1. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. MANAGING PAYMENT RISK AND FINANCING EXPORTS AFP 6-11-2014 Fernando Almeida

2. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. Why is International Trade Important to AZ?  Supports more than 700,000 jobs  Ranked 24 th in the US in goods exported in 2012  Customers in 208 countries buy Arizona-grown and manufactured goods and services  90 percent of AZ exporters are Small or Medium sized companies  Foreign-owned companies invest in Arizona and employ more than 73,000 Arizonans

3. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. Why is International Trade Important to AZ? Top Export Markets:  Mexico$ 6.5 BL  Canada$ 3.1 BL  Japan $ 1.8 BL  China$1.7 BL  U. K.$ 1.7 BL

4. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. RISKS FOR THE SELLER / EXPORTER  Commercial Risk  Bankruptcy  Political Risk  War, revolution, confiscation  Foreign Exchange  Currency devaluation  Exchange controls  Export Compliance Policies  BIS; ITAR; OFAC

5. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. METHODS OF PAYMENT 1.Cash in Advance 2.Letter of Credit 3.Documentary Collection 4.Open Account

6. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. PAYMENT IN ADVANCE  Wire transfer (bank to bank)  Payment by check  Collection delay – defeats the intention of receiving money before shipping goods.  Credit card [for low dollar value]  Fear of fraud  Downside - Losing sales to competitors who may offer flexible payment terms

7. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. Commercial Letter of Credit 1.Promise to pay the beneficiary 2.Issued by a bank for account of its customer 3.To pay named beneficiary for: Stated amount and Within stated period 4.Presentation of specified documents in STRICT compliance with the terms of the letter of credit 5.Payment at sight or at a future time

8. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. TYPES OF LETTERS OF CREDIT  Documentary / Commercial  Standby  Bid and Performance Bonds  Advance Payment  Warranty

9. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. RISKS ASSOCIATED WITH LETTERS OF CREDIT  Financial strength of the Issuing Bank  Country risk - Consider Confirmation  Documentary risk – Discrepancies  Fraudulent L/C’s – advised directly to the beneficiary without the intermediary bank

10. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. DOCUMENTARY COLLECTIONS A. Documents Against Cash  Goods are released to the buyer after payment is made.  This is only applicable on ocean shipment.  Under air shipment, airway bill is not needed to claim the goods. The exporter has a higher risk of not getting paid. B. Documents Against Acceptance  Time draft  Extending credit to the buyers  Payment is due at a specific time after the buyer accepts the time draft.

11. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A.  Risks Associated with Documentary Collections:  Merchandise refusal by buyer  Non payment (on time draft) DOCUMENTARY COLLECTIONS, cont’d.

12. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. OPEN ACCOUNT  Most Risk – products are shipped first, payment received later.  Accounts Receivable Insurance to mitigate risk

13. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. Export Financing Solutions

14. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. Financial Challenges in International Sales  Exporters face three major challenges:  Obtaining working capital financing for export orders (P/O financing)  Extending credit terms to foreign buyers  Financing capital goods Why?... Sources of repayment are outside the U.S.

15. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. EXPORT-IMPORT BANK OF THE U.S.  Ex-Im Bank is an independent agency of the United States.  Established in 1934  To date, supported more than $474 BL of U.S. exports  H Q in Washington, DC  5 Regional Offices  Mission: Support the financing of U.S. exports in order to sustain jobs.  Self-sustaining agency  Does not compete with the private sector

16. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. EX-IM BANK PROGRAMS  Working Capital Guarantees (exporter financing)  Global Credit Express  Foreign Accounts Receivable Insurance  Medium & Long Term Loan Guarantees (buyer financing)

17. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. WORKING CAPITAL GUARANTEE Program Highlights:  Pre-Export Financing  Meet Manufacturing Cost  Labor, material, parts, overhead  Bid/Performance/Advance Payment Bond

18. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. WORKING CAPITAL GUARANTEE 1. Provides a 90% guarantee of repayment (Principal and Interest) on loans made to exporters 2.Minimum US content of >50% 3.Advance Rate of 75% on export inventory and 90% against export accounts receivables 4. Ex-Im Bank won’t support exports of military/defense products and services. 5.Export must take place from the US 6.Not for start-ups

19. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. 19 WCGP Benefits - Expansion Of Borrowing Base Expansion of Borrowing Base:Asset Based FacilityWCGP CollateralAmountAdvanceCollateralAdvanceCollateral Exportable Inventory Raw Materials$ 200,00020%$ 40,00075%$ 150,000 WIP$ 200,0000%$ 0.0075%$ 150,000 Finished Goods$ 600,00050%$300,00075%$ 450,000 Subtotal$1,000,000$340,000$ 750,000 Foreign Accounts Receivable (A/R) Open Account$ 800,0000%$ 0.0090%$ 720,000 Letters of Credit$ 200,00090%$180,00090%$ 180,000 Subtotal$1,000,000$180,000$ 900,000 Total Borrowing Base $520,000$1,650,000

20. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. Global Credit Express 1. Pilot Loan Program 2.Provides working capital to fund export activity. 3.Maximum loan is $500,000 4. Streamline processing and quick turn-around time 5.Requires no borrowing base or monthly reporting 6.In business for 3 years and one year of exporting experience

21. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. EXPORT CREDIT INSURANCE Post-Export  Insuring foreign receivables A.EX-IM BANK  Multi-Buyer or Single Buyer Policy  Covers political and commercial risk for up to 95% of the invoice amount.  Covers bankruptcy and protracted defaults, war, revolution, revocation of import license.  No minimum premium, “pay-as-you-ship”

22. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. EXPORT CREDIT INSURANCE  Requirements:  Minimum > 50% U.S content  Must be shipped from U.S.  Defense products are excluded  Country Limitation Schedule  Small Business Multi-Buyer Premium Rates: 1-60 days - 0.55% 61-120 days - 0.90%

23. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. EXPORT CREDIT INSURANCE, cont’d.  Other Insurers  Attradius  FCIA Management  Coface  Euler-Hermes

24. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. EX-IM Bank Medium Term Financing  100% coverage on loans to foreign buyers  Capital equipment and related products  15% down payment required  Repayment terms based on contract price and export items  Medium Term: 5 to 7 years  Renewable Energy & Water Treatment Equipment: Up to 15 years

25. © 2008 BOK Financial Corporation. Member FDIC. Equal Opportunity Lender. Services provided by: Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Kansas City, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank and Trust, N.A. Fernando Almeida Senior Vice President International Trade & Treasury Bank of Arizona 16767 N. Perimeter Dr. Suite 200 Scottsdale, AZ 85260 Phone: 602-808-5364 Email: falmeida@bokf.comfalmeida@bokf.com