Provation

Dear Tom,

Thank you for the opportunity to discuss our capabilities related to your real estate and workplace strategy. Our chief objective is to understand your current real estate goals and assist you in determining the most efficient path forward. As real estate occupancy costs continue to escalate, we will work with Provation to understand all alternatives utilizing our local brokerage team to leverage the most competitive economics. Simultaneously, a deep understanding of trends affecting the workplace today will assist you in seamlessly executing another important endeavor... creating an environment where people have choice and control over where, how and when they work. At Cushman & Wakefield, we believe that your most important asset is your talent. With the current and ever-increasing war on talent, designing your space as a marketing tool to attract, retain and engage the best and brightest is now paramount to any business’ future success. As the multi-generational workforce is now more than a “one size fits all” proposition, in addition to creating leverage, securing the best economics and providing laser-focused market intelligence , our job is to ensure that your space reflects your culture, efficiently supports your work processes and is digitally-connected.

We welcome the opportunity to discover how we could support Provation in this next pivotal and exciting step in its evolution.

Sincerely,

DOUGLAS BRINKLEY Senior Managing Director

CHARLIE FENWICK Senior Director

BRONWYN LEGETTE Director

BEN JENSEN Associate

Welcome to CUSHMAN & WAKEFIELD Cushman & Wakefeld is a leader in the global real estate marketplace, putting the client at the center of everything we do.

$191 BILLION IN TRANSACTION VALUE

250+ OFFICES

43,000 EMPLOYEES

60+ COUNTRIES

$5 BILLION IN REVENUE

4.3 BILLION SF MANAGED

THE HISTORY OF CUSHMAN & WAKEFIELD

2011 Australia engineering firm UGL acquires DTZ which is integrated with their existing property services operations across the globe under the DTZ brand.

2014 UGL sells DTZ to a private equity consortium comprising TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan.

2004-2008 Global expansion through acquisition and the opening of DTZ offices across Europe, Asia, the Middle East and the Americas.

1993 European joint ventures with Jean Thouard of France and the Zadelhoff Group in Germany and the Netherlands,

1999 DTZ extends into Asia with partners CY Leung & Co in China and Edmund

1784 DTZ founding predecessor firm, Chesshire Gibson, established in Birmingham, UK.

2015 TPG Consortium purchases US commercial real estate firm Cassidy Turley, adding 4,000 employees.

1987 Listed on the London stock exchange as Debenham, Tewson & Chinnocks.

1853 Beginnings in London with second predecessor Debenham and Tewson.

Tie & Co in Singapore.

creates the DTZ brand.

1820 Healey & Baker,

1917 Cushman & Wakefield incorporated in New York .

1969 Media conglomerate RCA Corp. acquires Cushman & Wakefield.

1976 RCA Corp. sells its stake to The Rockefeller Group.

1989 Mitsubishi Estate Co. Ltd, one of the world’s largest real estate companies, becomes The Rockefeller Group’s majority shareholder.

1900 Presence in Europe established through Healey & Baker.

1994 Worldwide partnerships established with major real estate firms in the Americas, Europe, Asia.

1998 Cushman & Wakefield merges with Healey & Baker.

2005 Cushman & Wakefield acquires Russian firm Stiles & Riabokobylko, Canada’s Royal LePage and Semco Johnson Controls.

2007 IFIL (now known as EXOR) acquires majority stake in Cushman & Wakefield.

2015 TPG Consortium acquires Cushman & Wakefield which is merged with DTZ.

Cushman & Wakefield’s future European operation, is founded in London, UK.

20+ OFFICES 2,400 PEOPLE CHINA, HONG KONG & TAIWAN

35 COUNTRIES, 90+ OFFICES 5,000 PEOPLE EUROPE, MIDDLE EAST & AFRICA

12 COUNTRIES, 32+ OFFICES

7,600 PEOPLE ASIA PACIFIC, EXCLUDING CHINA

9 COUNTRIES, 120+ OFFICES 28,000 PEOPLE NORTH, CENTRAL & SOUTH AMERICA

COUNTRY COVERAGE

Argentina Australia

Costa Rica Czech Republic Denmark Fiji

Ireland Israel Italy Japan Kazakhstan Luxembourg Macedonia Malaysia Mexico Netherlands New Zealand Nigeria

Norway Oman Pakistan Peru Philippines Poland Portugal Qatar Romania Russia Singapore Slovakia

South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey United Arab Emirates United Kingdom United States Vietnam

