2015 Compliance Report Research Valley

June 2016

•  For 2015, three (3) projects under agreement being monitored for compliance by RVP for the City of College Station

Overview

2015 Compliance Report – FUJIFILM Diosynth Biotechnologies Texas (FDBT) @ National Center for Therapeutics Manufacturing (NCTM)

Incentive:

Performance Metrics:

RVP Fund - Cash Incentive2012 Start-up Cash Grant $50,000

PAYROLL EMPLOYMENTREQUIRED ACTUAL REQUIRED ACTUAL

2012 $1,400,000 $2,413,392 20 352013 $1,400,000 $5,279,080 20 632014 $1,400,000 $7,116,902 20 942015 $1,400,000 $7,950,075 20 117

This contract ended on December 31, 2015

NOTES: 1.  FDBT announcement in

December 2014 on acquisition of Kalon Biotherapeutics

2.  2015 Business personal property

valuation at NCTM is $3,321,780

2015 Compliance Report – FUJIFILM Diosynth Biotechnologies Texas (FDBT) @ Biocorridor

Incentive:

Performance Metrics:

Brazos County - Cash Incentive

2017 $266.2K   2021 $207.0K2018 $236.6K 2022 $207.0K2019 $207.0K 2023 $147.9K2020 $207.0K

PAYROLL INVESTMENT VALUE EMPLOYMENTREQUIRED ACTUAL REQUIRED BCAD REQUIRED ACTUAL

2015 0 N/A 0 N/A 0 N/A2016 0 N/A 0 N/A 0 N/A2017 0 N/A $70,000,000 0 N/A2018 $6,000,000 $70,000,000 1002019 $6,000,000 $70,000,000 1002020 $6,000,000 $70,000,000 1002021 $6,000,000 $70,000,000 1002022 $6,000,000 $70,000,000 1002023 $6,000,000 $70,000,000 100

Bryan - Cash Incentive

2017 $74.0K   2021 $57.6K2018 $65.8K 2022 $57.6K2019 $57.6K 2023 $41.1K2020 $57.6K

College Station - Cash Incentive

2017 $196.8K   2021 $153.0K2018 $174.9K 2022 $153.0K2019 $153.0K 2023 $109.3K2020 $153.0K

Contract requires completion of improvements construction by December 31, 2016

2015 Compliance Report – Reynolds & Reynolds

Incentive:

Performance Metrics:

Brazos County and City of College Station

Annual Retention & Expansion Grant: $30,000 each for maintaining $24M in investment Annual Payroll Grant (Not to Exceed $25K Each): $5,000 each for every $1M of payroll exceeding $18M

Retention & Expansion Grant Payroll Grant (cont’d)

Retention & Expansion Grant Payroll Grant

2007 $30,000 $15,000 2012 $30,000 $10,000

2008 $30,000 $15,000 2013 $30,000 $15,000

2009 $30,000 $10,000 2014 $30,000 $15,000

2010 $30,000 $15,000 2015 $30,000 $15,000

2011 $30,000 $15,000 2016

PAYROLL INVESTMENT VALUE REQUIRED ACTUAL REQUIRED BCAD

2007 $18,000,000 $21,835,291 $24,000,000 $35,256,198 2008 $18,000,000 $21,325,577 $24,000,000 $32,588,040 2009 $18,000,000 $20,111,034 $24,000,000 $28,348,178 2010 $18,000,000 $21,334,803 $24,000,000 $25,379,440 2011 $18,000,000 $21,480,228 $24,000,000 $25,580,430 2012 $18,000,000 $20,523,652 $24,000,000 $27,525,210 2013 $18,000,000 $21,450,619 $24,000,000 $27,051,300 2014 $18,000,000 $21,695,042 $24,000,000 $28,742,070 2015 $18,000,000 $22,776,856 $24,000,000 $31,367,750 2016 $18,000,000 $24,000,000

•  QUESTIONS ?

