Gotion Proposal_C&W

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APPENDIX

package that truly benefits the company both from a short- and long-term perspective. In addition to state and local agencies, we also evaluate the applicability of federal incentive opportunities either based upon the real estate location (e.g. New Markets Tax Credits) or working with specific federal agencies such as DOE where the grants could be appropriate and applicable. C&W also understands that an incentive only has value if it is captured and realized by the company. If requested, C&W will manage the incentive compliance for Gotion to ensure the economic development and government agencies achieve their commitments to the project. The C&W incentives team has developed an in-house proprietary incentive compliance platform that will support the realization of the incentives by Gotion, giving Gotion an on-line portal for real-timing incentive tracking and incentive reporting. HOW WE CAN HELP • Evaluate and estimate the tax and operating cost impacts for each location being evaluated • Identify potential hurdles/opportunities available in each market • Develop a comprehensive negotiation strategy based on the project scope and the project’s financial impacts in each market • Expertly engage local and state officials and economic development agencies through our time-tested relationships • Identify utility partners to support initial infrastructure requirements and on-going operating costs • Effectively compare multiple incentive offers

Our understanding is that Gotion’s initial focus is identifying optimal sites and existing infrastructure for this new manufacturing facility. As such we have not included incentives procurement and project management services in the initial proposal. However, we have outlined our scope and pricing for both of these services in this appendix. If desired by Gotion now or in the future, C&W would be thrilled to partner on either of these. BUSINESS INCENTIVES Capital intensive projects, such as the project Gotion is undertaking, create a financial strain on the company’s Profit and Loss statement. Gotion will spend a significant amount of money up front to establish and build out the new facility and recruit and hire new talent. All of this investment outflow will occur prior to the facility generating the new revenues, which creates financial and timing risk. C&W understands that risk, and our incentives team excels at identifying the best economic development and government partners to help mitigate that risk, both timing and financial. Our team maintains strong engagement with public/private partnerships and incentives granting agencies across the country at all levels, including city mayor’s and state governor’s offices. Gotion’s presence in a particular location has tremendous financial implications not only for your company but also for the local municipality, state and utilities. The C&W incentives team utilizes a Profit & Loss Statement approach to incentive negotiation. This approach allows us to understand the costs to establish and operate a facility in each market and also the revenue streams that would be generated by the state and local governments as a result of the new investment and job creation. Our incentive negotiation approach is customized for each market being evaluated based upon those costs and revenue streams. This allows us to ensure that the applicable agencies develop an incentive

against a wide range of quantitative and qualitative factors and benchmark incentive awards against

Proposal for Real Estate Services GOTION 27