Bahrain Belgium Brazil

Finland France Georgia Germany Greece Hungary India Indonesia

Bulgaria Canada Channel Islands Chile China (including Hong Kong) Colombia

TEAM STRUCTURE & EXPERIENCE

DOUGLAS BRINKLEY TRANSACTION MANAGER

CHARLIE FENWICK TRANSACTION MANAGER

BRONWYN LEGETTE WORKPLACE STRATEGY

BEN JENSEN LOCAL MARKET BROKER

CUSHMAN & WAKEFIELD EMPOWERING YOU TO PREPARE FOR WHAT’S NEXT

CHARLIE FENWICK SENIOR DIRECTOR

DOUGLAS BRINKLEY SENIOR MANAGING DIRECTOR

• Over 30 years experience in commercial real estate • Focus on tenant representation and corporate services • Healthcare Practice Group Leader

• Over 20 years of real estate experience • Government Contracting Specialist • IT Practice Group Leader • Focus on tenant representation and corporate services

CLIENTS SERVED Travelers—150,000 SF Cendant Corporation—125,000 SF Toyota—110,000 SF BreakAway Games—25,000 SF Prometric—50,000 SF Miles & Stockbridge—25,000 SF

CLIENTS SERVED Johns Hopkins Healthhome—200,000 SF Next Century Corporation—65,000 SF Columbia Association—60,000 SF Visionist—20,000 SF Freedom Consulting Group—17,000

Legg Mason—multiple transactions MedStar Health—multiple transactions Stanley Black & Decker—multiple transactions Inovalon—multiple transactions

Berico Tailored Systems—14,000 SF Special Olympics of Maryland—12,000 SF Minerva Engineering—9,000 SF EDSA—9,000 SF

BEN JENSEN SENIOR ASSOCIATE

BRONWYN LEGETTE DIRECTOR

• 20 years of combined experience in contract furniture, commercial interiors, and real estate • Focus on tenant representation, corporate services, and agency leasing • Workplace strategy and emerging global trends focus

• Over 5 years of real estate experience • Member of the Minnesota Commercial Association of Realtors • Focus on tenant representation and corporate services

CLIENTS SERVED United Way of Central Maryland—30,000 SF

CLIENTS SERVED US Bank—258,000 SF AgriBank—80,000 SF AECOM—60,000 SF

Mueller Associates—13,000 SF Mahan Rykiel—10,000 SF idfve—9,500 SF

Fueled Collective—25,000 SF Craig-Hallum Capital Group—20,000 SF Workday, Inc.—12,000 SF Red Circle Agency—11,000 SF Marketing Lab – 10,000 SF

Design Collective—28,000 SF Gross Mendelsohn—26,000 SF Womble Bond Dickinson—16,000 SF

Biohabitats—7,500 SF Blackboard—7,000 SF

Amano McGann—30,000 SF Bond Collective—30,000 SF

“just having satisfied clients ISN’T ENOUGH ANYMORE.

you have to create RAVING FANS.”

“

Ken Blanchard // American Author

TENANT REPRESENTATION

About Provation Provation software delivers trusted clinical knowledge at the point of care to drive operational efficiency, drive regulatory compliance, and maximize reimbursement. Their software solutions uniquely combine current, relevant, medical content with advanced technology to enhance clinical documentation and clinical decision support. Their mission is to improve the productivity of clinicians and healthcare staff through the delivery of innovative medical content and software solutions. Minneapolis Real Estate Situation

• Square Footage: 54,726 SF Suites 400 and 400 C • Rental Rate: Currently $15.50 NNN escalating to $16.00 NNN during the last year of the term • Lease Expiration: 4/30/20 • Parking: Right to use 20 parking spaces • Own furniture

WHAT WE KNOW

Office Location Minneapolis, MN

Minneapolis Office Property Overview 800 Washington Avenue North, Suite 400, Minneapolis, Minnesota 55401 • Total Rentable Area: 350,000 SF • Typical Floor: 35,555 SF • Percent Leased: 92% • Year Built: 1910 • Building Height: 9 Stories • Current Asking Rent: $33.00—$35.00 Full Service

Part of CBD North Loop—Warehouse District

Current Office Market Options • 16 Existing Class A, B, & C options in the North Loop/CBD • Class A Rents: $29.00–$39.00/SF Full Service • Class B Rents: $25.00–$30.00/SF Full Service • Warehouse Redevelopments: $30.00–$35.00/SF Full Service • Free Rent: One (1) month per year of term • Escalation: $.35-$.50/year • TI: $35.00-$60.00 depending on lease term

• Uncover your most significant operational issues with regard to your real estate

• Identity the cost and availability of talent and how it will affect your real estate strategy

WHAT WE WILL DELIVER

• Identify the optimal location for a new or existing business operation

• Define qualitative and quantitative benefits of a potential relocation or extension

• Benchmark Provation against its peers on a SF/person and cost/person basis

• Prepare a space program to determine your “right-size”

