Business Type: Expansion County: Washoe County Development Authority Representative: Nancy McCormick - EDAWN

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1 Board Summary ITS Logistics, LLC 620 Spice Island Drive, Sparks, NV Date: March 25, 2016 Main Location: Carson City, Nevada Dan Allen, CFO Transportation Business Type: Expansion County: Washoe County Development Authority Representative: Nancy McCormick - EDAWN APPLICATION HIGHLIGHTS - ITS Logistics, LLC is applying for Sales Tax, Modified Business Tax, and Personal Property Tax abatements. - Meets statute for job creation, average wage and capital investment levels. - Existing 408 employees at an average hourly wage of $24.57 prior to expansion plans. PROFILE ITS Logistics is a third party logistics (3PL) company that helps companies distribute goods nationally and globally with superior performance. ITS Logistics was founded in 2000 by Jeff Lynch, Darryl Bader and Dan Allen, all three natives of Nevada. Specifically, ITS opened doors in March of 2000 in Sparks. The company was started with the idea of bringing a full service logistics company to Nevada providing high paying wages, competitive benefits, a local headquarters, and a contributor to the community. Source: ITS Logistics, LLC SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND The abatements were significant in ITS Logistics decision to expand in Northern Nevada. It will help aide in the growth of their facility to 630,000 sq. ft. The increase in space will lead with a new capital investment of over 2 million dollars and allow ITS Logistics to bring on 55 new FTE's in the first two years. Source: ITS Logistics, LLC REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation Yes 35% Average Wage $20.89 $21.49 Yes 3% Equipment CapEx (SU & MBT) $94,251 $2,451,813 Yes 2501% Equipment CapEx (PP) $94,251 $2,451,813 Yes 2501% INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. Abated to 2% $140,400 Modified Business Tax Abmt. 50% for 4 years $87,131 Personal Property Tax Abmt. 50% for 10 years $91,743 Total $319,274 JOB CREATION Contracted 24-Month Projection 5-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements $0 $0 $0 ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported Total Payroll Supported $81,282,128 $0 Total Output Estimate $221,217,562 $0 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 $617,612 $2,654,228 $3,271,840 Sales $0 $1,343,309 $1,343,309 Lodging $0 $0 $0 State Taxes Property $30,084 $138,841 $168,925 Sales $49,036 $503,949 $552,985 Modified Business $598,026 $374,110 $972,136 Lodging $0 $0 $0 Total $1,294,758 $5,014,437 $6,309,195 COST-BENEFIT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar $693 $19.76 EMPLOYEE BENEFITS - Percentage of health insurance covered by company: 91%. - Health care package cost per employee - $5,319 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Bonus, Retirement Plan, Merit Increases. NOTES - Percentage of market outside of Nevada: 90%. - The company average hourly wage is higher than the statewide average hourly wage of $20.89.

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5 Incentive Application Company Name: ITS Logistics, LLC Date of Application: January 20, 2016 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) ITS Logistics, LLC CORPORATE ADDRESS 620 Spice Island Drive MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) CITY / TOWN Sparks FEDERAL TAX ID # STATE / PROVINCE ZIP NV CITY / TOWN STATE / PROVINCE ZIP TELEPHONE NUMBER COMPANY CONTACT NAME Dan Allen ADDRESS dallen@its4logistics.com Type of Facility: Headquarters Technology Back Office Operations Research & Development / Intellectual Property DESCRIPTION OF COMPANY'S NEVADA OPERATIONS Third Party Warehousing, Dedicated Transportaion and Freight Brokerage WEBSITE COMPANY CONTACT TITLE CFO 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/Tax Abatement, 3/30/20015 and successfully completed the compliance audit on 9/28/2011 ID# Sales/Use Tax abatement, 3/5/2001 ID# 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 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. 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). Section 4 - Nevada Facility PERCENT OF COMPANY'S MARKET OUTSIDE OF NEVADA 90% NAICS CODE / SIC PROPOSED / ACTUAL NEVADA FACILITY ADDRESS 555 Vista Blvd. Service Provider Distribution / Fulfillment Manufacturing Other: EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR) May-2016 INDUSTRY TYPE General Freight Trucking, Long-Distance, Truckload WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? Phoenix, AZ and Los Angeles, CA Yes CITY / TOWN COUNTY ZIP Sparks Washoe County No 1

