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1 Case 19-10989 Doc 4 Filed 05/06/19 Page 1 of 188 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: ) Chapter 11 ) SOUTHEASTERN METAL PRODUCTS ) LLC ., ) Case No. 1 9- _______ ) Debtor. ) ) ) In re: Chapter 11 ) ) SEMP TEXAS LLC, ) Case No. 1 9- _______ ) Debtor. ) (Joint Administration Requested) ) GLENN PURCELL AFFIDAVIT OF IN SUPPORT OF FIRST -DAY RELIEF I, Glenn Purcell , hereby declare under penalty of perjury: 1. of Southeastern I am the Executive Vice President of Finance and Accounting (“SEMP”) and SEMP Texas, LLC ( Metal Products LLC , the “Company” collectively with SEMP or the “Debtor s”). I submit this Affidavit in support of the Motions and Appli cations of the Debtor s, filed contemporaneously with the filing of the cha pter 11 petitions commencing th ese cases . 2. I am generally familiar with the Debtors ’ day -to-day operations, business affairs and books and records. 3. On May 6, 2019, (the “Petition Date”), the Debtor s commenced these case s under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101- 1330 (as amended, the “Bankruptcy Code”), in the United States Bankruptcy Court for the District of Delaware (the {00325129 v 1 }

2 Case 19-10989 Doc 4 Filed 05/06/19 Page 2 of 188 ases ”). The Debtor s continue to operate in the ordinary course of business as debtor s- “Chapter 11 C in-pos session pursuant to Sections 1107 and 1108 of the Bankruptcy Code. 4. The Debtors ’ goal s for these cases include restructur ing its business operations, bring the Debtor s back to profitability, and propos ing a plan of reorganization that will be ing supported by the Debtors ’ creditor body. However, in order to achieve such a restructuring, the Debtor s must preserve their ongoing business operations by instilling confidence in their employees and vendors that thei r business es will be stable during the reorganization process. With such stability in mind, the Debtor s seek to continue to operate in the ordinary course of business during these Chapter 11 Case filed a number of motions on the Petiti on Date, s, and therefore have seeking this Court’s authority to take steps necessary to ensure a seamless transition into these Chapter 11 Case s (collectively, the “First Day Motions”). 5. ’ petition for relief I am authorized to submit this affidavit in support of the Debtors under the Bankruptcy Code and the First Day Motions. Any capitalized term not expressly defined herein shall have the meaning ascribed to that term in the referenced First Day Motion. All facts set forth in this affidavit are based on my personal knowledge, upon information supplied to me by employees of the Debtor s or their affiliates, upon my review of relevant documents, or upon my opinion based on my experience and knowledge of the Debtors ’ operations and financial conditions. If I were called upon to test ify, I could and would testify competently to the facts set forth herein. I am authorized to submit this affidavit. A. Business History and Assets 6. The Debtors are headquartered in Charlotte, North Carolina. SEMP Texas, LLC is a wholly -owned subsidiary of SEMP, and operates from a facility located in Austin, Texas. SEMP was founded in 1952 as a two- man tool and die company. SEMP relocated to its current headquarters in 1960. At that time, it was a 10,000 square foot facility. From simple tool {00325129 v 1 }

3 Case 19-10989 Doc 4 Filed 05/06/19 Page 3 of 188 ng, SEMP grew to add metal stamping and fabrication services, and expanded over manufacturi time to a 100,000 square foot manufacturing facility in Charlotte. In 1985, SEMP was acquired by the Pneumafil Group, and over the years its premium quality industrial metal st amping and fabrication services were supported by extensive in- house tooling design and production, prototyping, laser cutting, machining, metal finishing, light assembly and warehousing. In 2006, Juno acquired SEMP, and SEMP’s current equity holders are J uno, JL Holdings 2002 LLC and SEMP Henry LLC. SEMP currently serves the telecommunications, transportation (including heavy trucking), appliance and health and safety industries, with customers including Commercial Vehicle Group, Inc. (“CVG”), CommScope, I nc., 3M Scott Fire & Safety, Deere- Hitachi Construction Machinery Corporation, and Wilbert Plastic Services Inc. SEMP is a critical supplier to many of its customers, such that a disruption of SEMP’s business would likely lead to at least a temporary shutdown of such customers’ production lines, severely disrupting SEMP’s customers’ -term businesses. In 2017, SEMP was awarded a significant amount of new business under a long contract with CVG, and undertook substantial new business in Texas. In 2017 and 2018, with Juno’s financial support along with financing provided by Park Sterling Bank, the predecessor in interest to SSB, SEMP executed a 50,000 square foot manufacturing facility expansion in Charlotte and formed SEMP Texas, a wholly -owned subsidiary of SE MP, which opened a 57,000 square foot plant in Austin, Texas. The Charlotte and Austin expansions resulted in SEMP’s total consolidated workforce growing from approximately 130 employees to 173 employees over the past several years . 7. The Debtors’ manage ment team, led by David Denton, the Debtors’ President, and me, has a great depth of experience in metal fabrication and stamping production and manufacturing accounting. {00325129 v 1 }

4 Case 19-10989 Doc 4 Filed 05/06/19 Page 4 of 188 8. The Debtors’ primary assets consist of SEMP’s real property and improvements, located at 1420 Metals Drive in Charlotte, North Carolina (the “Real Property”), the Debtors’ machinery and equipment located at the Debtors’ two manufacturing facilities (the “M&E”), the Debtors’ accounts receivable (the “AR”) and the Debtors’ inventory (the “Inventory”). I believe each the Debtors’ assets have at least the following approximate values: a. Real Property: $6,400,000 b. M&E: $3,500,000 AR: $2,450,000 c. 1 Inventory: $2,700,000 d. These values are based on my professional experience, the Debtors’ books and records, as well as , true and appraisals of the Real Property and M&E commissioned by SSB (as defined below) correct copies of which are attached to this Affidavit as Exhibit A and (the “Appraisals”). Exhibit B s received the Appraisals from Park Sterling Bank, which is, upon information and The Debtor belief, predecessor in interest to SSB (as defined below). IRS Lien B. In June 2006, in conjunction with Juno’s acquisition of SEMP, SEMP merged with 9. an entity called Sout heastern Metal Products, Inc. (“SEMP Inc.”), with SEMP surviving. As a result, SEMP Inc’s employees became employees of SEMP on that date. Through SEMP’s payroll processor, SEMP, as successor employer, timely filed W -3 forms for 2006 showing -2 and W wages and withholding for all of 2006, and distributed the W -2 forms to SEMP’s employees. SEMP subsequently received notices from the Internal Revenue Service (the “IRS”) indicating a mismatch (due to the partial year) between amounts reported on Form W -2 and Form 941. SEMP 1 Approximate value based on cost of goods. {00325129 v 1 }

5 Case 19-10989 Doc 4 Filed 05/06/19 Page 5 of 188 -2C for 2006, contacted an IRS representative who erroneously stated SEMP needed to file Form W showing wages and withholding for the post -merger period only. SEMP did so in August 2009. 10. At the time, SEMP did not cause SEMP Inc. to file For ms W -2 and W -3 for its short year ending June 2, 2006, believing this period was covered by SEMP’s original filing – and distribution to SEMP’s employees, of the forms for the entire year. However, the IRS nevertheless assessed a penalty on January 4, 2010 and, on March 10, 2016, filed a lien against SEMP Inc. (the “Federal Tax Lien”) with a stated amount of $217,836.77 (the “IRS Claim”), apparently for failure by SEMP Inc. to file short -year forms, which would have contained information already reported to the IRS in SEMP, LLC’s filing. 11. In an effort to resolve the matter, SEMP contacted the IRS in March 2017, speaking with the revenue officer who had filed the Federal Tax Lien. The revenue officer advised SEMP to file the allegedly missing pre -merger fo rms and request abatement of the penalty. SEMP did so in June 2017 and repeatedly followed up with the revenue officer. In January 2019 SEMP spoke with the revenue officer, who advised she was no longer assigned to the case and the IRS had no records of an -submitted the ything regarding the matter since 2016. In January 2019, SEMP re requested forms to the IRS via fax and certified mail. In February 2019, SEMP wr ote to the Taxpayer Advocate Office in Greensboro, North Carolina ( the “TAO”) , providing a histor y of the lien and asserted claim and requesting assistance in resolving the lien as soon as possible. In March 2019, a SEMP representative spoke with the TAO and confirmed the TAO has all necessary information to assist in getting the IRS Claim resolved, the TAO indicated it had requested the IRS respond by early April 2019. Since that time a SEMP representative has contacted the TAO several times, but has not received any further response {00325129 v 1 }

6 Case 19-10989 Doc 4 Filed 05/06/19 Page 6 of 188 SSB Loan and Events Leading To the Petition Date C. 12. On January 3, 2018, SSB and SEMP entered into an Amended and Restated Loan Agreement pursuant to which SSB extended credit facilities of up to $6,700,000 to SEMP, allegedly secured by a blanket lien on all of SEMP’s assets (the “SSB Loan”). The primary purpos e of the SSB Loan was to fund SEMP expansion of its manufacturing facility in Charlotte, North Carolina to accommodate increased demand from its North Carolina customer base. The SSB Loan is guaranteed by Juno. SSB was aware of the Federal Tax Lien when it closed the SSB Loan, and the SSB Loan included a provision that provided for a 120- day period post -closing to resolve the IRS Claim and Federal Tax Lien, or if it was not resolved in that time, to reserve funds sufficient to pay the IRS Claim. l 2018, SEMP management discovered that SEMP’s former Controller had 13. In Apri been provided access to funds under SEMP’s then substantially line of credit with SSB undrawn hese (the “Line of Credit”). Upon information and belief, SSB permitted the Controller to access t funds, despite the requirement that Mr. Denton, SEMP’s President, authorize any draw. Upon information and belief, Mr. Denton did not authorize any such draws on the Line of Credit of approximately $800,000. The unauthorized draws on the Line of Credi t delayed SEMP’s management team from recognizing working capital imbalances resulting from the Debtors’ rapid growth. Due to inclement weather in Charlotte, North Carolina during construction and various other start expansions were several months behind original -up issues in Charlotte and Austin, both schedule. As a result of these problems, the Debtors began experiencing significant liquidity challenges in May 2018 which were supported by subordinated secured loans to the Debtors from Juno. 14. Between Ma y 2018 and November 2018, the Debtors endeavored to meet production demands of customers by increasing overtime and reducing material purchases to an {00325129 v 1 }