• Prepare renewal/relocation budget to determine out-of-pocket exposure

OCCUPIER SERVICES

SERVICE LINES

PROVATION PROVIDED SERVICES

PROVATION PROVIDED SERVICES

LEASE ADMINISTRATION

PORTFOLIO STRATEGY

TRANSACTION MANAGEMENT

PROJECT & DEVELOPMENT SERVICES

PROPERTY / FACILITY MANAGEMENT

“SPECIALTY” SERVICES

• Critical dates,

• In-depth analysis of entire portfolio of owned and leased assets • Analyze and execute strategy • Optimize utilization and value of real estate portfolio • Financial modeling • Trends in the workplace • Consulting studies

• Provide tenant representation driven by local market knowledge, deal structure • Property acquisition and disposition • Evaluate re nancing opportunities • Structure ground leases, joint ventures

• Plan, estimate and oversee TI and new construction • Space optimization analysis • Capture cost savings through effective planning, technology implementation

• Enhance client

• Location advisory and incentives • M&A due diligence and integration • Sustainability consulting • Capital markets • Data centers and critical environments • Supply chain optimization

rent and options management

satisfaction with safe, comfortable and productive environments

• Lease term,

rollover, rent roll management

• Optimize operating performance of real estate assets • Generate cost- savings through energy ef ciency and sustainability, competitive bidding, and purchasing leverage • Improve asset value through effective

• Customized

occupancy cost reporting • Semi-legal lease review • Lease audit

and program management • Enhance value

and mitigate risk throughout project life-cycle

• Marketing • Research • Workplace strategy

budgeting and capital planning

• Compliance management

LEVERAGE & STRATEGY

LEVERAGE INDICATORS GET OUT TO MARKET NOW

NOVEMBER 18—APRIL 19

may 19—october 19

NOVEMBER 19—APRIL 20

RELOCATION OR RENEWAL

PRIME LEVERAGE

DECLINING LEVERAGE

LANDLORD LEVERAGE

STRATEGIC PLANNING

TRANSACTION MANAGEMENT

CONSTRUCTION MANAGEMENT • Construction Drawings • Permitting & Approvals • Construction • Furnishing & Move-In

• Situation Analysis • Scenario Planning & Strategy Development • Workplace Optimization • Market Study—and Site Tours

• Building Selection • Executive Approval • Negotiation & Execution • Contractor Bidding & Selection

key steps participants

• Cushman & Wakefield Team • Design Team

• Cushman & Wakefield Team • Project Manager • Design Team • Corporate Finance • Legal Counsel

• Project Manager • Design Team • General Contractor

• Complete internal strategy to determine KPI’s • Complete exhaustive market search to determine prime building location • Formally engage market early based upon leverage milestones

keys to success

STRATEGY—CREATING LEVERAGE

• Team credibility – the landlord and/or its agents should know of, and have dealt with team (fear of losing tenant must exist) • Understand everything about the current building and landlord • Utilize the market correctly – more expensive buildings will not bring fnancial pressure. Better terms at lower square footages, with great transactional fexibility will! • Relocations drive square footage efficiency; wield that fact effectively • Potentially insurmountable or persistent problems are very useful in negotiations (past facility problems, HVAC, security, cleaning, etc.) • Financial engineering – using the stay vs. go analysis, mutually agreed upon move assumptions will be an inescapable persuasion

OVERALL STRATEGY

CRAFTING FLEXIBILITY RIGHTS TO EXPAND • Formal time intervals

RIGHTS TO CONTRACT • At key intervals • Short notices • With minimal or no cost • Pre-identify spaces to pull back

RIGHTS TO RENEW • Multiple options • With caps on pricing “up to” number of years at tenant’s notice

RIGHTS TO TERMINATE • At key intervals • At low or no cost • Short notice periods • Conditioned upon • Lost contract • No reason at all

• ROFO • ROFR • Upon renewal • Pre-commencement

RENEW/RESTRUCTURE PRIOR TO LEASE EXPIRATION

OPPORTUNITIES • Assess if building and location still align with present and future frm profle • Determine if current location works or other available space exists in the building • Enter negotiations with existing landlord based upon current market information (assumes landlord’s willingness to negotiate now)

INITIAL CONSIDERATIONS • Could be lowest cost psf option – with immediate savings • Get tenant improvement capital to renovate early • Renew now to have next lease milestone occur sooner – is the timing for a reset of the space now better for the frm? • Enhance fexibility - renewal options and expansion / contraction options

RELOCATE OR RENEW AT LEASE EXPIRATION

OPPORTUNITIES • Parallel renegotiation discussions with existing building alternatives • Create leverage with existing landlord by going to the market to look at both current and future options

INITIAL CONSIDERATIONS • What is the least expensive option if minor renovations are required for the future