6 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 leasing space in Nevada? If No, skip to Part 2. If Yes, continue below: What year(s)? What year(s)? How much space (sq. ft.)? Annual lease cost of space: Do you plan on making building tenant improvements? 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 Part 1. Are you currently leasing space in Nevada? If No, skip to Part 2. If Yes, continue below: How much space (sq. ft.)? Annual lease cost at current space: Due to expansion, will you lease additional space? If No, skip to Part 3. If Yes, continue below: Expanding at the current facility or a new facility? Part 2. Are you currently operating at an owner occupied building in Nevada? If No, skip to Part 3. If Yes, continue below: 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): How much space (sq. ft.)? Yes 470,000 New What year(s)? 2016 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)? How much space (sq. ft.)? Yes 159,000 $620, Yes Mar-2016 No No * 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

7 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): $0 Building Costs (if building / making improvements): $0 Land: $0 Land: $0 Equipment Cost: $0 Equipment Cost: $2,451,813 Total: $0 Total: $2,451,813 Is the equipment purchase for replacement of existing equipment? No Current assessed value of personal property in NV: $471,253 (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 fourth quarter of new operations?: Average hourly wage of these new employees: Expansions How many full-time equivalent (FTE*) employees will be created by the end of the first fourth quarter of expanded operations?: 55 Average hourly wage of these new employees: $21.49 How many FTE employees prior to expansion?: Average hourly wage of these existing employees: Total number of employees after expansion: 408 $ * 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): 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: No Health Insurance Costs: Percentage of health insurance coverage by: Cost of health insurance for company (annual amount per employee): $ 5, Company: 91% Health Plan annual out-of-pocket maximum (individual): $ 6, Employee: 9% [SIGNATURE PAGE FOLLOWS] 3

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9 5(A) Capital Equipment List Company Name: ITS Logistics, LLC County: Washoe 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 Computer Hardware - PCs, WiFi Devices, GPS Systems, Copiers, Printers, Etc Material Handling Equipment - Forklits, Reach Trucks, Wrappers, Etc. Racking Furniture Software - Physical ( b) (c) (d) # of Units Price per Unit Total Cost Various Various $915, Various Various $280, Various Various $450, Various Various $400, Various Various $406, 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 $2,451, No 6

10 5(B) Employment Schedule Company Name: ITS Logistics, LLC County: Washoe 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 fourth 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) New Hire Position Title/Description Warehousemen Customer Service Reps Drivers Admin Support Management/IT (b) ( c ) (d) (e) (f) Number of Average Hourly Average Weekly Annual Wage per Positions Wage Hours Position Total Annual Wages 5 $ $29, $145, $ $33, $66, $ $45, $1,830, $ $33, $166, $ $83, $249, TOTAL 55 $21.49 $2,458, 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 30 $21.50 $1,341, $22.00 $1,372, $22.50 $1,404,

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12 NEVADA STATE BUSINESS LICENSE ITS LOGISTICS, LLC Nevada Business Identification # NV Expiration Date: January 31, 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 February 1, 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.

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14 creative logistics solutions Who we are ITS Logistics is a premier third-party logistics company that provides personalized supply chain solutions with its asset-based dedicated fleet, warehousing and distribution services, and nationwide multimodal freight brokerage. Founded in 1999, ITS Logistics proudly offers unparalleled service backed by its strong family values and work ethic. We are headquartered in Reno/Sparks with additional locations in Arizona, California and Washington and employees operating across the country. Dedicated & Expedited Transportation Warehousing & Distribution Freight Brokerage

15 creative logistics solutions What we believe in Integrity Doing what is right, ethical and moral Respect Treating others with dignity Teamwork Working effectively together Quality Consistently exceeding expectations Continuous Improvement We always want to be better Compassion Awareness and respect of others Results Because results matter Having Fun Being passionate in all we do and having fun doing it!

