Trade Finance/Ex-Im Bank Working Capital Program

December 07, 2012

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Calgary

VancouverMontreal

Toronto

ChinaCanadaUSA

New YorkChicago

Beijing

Shanghai

Hong Kong

Guangzhou Taipei

Who We Are

Milwaukee

• North American (US & Canada) Trade Finance & China Sales Team

• We serve all corporate and commercial clients and prospects of I&CB and P&C in both the US and Canada

• Part of BMO Capital Markets

• North American Focus with International Scope

Global Trade Finance Expertise

An Established Player

State of the Art Technology

Supply Chain Finance • A leader in open account receivables and payables financing techniques

Strength in China• Incorporated in China with branches in Beijing, Shanghai, Guangzhou and Hong Kong offer a wide

spectrum of services• Local currency capability and a leading foreign exchange provider

Global Relationships• Strong relationships with governments, export credit agencies, risk insurance companies and more than

1300 correspondent banks in over 80 countries

• Nearly two centuries supporting North American clients’ traditional and structured trade transactions• Recognized as “Best Trade Bank in Canada” by Trade Finance magazine, 2010 , 2011 and 2012• Number 1 in Client Satisfaction for US Middle Market Trade Banking as measured by FImetrix, 2011

• Technology suite anchored by Tradevenue Direct®, our internet-based client interface, leads the market for all traditional trade finance and new, innovative open account products

Leading Edge Supply Chain and Trade Solutions

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Global Trade Finance Expertise

• Benefits to our import and export clients:

Global Access: convenience via the internet, 24/7 basis.

Real-time Information: detailed management information on all trade-related activities routed through the portal

User-friendly modules: processing ease for the issuance of standby and documentary LCs, downloading advices for incoming LCs, and creating collection letters and drafts

• Import and export documentary letters of credit

• Import and export documentary collections

• Standby letters of credit

• Supply Chain Finance/Open Account Solutions

• Structured Trade Finance

Pre Export Financing; Working Capital Guarantees

Export Financing; Medium Term Financing, Export Credit Insurance, Receivables Purchase

Complete Range of Trade Finance Products Tailored Trade Finance Services

• Geographic expertise / advice

• Provide country risk, bank risk, foreign corporate information and local contacts

• Offer advice to importers and exporters negotiating purchases/sales

• Proactively identify opportunities to streamline documentary processing, thereby minimizing costs

• Originate, structure & complete trade finance transactions

Tradevenue Direct: A Web-Based LC, Open Account and Documentary Collection Initiation and Management Information Portal

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Working Capital Guarantee Program

About Ex-Im Bank

• Independent agency of the U.S. government.

• Established in 1934 to finance the export sales of goods and services produced in the U.S.

• Supports short, medium, and long-term financing to creditworthy international customers both public- and private-sector; working capital guarantees to U.S. exporters.

• Products include Direct Loans, Guarantees, Export Credit Insurance, Working capital Guarantees.

Working Capital Guarantee

How Does it Work?

Working Capital Guarantee encourages commercial lenders to make working capital loans by providing them with a 90% loan backing guarantee, which decreases their risk. With Ex-Im Bank our Delegated Authority Lenders - lending partners with whom we have agreements - can expedite your loan process by evaluating your eligibility against our requirements, and offer our guarantee before we transact with the lender. You'll get the loan you need when you need it.

• 90% guarantee on principal and interest for export-related inventory and A/R

• Generally one year or less but can be up to three years. Transaction-specific or revolving.

• Must be fully collateralized:

– 90% adv. Foreign A/R (<180 days)

– 75% adv. Export Inventory (incl. WIP)

Working Capital Guarantee Program

• Exporters may use the guaranteed financing to:

• Purchase finished products for export

• Pay for raw materials, equipment, supplies, labor and overhead to produce goods and/or provide services for export

• Cover standby letters of credit serving as bid bonds, performance guarantees or payment guarantees

– Collateral requirement to issue standby letters of credit is only 25%, instead of the standard 100% cash

• Finance foreign receivables

ELIGIBILITY

Eligible Exporters

• Must be located in the U.S.

• Must have services performed by U.S.-based employees

• Must have at least a one-year operating history

• Must have a positive net worth

Eligible Exports

• Must be shipped from the U.S.

• Products must have at least 50% U.S. content

• Military or defense items are generally not eligible

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Rosy Zarate, Associate

Trade Finance – International

Tel: (312) 461-6716

rosaura.zarate@bmo.com

Contact Information

Disclaimer

These materials are confidential and proprietary to, and may not be reproduced, disseminated or referred to, in whole or in part without the prior consent of BMO Capital Markets (“BMO”). These materials have been prepared exclusively for the BMO client or potential client to which such materials are delivered and may not be used for any purpose other than as authorized in writing by BMO. BMO assumes no responsibility for verification of the information in these materials, and no representation or warranty is made as to the accuracy or completeness of such information. BMO assumes no obligation to correct or update these materials. These materials do not contain all information that may be required to evaluate, and do not constitute a recommendation with respect to, any transaction or matter. Any recipient of these materials should conduct its own independent analysis of the matters referred to herein.

“BMO Capital Markets” is a trade name used by the BMO Investment Banking group, which includes the wholesale arm of Bank of Montreal and its subsidiaries BMO Nesbitt Burns Inc. in Canada, BMO Capital Markets Corp in the U.S. and BMO Capital Markets Ltd in the U.K.

BMO does not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended to be used, and cannot be used or relied upon, for the purposes of avoiding any tax penalties and (ii) may have been written in connection with the “promotion or marketing” of the transaction or matter described herein. Accordingly, the recipient should seek advice based on its particular circumstances from an independent tax advisor.

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