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ANGEL INVESTOR TAX CREDIT

October 28, 2009

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ANGEL INVESTOR TAX CREDIT PROGRAM

What is it? State tax credit program to reward qualified,

individual investors for investing in early stage, wealth-creating Louisiana businesses

Benefits: Accredited angel investors receive a refundable

Louisiana. income tax credit up to 50% of investment in a business certified by LED as a Louisiana Entrepreneurial Business

Tax credit realized equally over five-year period

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Requirements for Louisiana Entrepreneurial Business

Fully developed business plan, including Source & Use statement for the invested funds

Principal business operations, including primary place of employment, in Louisiana

Not engaged in retail sales, real estate, professional services, gaming or gambling, natural resource extraction or exploration, or financial services

Over 50% of sales derived from outside Louisiana Registered and in “good standing” with Secretary of State Louisiana Tax Identification Number

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Angel Investor Requirements

Person with individual/joint net worth exceeding $1 million at time of investment

Individual income over $200,000 or joint income with spouse over $300,000 for last 2 years

Angel Pool (LLC or LLP) comprised only of Accredited Investors

Persons including corporations, partnerships, LLCs, LLPs, composed of Accredited Investors provided each person’s share of tax credit does not exceed share of profits of the Louisiana Entrepreneurial Business

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ANGEL INVESTOR TAX CREDIT PROGRAM

Origin – Regular Session 2005. Amended Regular Session 2007 (refundable amendment).

Sunsets 12/31/2009. Status – Through tax year 2008:

– 65 Louisiana Entrepreneurial Businesses – 36 LEBs received investment – $43.5 million invested – $17.1 million tax credit issued– Over 200 angel investors participated

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AITCP DATA THROUGH 2008

Year # LEBs # Investors $ Invested % Tax Credit

2005 7 70 $4.4 million 50.0%

2006 11 99 $9.7 million 50.0%

2007 16 131 $14.0 million 41.5%

2008 24 133 $15.4 million 32.6%

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Thank-you

LouisianaEconomicDevelopment.com

Information in this presentation is a synopsis of the programs described. Statutory and rule requirements must be followed for all programs.