• Determine if current adjacent space availability may not be available for swing space or expansion • Timing for overall process can begin approximately 18 months in advance of current lease expiration

3XS AS EXPENSIVE It is more than for the Landlord to RELEASE versus renew

“

RENEWAL STRATEGY RELEASE VS. RENEW SAMPLE

25,000 SF (BASED ON A 10 YEAR TERM)

DETAILS

RELEASE RENEW

COST

• • • • •

Release Space—12 months at $36.00

$900,000

Downtime

Renew Space—0 months

$0.00

Release Space—10 months

$750,000

Concessions

Renew Space—5 months

$375,000

Release Space—$60.00/RSF Renew Space—$30.00/RSF Release Space—4 months Renew Space—0 months Release Space—$15.50/RSF Renew Space—$10.30/RSF

$1,500,000

Tenant Improvements

$750,000

$300,000

Construction Time

$0.00

$387,500

Transaction Costs

$257,500

Total Cost to Landlord

$3,837,500 $1,382,500

$375,000

$1,125,000

$1,382,500

RENEW

$900,000

$1,650,000

$3,150,000

$3,450,000

$3,837,500

RELEASE

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

$1,800,000

$2,100,000

$ 2,400,000 $2,700,000

$3,000,000

$3,300,000 $3,600,000

LEASE TRANSACTION MANAGEMENT

LEASE TRANSACTION MANAGEMENT is the process of developing occupancy solutions that align needs with business strategy, fnancial goals, and operational objectives, thereby transforming your real estate into an asset that attracts and retains talent, promotes creativity and collaboration, and supports the company brand and mission.

“I’VE ALWAYS VALUED AND ENCOURAGED TEAMWORK AND THAT COLLABORATIVE SPIRIT OF “WE” VS. “I” IS CORE TO OUR SUCCESS.”

Brad D. Smith // CEO // Intuit

RELOCATION/RENEWAL TIMELINE

MANAGE CRITICAL MILESTONES

NOV ‘18

APRIL ‘18

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

PHASE 01

PHASE 02

PHASE 03

PHASE 04

PHASE 05

PHASE 06

REAL ESTATE STRATEGY

LEASE

DESIGN

PERMIT

CONSTRUCTION

MOVE

• Establish Preliminary Project Budget • Analyze Space Needs • Discuss Workplace Strategy • Tour the Market • Develop Building Short List • Discuss Incentives/ Determine Strategy • Issue RFP to Landlords • Prepare Test Fits on Short List Properties • Analyze RFP Responses • Prepare Financial & Qualitative Analysis • Finalize Project Budget

• Select Site Finalist • Letter of Intent • Lease Negotiation • Lease Execution

• Interior Designer RFP • Interior Designer Selection • Space Program Development • Test Fit and Space Plan Revisions • Interior Schematic Design • Interior Design Development • General Contractor RFP • General Contractor Interviews • General Contractor Selection • Design Development Budget • Construction Documents • Furniture Manufacturer RFP • Interview Furniture Manufacturers • Furniture Mock Up Review • Furniture Procurement

• Building Permit

• Interior Construction • Weekly Progress Meetings • Telephone / Data Cabling • Furniture Installation • Punch List

• Coordinate Move Logistics • Supervise Move Team

• Supervise Vendor Coordination • Resolve Relocation Issues • Clean Out Existing Premises

COMMUTE ANALYSIS

UNDERSTAND EMPLOYEE DRIVE TIMES

U V 25

St. Cloud

1

North Branch

U V 87

1

£ ¤ 169

1

§ ¨ ¦ 35

U V 22

1

£ ¤ 8

1

Employee ZIP Code Location/ Drive Time Analysis

U V 65

East Bethel

Elk River

1

§ ¨ ¦ 94

Big Lake

U V 55

2

U V 47

£ ¤ 10

Minneapolis, MN Office

Monticello

3

U V 15

U V 24

U V 35

Otsego

Ramsey

Andover

Ham Lake

Forest Lake

3

^ _

Current Location

Anoka

3

§ ¨ ¦ 35E

# of Employees per ZIP Code Total Employees = 165*

2

St. Michael

Buffalo

U V 95

Coon Rapids

Blaine

Champlin

Lino Lakes

1

2

Hugo

£ ¤ 12

1

2

1

1

Brooklyn Park

3

£ ¤ 12

Mounds View

Maple Grove

Drive Time Analysis - Heavy Congestion** 800 N Washington Ave #400, Minneapolis 0 - 15 Min | 6 emp | 4%