7 Case 19-10989 Doc 4 Filed 05/06/19 Page 7 of 188 “as needed” basis, while simultaneously obtaining price increases from customers for the significant incre ases in material prices during 2018. Nevertheless, the Debtors continued to experience liquidity challenges, despite subordinated secured loans to the Debtors provided by Juno as needed. 15. Between December 2018 and April 2019, the Debtors developed deta iled recovery plans with customers which were based upon repayment plans negotiated with critical vendors to ensure continued delivery of raw materials necessary to meet customer demands. These efforts were supported by subordinated secured loans to the De btors from Juno. Since late March 2018, Juno has loaned the Debtors over $5,000,000 and the current balance of the Juno Loan is $5,162,806.62. These efforts have begun to bear fruit toward long -term viability, with SEMP’s how positive EBITDA in April 2019. Charlotte operations expected to s 16. Also in April 2018, SEMP notified SSB of the unauthorized draws and the Debtors’ financial difficulties ensuing from their expansion. The Debtors provided full transparency to SSB regarding their challenges, including existing and prospective financial covenant and reporting defaults, and were assured by SSB representatives that SSB would continue to work with the Debtors. SEMP has continued to make every principal and interest payment to SSB when due. However, in Dec ember 2018, SSB informed SEMP that it no longer wished to remain in the credit, and would require SEMP to obtain a refinance source to pay SSB off. Shortly thereafter, in January 2019, Juno loaned SEMP an additional $833,000, which was used to pay off the Line of Credit, reducing SSB’s loan from approximately $5.23 million to approximately $4.4 million. On February 28, 2019, SEMP, Juno and SSB entered into a forbearance agreement, which was subsequently amended on or about April 15, 2019 (as amended, the “F orbearance Agreement”). {00325129 v 1 }

8 Case 19-10989 Doc 4 Filed 05/06/19 Page 8 of 188 The Forbearance Agreement includes a requirement that, on or before May 1, 2019, 17. SEMP either (a) obtain from the IRS a favorable determination regarding the IRS Claim and a resulting release of the Federal Tax Lien or (b) pay t he IRS the amount necessary to release the Federal Tax Lien, which the Debtors believe is approximately $218,000 (the “IRS Payment”). In April 2019 SEMP provided SSB with updates on its efforts to obtain an abatement of the IRS Claim and removal of the Fed eral Tax Lien. On May 1, 2019, SEMP informed SSB that, despite diligent efforts to engage with the IRS regarding the IRS Claim and Federal Tax Lien, it had not yet received a response from the IRS regarding the requested abatement, and further that neither SEMP nor Juno was in a position to make the IRS Payment, due to current cash needs for business operations. SEMP remains convinced the IRS Claim should be abated in its entirety, SEMP’s release of the Federal engagement with the TAO will result in abatement of the IRS Claim and Tax Lien in the coming months, and payment of the IRS Claim to obtain a release of the Federal Tax Lien will result in years of protracted refund litigation with the IRS. 18. On May 1, 2019, SSB issued a hold on all funds in SEMP’s SSB demand deposit account, totaling approximately $393,000 (such funds, along with any other funds in the Debtors’ bank accounts subject to any hold or freeze issued by SSB, the “Held Funds”), leaving SEMP without access to all or almost all of its cash. On May 2, 2019, SEMP engaged with SSB in discussions regarding how to resolve the alleged default under the Forbearance Agreement and the Held Funds, however SSB would not entertain any resolution that did not involve immediate payment of the IRS Payment. On May 2, 2019, SSB sent SEMP and Juno a Notice of Termination of Forbearance Agreement, Notice of Acceleration, Demand for Payment and Reservation of Rights, stating the balance of obligations owed to SSB as of that date was $4,381,350.67. On May 3, 2019, SSB further issued an Amended and Restated Confirmation of Termination of Swap {00325129 v 1 }

9 Case 19-10989 Doc 4 Filed 05/06/19 Page 9 of 188 Transactions, whereby SSB purported to unwind all Swap agreements between SSB and SEMP, and on May 3, 2019 debited $36,300 (the “Swap Debit”) from SEMP’s account at SSB, $23,800 of which was purportedly the “Close -out Amount” and $12,500 of which was purportedly for reimbursement of expenses and indemnities. 19. SSB actions, through its refusal to permit the Debtors access to the Held Funds and the Swap Debit, pose a severe t hreat to the Debtors’ ability to continue operations as a going concern. Because of SSB’s aggressive actions, the Debtors believe they have no choice but to seek relief under Chapter 11 of the Bankruptcy Code in order to (a) protect themselves from furthe r actions by SSB that threaten the Debtors’ ability to operate and (b) obtain access to the Held Funds. This proceeding also offers an opportunity for the Debtors to resolve the IRS Claim, restructure its debts, and obtain refinancing of the SSB Loan. D. Relief Sought in the First Day Motions The Debtors have filed a number of First Day Motions in these Chapter 11 Cases 20. seeking orders granting various forms of relief intended to stabilize the Debtors’ business ation of these Chapter 11 cases, and expedite a swift and operations, facilitate efficient administr smooth restructuring of the Debtors’ operations and liabilities. The First Day Motions include: • Debtors’ Motion for Order Directing Joint Administration of Related Chapter 11 Cases ; • Debtor’s Motion for an Order Authorizing the Filing of (I) Consolidated Master List of Creditors and (II) Consolidated List of Top Unsecured Creditors ; • Debtors’ Motion for Entry of an Interim and Final Order (I) Authorizing the Debtors to Continue Payroll and Payroll -Related Practices, Including Payment or Reimbursement of Certain Prepetition (A) Wages, Salaries, Vacation Pay and Other Compensation and Am ounts Withheld from Such Compensation; (B) Employee Health {00325129 v 1 }

10 Case 19-10989 Doc 4 Filed 05/06/19 Page 10 of 188 Benefits and Similar Benefits; (C) Reimbursement of Employee Expenses; and (D) Payment of all Costs Incident Thereto and (II) Authorizing Applicable Banks and Other Financial Institutions to Receiv e, Process, Honor and Pay Certain Checks and Transfers ; • Debtors’ Motion for Entry of an Interim and Final Order (I) Prohibiting Utilities from Altering, Refusing, or Discontinuing Services on Account of Prepetition Invoices, (II) Declaring, on an Interim B asis, that the Utility Providers have Adequate Assurance by Way of Current Payments, and (III) Establishing Procedures for Resolving Requests by Utility Companies for Additional Assurance of Payment; • Debtors’ Motion for Entry of an Interim and Final Order (I) Authorizing Debtors to Pay or Honor Prepetition Obligations and Continue in the Ordinary Course Prepetition Programs and Practices with Common Carriers and (II) Authorizing and Directing Financial Institutions to Receive, Process, Honor, and Pay Checks Presented for Payment and Electronic Payment Requests Related to the Prepetition Shipping Practices ; • Debtors’ Motion for Order (I) Authorizing Continued Use of Existing Business Forms and Records, and (II) Authorizing Maintenance of Existing Bank Account and Cash Management System ; • Motion of Debtors -in-Possession for Interim and Final Orders (I) Authorizing the Debtors ; and -in-Possession to Use Cash Collateral and Granting Related Relief • Application to Employ Rust/Omni as Claims and Noticing Agent 21. The First Day Motions seek authority to, among other things, continue use of cash collateral on an interim and final basis, honor employee -related wages and benefits obligations, {00325129 v 1 }

11 Case 19-10989 Doc 4 Filed 05/06/19 Page 11 of 188 business and ensure the continuation of the Debtors’ cash management systems and other operations without interruption. I believe the relief requested in the First Day Motions is necessary to giving the Debtors an opportunity to work towards successful Chapter 11 Cases, with minimal disruption to the Debtors’ operations, that will benefit all of the Debtors’ stakeholders. 22. Several of the First Day Motions request authority to pay certain prepetition claims. I understand that Rule 6003 of the Federal Rules of Bankruptcy Procedure provides, in relevant part, that the Court shall not consider motions to pay prepetition claims during the first twenty (20) days following the filing of a chapter 11 petition, “except to the extent relief is necessary to avoid immediate and irreparable harm.” In light of this requirement, the Debtors have narrowly tailored their requests for immediate authority to pay certain prepetition claims to those circumstances where the failure to pay such claims would cause immediate and irreparable harm to the Debtors and their estates. Other relief will be deferr ed for consideration at a later hearing. 23. I am familiar with the content and substance of the First Day Motions. The facts stated therein are true and correct to the best of my knowledge, information and belief, and I believe the relief sought in each o f the First Day Motions Is necessary to enable the Debtors to operate in chapter 11 with minimal disruption to their business operations and constitutes a critical element in successfully implementing the Debtors’ chapter 11 strategy. [Remainder of page intentionally left blank] {00325129 v 1 }

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13 Case 19-10989 Doc 4 Filed 05/06/19 Page 13 of 188 EXHIBIT A REAL PROPERTY APPRAISAL {00325129 v 1 }

14 Case 19-10989 Doc 4 Filed 05/06/19 Page 14 of 188 APPRAISAL REPORT Southeastern Meta l Products, LLC 1420 and 1430 Metals Drive Charlotte, Mecklenburg County, North Carolina 28206-1331 (Park Sterling Bank Project # 17-001293-01-1) PREPARED FOR Park Sterling Bank Appraisal Process Management Attn: James H. Slaughter, Collateral Assessment Senior Vice President | Chief Appraiser 1051 East Morehead Street, Suite 200 Charlotte, NC 28204 DATE OF REPORT November 27, 2017 EFFECTIVE DATES OF APPRAISAL “As Is” – November 15, 2017 “At Completion of expansion” – May 15, 2018 APPRAISED BY FRED H. BECK & ASSOCIATES, LLC Fred H. Beck Jr., MAI, CCIM Mark A. Morgan Paul J. Ruberg Charlotte, North Carolina 28277-6660 8924 Blakeney Professional Drive, www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

15 Case 19-10989 Doc 4 Filed 05/06/19 Page 15 of 188 November 27, 2017 Park Sterling Bank Appraisal Process Management Attn: James H. Slaughter, Collateral Assessment Senior Vice President | Chief Appraiser 1051 East Morehead Street, Suite 200 Charlotte, NC 28204 REFERENCE: Southeastern Metal Products, LLC 1420 and 1430 Metals Drive Charlotte, Mecklenburg County, North Carolina 28206-1331 (Park Sterling Bank Project # 17-001293-01-1) Dear Mr. Slaughter, As requested, we have inspected the above-mentioned property for the purpose of providing an opinion of market value. Based on our inspection and analysis of the information obtained, it is our opinion that the market value of the Fee Simple interest in the subject property are as follows: MARKET VALUE “AS IS” as of November 15, 2017 $6,100,000 MARKET VALUE “At Completion of expansion” as of May 15, 2018 $6,400,000 These value conclusions are supported by the data and reasoning set forth in the attached narrative. Your attention is invited to the Assumptions and Limiting Conditions attached and made a part of this report. We certify that we have no present or contemplated future interest in the property appraised and that our fee for this assignment is in no way contingent upon the opinions of value supplied. Federal Financial Institutions Reform, The following report complies with the standards and regulations outlined in Title XI of the (FIRREA). This report complies with the Uniform Standards of Professional Appraisal Recovery, and Enforcement Act of 1989 (USPAP) including the ethics and competency provisions, as promulgated by the Appraisal Standards Board of The Practice Appraisal Foundation. In addition, the report conforms to the Federal Deposit Insurance Corporation (FDIC) and Office of the appraisal standards. Comptroller of the Currency’s (OCC) The undersigned hereby acknowledges considerable input, investigation, and analysis by Mark A. Morgan and Paul J. Ruberg, who both contributed to the information set forth in the attached narrative. Thank you for the opportunity to be of service and please let us know if you have any questions. Respectfully Submitted, FRED H. BECK & ASSOCIATES, LLC Fred H. Beck, Jr., MAI, CCIM Mark A. Morgan Paul J. Ruberg State-Certified General R.E. Appraiser State-Certified General R.E. Appraiser State-Certified General R.E. Appraiser N.C. Certificate No. A6611 N.C. Certificate No. A4554 N.C. Certificate No. A1329 (Review Appraiser) Charlotte, North Carolina 28277-6660 8924 Blakeney Professional Drive, www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

