1. FOREIGN-TRADE ZONE (FTZ) LONO REQUESTS Steve Boecking Vice President Alliance Corridor, Inc. 13600 Heritage Parkway Fort Worth, TX 76177 817.224.6050 steve.boecking@hillwood.com FTZ Projects: GE Transportation Samsung IDI Hillwood 1 January 7, 2016Alliance Corridor, Inc.

2. FOREIGN-TRADE ZONES (FTZ) “A Foreign-Trade Zone is a restricted-access site, in or adjacent to a Customs port of entry” Regulations of the FTZ Board (19 CFR Part 400) FTZ’s are considered “outside the US Customs Territory” Foreign and domestic merchandise can be stored or manufactured before formal Customs entry procedures FTZ’s are a trade program established by the US Congress in 1934 to create jobs and facilitate international trade in the US. 2 Alliance Corridor, Inc.January 7, 2016

3. Imported Products Held in FTZ Duty-Free Domestic Shipments Duty Deferred Exported Products No US Duty Paid FTZ Alliance Corridor, Inc.

4. FOREIGN TRADE ZONE -Foreign Status Goods -Customs Cleared Goods Warehouse – Without FTZ US Customs Warehouse – Using FTZ 4 Alliance Corridor, Inc.January 7, 2016

5. FTZ STRUCTURE U.S. Customs and Border Protection FTZ Grantee Operator Foreign-Trade Zones Board User Operator User 5 Alliance Corridor, Inc.January 7, 2016

6. Benefits of FTZ Defer Reduce or Eliminate Duty Reduce Import Expense Manage Inventory Tax Improve Supply Chain Quota Management Repair Labeling Errors High Security. Alliance Corridor, Inc.January 21, 2013

7. PART 400-REGULATIONS OF THE US FOREIGN-TRADE ZONES BOARD §400.16 Exemption from state and local ad valorem taxation of tangible personal property. Tangible personal property imported from outside the United States and held in a zone for the purpose of storage, sale, exhibition, repackaging, assembly, distribution, sorting, grading, cleaning, mixing, display, manufacturing, or processing, and tangible personal property produced in the United States and held in a zone for exportation, either in its original form or as altered by any of the above processes, shall be exempt from state and local ad valorem taxation. 7 Alliance Corridor, Inc.January 7, 2016

8. Alternative Site Framework Key Points Improve importers’ access to the benefits of FTZs Minor Boundary Modifications (MBM) are now called Usage-Driven Sites (UDS) UDS boundary approval is from the FTZB (DC) Activation approval is from local CBP Faster approval (30 days) provides a competitive advantage for economic development FTZ 196 ASF approved by FTZB on 10/19/2010 8 Alliance Corridor, Inc.January 7, 2016

9. 9 IDI HLW 3 bldgs HLW 259 ac GE

10. GE Transportation Manufacturer of locomotives and off-highway vehicles. Inventory is 100% exempted by TFTE, so there is no negative impact to taxing revenues. ▫Building Investment$500mm ▫Building Size1.17mm SF ▫Employees650 ▫Wage RatesCompetitive mfg wages ▫Inventory Tax EffectNone (TFTE) 10 Alliance Corridor, Inc.January 7, 2016

11. IDI Spec Building Building is empty and requests FTZ LONO to enhance the marketability. ▫Building Size730k SF 11 Alliance Corridor, Inc.January 7, 2016

12. 12 IDI GE

13. 13 GE Transportation and IDI Spec Building

14. 14 IDI HLW 3 bldgs HLW 259 ac GE

15. 15 HILLWOOD BUILDINGS IN ALLIANCETEXAS AG60 Vacating 06/2016 AG58 Vacating 06/2016 AG55 Samsung-228k sf Trican-82k sf Vacant

16. Hillwood AG60 Building Building will be vacated by Exel / Lego June 2016 Currently, AG60 is designated as FTZ under the ASF program. When Exel / Lego vacates, AG60 will lose the FTZ designation Hillwood requests FTZ LONO on the building to enhance the marketability of the pending vacant space 16 Alliance Corridor, Inc.January 7, 2016

17. Hillwood AG55 Building Building is 360,000 SF ▫Samsung/QuietSide227,500 SF ▫Trican 50,000 SF (no need for FTZ) ▫Vacant 82,500 SF Samsung/QuietSide is requesting FTZ LONO ▫Distributor of ductless air conditioners ▫80% of the savings come from US Customs benefits ▫90% of their inventory is tax exempt through TFTE ▫Impact to the NWISD is approx $17,500 / year Hillwood requests FTZ LONO on the entire building to enhance the marketability of the vacant space 17 Alliance Corridor, Inc.January 7, 2016

18. Trican Samsung

19. Hillwood AG58 Building Building is 175,000 SF ▫Animal Health175,000 SF (no need for FTZ) ▫Thermadyne100,000 SF (Vacating June 2016) Hillwood requests FTZ LONO on the building to enhance the marketability of the pending vacant space 19 Alliance Corridor, Inc.January 7, 2016

20. AG58 in ALLIANCETEXAS Animal Health

21. 21 Hillwood Land in Northlake 259 acres

22. THANK YOU! Steve Boecking Vice President Alliance Corridor, Inc. 13600 Heritage Parkway Fort Worth, TX 76177 817.224.6050 steve.boecking@hillwood.com FTZ Projects: GE Transportation Samsung IDI Hillwood 22 Alliance Corridor, Inc.January 7, 2016