yes 285% INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. 2% for 2 years $1,183,609 Modified Business Tax Abmt. 50% for 4 years $79,653 Personal Property Tax Abmt. 50% for 10 years $603,105 Total $1,866,367 JOB CREATION Contracted 24-Month Projection 5-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements $0 $0 $306,000 ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported Total Payroll Supported $57,262,326 $140,858 Total Output Estimate $214,923,201 $485,556 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 $1,094,468 $1,716,646 $2,811,114 Sales $12,232 $1,025,478 $1,037,710 Lodging $0 $59,292 $59,292 State Taxes Property $59,861 $99,954 $159,815 Sales $388,892 $355,026 $743,918 Modified Business $355,887 $306,097 $661,984 Lodging $0 $1,853 $1,853 Total $1,911,340 $3,564,346 $5,475,686 IMPACT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar $115 $2.93 EMPLOYEE BENEFITS - Percentage of health insurance covered by company: 100%. - Health care package cost per employee - $6,000 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Tuition Assistance, Retirement Plan / Profit Sharing / 401(k), Merit Increases, Bonus. NOTES - Percentage of market outside of Nevada: 95%. - The company is also considering Washington and California as potential locations.

4 Incentive Application Company Name: Vegas Sheets, LLC Date of Application: June 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 Section 2 - Corporate Information Sales & Use Tax Deferral Recycling Real Property Tax Abatement Other: COMPANY NAME (Legal name under which business will be transacted in Nevada) Vegas Sheets, LLC CORPORATE ADDRESS 1100 SW 27th Street MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) CITY / TOWN Renton FEDERAL TAX ID # In Process STATE / PROVINCE ZIP WA CITY / TOWN STATE / PROVINCE ZIP TELEPHONE NUMBER COMPANY CONTACT NAME Samantha Brendible ADDRESS samanthab@csicorr.com Type of Facility: Headquarters Technology Back Office Operations Research & Development / Intellectual Property DESCRIPTION OF COMPANY'S NEVADA OPERATIONS Produce short run high graphics corrugated packaging WEBSITE COMPANY CONTACT TITLE General Manager PREFERRED PHONE NUMBER Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development? If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary): Sales & Use Tax Abatement and Personal Property Tax Abatement; July 2013 under Project "CSI PrePrint"; the project did not come to fruition Section 3 - Program Requirements Please check two of the boxes below; the company must meet at least two of the three 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 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 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. te: 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). Section 4 - Nevada Facility PERCENT OF COMPANY'S NEVADA LOCATION MARKET OUTSIDE OF NEVADA 95% NAICS CODE / SIC PROPOSED / ACTUAL NEVADA FACILITY ADDRESS Apr-2018 INDUSTRY TYPE Manufacturing CITY / TOWN Henderson Service Provider Distribution / Fulfillment Manufacturing Other: EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR) COUNTY Clark County WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? Washington, California Yes ZIP 1

5 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 Expansions - Plans Over the Next 10 Years Part 1. Are you currently/planning on leasing space in Nevada? If, skip to Part 2. If Yes, continue below: When to make improvements (month, year)? buying an owner occupied facility in Nevada? If, skip to Part 3. If Yes *, continue below: Purchase date, if buying (month, year): Do you plan on making building improvements? If, 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): Yes What year(s)? 2018 Annual lease cost of space: Do you plan on making building tenant improvements? If, skip to Part 2. If Yes *, continue below: Part 2. Are you currently/planning on 100,000 sq ft $609, Yes v-2017 Part 1. Are you currently leasing space in Nevada? If, skip to Part 2. If Yes, continue below: What year(s)? Annual lease cost at current space: Due to expansion, will you lease additional space? If, skip to Part 3. If Yes, continue below: Expanding at the current facility or a new facility? What year(s)? How much expanded space (sq. ft.)? Annual lease cost of expanded space: Do you plan on making building tenant improvements? If, 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, skip to Part 3. If Yes, continue below: Current assessed value of real property? Due to expansion, will you be making building improvements? If, 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): * 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