16 Case 19-10989 Doc 4 Filed 05/06/19 Page 16 of 188 CERTIFICATE OF THE APPRAISER / MAI Fred H. Beck, Jr., MAI, CCIM, certify that, to the best of my knowledge and belief: I, 1. The statements of facts contained in this report are true and correct. The reported analyses, opinions, and conclusions are li mited only by the reported Assumptions and Limiting 2. professional analyses, opinions, and conclusions. Condition, and are my personal, impartial, and unbiased 3. I have no present or prospective interest in the property th at is the subject of this report and no personal interest with respect to the parties involved. I have no bias with respect to this property that is the subject of this report or to the parties involved with this 4. assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. and this report has been prepared, in conformity with 7. My analyses, opinions, and conclusions were developed, ssional Appraisal Practice (USPAP), and with the requirements of the State of North the Uniform Standards of Profe Carolina for State Certified Appraisers. The reported analyses, opinions, and conclusions were developed, and of Professional Ethics an d Standards of Professional this report has been prepared, in conformity with the Code Appraisal Practice of the Appraisal Institute. 8. The use of this report is subject to the requirement of the Appraisal Institute relating to review by its duly authorized representatives. 9. I have not made personal inspection of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the person signing this certification, other than Mark A. Morgan and Paul J. Ruberg. 11. has completed the continuing education program for Fred H. Beck, Jr., MAI, CCIM As of the date of this report, Designated Members of the Appraisal Institute. 12. I have performed services, as an appraiser regarding the proper ty that is the subject of this report within the I previously prepared an three-year period immediately preceding acceptance of this assignment. appraisal for this property in March 2017 and November 2016. I have not performed any other services, other than an appraisal wi thin the past three years . 11/27/2017 DATE FRED H. BECK, JR., MAI, CCIM State-Certified General Real Estate Appraiser N.C. Certificate No. A1329 Charlotte, North Carolina 28277-6660 8924 Blakeney Professional Drive, www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

17 Case 19-10989 Doc 4 Filed 05/06/19 Page 17 of 188 CERTIFICATE OF THE APPRAISER Mark A. Morgan, my knowledge and belief: I, certify that, to the best of The statements of facts contained in this report are true and correct. 1. 2. The reported analyses, opinions, and conclusions are limited only by the reported Assumptions and Limiting Condition, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of th is report and no personal interest with respect to the parties involved. 4. I have no bias with respect to this prop erty that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contin gent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity 7. with the (USPAP), and with the requirements of the Uniform Standards of Professional Appraisal Practice State of North Carolina for State Certified Appraise rs. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 8. The use of this report is subject to the requirement of the Appraisal Institute relating to review by its duly authorized representatives. 9. I have not made personal inspection of the pr operty that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this certification, other 10. than Paul J. Ruberg. Fred H. Beck, Jr., MAI, CCIM and 11. I have performed services, as an appraiser regarding the property that is the subjec t of this report within the three-year period immediately preceding acceptance of this assignment. I previously prepared an appraisal for this property in March 2017 and November 2016. I have not performed any other services, other than an appraisal with in the past three years. 11/27/2017 MARK A. MORGAN DATE State-Certified General Real Estate Appraiser N.C. Certificate No. A4554 (Review Appraiser) Charlotte, North Carolina 28277-6660 8924 Blakeney Professional Drive, www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

18 Case 19-10989 Doc 4 Filed 05/06/19 Page 18 of 188 CERTIFICATE OF THE APPRAISER Paul J. Ruberg, certify that, to the best of my knowledge and belief: I, 1. The statements of facts contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported Assumptions and Limiting 2. Condition, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. I have no bias with respect to this prop erty that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contin gent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity 7. and with the requirements of the with the (USPAP), Uniform Standards of Professional Appraisal Practice rs. The reported analyses, opinions, and conclusions State of North Carolina for State Certified Appraise were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirement of the Appraisal Institute relating to review by its duly 8. authorized representatives. 9. I have made personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this certification, other 10. Fred H. Beck, Jr., MAI, CCIM and than Mark A. Morgan. 11. I have performed services, as an appraiser regarding the property that is the subjec t of this report within the three-year period immediately preceding acceptance of this assignment. I previously prepared an appraisal for this property in March 2017 and November 2016. I have not performed any other services, other than an appraisal with in the past three years. 11/27/2017 DATE PAUL J. RUBERG State-Certified General Real Estate Appraiser N.C. Certificate No. A6611 Charlotte, North Carolina 28277-6660 8924 Blakeney Professional Drive, www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

19 Case 19-10989 Doc 4 Filed 05/06/19 Page 19 of 188 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Southeastern Metal Products, LLC 1420 and 1430 Metals Drive Charlotte, Mecklenburg County, North Carolina 28206-1331 (Park Sterling Bank Project # 17-001293-01-1) Property Location 1420 and 1430 Metals Drive, Charlotte, Mecklenburg County, North Carolina 28206-1331 Date of Report November 27, 2017 Date of Inspection November 15, 2017 Effective Dates of Appraisal November 15, 2017 – As Is May 15, 2018 – At Completion of expansion Property Rights Appraise d Fee Simple Interest Zoning I-2, General Industrial Tax Map Reference 087-08-202A, 087-08-202B, 087-09-204 and 087-09-207 Legal Description DB 2563, Page 197; DB 4704, Page 185 and DB 3434, Page 29. As Is -A light manufacturing facility containing a total of 138,544 square Improvements feet on 12.4140 acres, built in multiple phases from 1960 to 2017. - A light manufacturing facility containing At Completion of expansion a total of 145,344 square feet on 12.4140 acres, built in multiple phases from 1960 to 2018. Present Use A light manufacturing facility Highest and Best Use As Is/At Completion A light manufacturing facility If Vacant Hold for future Single or Multi-tenant Industrial Development Appraisal Procedures Income Approach Sales Comparison Approach SUMMRY OF VALUES AT COMPLETION VALUE INDICATIONS AS IS NOVEMBER 15, 2017 OF EXPANSION MAY 15, 2018 $6,115,000 INCOME APPROACH $5,860,000 SALES COMPARISON APPROACH $6,100,000 $6,400,000 $6,400,000 FINAL MARKET VALUES $6,100,000 8924 Blakeney Professional Drive, Charlotte, North Carolina 28277-6660 www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

20 Case 19-10989 Doc 4 Filed 05/06/19 Page 20 of 188 TABLE OF CONTENTS Page Number PROPERTY IDENTIFICATION ... ... 1 PROPERTY OWNERSHIP AND PROPERTY HISTORY ... ... 2 DATE OF REPORT ... ... 3 DATE OF INSPECTION ... ... 3 VALUES REPORTED ... ... 4 EFFECTIVE DATES OF VALUE ... ... 4 INTENDED USE/USER OF REPORT ... ... 4 DEFINITION OF “MARKET VALUE” ... ... 5 PROPERTY RIGHTS APPRAI SED ... ... 5 TYPE OF REPORT ... ... 6 SPECIAL APPRAISAL INSTRUCTIONS ... ... 6 APPRAISER COMPETENCY ... ... 6 SCOPE OF WORK ... ... 7 EXTRAORDINARY ... 9 ASSUMPTIONS ... HYPOTHETICAL CONDITIONS ... ... 9 ... 9 JURISDICATIONAL EXCEPTIONS ... SUPPLEMENTAL ... 9 STANDARDS ... METROPOLITAN PROFILE ... ... 10 INDUSTRIAL MARKET OVERVIEW ... 16 MARKET PARTICIPANT INTERVIEWS ... ... 20 NEIGHBORHOOD ANALYSIS ... ... 21 SITE ANALYSIS ... ... 23 IMPROVEMENTS ANALYSIS (“AS IS”) ... ... 26 IMPROVEMENTS ANALYSIS (“AT COMPLE TION OF PHASE II EXPANSION”) ... 33 ASSESSMENTS AND TAXES (“AS IS”) ... ... 36 ASSESSMENTS AND TAXES (“AT COMPLETI ON OF PHASE I & II ADDITIONS”) ... 37 ZONING | LAND USE CONTROL ... ... 38 MARKETING TIME AND EXPOSURE TIME ... ... 39 HIGHEST AND BEST USE ... ... 40 METHOD OF VALUATION ... ... 45 APPRAISAL PR OCEDURES ... ... 45 INCOME APPROACH TO VALUE (“AS IS”) ... ... 46 SALES COMPARISON APPROACH ... ... 64 RECONCILIATION AND SUMMARY OF VALUES ... ... 76 ADDENDA ... 78 ... 8924 Blakeney Professional Drive, Charlotte, North Carolina 28277-6660 www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

21 Case 19-10989 Doc 4 Filed 05/06/19 Page 21 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. INTRODUCTION PROPERTY IDENTIFICATION The property being appraised in this report consists of a light manufacturing facility arlotte, Mecklenburg Co unty, North Carolina located at 1420 & 1430 Metals Drive, in Ch 28206. The site is identified as tax parc els 087-08-202A, 087-08- 202B, 087-09-204 & 087-092- 07 in the Mecklenburg County Tax Office. A legal description for the subject is recorded in Deed Book 2563, Page 197, Deed Book 4704, Pa ge 185 and Deed Book 3434, Page 29 in the Office of the Register of Deeds for Me cklenburg County. The subject has a combined information concerning land size of 12.41 acres according to the tax cards. More detailed this facility is included within this report. An aerial view of the subject is found below. The subject property consists of a light manu facturing facility, which currently contains a total of 138,544 square feet. Over the past two years the owners have spent $8,000 on new HVAC for the offi ce and $25,000 to upgrade the electrical capacity in the older production area. The ow ners recently added 41,000 square feet of production space to the existing facility at a cost of $3,673,062 or $89.59 per square foot in a new addition. Due to the need for two additional machines th e owners are proposing an extension to the recently completed 41,000 square foot ex pansion. The proposed 6,800 square foot extension will be added to the end of recent ly completed Phase I addition. The budget for the 6,800 square foot expansion is $880,486 or $129.48 per square foot. The building is currently owner occupied. We have been retained to provide an opinion of value for the Fee Simple interest in the subject property, “As Is” and “At Completion of expansion”. 1 FRED H. BECK & ASSOCIATES, LLC