2

1 1

1

£ ¤ 12

1

Fridley

White Bear Lake 800 N Washington Ave Minneapolis, MN Vadnais Heights

£ ¤ 12

§ ¨ ¦ 494

New Brighton

2

2

3

U V 4

Stillwater

Columbia Heights

4

Robbinsdale

Maplewood

15 - 30 Min | 50 emp | 31%

Plymouth

Roseville

U V 22

2

1

1

3

1

4

1

1

2

^ _

£ ¤ 12

30 -45 Min | 50 emp | 31%

Oakdale

Golden Valley

1

3

1

1

Minneapolis

1

Hudson

1

U V 25

St. Paul

§ ¨ ¦ 694

45 - 60 Min | 30 emp | 18%

3

U V 7

3

5 7 7

2

1

Minnetonka

4

2 1

2

3

1

2

60+ Min | 27 emp | 17%

2

West St. Paul

3

3

Woodbury

3

1

Hutchinson

1

Edina

Richfield

Mendota Heights

1

U V 22

Chanhassen

1

1

1

Bloomington

Eden Prairie

1

1

Waconia

Inver Grove Heights

3

Cottage Grove

4

Chaska

2

1

Eagan

1

2

1

U V 261

1

Shakopee

£ ¤ 212

2

Apple Valley

Savage

£ ¤ 61

Burnsville

2

£ ¤ 212

2

£ ¤ 212

Rosemount

1

1

Hastings

£ ¤ 212

U V 35

Prior Lake

*5 EMPLOYEESNOTSHOWNONMAP **2 EMPLOYEES EXCLUDED FROMANALYSISBECAUSE THEYAREOVER 1,000MILESAWAY FROMCURRENT LOCATION DATA ISFROM SOURCESDEEMEDRELIABLEBUTMAYBE SUBJECTTO ERRORS, OMISSIONSORMODIFICATIONS. THE INFORMATIONHEREIN ISPROVIDED WITHOUTREPRESENTATIONORWARRANTY.

£ ¤ 52

Lakeville

2

§ ¨ ¦ 35

Farmington

U V 5

1

U V 4 0

1

U V 22

U V 15

U V 21

£ ¤ 169

2

4

8

I

Miles

“WHAT IS DESIGN? IT’S WHERE YOU STAND WITH A FOOT IN TWO WORLDS — THE WORLD OF TECHNOLOGY AND THE WORLD OF PEOPLE AND HUMAN PURPOSES — AND BRING THEM TOGETHER.”

Mitchell Kapor // Founder // Lotus

SPACE PROGRAM RIGHT-SIZE YOUR SPACE

CURRENT SQUARE FOOTAGE

Cassidy Turley Confidential

Revised Program

Page 1

PROVATION Preliminary Space Program September 20, 2018

2020 ANNUAL RENT

2020 RENTAL RATE

ESTIMATED 2020 NNN*

TOTAL SF

2020 ANNUAL RATE

PRIVATE OFFICES

OFFICE SIZE

2019

2020

2021

Name/Title

Length Width SF Qty Area Qty Area Qty Area

Comments

$16.00

$13.80

54,726

$1,630,834.80

Typical Private Office

10

10 100 8 800 0 0 0 0 0 0

REDUCED SQUARE FOOTAGE

SUBTOTAL USF + 35% Circulation TOTAL SEATS & USF

800 280

0 0

0

0 8 1,080 0 0 0 0

ESTIMATED DIRECT DEAL RENT

OPEN PLAN WORKSTATIONS

2020 RENTAL RATE

ESTIMATED 2020 NNN*

TOTAL SF

2020 ANNUAL RATE

WORKSPACE SIZE

2019

2020

2021

Job Title

Length Width SF Qty Area Qty Area Qty Area

Comments

Typical Workstation

6

6 36

157 5,652

0 0 0

0 0

0 0

$24.00

$13.80

24,453

$924,323.40

SUBTOTAL USF + 35% Circulation TOTAL SEATS & USF

5,652 1,978

0 0

0

*3% Increases over 2018 budgeted.

0 157 7,630 0 0 0 0

COMMON AREAS

SPACE SIZE

2019

2020

2021

Space Description

Length Width SF Qty Area Qty Area Qty Area

Comments

4-Person Huddle

9

6 54 2 12 144 2

108 288

4-Person Conference 4-6 Person Lounge 6-Person Conference 8-Person Conference 10-Person Conference

12 12 14 17 20 24 34

12 144 4 576 12 168 10 1,680 12 204 4 816 15 300 6 1,800 15 360 1 360 15 510 1 510 4 32 4 128 23 1,242 1 1,242 10 150 1 150 6 254 1,524

ESTIMATED RIGHT-SIZING SAVINGS $706,511/YEAR

14-Person Conference Room 24-Person Board Room

Copy Area

8

Workcafe (6SF/Person)

Training Room

54 15 10

Accommodates 54 people

Mail Room Coat Closet

2 20 4 5 25 1

80 25

Tel/Data

5

Miscellaneous Storage

15

10 150 1 150 9,437

SUBTOTAL USF + 35% Circulation TOTAL USF

0 0 0

0 0 0

3,303

12,740

GRAND TOTAL SPACE REQUIREMENT

Private Office USF Total Workstation USF Total Common Area USF Total

1080 7630

12740 21450

USF Subtotal

+ 14% Building Core Factor

3003

TOTAL RSF

24453

RSF/PERSON TOTAL # SEATS

148 165

“PRICE IS WHAT YOU PAY. VALUE IS WHAT YOU GET.”