6 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): $0 Building Purchase (if buying): $0 Building Costs (if building / making improvements): $306,000 Building Costs (if building / making improvements): $0 Land: $0 Land: $0 Equipment Cost: $19,245,678 Equipment Cost: $0 Total: $19,551,678 Total: $0 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.) New Operations / Start Up How many full-time equivalent (FTE*) employees will be created by the end of the first eighth quarter of new operations?: 69 Average hourly wage of these new employees: $25.35 Expansions How many full-time equivalent (FTE*) employees will be created by the end of the first eighth quarter of expanded operations?: Average hourly wage of these new employees: How many FTE employees prior to expansion?: Average hourly wage of these existing employees: Total number of employees after expansion: * 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): Bonus incentive based on performance. Section 9 - Employee Health Insurance Benefit Program Is health insurance for employees and an option for dependents offered?: Yes (copy of benefit plan must be attached) Package includes (check all that apply): Medical Vision Dental Other: Qualified after (check one): Upon employment Three months after hire date Six months after hire date Other: Health Insurance Costs: Percentage of health insurance coverage by: Cost of health insurance for company (annual amount per employee): $ 6, Company: 100% Health Plan annual out-of-pocket maximum (individual): $ 6, Employee: 0% [SIGNATURE PAGE FOLLOWS] 3

8 Site Selection Factors Company Name: Vegas Sheets, LLC County: Clark 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: 5 Transportation infrastructure: 4 Labor costs: 3 Transportation costs: 3 Real estate availability: 4 State and local tax structure: 3 Real estate costs: 4 State and local incentives: 4 Utility infrastructure: 4 Business permitting & regulatory structure: 4 Utility costs: 4 Access to higher education resources: 3 OTHER FACTORS & RATINGS: 5

9 5(A) Capital Equipment List Company Name: Vegas Sheets, LLC County: Clark 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 Quantum Corrugator SW Quantum Embossing Upgrade Barberan 66" Digital Printer Vortx MWU YoungShin Quest 270 Die Cutter WSA Airator Jogger Signode Strapper Appleton MFG B&S - Boiler Corrugator Web Cleaners ACC Scrap System ACC Schredder Balemaster Baler BigAss Fans Atlas Copco Air Compressors Stretch Wrapper RWS - Waste Water Treatment ( b) (c) (d) # of Units Price per Unit Total Cost $5,150, $588, $5,217, $316, $370, $1,670, $202, $25, $1,050, $290, $549, $230, $127, $15, $83, $25, $179, $300, Digital Print Press Room IES Mechanical Installation Barberan $100, IES Electrical Installation Barberan $200, IES Mechanical Installation Quantum $325, IES Electrical Installation Quantum $210, Exhaust Fans (3) EFI Radius Software EFI/CTI Scheduling Software Accounting Software IT Servers, phones, etc ESKO CAD Table Design Equipment Testing Equipment ESKO Office Furnishings $20, $400, $339, $20, $483, $420, $180, $75, $31, $50, 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 Yes $19,245,

10 5(B) Employment Schedule Company Name: Vegas Sheets, LLC County: Clark 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 Number of Average Hourly Average Weekly Annual Wage per Positions Wage Hours Position Total Annual Wages Quantum Control Room Operator 2 $ $62, $124, Singlefacer Operator 2 $ $52, $104, Wet End Operator 2 $ $51, $103, Wet End Asst. Operator 2 $ $51, $103, Bridge Operator 2 $ $51, $103, Talley 2 $ $51, $103, Barberan Operator 3 $ $62, $187, Barberan Feeder 3 $ $39, $119, Barberan Ass. Operator 3 $ $48, $144, YoungShin Quest Operator 2 $ $48, $96, YoungShin Quest Ass. Operator 2 $ $39, $79, YoungShin Quest Stripper 2 $ $37, $74, Kongsberg Operator 3 $ $37, $112, Unit Prep Sheets 2 $ $41, $82, Unit Prep Digital 2 $ $51, $103, Strapper Operator 3 $ $42, $128, Fork Lift Operator 3 $ $29, $89, Maintenance Supervisor 1 $ $79, $79, Electrical / Maintenance 2 $ $70, $141, Mechanical / Maintenance 1 $ $60, $60, Plant Manager 1 $ $119, $119, Press Superintendent 1 $ $83, $83, Supervisor 2 $ $76, $153, Production Planner - Estimator 1 $ $76, $76, Forklift 3 $ $29, $87, Roll Clamp 3 $ $39, $118, Starch Operator / Utility / Baler 3 $ $31, $93, Customer Service Manager 1 $ $119, $119, Structural Designer 1 $ $65, $65, Graphic Designer 2 $ $39, $79, Estimator 1 $ $60, $60, Sales 2 $ $60, $120, General Manager 1 $ $165, $165, Controller/HR 1 $ $72, $72, General Office 1 $ $37, $37, Accounting Asst / Reception 1 $ $37, $37, TOTAL 69 $25.35 $3,637, 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 3-Year 4-Year 5-Year (b) Number of FTE(s) Projected (c) Average Hourly Wage (d) Payroll 69 $25.35 $3,638, $25.35 $3,638, $25.35 $3,638,

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,