22 Case 19-10989 Doc 4 Filed 05/06/19 Page 22 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. Our opinion of value is based alty, on November 15, 2017. It upon our inspection of the re itions, as of that point in time. reflects our perception of market cond PROPERTY OWNERSHIP AND PROPERTY HISTORY The subject property is owned by SOUTHEASTERN PRODUCTS, INC . The property was purchased in three separate transactions. The deeds are recorded in Deed Book 2563, Page 197, July 1975; Deed Book 4704, Page 185, August 1983; and Deed Book 3434, Page 29, July 1972 in the Mecklenbur g County Register of Deeds. There are no known contracts of leases that affect the subject property currently. The owners are planning on expanding the existing facilities by adding 6,800 SF of production space at a reported cost of $880,486. The subject will have a total of 145,344 square feet of improvements “At Completion of expansion”. The expected completion date of the proposed Phase II bject property within any transfers of the su addition is May 15, 2018. There have not been the previous three years. We previously appraised this property in Marc h 2017. At that time the owners had plans for a 45,000 square foot production addition in the courtyard area of the main building. The estimated cost was $2,674,688 for the proposed addition. After several soil samples were taken it was determined that the soil in this location could not support the heavy machinery pits and pads slated for the additi on. The owners had additional soil samples taken on the site and it was determined th at the new production facility could be constructed to the west of the smaller prod uction building. The revised budget for the proposed 41,000 square foot metal building was $3,604,777 or $87.92 per square foot. That addition has been completed and at the time of our inspection the heavy machinery was being installed. We were provided with a final budget for the 41,000 square foot Phase I expansion that shows $3,673,062. Due to the ne ed for two additional machines the owners propose expanding the recent addition by 6,800 square feet. This Phase II expansion will extend the west wall of the Phase I addition and will have similar clear heights, heavy concrete, heavy electrical upfits and include a restroom. 2 FRED H. BECK & ASSOCIATES, LLC

23 Case 19-10989 Doc 4 Filed 05/06/19 Page 23 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. A copy of the Phase II budget for the 6,800 square foot proposed expansion is shown below. CONSTRUCTION BUDGET - 6,800 SF ADDITION Soft Costs $/SF 116,550 $ $17.14 Tot al Hard Costs General Conditions 78,400 $ $11.53 Site Work 100,000 $ $14.71 Soil Contingency $ $5.15 35,000 Mi cro P yl es 95, 000 $ $13.97 Building 130,000 $ $19.12 Foundation Slab and Pits 145,000 $ $21.32 $11.03 Electrical 75,000 $ Mechanical 7,500 $1.10 $ 25,000 $3.68 Plumbing $ Doors/Windows $0.00 10,000 Fire/Sprinkler $1.47 $ Profit @ 4.0% 28,036 $ $4.12 Contingency 35,000 $ $5.15 Sub-Total $ $112.34 763,936 880,486 $ $129.48 Total DATE OF REPORT The date of this report is November 27, 2017. DATE OF INSPECTION The subject was physically inspected on November 15, 2017. 3 FRED H. BECK & ASSOCIATES, LLC

24 Case 19-10989 Doc 4 Filed 05/06/19 Page 24 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. VALUES REPORTED Values are typically reported on the basis of one or more of the following situations. Market Value “As Is” on the Appraisal Date: Market Value “As Is” on the appraisal date is an opinion of the market value of a property in the condition observed upon inspection and as it physically and legally exists without hypothetical conditions, assumptions or qualifications as of sal is prepared. the date the apprai Prospective Value Upon Completion of Construction: Prospective value “upon completion” of construction is the prospective future value of a property on the date that construction, conversion or rehabilitation is completed, based upon market conditions forecast to exist as of that completion date. The opinion of value at this stage of value should be stated in current dollars as of a current date. Prospective Value Upon Reaching Stabilized Occupancy: Prospective value “upon reaching stabilized occupancy” is the prospective future value of a property when all improvements has been leased to its optimum level of have been physically construc ted and the property long-term occupancy at the market rent level. The opinion of value at this stage of value should be stated in current dollars as of a current date. Retrospective Market Value: A retrospective value is an opinion of value that is provided as of a specific historic date, utilizing data and market perceptions as of that historic date. For this appraisal, we have developed an “As Is” and “At Completion of expansion” market value opinion of the subject. EFFECTIVE DATES OF VALUE The effective dates of the appraisal value opinions developed herein are as follows:  “As Is” as of November 15, 2017  “At Completion of expansion” as of May 15, 2018 INTENDED USE/USER OF REPORT This report has been prepared to assist the client, PARK STERLING BANK for use in making a loan or underwriting decision. 4 FRED H. BECK & ASSOCIATES, LLC

25 Case 19-10989 Doc 4 Filed 05/06/19 Page 25 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. DEFINITION OF “MARKET VALUE” This appraisal was developed to provide an opinion of “market value” of the subject. The following definition of market value is approved by the Office of the Comptroller of the Currency of the United States of America and by the Office of Thrift Supervision in compliance with Title XI of the Financial Inst itutions Reform Recovery and Enforcement Act (FIRREA). For the purposes of this analysis, market value is defined as follows: “The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1) Buyer and seller are typically motivated; 2) Both parties are well informed or well advised, and acting in what they consider their own best interests; 3) A reasonable time is allowed for exposure in the open market; 4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with 1 the sale.” PROPERTY RIGHTS APPRAISED The three primary types of property rights th at may be appraised are defined as follows: FEE SIMPLE INTEREST interest or estate, subject only to the Absolute ownership unencumbered by any other limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. LEASED FEE INTEREST The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. LEASEHOLD INTEREST The right held by the lessee to use and occupy real estate for a stated term and under the 2 conditions specified in the lease. Herein, we will provide an opinion of value of the FEE SIMPLE INTEREST of the subject. 1 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Code of Federal Regulations (CFR), Title 12, §34.42(g). Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994. 2 th The Dictionary of Real Estate Appraisal, 6 Edition, Chicago, IL: The Appraisal Institute. 2015. Pages 90, 128. 5 FRED H. BECK & ASSOCIATES, LLC

26 Case 19-10989 Doc 4 Filed 05/06/19 Page 26 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. TYPE OF REPORT According to the Uniform Standards of Professional Appraisal Practice, Standards Rule 2-2, each written appraisal report must be prepared under one of the following options: APPRAISAL REPORT summarize the scope of work, information The minimum content of an Appraisal Report is to ployed, and the reasoning that supports the analyzed, appraisal methods and techniques em 3 analyses, opinions, and conclusions. RESTRICTED APPRAISAL REPORT The minimum content of the Restricted Appraisal Report is to state the appraisal methods and techniques employed; state the value opinion(s) and conclusion(s) reached; and reference 4 the appraiser’s workfile. nt with the intended use of the appraisal and The reporting option utilized must be consiste prominently stated within the report. This appraisal is prepared as an . APPRAISAL REPORT SPECIAL APPRAISAL INSTRUCTIONS There have been no special appraisal instructions for this assignment. APPRAISER COMPETENCY Fred H. Beck, Jr., MAI, CCIM, Mark A. Morgan, and Paul J. Ruberg, each North Carollina, Certified General Real Estate Appraisers, have been appraising warehouse and special use properties for more than 20 years. In the past ten years, Mr. Beck, Mr. Morgan, Mr. Ruberg, and Fred H. Beck & Associates, LLC, have appraised numerous industrial facilities in the Southeast. Therefore, we have met the requirements of the USPAP Competency Provision. 3 Uniform Standards of Professional Appraisal Practice , 2016-2017 ed. Washington, DC: The Appraisal Foundation. 2016. Standards Rule 2-2(a), Pages 23-25, Lines 675-750. 4 Uniform Standards of Professional Appraisal Practice , 2016-2017 ed. Washington, DC: The Appraisal Foundation. 2016. Standards Rule 2-2(b), Pages 25-27, Lines 751-814. 6 FRED H. BECK & ASSOCIATES, LLC

27 Case 19-10989 Doc 4 Filed 05/06/19 Page 27 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SCOPE OF WORK The report must contain sufficient information to allow intended users to understand the scope of work performed. The following st r this assignment: eps were completed fo 1. We identified the subject; 1. We understood and clearly stated the intended use and user of the report; 2. We applied appropriate appraisal methodology in accordance with USPAP; 3. We analyzed the comparable data to arrive at a probable range of value via each approach utilized; 4. We reconciled the results of each approach into a cred ible final opinion of value, as defined herein; and 5. We estimated a reasonable exposure time and mark eting time associated with the value opinion. As part of these specific steps, we conducted several independent analyses. In addition to data compiled by Fred H. Beck & Associates, LLC on a regular basis, the investigations urces utilized are discussed in the following paragraphs. undertaken and major data so AREA AND NEIGHBORHOOD ANALYSIS A number of publications were researched, including information provided by the local mographic information was obtained from Chamber of Commerce. Census data and de Nielsen, Inc., the Census 2010, US Bureau of the Census, and was used to support population, employment, and growth forecasts as well as other demographic information. An inspection of the neig hborhood was conducted on November 15, 2017. We also interviewed real estate professionals active in the market while compiling information required for this assignment. MARKET ANALYSIS Primary data sources utilized for this analysis include an on-site survey of area and neighborhood properties, Nielsen projections and local real estate brokers in the area. The primary area of focus for the subject site is Mecklenburg County and the surrounding counties of North Carolina. SURVEY, SITE DESCRIPTION AND ANALYSIS We have based our size for the subject site on information contained in the tax records. We requested a survey but one was not provided. The site was inspected on November 15, 2017, and photographs of various locations around the site were made. We researched the Federal Emergency Management Association (FEMA) Map Service Center available on the World Wide Web for flood information. BUILDING/RENTAL FLOOR PLANS AND LEASES IN PLACE We were provided with a floor plan for the or iginal portion of the subject facility, which shows a total building area of 97,544 square feet. The owners recently added 41,000 square feet of production space and are planning on adding an additional 6,800 square 7 FRED H. BECK & ASSOCIATES, LLC