Warren Buffett // CEO // Berkshire Hathaway

SAMPLE BUDGET/ FEE STRUCTURE

MANAGE FINANCIAL EXPECTATIONS

24,453 165 Sample Headquarters Relocation Budget

Project Size (RSF) Total Number of Seats Lease Term 1. SOFT COSTS Line Item No.

10 Years

Cost Type Cost

Description

RSF

Cost/SF Total Amount

1.01 1.02

CapEx Soft Costs Architectural/MEP Design Fees

24,453 4.50 110,038.50

OpEx

Soft Costs Outside Counsel Lease Review

24,453

0.50 12,226.50

Soft Costs Subtotal 24,453

5.00

122,265.00

2. HARD COSTS Line Item No.

Cost Type Cost

Description

RSF

Cost/SF Total Amount

2.00 2.01

CapEx Hard Costs Tenant Improvements

24,453 70.00 1,711,710.00

CapEx Hard Costs Construction Contingency (10%)

24,453 7.00 171,171.00 Hard Costs Subtotal 24,453 77.00 1,882,881.00

3. FF&E

Line Item No.

Cost Type Cost

Description

RSF

Cost/SF Total Amount

3.00 3.01 3.02 3.03 3.04

CapEx

FF&E Furniture (all new) FF&E A/V Equipment

24,453 30.00 733,590.00 24,453 10.00 244,530.00 24,453 0.75 18,339.75 24,453 0.50 12,226.50 24,453 0.10 2,540.00 24453 41.35 1,011,226.25

ESTIMATED PROVATION RELOCATION COST $717,695

FF&E Telecommunications Equipment

FF&E Security System FF&E Interior Signage

FF&E Costs Subtotal

4. EXPENSES Line Item No.

Cost Type Cost

Description

RSF

Cost/SF Total Amount

4.04

Expenses Moving Costs (no furniture relocation)

24,453 0.50 12,226.50

Expenses Subtotal

0.50 12,226.50

6. GRAND TOTAL Line Item No.

Cost Type Cost

Description

RSF

Cost/SF Total Amount

6.00 6.01 6.02 6.03

Soft Costs Subtotal Hard Costs Subtotal FF&E Costs Subtotal Expenses Subtotal

24,453 5.00 122,265.00 24,453 77.00 1,882,881.00 24,453 41.35 1,011,131.55

24,453 0.50 12,226.50 Total Project Cost 24,453 123.85 $ 3,028,504.05

Landlord Tenant Improvement Allowance 24,453 60.00 1,467,180.00 10 Months Free Rent (based on $39.00/FS) 24,453 32.50 794,722.50 Move Allowance 24,453 1.00 24,453.00 Project Management 24,453 1.00 24,453 Total Landlord Concessions 24,453 94.50 $ 2,310,808.50 Total Estimated Tenant Exposure 24,453 29.35 $ 717,695.55

6. FEE SUMMARY

Broker Commission Fee 24,453 Financial Analysis Fee 24,453 Workplace Strategy Fee 24,453

(10.80) Paid by Landlord

(0.55) (1.00)

Paid by C&W Paid by C&W

Customary brokerage fees are typically paid by the Landlord. For this assignment, Cushman & Wakefield will absorb all service line fees for workplace strategy and financial analysis.

