PILOT PAYMENT-IN-LIEU-OF-TAX APPLICATION. 100 Peabody Place, Suite 1100 Memphis, TN (901)

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1 PILOT PAYMENT-IN-LIEU-OF-TAX APPLICATION 100 Peabody Place, Suite 1100 Memphis, TN (901) Please submit your application online at

2 APPLICATION FOR PILOT ECONOMIC DEVELOPMENT GROWTH ENGINE INDUSTRIAL DEVELOPMENT BOARD OF CITY OF MEMPHIS AND SHELBY COUNTY, TENNESSEE Applicant Company Name: Company Contact: Mailing Address: Ebrofrost North America, Inc. Chris Getsfred 2777 Allen Parkway City: Houston State: TX Zip: Telephone: (ext ) Fax: Federal Employer Identification Number: Applicant's Legal Structure: DE corporation If any outside consultants will be representing the applicant (accounting firm, law firm or site consultant) in applying for this PILOT, please provide the following: Company Name Contact Name: Baker Donelson Bearman Caldwell & Berkowitz, PC Chad Wilgenbusch Mailing Address: 165 Madison Avenue, Suite 2000 City: Memphis State: TN Zip: Telephone: Fax: Project Location A. Address: 2360 Prospect St., 0 Prospect St., and 865 E. Bodley Memphis, TN B. Tax Parcel Numbers: C, Z and part of C. City of Memphis: Yes No D. New Market Tax Credit Eligible Site: Yes No See Exhibit A attached hereto for further detail as to the ownership of the Real Property, NMTC eligibility, and assessment details. Project Description Briefly describe the applicant's principal business activities to be conducted at the Project Site: Ebrofrost Holding GmbH, a joint venture between Ebro Foods, SA, the largest rice and second largest pasta manufacturer worldwide, and Keck Spezialitäten, is the largest independent producer of Individually Quick Frozen ( IQF ) rice, pasta, and grain products worldwide. The Applicant is a wholly owned subsidiary of Ebrofrost Holding GmbH, and will be the North American equivalent of 3 sister facilities in Europe that are currently operating under Ebrofrost Holding GmbH. The Applicant will process, market, and distribute its IQF products on a business-to-business scale for inclusion in market leading frozen consumer brands. At the plant, which would be constructed at the Project location, the Company intends to build a clean processing area to process milled rice and pasta along with a freezer area to flash freeze the product once processed. The frozen product will be packaged in industrial sized totes and sent to the frozen warehouse for storage until shipment is made to its customers.

3 The Applicant s project (the Project ) will involve the renovation of a currently vacant industrial space at the Project location to allow for the delivery and installation of the required equipment and machinery for the production of the IQF products. Additionally, due to the storage requirements of the IQF products before shipment, Applicant will work with its landlord to add a new, approximately 18,714 sq. ft. frozen warehouse onto the current building. Applicant desires to locate the Project in Memphis, due to the synergies that would be available with its landlord/sister company, Riviana Foods, Inc., and the centralized distribution advantages of Memphis. However, the Memphis climate raises concerns for the Applicant as to the difficulties with operating a frozen food production and storage facility in the Mid-South. Along with Memphis, the Applicant is exploring locating the Project in more conducive locations such as Missouri, Minnesota, and Canada. The support of Memphis and Shelby County through PILOT incentives will assist the Applicant with the expenses related to operating a frozen food production and storage facility in a 1970 s-era industrial facility in an industrial and severely distressed 1 area of the Mid-South. 1 Pursuant to NMTC guidance, severe economic distress means (i) poverty rate greater than 30 percent; (ii) median family income not exceeding 60 percent of statewide median; or (iii) unemployment rates at least 1.5 times the national average.

4 Project - Real Property Investment Building a new sq. ft. facility Purchasing an existing facility, and Making renovations or additions Leasing * sq. ft. of an existing facility and Making renovations or additions * Building is currently 85,021 sq. ft. Applicant will renovate approx. 38,086 sq. ft. of the current space. Additionally, Applicant will work with its landlord to add an additional approx. 18,714 sq. ft. for Applicant s use. At completion, Applicant will occupy approx. 56,800 sq. ft. of an approx. 103,735 sq. ft. building or 54.8%. Project - Personal Property Investment Group New Relocated 2 1 Furniture, Fixtures, General Equipment & All Other Property Not Listed in Another Group $50,000 $ 2 Computers, Copiers, Fax Machines, Peripherals & Tools $ $ 3 -- Molds, Dies & Jigs $ $ 4 Aircraft, Towers & Boats 1 $ $ 5 Manufacturing Machinery $13,795,000 $ 6 Billboards, Tanks & Pipelines $ $ 7 Scrap Property 1 $ $ 8 Raw Material & Supplies 1 $ $ 9 Vehicles 1 $ $ TOTAL $13,845,000 $ 1 Vehicles, towers, scrap and inventory are not eligible for a PILOT agreement, but the value of these items may be included in the determination of the PILOT benefit. 2 Depreciated value. Items to be submitted with this application ** Tax Compliance Provide documentation demonstrating payment of all municipal, county, state, and federal taxes due for all properties owned by the Applicant located within Shelby County. X Application Fee ($3,000.00) Category Capital Investment Purchase Price of Land $0 Purchase Price of Building $0 New Construction/Site Improvements $3,750,000 Renovation of Existing Structure $7,050,000 Soft Costs $250,000 TOTAL $11,050,000 Other *** Applicant Financial Information Staff will need to review audited financial statements for the most recent three fiscal years. [Separate Signature Page Attached] ** See Exhibit A *** Applicant will work with Staff to review its Financial Information

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6 PROJECT EMPLOYMENT # of Fulltime Average Annual Base Pay 2 Annual Overtime/ Incentive Pay 3 Annual Benefits 4 Annual Total Compensation Position Jobs 1 Each Total Each Total Each Total Each Total Senior Supervisor 1 $78,000 $78,000 $0 $0 $30,171 $30,171 $108,171 $108,171 QA Manager 1 $66,000 $66,000 $5,643 $5,643 $23,366 $23,366 $95,008 $95,008 Shift Supervisor 2 $60,000 $120,000 $5,130 $10,260 $21,480 $42,960 $86,610 $173,220 Processing/Packaging 6 $42,473 $254,838 $7,963 $47,779 $14,648 $87,885 $65,084 $390,502 QA Technician 1 $42,827 $42,827 $8,029 $8,029 $14,769 $14,769 $65,625 $65,625 Maintenance 2 $53,726 $107,452 $10,073 $20,146 $18,516 $37,032 $82,315 $164,630 Warehouse 3 $35,505 $106,515 $6,657 $19,970 $12,252 $36,756 $54,414 $163,241 Total 16 $775,632 $111,827 $272,939 $1,160,397 Average $48,477 $6,989 $17,059 $72,525 Definitions: 1 Permanent jobs or combination of permanent positions that provide employment of 1,600 hours or more within a year that is employed directly by the Applicant or employed by a contract employer on behalf of the Applicant. 2 Annual base wage must exceed $12 per hour to be included, please show payments as annual average wages. 3 Include paid overtime, paid holidays and vacation pay. Do not include discretionary bonus or stock options. 4 Include health insurance, dental insurance, 401K plans, paid sick leave, bonus compensation, etc.

7 Exhibit A Real Property Information The Real Property is owned by Riviana Foods, Inc., and will be leased to Applicant.

8 2360 Prospect St. Memphis, TN 38106

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