28 Case 19-10989 Doc 4 Filed 05/06/19 Page 28 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. ted on May 15, 2018. The facility is currently feet of production space slated to be comple owner occupied. BUILDING SIZE, CONSTRUCTION, FINISH, AND CONDITION re constructed in multiple phases from 1960 to 1988. The The original improvements we most recent expansion was recently completed. The subject is a masonry and metal structure, with adequate parking. The faci lity has been well maintained. The original portions of the subject building are considered to be in average condition. The recently completed 41,000 square foot Phase I addition has metal panel construction with 24’ - 50’ clear ceiling heights, heavy concrete floors, machine pits and heavy electrical capacity. on will have similar up fits as the Phase I The proposed Phase II 6,800 square foot additi addition. Estimated completi on date of the Phase II addition is May 15, 2018. ZONING AND TAX INFORMATION We confirmed the subject’s zoning with the City of Charlotte Planning Department. In addition, we obtained the zoning information for the subject’s zoning districts from the rmation on the tax value, tax rates and tax planning and zoning department website. Info the Office of the Assessor for Mecklenburg burden for the subject was obtained from County. LEGAL CONSTRAINTS We were not provided with a legal title opin ion, which would quantify the existence of deed and/or subdivision restrictions and other encumbrances that may impact property value. We did not complete a title search. Only items discovered during the course of our research were considered. Please consult your attorney for further information and a complete listing of ex ceptions to title. COST APPROACH The subject of this report is a light manufact uring facility that currently contains 138,544 gross square feet that was constructed in phases from 1960 to 2017. The owners are planning on expanding the existing facility by 6,800 square feet. We have not included a Cost Approach in our analysis. The typical buyer would not consider this approach in making a purchase decision due to the age of the improvements and the difficulty in estimating the depreciation associated with the subject. INCOME APPROACH An investigation of the local and regional market revealed several similar facilities that were available for comparison with the subject property. An economic rent was established from our investigation of similar building lease rates. Operating expense data 8 FRED H. BECK & ASSOCIATES, LLC

29 Case 19-10989 Doc 4 Filed 05/06/19 Page 29 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. for similar properties. The overall rate was was estimated based on abstracted expenses estimated using market extraction, the band-of- investment method, and national surveys. SALES COMPARISON APPROACH We researched the region for sales of similar facilities. Sources utilized in this analysis included various brokers and appraisers that ar e active in this market. We included only the most comparable sales in this report. The basis for comparison will be a price per square foot. EXTRAORDINARY ASSUMPTIONS There are no extraordinary assumptions in this assignment HYPOTHETICAL CONDITIONS There are no hypothetical conditions in this assignment. JURISDICATIONAL EXCEPTIONS There are no jurisdictional exceptio ns that apply to this assignment. SUPPLEMENTAL STANDARDS This firm has an executed engagement letter from the client, a copy of which is included in the addenda of this report. TESTIMONY, CONSULTATION, COMPLETION OF CONTRACT FOR REPORT SERVICES The contract for report, consultation, or analytical service is fulfilled and the total fee payable upon completion of the report, unless otherwise specified. Fred H. Beck & Associates, LLC or those assisting in preparation of the report, will not be asked or required to give testimony in court or hearing because of having made the report, in full or in part, nor engage in post report consultation with cl ient or third parties except under separate and special arrangement and at an additional fee. If testimony or deposition is required responsible for any additional time, fees and because of any subpoena, the client shall be charges, regardless of issuing party. 9 FRED H. BECK & ASSOCIATES, LLC

30 Case 19-10989 Doc 4 Filed 05/06/19 Page 30 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. METROPOLITAN PROFILE CHARLOTTE & MECKLENBURG COUNTY, NORTH CAROLINA INTRODUCTION The value of real property is directly related to economic and demographic forces within its metropolitan area. Those forces are analyzed by the appraiser and used in determining appreciation/depreciation, the highest and best use of the site, and reconciliation of the three approaches into a final opinion of value. The metropolitan components of the local market that influence property values ar e discussed within the following narrative. LOCATION Charlotte and Mecklenburg County are locate d in southwestern North Carolina, at the southwest corner of the state’s Piedmont Region adjacent South Carolina. Mecklenburg County is situated approximately two hours southeast of the Appalachian and Blue Ridge the Atlantic coast. The City of Charlotte is part of the Mountains and 3½ hours west of ord, NC-SC MSA, and is comprised of five North Carolina Charlotte-Gastonia-Conc counties (Anson, Cabarrus, Gaston, Mecklenburg, and Union) and York County, South Carolina. The City of Charlotte is mid-wa y between Atlanta, Ge orgia and Richmond, Virginia. Major cities in this region and thei r distances from Charlotte are summarized in the table below. CHARLOTTE • DISTANCE TO SELECT CITIES Northwest Asheville, NC 100 miles Fayetteville, NC 110 miles Southeast Raleigh, NC Northeast 130 miles Wilmington, NC Southeast 179 miles SOURCE: Synergos Technologies, Inc. | www.ersys.com 10 FRED H. BECK & ASSOCIATES, LLC

31 Case 19-10989 Doc 4 Filed 05/06/19 Page 31 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. POPULATION cs for the area obtained from The Nielsen Historical and projected population statisti . Current estimates and future projections Company are summarized in the following table are based Census 2010 data applied to an urban grow th simulation model. AREA POPULATION STATISTICS Census Annual Estimate Annual Projection Census Annual Area 2010 Change 2017 Change 2022 Change 2000 569,822 Charlotte 2.5% 832,822 1.9% 899,318 1.5% 731,424 Mecklenbur g y 695,451 919,628 2.8% 1,065,808 2.1% 1,154,808 1.6% Count Charlotte MSA 1,871,731 2,375,675 2.4% 2,643,696 1.5% 2,824,251 1.3% Source: The Nielsen Company Between 2000 and 2010, the local population incr eased within each area at annual rates ranging from 2.4% to 2.8%. Between 2000 and 2017, the population co ntinued to increase in each data set albeit at slightly lower grow th rates than during the previous years. The population trends posted over the previous thirteen years are projected to continue rates of 1.3% in the MSA, 1. 5% in Charlotte and 1.6% in through 2022, with annual growth the county. HOUSEHOLDS Historical and projected household statistics for the area obtained from Nielsen Company are summarized in the following table. AREA HOUSEHOLD STATISTICS Census Annual Estimate Annual Projection Annual Census Area 2000 2010 Change 2017 Change 2022 Change Charlotte 226,275 290,025 2.5% 331,476 1.9% 358,371 1.6% Mecklenbur g Count y 273,419 362,213 2.9% 420,145 2.1% 455,499 1.6% 1,083,324 Charlotte MSA 2.4% 1,013,665 1.5% 910,889 1.3% 717,977 Source: The Nielsen Company The previous discussion of area population tr ends is also applicable to household trends. Between 2000 and 2010, the number of households increased within each area at annual rates ranging from 2.4% to 2.9%. Househ old growth continued between 2000 and 2017, although the rates of increase in each area slowed relative to rates posted between 2000 and 2010. 11 FRED H. BECK & ASSOCIATES, LLC

32 Case 19-10989 Doc 4 Filed 05/06/19 Page 32 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. The Nielsen Company projects households to co ntinue increasing over the next five years at growth rates similar to the previous thirteen years. EST. 2017 EMPLOYMENT STATISTICS Charlotte MSA Charlotte Mecklenburg County Total % Tot Total % Tot Total % Tot Description OVERALL CLASSIFICATION For-Profit Private Workers 75.1% 403,077 74.5% 918,063 73.4% 315,769 Non-Profit Private Workers 7.3% 40,310 7.5% 86,950 6.9% 30,789 Local Government Workers 17,364 22,659 4.2% 66,412 5.3% 4.1% State Government Workers 16,702 21,376 4.0% 56,928 4.5% 4.0% Federal Government Workers 1.2% 6,338 4,869 15,114 1.2% 1.2% Self-Employed Workers 34,375 8.2% 46,517 8.6% 106,148 8.5% Unpaid Family Workers 480 0.1% 0.1% 1,681 0.1% 563 420,348 100.0% 1,251,296 100.0% Total Employment 540,840 100.0% INDUSTRY CLASSIFICATION g inee r Architect/En 1.6% 9,234 6,922 20,130 1.6% 1.7% Arts/Entertainment/Sports 9,450 2.2% 12,212 2.3% 20,959 1.7% Building & Grounds Maintenance 15,398 3.7% 18,655 3.4% 15,668 1.3% Business/Financial Operations 7.8% 42,223 7.8% 73,019 5.8% 32,993 Community/Social services 7,787 1.9% 10,207 1.9% 22,004 1.8% Computer/Mathematical 15,833 3.8% 20,447 3.8% 35,180 2.8% Construction/Extraction 60,546 4.8% 19,140 4.6% 23,661 4.4% g /Library Education/Trainin 5.6% 30,945 71,744 5.7% 23,354 5.7% g g /Forestr y /Fishin Farmin 0.1% 485 0.1% 3,324 0.3% 575 Food Preparation/Servin g 28,810 6.9% 35,538 6.6% 72,181 5.8% Health Practitioner/Technician 20,580 4.9% 5.1% 66,323 5.3% 27,772 Healthcare Support 2.0% 10,134 1.9% 26,835 2.1% 8,485 Maintenance Repair 8,029 1.9% 10,854 2.0% 42,282 3.4% Legal 5,586 1.3% 6,955 1.3% 10,825 0.9% 0.5% Life/Physical/Social Science 2,249 3,217 0.6% 7,172 0.6% Management 46,697 63,468 11.7% 132,670 10.6% 11.1% 53,308 67,862 12.5% 162,048 13.0% Office/Administrative Support 12.7% 17,228 4.1% 21,000 Production 85,485 6.8% 3.9% Protective Services 6,660 1.6% 9,062 1.7% 24,829 2.0% Sales/Related 51,437 12.2% 12.7% 152,463 12.2% 68,490 Personal Care/Services 13,357 16,715 3.1% 37,812 3.0% 3.2% Transportation/Moving 26,560 6.3% 31,614 5.8% 77,797 6.2% Total Employment 420,348 100.0% 540,840 100.0% 1,251,296 100.0% Source: The Nielsen Company 12 FRED H. BECK & ASSOCIATES, LLC