2015 Compliance Report

•  For 2015, eight (8) projects under agreement being monitored for compliance by RVP for the City of Bryan

City of Bryan Projects Overview

2015 Compliance Report – Axis Pipe & Tube

Incentive:

Performance Metrics:

Brazos County - Tax Abatement2013 100%   2018 70%2014 100% 2019 70%2015 100% 2020 50%2016 100% 2021 40%2017 80% 2022 30%

PAYROLL INVESTMENT VALUE EMPLOYMENTREQUIRED ACTUAL REQUIRED BCAD REQUIRED ACTUAL

2013 0 $37,150 0 $1,393,920 0 52014 0 $5,176,813 0 $8,260,230 0 1452015 0 $8,396,837 0 $179,046,540 0 1422016 $10,545,000 $120,000,000 2852017 $10,545,000 $120,000,000 2852018 $10,545,000 $120,000,000 2852019 $10,545,000 $120,000,000 2852020 $10,545,000 $120,000,000 2852021 $10,545,000 $120,000,000 2852022 $10,545,000 $120,000,000 285

City of Bryan - Non-Annexation Agreement

During first 3 years of Agreement (2013, 2014 and 2015), no payment to the City. For every year thereafter, the payment is equivalent of 50% of the amount the City would have collected in Ad Valorem tax that year.

Contracts have benchmark valuation+salary formula. Capital investment through 2015: $239,785,000

2015 Compliance Report – FUJIFILM Diosynth Biotechnologies Texas (FDBT) @ National Center for Therapeutics Manufacturing (NCTM)

Incentive:

Performance Metrics:

RVP Fund - Cash Incentive2012 Start-up Cash Grant $50,000

PAYROLL EMPLOYMENTREQUIRED ACTUAL REQUIRED ACTUAL

2012 $1,400,000 $2,413,392 20 352013 $1,400,000 $5,279,080 20 632014 $1,400,000 $7,116,902 20 942015 $1,400,000 $7,950,075 20 117

This contract ended on December 31, 2015

NOTES: 1.  FDBT announcement in

December 2014 on acquisition of Kalon Biotherapeutics

2.  2015 Business personal property

valuation at NCTM is $3,321,780

2015 Compliance Report – FUJIFILM Diosynth Biotechnologies Texas (FDBT) @ Biocorridor

Incentive:

Performance Metrics:

Brazos County - Cash Incentive

2017 $266.2K   2021 $207.0K2018 $236.6K 2022 $207.0K2019 $207.0K 2023 $147.9K2020 $207.0K

PAYROLL INVESTMENT VALUE EMPLOYMENTREQUIRED ACTUAL REQUIRED BCAD REQUIRED ACTUAL

2015 0 N/A 0 N/A 0 N/A2016 0 N/A 0 N/A 0 N/A2017 0 N/A $70,000,000 0 N/A2018 $6,000,000 $70,000,000 1002019 $6,000,000 $70,000,000 1002020 $6,000,000 $70,000,000 1002021 $6,000,000 $70,000,000 1002022 $6,000,000 $70,000,000 1002023 $6,000,000 $70,000,000 100

Bryan - Cash Incentive

2017 $74.0K   2021 $57.6K2018 $65.8K 2022 $57.6K2019 $57.6K 2023 $41.1K2020 $57.6K

College Station - Cash Incentive

2017 $196.8K   2021 $153.0K2018 $174.9K 2022 $153.0K2019 $153.0K 2023 $109.3K2020 $153.0K

Contract requires completion of improvements construction by December 31, 2016

2015 Compliance Report – Kent Moore Cabinets !

Incentive:

Performance Metric:

Brazos County - Tax Abatement2008 0% 2013 40%2009 70% 2014 30%2010 70% 2015 20%2011 60% 2016 10%2012 50%

INVESTMENT VALUEREQUIRED BCAD

2008 0 N/A2009 $4,093,323 $4,429,9502010 $4,093,323 $4,369,9502011 $4,093,323 $4,302,6202012 $4,093,323 $4,205,770 2013 $4,093,323   $4,294,980 2014 $4,093,323 $4,384,3202015 $4,093,323 $4,499,8202016 $4,093,323

City of Bryan - Tax Abatement2008 0% 2013 40%2009 70% 2014 30%2010 70% 2015 20%2011 60% 2016 10%2012 50%

2015 Compliance Report – ConocoPhillips Specialty Products, Inc. / LSPI

Incentive:

Performance Metrics:

City of Bryan - Tax Abatement

2008 0% 2013 30%2009 70% 2014 20%2010 60% 2015 10%2011 50%2012 40%

PAYROLL INVESTMENTREQUIRED ACTUAL REQUIRED ACTUAL BCAD

2008 $2,694,643 $3,230,598   0 $4,774,928 N/A2009 $2,794,643 $4,164,464 $3,695,000 $2,017,980 $6,566,1802010 $2,844,643 $4,072,538 0 N/A $7,290,3602011 $2,844,643 $4,263,452 0 N/A $6,570,1002012 $2,844,643 $4,615,966 0 N/A $4,122,6102013 $2,844,643 $4,955,778 0 N/A $3,235,7982014 $2,844,643 $5,806,066 0 N/A $3,259,1202015 $2,844,643 $8,119,467 0 N/A $3,197,380

NOTE: Berkshire Hathaway’s Lubrizol, Inc. acquired ConocoPhillips in early 2014

This contract ended on December 31, 2015

2015 Compliance Report – Penncro

Incentive:

Performance Metrics:

Brazos County - Tax Abatement2011 0%2012 50%2013 50%2014 50%

PAYROLL INVESTMENTREQUIRED ACTUAL REQUIRED ACTUAL BCAD

2011 $0 $3,316,639 0 $2,047,320 N/A2012 $8,000,000 $8,187,749 $1,250,000 N/A $309,8102013 $8,000,000 $7,404,116 0 N/A $229,5802014 $8,000,000 $7,072,544    0 N/A  $245,660 2015 $8,000,000 $2,011,476 0 N/A $159,810

City of Bryan - Tax Abatement2011 0%2012 50%2013 50%2014 50%

Tax abatements only on Penncro personal property

NOTES: 1.  Tax Abatement Agreements

required company maintaining Payroll requirement throughout term (12/31/15)

2.  Penncro recapture draft letter

2015 Compliance Report – Toyo Ink !

Incentive:

Performance Metrics: PAYROLL INVESTMENT

Required Actual Required Actual BCAD2008 $1,000,000 $689,723 $20,000,000 $22,148,985 $295,9812009 $1,000,000 $1,140,610 0 N/A $13,268,5802010 $1,000,000 $1,305,554 0 N/A $14,809,3802011 $1,000,000 $1,270,189 0 N/A $16,936,4902012 $2,000,000 $2,169,747 $6,000,000 $5,725,664 $20,012,6502013 $2,000,000 $1,860,272 0 N/A $21,562,4302014 $2,000,000 $1,813,295 0 N/A $21,155,3002015 $2,000,000 $2,242,153 0 $1,540,209 $17,950,410

Brazos County - Tax AbatementOriginal *Amended for expansion

2007 0% 2012 40% 2007 0% 2012 50%2008 70% 2013 20% 2008 70% 2013 20%2009 60% 2014 20% 2009 60% 2014 30%2010 60% 2015 10% 2010 60% 2015 10%2011 40% 2011 40%

BBC Land 22 acres in Bryan Business Park

City of Bryan - Tax AbatementOriginal *Amended for expansion

2007 0% 2012 40% 2007 0% 2012 50%2008 70% 2013 20% 2008 70% 2013 20%2009 60% 2014 20% 2009 60% 2014 30%2010 60% 2015 10% 2010 60% 2015 10%2011 40% 2011 40%

This contract ended on December 31, 2015

2015 Compliance Report – Nutrabolt!

Incentive:

Performance Metrics:PAYROLL INVESTMENT VALUE EMPLOYMENT

Required Actual Required BCAD Required Actual

2013 0  N/A  0   $577,970 0  N/A  2014 0 $7,576,429 $9,000,000 $5,037,260 0 862015 0 $9,481,548 $9,000,000 $9,807,830 0 1102016 $3,000,000 $9,000,000 752017 $3,000,000 $9,000,000 752018 $3,000,000 $9,000,000 752019 $3,000,000 $9,000,000 752020 $3,000,000 $9,000,000 752021 $3,000,000 $9,000,000 752022 $3,000,000 $9,000,000 752023 0 $9,000,000 0

City of Bryan - Tax Abatement

2014 100%  2019 30%2015 100% 2020 20%2016 90% 2021 20%2017 80% 2022 10%2018 70% 2023 10%

 

City of Bryan - Cash Incentive$49,240 upon Issuance of Certificate of Occupancy

Improvements exclude value of land: $1,393,920; Actual capital investment exceeds $13 million

Research Valley Partnership - Cash Incentive

Installment #1 $15,000 Start of constructionInstallment #2 $37,500 Issuance of Certificate of OccupancyInstallment #3 $10,000 End of one year of full operations

Total $62,500