CURRENT LOCATION

7

1

6

8

3

2

5

4

MINNEAPOLIS BUILDING OPTIONS SNAPSHOT

SURVEY AND TOUR MARKET

MIN DIVISIBLE MAX CONTIG TOTAL AVAILABLE

TYPE TENANCY YEAR BUILT

RBA FLOORS TYPICAL FLOOR

BUILDING

ADDRESS

ASKING RENT

500 N 3rd St—Artic Cat Building Minneapolis, MN 55401 Minneapolis CBD Submarket

Class C Office Single 1908; Renov 2016

55,892 SF 6 9,315 SF

7, 392 SF 30,000 SF 55,892 SF

1

Withheld

150 S 5th St—150 South Minneapolis, MN 55401 Minneapolis CBD Submarket

Class A Office Multiple 1988; Renov 2016

753,408 SF 36 20,683 SF

956 SF 64, 834 SF 179,461 SF

2

+/- 32.50/FS

250 Marquette Ave—Marquette Plaza Minneapolis, MN 55401 Minneapolis CBD Submarket

Class A Office Multiple 1972; Renov 2002

522,656 SF 15 36,000 SF

1,458 SF 257,008 SF 305,074 SF

3

+/- 32.00/FS

733 Marquette Ave–Baker Center Minneapolis, MN 55402 Minneapolis CBD Submarket

Class B Office Multiple 1927; Renov 2017

419,746 SF 12 30,537 SF

919 SF 137,600 SF 201,094 SF

4

Withheld

700 Nicollet Mall–The Dayton’s Project Minneapolis, MN 55402 Minneapolis CBD Submarket

Class A Office Multiple 1902; Under Renov

1,049,052 SF 12 90,000 SF

250 SF 83,000 SF 196,378 SF

5

Withheld

323 Washington Ave N–T3 Minneapolis, MN 55401 Minneapolis CBD Submarket

Class A Office Multiple 2016

222,000 SF 7 35,250 SF

2,260 SF 34,361 sf 43,880 SF

6

+/- 39.00/FS

729 Washington Ave N–The Nordic Minneapolis, MN 55401 Minneapolis CBD Submarket

Class A Office — Under Construction

200,000 SF 10 20,000 SF

1,000 SF 140,500 sf 151,700 SF

7

+/- 39.00/FS

100 Washington Ave S– 100 Washington Square Minneapolis, MN 55401 Minneapolis CBD Submarket

Class B Office Multiple 1980; Renov 2001

625,000 SF 22 25,000 SF

2,301 SF 64,850 sf 126,040 SF

8

+/- 32.00/FS

ALTERNATIVES COMPARISON SAMPLE ANALYZE SHORT-LIST OPTIONS

OCCUPANCY COST SAMPLES ANALYZE CASH FLOW & STRAIGHT LINE

“I’VE ALWAYS VALUED AND ENCOURAGED TEAMWORK AND THAT COLLABORATIVE SPIRIT OF “WE” VS. “I” IS CORE TO OUR SUCCESS.”

Brad D. Smith // CEO // Intuit

LEASE COMPARABLES SAMPLE— MINNEAPOLIS COMPARE MARKET DEALS

TERM (MONTHS)

COMMENCEMENT DATE

PROPERTY FLOORS SF

RATE

INCREASES FREE RENT TIA

Fifth Street Towers

15, 16 28,673 130

11/1/2018

$32.50

$0.50

10 gross

$70.00

Loose Wiles 6,7

31, 113 154

1/1/2019

$33.25

2%

10 gross

$77.43

T3

5, 6, 7 100,000 130

1/1/2018

$34.00

$0.50

10 gross

$60.00

The Nordic 9, 10 30,000 132

6/1/2019

$38.50

$0.50

12 gross

$60.00

Fifth Street Towers

21, 22 40,246 192

9/1/2019

$32.00

$0.50

12 gross

$80.00

Baker Center

8

34,464 126

5/1/2018

$24.00

$0.50

6 gross

$50.00

Marquette Plaza 111 Washington Square

11

20,000 120

5/1/2018

$29.00

3%

None

$40.00

5

6,826 65

11/1/2018

$32.25

$0.50

5 gross

$—

“THE BIGGEST RISK IS NOT TAKING ANY RISK... IN A WORLD THAT IS CHANGING REALLY QUICKLY, THE ONLY STRATEGY THAT IS GUARANTEED TO FAIL IS NOT TAKING RISKS.”

Mark Zuckerberg // CEO // Facebook

LEASE TRANSACTION SUMMARY SAMPLE

QUANTIFY ECONOMIC RESULTS

Free Rent

4 months

Yes; after 40 th month

Cancellation Option

Corporate Exclusion

Yes – 12 Floor

Signage

Building standard suite & directory

Total Building Square Footage 413,326 SF Building Year Built 1973 Transaction Type New Target Commencement Date June 1, 2015 Lease Term 64 months Square Footage 8,864 Gross Rental Rate (Year 1) $24.97

Improvement Costs

None – turnkey improvements

Base Year Adjustment (renewals only)

N/A

Security Deposit

Yes

No

Negotiated Cost Avoidance $248,842 cost avoidance includes free rent and turnkey improvements

60 Month Lease Obliga�on

$1,350,157

$1,100,000 $1,300,000 $1,500,000

$1,101,315

Stabilized Monthly Rent Adjustment (Previous vs. New) N/A Transaction Duration 83 days Date: 2015

$500,000 $700,000 $900,000

First Proposal

Nego�ated Lease

Additional Results Achieved • (1) option to renew for 5 years. • Landlord will not have the right to relocate ABC Company • Space planning allowance provided by Landlord

WORKPLACE STRATEGY

Workplace Strategy is the practice of supporting people by aligning processes, technology and real estate to enhance the employee experience, improve operational efficiencies and REDUCE OCCUPANCY COSTS of an organization. A flexible workspace helps meets the needs of the multi-generational workplace. A successful workplace strategy can help improve employee satisfaction, improve work performance, improve employee work-life balance and ATTRACT AND RETAIN THE BEST TALENT . An effective Workplace Strategy embodies an organizations culture, brand and strategy.

