MERIDIAN MANAGEMENT GROUP INC Presentation on the Maryland

MERIDIAN MANAGEMENT GROUP, INC. Presentation on the Maryland Casino Business Investment Fund “MCBIF” “Fueling Dreams to Create New Realities”

MCBIF- The Fund In 2008, the Maryland General Assembly passed a bill which sets the stage for video lottery terminals (VLT), commonly called slot machines, at race tracks and other venues. 1. 5% of all slot proceeds generated by gaming venues are to be used to fund small, minority and womenowned businesses (Targeted Businesses).

MCBIF- The Fund (Continued) Three of the six facilities have been operating long enough to contribute to the VLT Fund Pool. They are the Hollywood Casino at Perryville, Ocean Downs Race Course at Ocean City and Maryland Live at the Arundel Mills Mall. Deposits to the VLT Fund Pool for the initial allocation totaled $7. 8 million. Three fund managers were selected to provide financing assistance to the Targeted Businesses.

PURPOSE The purpose of the MCBIF is to provide access to capital for small businesses, minority owned businesses, women owned businesses and veteran owned businesses in Maryland. MCBIF’s geographic focus is in areas which are in the designated radius (designated by zip code) of casino facilities. However, Targeted Businesses outside of the designated radius of casino facilities are also eligible for assistance.

Purpose (Continued) MCBIF will provide affordable and flexible financing to assist in the acquisition of businesses, equipment, owner occupied commercial real estate, vehicles, furniture/fixture, lease hold improvements, and working capital.

Financing Products Term Loans Lines of Credit Demand Loans Letters of Credit Equity Investments Micro-Enterprise Loans

MCBIF Guidelines Range of Funding Minimum of $5, 000 up to a maximum of $500, 000. Term of Debt One to ten years with the ability to amortize the debt over a longer period of time. Lines of credit, short term loans and letters of credit may be issued for less than one year. Rates for term loans will generally range between 4% and 8%. Rates for lines of credit will generally be Wall Street Journal prime plus 2%. Will generally range between 2% and 4%. Interest Rate on Debt Interest Rate on Professional /Technical Assistance Loans Collateral Full, limited and no collateral value coverage will be considered. Personal Guaranties of Debt Will be required. Years in Business Generally, businesses that have been operating for at least two years. Start-ups will be considered if principals have significant industry experience. Will consider businesses and individuals that have less than fair credit scores, taking in consideration special circumstances. Business and Personal Credit Scores

MSBDFA CONTRACT FINANCING (1978) Provides up to $2 million in direct loans and guarantees for financing government and public utility contracts. (Applicants may prequalify) LONG TERM GUARANTY(1983) Provides up to $2 million in loan guarantees to traditional financial institutions for business expansion. SURETY BOND PROGRAM (1985) Provides up to $2 million in assistance for bid, payment and performance bonds (directly or via surety guarantee) and direct required for government, public utility and private contracts. (Applicants may prequalify) EQUITY PARTICIPATION INVESTMENT PROGRAM Offers up to $2 million in debt and equity investments for: – Franchises-1986 – Business Acquisitions-1989 – Technology Based Businesses- 1992 – Other Traditional Businesses - 2005

Invest Maryland • In May 2011, Governor O’Malley signed into law Invest Maryland – HB 173, an historic initiative which will infuse $84 million into promising start-up and early stage companies in Maryland, creating the largest venture capital investment in the State’s history. • The program is being administered by the Maryland Department of Business and Economic Development (DBED). • MMG will manage a portion of these funds, approximately $6. 3 million, through the MSBDFA program. • MSBDFA will concentrate its investments in small, minority, and women owned businesses. Deal size will range from $1 M to $2. 5 M.

How To Apply For Assistance Contact: Meridian Management Group, Inc. In the Baltimore Metro Area: 826 E. Baltimore Street Baltimore, Maryland 21202 Phone (410) 333 -4584 Fax (410) 333 -2552 In the Washington Metro 1801 Mc. Cormick Drive, Su. 300 Largo, Maryland 20774 Phone (800) 248 -1960 Fax (410) 883 -6160 Applications and program summaries are available online at: www. mmggroup. com