16 creative logistics solutions Dedicated & Expedited Transportation We have more than 350 drivers, 250 tractors, 500 trailers and are proud to offer one of the newest fleets in the industry. Every truck is equipped with onboard computers, GPS, state-of-the-art security and notification technology. Specializing in pool distribution, injection into small parcel/ final mile delivery companies Professional, company drivers with industry-best safety record One-way and round-trip dedicated solutions High level customer service with proactive visibility Time-sensitive/expedited solutions SmartWay Transport Partner/ highly-efficient/green fleet Specialized services: light weight solutions, reefer/temp controlled and hazmat We create and maintain a standard operating procedure customized for each lane and each customer Current company on-time delivery percentage is 99.2%

17 creative logistics solutions Freight Brokerage - ITS National We have more than 8,000 carriers in-network and the nationwide flexibility to handle any shipment need, while providing unparalleled operational excellence. Dry van and temp-controlled Flatbed and specialized (over-dimension/weight) Intermodal/rail services LTL (less than truckload) International air and ocean 24/7/365 dispatch and load visibility Project management Single point of contact Best in class carrier qualification Dedicated non-asset fleet service

18 creative logistics solutions Warehousing & Distribution We offer state-of-the-art food grade facilities with world-class technology, real-time inventory status and unparalleled flexibility. 630,000 sq. ft. of warehousing and distribution, AIB Certified (980 Rating) E-commerce, catalog/drtv, and retail for big box retailers Collaborative and transparent culture with the objective of aligning to your supply chain needs Pick/Pack, assembly, full pallet and bulk storage and fulfillment services Flexible storage options (pallet rack, flow rack and bulk storage options) Highly experienced industrial engineering team Serial number capture Full recall capabilities Shelf life management/ expiration date notifications Quality assurance

19 creative logistics solutions Industry-Leading Technology Transportation On-board computers equipped with GPS, E-Logs, and dispatch Online access to loads in transit and completed, customized reporting and documentation download Client planning: optimum mode and carrier selection, economic shipment consolidation Route planning: optimization of delivery routes Management and decision making: Analysis, modeling, planning and execution Distribution Full range of EDI options Online/real-time inventory and lifecycle management Radio Frequency (RF) utilization from receipt to load out of trailers System-directed put away FIFO, FMFO, FEFO, lot and serial tracking enabled Recall traceability Online performance metrics

20 creative logistics solutions Client Experience Dow - Dedicated hazmat/tanker endorsed drivers Starbucks - End-to-end supply chain solution - Dedicated transportation solution Tesla - Inbound vendor supplies and production support - On-demand onsite support Sherwin Williams - Power only deliveries to western retail locations - Driver-assisted unloads/liftgate deliveries WinCo Foods - Direct distribution to store locations - DC to DC transfers Michael Lewis - Temp-controlled/frozen - Multi-stop deliveries direct to airlines - Warehousing and distribution

21 creative logistics solutions Why ITS Logistics Innovative internal transportation operations structure that creates dedicated business units to provide a more personalized service - 7-man team consists of business unit manager, client relationship manager, driver manager, transportation planner and 24/7 track and trace We learn the business on the front end by analyzing your goals and objectives in great detail Design, develop and implement customized, value-added solutions Provide consistently superior customer service to customers who share our commitment to excellence Employ great people Invest in leading-edge technology and equipment Partner with high-quality vendors that share similar business values Continuously improve our processes Give back to the community

22 creative logistics solutions We are proud of our company culture and values, and our vision is to achieve excellence in everything that we do. Let us find a solution to your supply chain needs today! Dan Allen CFO (775) dallen@its4logistics.com