33 Case 19-10989 Doc 4 Filed 05/06/19 Page 33 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. 2017 INCOME STATISTICS in the following table. Although all three Current area income statistics are summarized cklenburg County has the highest average areas have similar income statistics, Me household and median household incomes. 2017 HOUSEHOLD INCOME STATISTICS Area Average Median $86,323 $57,651 Charlotte y $61,509 $90,255 Mecklenburg Count $79,537 Charlotte MSA $56,279 Source: The Nielsen Company MAJOR EMPLOYERS The largest employers in Mecklenburg County are summarized in the table on the following page. This data was obtained from the North Carolina Labor Department and is current as of the date of this report. LARGEST EMPLOYERS • MECKLENBURG COUNTY Company Product/Service Employees Education & Health Services Charlotte-Mecklenburg Bd Education 1,000+ Charlotte Mecklenburg Hospital Professional & Business Services 1,000+ Wells Fargo Bank Na (A Corp) 1,000+ Financial Activities Bank Of America Na Financial Activities 1,000+ City Of Charlotte Public Administraction 1,000+ U S Air Inc Trade, Transportation & Utilities 1,000+ Education & Health Services Presbyterian Hospital 1,000+ Mecklenburg County Human Resources Public Administraction 1,000+ Perry Orthodpedics & Sports Medicine Education & Health Services 1,000+ Harris Teeter Inc Trade, Transportation & Utilities 1,000+ University Of North Carolina Education & Health Services 1,000+ Wal-Mart Associates Inc Trade, Transportation & Utilities 1,000+ Duke Energy Business Services Llc 1,000+ Professional & Business Services Teachers Insurance And Annuity Asso Financial Activities 1,000+ Crothall Healthcare Inc Leisure & Hospitality 1,000+ U S Postal Service Trade, Transportation & Utilities 1,000+ Central Piedmont Community College Education & Health Services 1,000+ Young Mens Christian Association Of Other Services 1,000+ Duke Energy Carolinas Llc Trade, Transportation & Utilities 1,000+ At&T Services Inc 1,000+ Information Onsite Companies Inc Professional & Business Services 1,000+ Target Stores Trade, Transportation & Utilities 1,000+ Belk Inc 1,000+ Trade, Transportation & Utilities Allstate Insurance Company Financial Activities 1,000+ Food Lion Llc Trade, Transportation & Utilities 1,000+ Source: NC Division of Employment Security 13 FRED H. BECK & ASSOCIATES, LLC

34 Case 19-10989 Doc 4 Filed 05/06/19 Page 34 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. LABOR FORCE atistics for Mecklenburg Co The following labor force st unty, the Charlotte-Gastonia- Concord MSA, and the State of North Carolina were obtained from the NC Employment . The figures for the years 2007 Security Commission through 2016 and August 2017 are shown below: UNEMPLOYMENT RATES AVERAGES FOR YEARS 2007-2016 AND AUGUST 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 August 2017 Mecklenburg County 4.6% 6.2% 10.4% 11.1% 10.4% 9.4% 8.0% 7.5% 6.0% 4.7% 4.2% Charlotte CBSA 4.8% 6.4% 11.2% 11.7% 10.8% 9.5% 8.1% 6.1% 5.5% 4.8% 4.2% North Carolina 4.8% 6.3% 10.4% 10.8% 10.2% 9.5% 8.0% 9.2% 7.9% 5.1% 4.5% As shown in the table above, the most recent reported unemployment rate in North gh of 10.8%. In the Charlotte CBSA, the most Carolina is 4.5%, and has declined from a hi recently reported unemployment rate is 4.2%, and has declined from a high of 11.7%. TRANSPORTATION Due to its remarkable access to air, rail, an d highway, the Charlotte metropolitan area is the largest transportation hub in the Southeas t. The accessibility of the area creates an attractive environment for business travel and for the distribution of products and services. The Interstate 485 beltline around Charlotte pr ovides access around Greater Charlotte to several fringe municipalities including Huntersville and the University areas. RAIL YARD the busiest airports in the world. In 2014 Charlotte Douglas International Airport is one of Norfolk Southern railroad opened a new interm odal yard. This intermodal sits between two runways, which easily allow trains and trucks to transfer hundreds of thousands of containers of goods per year. Container ships unloading their metal boxes along the east coast ports onto trains will be able to bring their containers to Charlotte, where they will transfer to trucks. This new project is expected to boost Charlotte into a major transportation hub. Norfolk Southern estimate s this project to have a 20-year economic impact of $6.3 billon. 14 FRED H. BECK & ASSOCIATES, LLC

35 Case 19-10989 Doc 4 Filed 05/06/19 Page 35 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SUMMARY The economic conditions in the Greater Char lotte area appear to be improving, with continued growth likely over the next several years. The area has provided an atmosphere of strength for several decades, with a proven economic ability to support rapid growth in population and industry. Charlotte has achiev ed a prominent position of regional and national significance, primarily through its emergence as a major center for finance, transportation, and trade. The economic growth and stability within Charlotte is generally shared with its surrounding municipalities. Utilit ies and transportation infrastructures as well as municipal services all appear favorable with a capacity to serve the area as well as future growth. 15 FRED H. BECK & ASSOCIATES, LLC

36 Case 19-10989 Doc 4 Filed 05/06/19 Page 36 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. INDUSTRIAL MARKET OVERVIEW We have summarized the industrial market report from Karnes Research for the Second Quarter 2017. FRED H. BECK & ASSOCIATES, LLC 16

37 Case 19-10989 Doc 4 Filed 05/06/19 Page 37 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. 17 FRED H. BECK & ASSOCIATES, LLC

38 Case 19-10989 Doc 4 Filed 05/06/19 Page 38 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. The subject lies within the Northeast subm arket of Charlotte and we presented the summary for this submarket below. FRED H. BECK & ASSOCIATES, LLC 18

39 Case 19-10989 Doc 4 Filed 05/06/19 Page 39 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. FRED H. BECK & ASSOCIATES, LLC 19

40 Case 19-10989 Doc 4 Filed 05/06/19 Page 40 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. MARKET PARTICIPANT INTERVIEWS We spoke with Anne Johnson of CBRE in Ch arlotte. She is one of the top commercial brokers in the Charlotte market. She reported that the industrial “wheel house” size of 50,000 to 75,000 square feet has remained very strong since the economic recovery. Larger spaces, over 100,000 square feet are in short supply which spurred development in the Charlotte MSA from Concord to the north do wn to the Fort Mill/Rock Hill, SC area. The Charlotte Industrial market is strong with low vacancy, rising rental rates and increasing demand. We spoke with Jon Morris of Beacon Properties . Beacon has been very active in the local market developing office, flex and industrial facilities. Mr. Morris indicates that Beacon Properties has successfully developed a few speculative properties recently in the Charlotte MSA and quickly found tenants. This is due in part to Beacon Development’s intensive market outlook in the Carolinas. They believe that some inventory in most categories has been warranted due to the low overall vacancy rates and demand they have seen in the market. Mr. Morris also noted that available I-2, Industrial zoned land is developers have been building north and becoming scarce in the Charlotte area and south of Charlotte primarily in the Concord, Rock Hill and Fort Mill areas close to the interstate transportation network. We spoke with Landon Wyatt of Childress Kl ein Properties. He indicated increasing demand for light industrial spaces. He noted that larger light manufacturing spaces are hard to find and end users are building new facilities to meet their specific needs. CONCLUSION Market conditions are improving, with rising occupancy levels and increasing lease rates. We are seeing increases in construction star ts and while speculative development remains somewhat constrained. The various EDC’s in the Charlotte MSA all would like to have available inventory of several product types or at least shovel ready projects for new demand. The low vacancy rates and increased demand in the area is driving development of new buildings. 20 FRED H. BECK & ASSOCIATES, LLC

41 Case 19-10989 Doc 4 Filed 05/06/19 Page 41 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. NEIGHBORHOOD ANALYSIS DEFINITION Within a community, there is a marked tendency toward the grouping of land uses. The ed "physical neighborhoods". Neighborhood areas devoted to these various uses are term use in this context is further defined as: "A portion of a larger community, or an entire community, in which there is a homogenous grouping of inhabitants, buildings or business enterprises. Inhabitants of a neighborhood usually have a more than casual community of interests and a similarity of economic level or may consist of well defined, natural or cultural background. Neighborhood boundaries man-made barriers or they may be, more or less, well defined by distinct change in land use or in the character of the inhabitants." LOCATION/BOUNDARIES The subject neighborhood is defined as the no rth eastern section of the greater Charlotte metropolitan area. The immediate subject ne ighborhood is located approximately 4.46 miles northeast of the central business district of the City of Charlotte. For further neighborhood, the reader information on the location of the subject is referred to the maps included in the addenda of this report. An aerial view of the subject neighborhood is shown below. 21 FRED H. BECK & ASSOCIATES, LLC

42 Case 19-10989 Doc 4 Filed 05/06/19 Page 42 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. LAND USE PATTERNS An investigation of the area revealed a mixture of single and multi-tenant, Class A, B & C light industrial buildings. Land uses within the immediate area are considered to be homogenous. PRIMARY ARTERIES/ACCESS Primary access to the neighborhood is provided by Interstate 85 and North Graham Street, major thoroughfares connecting the neighborh ood with metropolitan Charlotte and other areas of North Carolina and South Caroli na. Other major traffic arteries in the neighborhood are I-77 and NC Highway 49 (South Tryon Street). Roadways are heavily traveled and they are generally well maintained. UTILITIES The subject neighborhood has the availability of water, sewer, natural gas, electricity, and telephone service. Municipal utilities are assume d to be available in adequate quantity to meet the needs of the neighborhood in coming years. ENVIRONMENTAL CHARACTERISTICS The primary environmental characteristics to be considered are any nuisances or hazards that result from land uses wi thin the subject neighborhood. We are unaware of any ground water contamination in the area as a result of UST’s or spills from (AST’s), but we are not trained in environmental hazard detection, therefore, we recommend that an expert opinion shou ld be procured in these areas. CONCLUSION hborhoods generally have - growth, stability, In considering the four life cycles that neig decline or revitalization, the neighborhood is considered to be in a time of stability. There has been little development in the immediate area, over the last two years and none is underway at this time. There is little to no vacant land available for development in the immediate neighborhood. 22 FRED H. BECK & ASSOCIATES, LLC

43 Case 19-10989 Doc 4 Filed 05/06/19 Page 43 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SITE ANALYSIS SIZE/DIMENSIONS According to the previously supplied survey, th e site contains a total of 12.4140 acres that is somewhat rectangular in shape. The size and shape of the site are conducive to x parcels as shown on the aerial view below development. The subject consists of three ta (showing only the original improvements). We also included a current aerial view of the recent Phase I addition and the location of the proposed Phase II expansion below. 23 FRED H. BECK & ASSOCIATES, LLC

44 Case 19-10989 Doc 4 Filed 05/06/19 Page 44 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. are not developed on the subject site. The There are currently some wooded areas that current owners plan on holding the vacant port ions of the subject for future expansion. We would expect the same for another owner as there is limited I-2, Industrial zoned land available in the neighborhood available for development. Due to the location of the unimproved area, with no direct frontage we have not included any additional value for the somewhat limited excess land. SOIL ANALYSIS were performed by this appraiser. Therefore, no warranty is Neither soil nor subsoil analyses implied as to the suitability of the soil for development. The values rendered herein are predicated upon the assumption that no adverse soil conditions exist. We have made the and that there are no environmental problems assumption that this information is correct associated with the subject site. We located the subject site on Federal Flood Hazard Map, panel #3701456500K, dated te is located in a zone “X”, an area February 19, 2014, which indicates that the si determined to be outside of the federally designated flood hazard area. Improvements located on such sites, typically do not require flood insurance. 24 FRED H. BECK & ASSOCIATES, LLC