COMMUNICATE CORPORATE MISSION FOSTER & SUPPORT INNOVATION E S T AB L I S H S U S T A I NAB I L I T Y RECRUIT, ENGAGE, & RETAIN TOP TALENT MINIMIZE OCCUPANCY COSTS S U P P O R T C O L L A B O R A T I O N M A X I M I Z E S P A C E U T I L I Z A T I O N S U P POR T E F F E C T I V E WORK P ROC E S S E S

EMPLOYEES DO. “Clients don’t come first,

If you take care of your employees, THEY WILL TAKE CARE OF THE CLIENTS.”

“

Richard Branson // Founder & Chairman // Virgin Group

WORKPLACE STRATEGY

HOW CAN THIS PROJECT BE AN OPPORTUNITY

PAST

FUTURE

VERSUS

TO TRANSFORM OUR ORGANIZATION?

WORK ANYTIME

WORK 9–5

WORK ANYWHERE

WORK IN AN OFFICE

USE ANY DEVICE

USE COMPANY EQUIPMENT

FOCUSED ON OUTPUTS

FOCUSED ON INPUTS

CREATE YOUR OWN LADDER

CLIMB THE CORPORATE LADDER

CUSTOMIZED WORK

PRE-DEFINED WORK

SHARES INFORMATION

HOLDS INFORMATION

CAN BECOME A LEADER

NO VOICE

RELIES ON EMAIL

RELIES ON COLLABORATION

FOCUSED ON ADAPTIVE LEARNING

FOCUSED ON KNOWLEDGE

INITIAL PHASE

INFORMATION GATHERING

PHASE

INITIATIVE

BENCHMARK STUDY/ TRENDS REVIEW

SURVEYS & INTERVIEWS (OPTIONAL)

KICKOFF MEETING

VISIONING SESSION

To develop and establish a framework for a successful Workplace Strategy process

To share market trends and set high-level goals as well as project vision and direction

To understand the current trends and strategies within the workplace and identify industry peers and how they may apply

To survey and interview employees on workplace effectiveness

OBJECTIVE

• Provide an overview of the overall process • Learn about the client’s culture, brand and priorities • Define goals, set expectations and review roles

• Share workplace trends • Analyze how trends and best practices may apply to client’s goals and objectives • Understand client’s priorities based upon brand, culture and values • Outline aspirations, challenges and critical success factors • Examine client’s willingness for change

• Review and compare key industries or peers’ workplace programs

• Customized survey and/or interviews administered to selected employees • Compilation and analysis of results

PROCESS

Meeting Notes and Summary Document

Analysis of benchmarking metrics against other organizations

Analysis of results

DELIVERABLES

WORKPLACE STRATEGY

MAXIMIZE EFFICIENCY, BUILD BRAND & SUPPORT CORPORATE CULTURE

INFORMATION GATHERING

SUMMARY

LEADERSHIP INTERVIEWS (OPTIONAL) To understand business unit goals and key leaders’ perspectives

FOCUS GROUPS (OPTIONAL)

ON-SITE OBSERVATION (OPTIONAL)

WORKPLACE STRATEGY

To understand the work environment through the employee’s perspective

To observe and decode work patterns and pain points in existing workplace environments

To allow an organization to build a strong sense of common identity, shared purpose and community throughout the workplace • Synthesize the information collected throughout this process • Outline innovative ways to manage space, maximize efficiency, improve productivity, address adjacencies and enhance the employee’s experience • Identify Guiding Principles that will support the alignment of the client’s built environment with business objectives, values, culture, brand and workplace patterns. Workplace standards inclusive of guiding principles, summary of findings and recommended next steps

• Interview key business unit leaders • Compilation and analysis of results

• Interactive discussion with end users to better understand existing issues and expectations • Identify potential concerns and communicate early project messaging

• Observation of people and processes • Evaluation of workplace deficiencies and space needs

Analysis of results

Analysis of focus group responses

Photo documentation and summary report

“Without trust, we don’t truly collaborate; we merely coordinate or, at best, cooperate. It is trust that transforms a group of people into a team.” “

Stephen Covey // Author // 7 Habits

why use CUSHMAN & WAKEFIELD ? We’re commercial real estate experts, EMPOWERING YOU TO EXCEED EXPECTATIONS.