Assumptions Warehouse SF Annual Value of Imported Goods Inventory Turns per year Average On Hand Value of Imports Freeport Eligible Imported Inventory % Inventory Tax Rate at Alliance % Imported product that is reject or scrap % Imported product re-exported % Imported product sold to military % Weighted Average Duty Rate of Imported Components % Weighted Average Duty Rate of Finished Product % Opportunity Cost of Capital % Average number of entries per year Average Merchandise Processing Fee per entry Estimated One time Activation expense Estimated Annual FTZ Operating expense Annual Grantee Fee * FTZ# 196 has specific eligibility requirements that must be explored by the individual client. This is a preliminary analysis which is only as accurate as the assumptions used to generate the results. This analysis should not be relied upon until the assumptions, calculations, and results contained herein have been verified Hillwood does not represent that any specific program will be available, nor that a client will qualify. Hillwood will provide information pertaining to these programs which will enable the client to underwrite the savings. For additional information on FTZ# 196, please contact Steve Boecking at 817.224.6000.