45 Case 19-10989 Doc 4 Filed 05/06/19 Page 45 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. EASEMENTS/ENCROACHMENTS AND RIGHTS OF WAY No adverse encroachments, easements or rights of way were noted in our inspection process, nor were any revealed in our review of the survey and tax maps, other than standard utility easements. We make th e assumption that there are no adverse conditions, based on our inspection. LEGAL CONSTRAINTS The subject property is located in the City of Charlotte and it is subject to the zoning regulations there of the City of Charlotte. We are not aware of any encumbrances, encroachments, or easements, which would adversely affect the utility or marketability of the subject property. ACCESS / FRONTAGE The subject is accessed via Metals Drive, a two-lane, asphalt paved roadway, with curb te are considered to be adequate for and gutter. Access and exposure to the si development. The subject also has frontage on Reagan Drive; however primary access is by Metals Drive. UTILITIES Basic utilities including electricity, telephone, water, sewer and natural gas services are available to the subject site. SUMMARY It is our opinion that the site does not ha ve any characteristics that would impede its development potential. Based on our physical inspection, the sites appear functionally adequate in each of the categories discussed above. 25 FRED H. BECK & ASSOCIATES, LLC

46 Case 19-10989 Doc 4 Filed 05/06/19 Page 46 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. IMPROVEMENTS ANALYS IS (“AS IS”) GENERAL DESCRIPTION The information set forth in this section of the report was taken from our inspection of the realty on November 15, 2017. The subject of th is report consists of a light manufacturing facility that contains a total of 138,544 squa re feet in two buildings, including addtions. Building one is a free standing masonry office and manufacturing facility, which contains t between 1960 and 1991. Floor coverings are a a total of 74,100 square feet that was buil mix of carpet, finished concrete and ceramic tile. Interior partitions are painted drywall. Ceilings in the office area are lay-in acoustical tile, in a grid pattern. The office is fully air conditioned. Security features include a card access system and security cameras. This portion of the subject facility is not sprinklered. ains 23,444 square feet that was built in 1983- Building two, is the shipping facility. It cont 1988. The exterior of the office portion of this building consists of ar chitectural block, while the manufacturing facility, and ha s pre-engineered metal exterior walls. It is erected upon a concrete slab, with a thickness that is repo rted to range from one to more than four feet. Illumination is provided by metal halide lamps. GENERAL BUILDING SPECIFICATIONS General building specifications are provided below: 1420 METALS DRIVE 1420 Metals Drive (Building 1) STREET ADDRESS TYPE OF IMPROVEMENT Office / Warehouse Building / Manufacturing Facility YEAR BUILT 1960/64/68/72/74/77/80/91 NUMBER OF STORIES 1 FOUNDATION / STRUCTURE Face brick/ masonry; Slab on grade GROSS SQUARE FEET 74,100 SQUARE FEET OFFICE / % OFFICE 5,482 square feet; 5.62% using 97,544 SF of improvements ROOF STRUCTURE Bar joist ROOF COVER Tar & gravel / rubber EXTERIOR WALLS Face brick / concrete block INTERIOR WALLS / OFFICE AR EAS Sheet rock / paneling CEILING - OFFICE AREAS Suspended ceiling tiles CEILINGS - WAREHOUSE AREAS Exposed CEILINGS CLEARANCE - WAREHOUSE AREAS 14-18 Feet LIGHTING – OFFICE AREAS Concealed fluorescent fixtures LIGHTING - WAREHOUSE / MANF. AREA S Exposed fluorescent fixtures FLOORS - OFFICE AREAS Commercial grade carpeting / linoleum FLOORS - WAREHOUSE /MANF. AREAS Concrete 26 FRED H. BECK & ASSOCIATES, LLC

47 Case 19-10989 Doc 4 Filed 05/06/19 Page 47 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. 1420 METALS DRIVE (CONTINUED) HVAC Office has heat / air space heat in remainder. SPRINKLER SYSTEM None TRUCK HIGH DOCKS 5 DRIVE IN DOORS 3 REST ROOMS / FIXTURES Average fixtures 1430 METALS DRIVE STREET ADDRESS 1430 Metals Drive (Building 2) TYPE OF IMPROVEMENT Office / Manufacturing Building YEAR BUILT 1983-1988 1 NUMBER OF STORIES Slab on grade: modular metal FOUNDATION / STRUCTURE GROSS SQUARE FEET 23,444 SQUARE FEET OFFICE / % OFFICE None ROOF STRUCTURE Corrugated sheet metal ROOF COVER Metal EXTERIOR WALLS Metal with drywall in office areas INTERIOR WALLS / WAREHOUSE AREAS Insulated metal panels CEILING Exposed 16’ (24’ center) CEILING CLEARANCE / WAREHOUSE AREAS LIGHTING Exposed fluorescent fixtures FLOORS Concrete HVAC Gas Heat only 27 FRED H. BECK & ASSOCIATES, LLC

48 Case 19-10989 Doc 4 Filed 05/06/19 Page 48 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. RECENT PHASE I ADDITION – 41,000 SQUARE FEET The owners recently added 41,000 square feet of production space to building two. The showing the 41,000 SF current facility has a total size of 138,544 sq uare feet. A site plan addition in black is shown below. 28 FRED H. BECK & ASSOCIATES, LLC

49 Case 19-10989 Doc 4 Filed 05/06/19 Page 49 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. A floor plan of the Phase I addition is shown below. The Phase I addition shares a common wall to building two. The Phase I addition features pre-engineered metal panel construction over a steel framework with clear ceiling heights ranging from 25’ to 50’. The concrete slab floor has several pits (various depths up to 10 feet) for heavy metal presses, 10” concrete un der the crane-way’s 66 ‘ of travel with the remainder being 6” reinforced concrete. The production space features suspended, T-8 multi-tube lamps, gas heat, wet sprinkler and wall mounted exhaust fans. The space has 3 dock high doors and one 20’ X 20’ drive-in door. The upfits also include heavy electrical service for the new metal stamping equipment. The building has a 50-Ton crane (equipment not included in this valuation) which is supported by heavy steel structure (part of the new addition). As Is the total gross building size of all three buildings is estimated at 138,544 square feet. 29 FRED H. BECK & ASSOCIATES, LLC

50 Case 19-10989 Doc 4 Filed 05/06/19 Page 50 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SUBJECT PHOTOGRAPHS Frontage along Metals Drive Exterior view of office space Typical original production area upfit Typical office/break room upfits Exterior view of Building Two Exterior View of Phase I production building 30 FRED H. BECK & ASSOCIATES, LLC

51 Case 19-10989 Doc 4 Filed 05/06/19 Page 51 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SUBJECT PHOTOGRAPHS Typical upfits in Phase I addition production space Typical upfits in Phase I addition production space Typical Phase I production upfits Typical Phase I addition electrical upfits Detention pond Exterior View proposed Phase II addition location 31 FRED H. BECK & ASSOCIATES, LLC

52 Case 19-10989 Doc 4 Filed 05/06/19 Page 52 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SITE IMPROVEMENTS-AT COMPLETION The following site improvements will be on the subject property:  Concrete curbed islands in the parking lot  Landscaping consisting of grass, shrubs, and small trees Asphalt parking lot with a total of 51paved  parking spaces. Remaining area has gravel parking for approximately 49 vehicles.  Adequate lighting for the improvements and parking areas. 50’ wide concrete loading/unloading pad for new addition   Retention pond 32 FRED H. BECK & ASSOCIATES, LLC

53 Case 19-10989 Doc 4 Filed 05/06/19 Page 53 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. IMPROVEMENTS ANALYSIS (“AT COMP LETION OF PHASE II EXPANSION”) GENERAL DESCRIPTION of production space to the current facility The owners plan on adding 6,800 square feet completion. We were no for a total size of 145,344 square feet at t provided with an updated site plan or building plan; howeve r, we walked the area of the proposed expansion with the owner’s representative wh o explained that the expansion will include an extension of the craneway, heavy conc rete supporting two stamping machines, heavy electrical upfits and a restroom. Th e current detention pond is reported as adequate and will not require any modificati ons for the small Phase II expansion. DEFERRED MAINTENANCE Deferred maintenance items are those items that need to be repaired immediately. No significant items of deferred maintenance were noted in our inspection of the facility. FUNCTIONAL UTILITY Functional utility is “the ability of a property or building to be useful and to perform the function for which it is intended according to the current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic 5 patterns, and the size and type of rooms.” Upon inspection, it appears the improvements it is designed. It is noted that the new will adequately perform the function for which addition has some super-adequate features including 50’ clear ceiling heights, support structure for a 50 ton bridge crane, heavy concrete floors, machine pits and heavy electrical upfits. The subject facility is ve ry functional for the intended owner-user. However, the clear ceiling heights, heavy concrete flooring, machine pits and perhaps the heavy electrical upfits are super-adequa te for the typical light manufacturing user. These features are common for this type of facility. ACTUAL AGE/EFFECTIVE AGE/AND REMAINING ECONOMIC LIFE EXPECTANCY (“AS IS”) The subject property consists of an original light manufacturing facility, with an average ately 40 years plus a new (Phase I completed in 2017) that chronological age of approxim accounts for approximately 32% of the gross square footage. Effective age is defined as “the age of property that is based on the amount of observed deterioration and 6 obsolescence it has sustained, which may be different from its chronological age.” According to The Dictionary of Real Estate Appraisal, the effective age of a building may be less than its actual age if it has had above average maintenance or is of superior 5 The Dictionary of Real Estate Appraisal (6th ed.). Chicago, IL: The Appraisal Institute. 2010. Page 97. 6 The Dictionary of Real Estate Appraisal (6th ed.). Chicago, IL: The Appraisal Institute. 2010. Page 74. 33 FRED H. BECK & ASSOCIATES, LLC

54 Case 19-10989 Doc 4 Filed 05/06/19 Page 54 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. quality or design, or if there is a scarcity of such buildings in the market. We estimate the property’s effective or economic age is 20 years. “the period over which improvements to real The economic life of a property is defined as 7 property contribute to property value.” Remaining economic life is defined as “the will continue to represent the highest and estimated period during which improvements best use of the property; an estimate of th e number of years remaining in the economic life of the structure or structural components as of the date of the appraisal; used in the 8 economic age-life method of estimating depreciation.” In order to estimate the economic life of the subject property, we consulted The Marshall Valuation Service , a cost data publication of Marshall and Swift based on national surveys, to estimate the subject’s economic life. Base d on an economic life of 40 years and an economic age of 20 years, we estimate th e subject property to have a remaining economic life of 20 years. OMIC LIFE EXPECTANCY (“AT COMPLETION OF ACTUAL AGE/EFFECTIVE AGE/AND REMAINING ECON EXPANSION”) The subject property consists of an origional light manufacturing facility, with an average chronological age of approximately 40 years plus a new (Phase I completed in November 2017) and proposed Phase II expansion (est imated completion in May 2018) that will account for approximately 33% of the gross sq uare footage. Effective age is defined as “the age of property that is based on the amount of observed deterioration and 9 obsolescence it has sustained, which may be different from its chronological age.” According to The Dictionary of Real Estate Appraisal, the effective age of a building may be less than its actual age if it has had above average maintenance or is of superior quality or design, or if there is a scarcity of such buildings in the market. We estimate the property’s effective or economic age is 20 years. 7 The Dictionary of Real Estate Appraisal (6th ed.). Chicago, IL: The Appraisal Institute. 2010. Page 72. 8 The Dictionary of Real Estate Appraisal (6th ed.). Chicago, IL: The Appraisal Institute. 2010. Page 195. 9 The Dictionary of Real Estate Appraisal (6th ed.). Chicago, IL: The Appraisal Institute. 2010. Page 74. 34 FRED H. BECK & ASSOCIATES, LLC

55 Case 19-10989 Doc 4 Filed 05/06/19 Page 55 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. “the period over which improvements to real The economic life of a property is defined as 10 property contribute to property value.” Remaining economic life is defined as “the will continue to represent the highest and estimated period during which improvements best use of the property; an estimate of th e number of years remaining in the economic life of the structure or structural components as of the date of the appraisal; used in the 11 economic age-life method of estimating depreciation.” of the subject property, we consulted In order to estimate the economic life The Marshall Valuation Service a cost data publication of Marshall and Swift based on national surveys, , to estimate the subject’s economic life. Base d on an economic life of 40 years and an economic age of 20 years, we estimate th e subject property to have a remaining economic life of 20 years. 10 The Dictionary of Real Estate Appraisal (6th ed.). Chicago, IL: The Appraisal Institute. 2010. Page 72. 11 The Dictionary of Real Estate Appraisal (6th ed.). Chicago, IL: The Appraisal Institute. 2010. Page 195. 35 FRED H. BECK & ASSOCIATES, LLC

56 Case 19-10989 Doc 4 Filed 05/06/19 Page 56 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. ASSESSMENTS AND TAXES (“AS IS”) According to the Mecklenburg County Tax Office , the subject property is identified as a tax map reference number 087-08-202A, 087-08- 202B & 087-09-204. In North Carolina, real property taxes are based on a combination of its tax value and a tax rate per $100 of assessed value. Tax values are set by the loca l tax assessor, based on the condition of the realty as of January 1 of a given year. These values are based on market value as of a specific date of revaluation. The last revaluation was completed, effective January 1, 2011. The values below reflect the la test revaluation for the subject. 2017 Tax Burden - AS IS Total 087-082-02B 087-092-07 087-082-02A 087-092-04 Land 795,800 $ $ 299,800 $ 1,357,000 $ 261,400 Im prov em ents 990,500 $ 251,000 $ 1,241,500 $ 299,800 Total Tax Value 990,500 $ 512,400 $ $ $ 2,598,500 $ 795,800 lenburg County was $1.2944 per $100 of Tax rates for 2017 for Charlotte and Meck valuation. The Phase I addition has not yet be en added to the subject’s assessed values . The 2017 tax burden for the subject is shown as follows. 2017 Tax Burden - AS IS Total 087-082-02B 087-092-04 087-092-07 087-082-02A Land $ 795,800 $ 261,400 $ 299,800 $ 1,357,000 Im prov em ents 990,500 251,000 $ 1,241,500 $ $ 299,800 795,800 $ 512,400 $ 990,500 $ 2,598,500 $ Total Tax Value $ 100.00% 100.00% 100.00% Assessment Ratio 100.00% 100.00% Assessed Value $ 990,500 $ 512,400 795,800 299,800 $ 2,598,500 $ $ Tax Rate / $100 1.2944 1.2944 1.2944 1.2944 1.2944 3,881 2017 Tax Burden 12,821 $ 6,633 $ $ $ 33,635 $ 10,301 36 FRED H. BECK & ASSOCIATES, LLC

57 Case 19-10989 Doc 4 Filed 05/06/19 Page 57 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. ON OF PHASE I & II ADDITIONS”) ASSESSMENTS AND TAXES (“AT COMPLETI For the subject we have estimated the 2018 ta x burden by using the current tax burden (which does not include the Phase I or Phase II additions), included 75% of both addition costs ($3,673,062 (Phase I) + $880,486 (Phase II) = $4,553,548) of the Phase I & II additions ($4,553,548 X 0.75 = $3,415,161) plus curr ent improvement assessment of $990,500 for a total of $3,694,082, rounded to $3,695,000. We also estimated a 3% inflation rate as shown below. Estimated Tax Burden - AT COMPLETION Total 087-082-02A 087-082-02B 087-092-04 087-092-07 Land 795,800 $ 261,400 $ 299,800 $ 1,357,000 $ Im prov em ents $ 251,000 $ 4,656,661 $ 4,405,661 Total Tax Value 795,800 $ 4,405,661 $ 512,400 $ 299,800 $ 6,013,661 $ Assessment Ratio 100.00% 100.00% 100.00% 100.00% 100.00% Assessed Value $ 795,800 $ 4,405,661 $ 512,400 $ 299,800 $ 6,013,661 Estimated Tax Rate / $100 1.2944 1.2944 1.2944 1.2944 1.2944 Estimated 2017 Tax Burden 10,301 $ 57,027 $ 6,633 $ 3,881 $ 77,841 $ Inflation Factor 3% 3% 3% 3% 3% Projected 2018 Tax Burden 10,610 $ 58,738 $ 6,832 $ 3,997 $ 80,176 $ 37 FRED H. BECK & ASSOCIATES, LLC

58 Case 19-10989 Doc 4 Filed 05/06/19 Page 58 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. ZONING | LAND USE CONTROL The subject site is located in Charlotte and is subject to th e zoning regulations thereof. According to our research, the subject is zoned I-2, GENERAL INDUSTRIAL district. For an understanding of the I-2, General Industrial designation, we refer the reader to the intent as stated below: “The purpose of the I-2 (General Industrial) district is to create and protect wholesaling and industrial areas for manufacturing, processing and assembling of parts and products, distribution of products at wholesale, transportation terminals, and a broad variety of specialized industrial operations. Whenever possible, areas of this district should be separated from residential districts by natural or structural boundaries such as drainage channels, sharp breaks in topography, strips of vegetation, traffic arteries and similar features.” Development standards for the district include the following, which are provided as examples: Minimum Lot Area 8,000 SF Minimum Lot Width 50 Feet Minimum Setback 20 Feet Minimum Side Yard 0 Feet Minimum Rear Yard 10 Feet Maximum Height 40 feet Maximum Floor Area Ratio 100% I-2, Industrial District requires off-street parking for industrial use. Currently the requirements are for .25 spaces per 1,000 SF of manufacturing space and 1 (one) space per 400 SF of office space. The minimum is therefore calc ulated to be 38 spaces. The 100 spaces for parking at the site exceed the requirements set forth in the current zoning regulations. Our review of the zoning ordinance and regulations leads us to the conclusion that the current use of the existing improvements is a legal and conforming use. 38 FRED H. BECK & ASSOCIATES, LLC

59 Case 19-10989 Doc 4 Filed 05/06/19 Page 59 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. MARKETING TIME AND EXPOSURE TIME The marketability analysis focuses on marketin g time and exposure ti me, both of which are functions of time, price, use, and market conditions. The market conditions component distinguishes marketing time from exposure time because these two conditions often differ in a dynamic market. USPAP defines as “an opinion of the amount of time MARKETING TIME it might take to sell a real or personal property interest at the concluded market value or a benchmark price during the period immediately after the effective date of an appraisal.” Marketing time is a forecast that is made looking forward from the effective date of an 12 appraisal. USPAP defines as the “estimated length of time that the EXPOSURE TIME property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at ma rket value on the effective date of the appraisal.” Exposure time is a retrospective opinion, presumed to precede the effective date of an appraisal, based on an analysis of past events assuming a competitive and 13 open market. Our marketability analysis will focus on the es timated time the subject property would be it in this, is the assumption that the subject on the market to secure a sales contract. Implic property would be offered for sale at a price at or near its market value, with professional marketing efforts applied. For the Fee Simple interest, the most likely buyer would be an le marketing time for the subject property, owner-user. In order to estimate a reasonab several real estate brokers active within the regional market were contacted to contribute their opinions in estimating a marketing time and exposure period for the subject. Each of the brokers was given the parameters of the pr operty such as construction components, age, size, condition, location, etc. In light of the age of the improvements, its location and the competing supply of available properties in the market place, the brokers anticipated a marketing period of 12 months would be adequate to find a buyer for a property like the subject. We are also required to identify the exposure period associated with the value conclusions reached herein. We believe the discussions of the marketing period are also applicable to the exposure time, and a period of 12 mont hs is considered to be adequate for the subject. We also estimate typical selling co mmissions for a property such as the subject would be four to six percent. 12 USPAP Advisory Opinions , 2016-2017 ed. Washington, DC: The Appraisal Foundation. 2016. AO-7, Page 88, Lines 14-18. 13 Uniform Standards of Professional Appraisal Practice , 2016-2017 ed. Washington, DC: The Appraisal Foundation. 2016. Definitions, Pages 2-3, Lines 62-64. 39 FRED H. BECK & ASSOCIATES, LLC

60 Case 19-10989 Doc 4 Filed 05/06/19 Page 60 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. HIGHEST AND BEST USE The analysis of data to develop a market value opinion requires two critical steps prior to applying the valuation approaches. Market analysis narrows the focus from a broad view to data that is especially pertinent to the subj ect. That information is used in a highest and best use analysis to identify the most profitable, competitive use to which the subject can 14 be put. The Dictionary of Real Estate Appraisal defines HIGHEST AND BEST USE as: “The reasonably probable use of property that resu lts in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial 15 feasibility, and maximum productivity.” The first sentence contains a simple definition and the second states the requisite criteria for “reasonably probable” use. The first three conditions that must be satisfied are:  The use must be physically possible (or it is reasonably probable to render it so).  The use must be legally permissible (or it is reasonably probable to render it so).  The use must be financially feasible . . Following those Uses that meet the three criteria are tested for economic productivity analyses, the reasonably probable use with the highest value ( ) is maximum productivity 7 considered to be the highest and best use. The highest and best use for land or a proper ty can be defined in two ways: as vacant and as improved. The highest and best use of a site as though vacant assumes that a parcel of land is vacant or that it can be made vacant through the demolition of any improvements. The question to be answered in th is type of analysis is "what use should be made of it and what, if any, type of building or other improvement should be constructed on the land?” The second type, highest and best use of a property as improved, pertains to the use that should be made of the property as it currently exists. The question is “should the existing improvements be maintained, renovated, expanded, partially demolished, or completely demolished and replaced with a different type use altogether?” For each type of highest and best use, the criteria considered are that the highest and best use must be (1) legally permissible, (2) physically possible, (3) financially feasible, and (4) maximally productive. The subject is an exis ting a light manufacturing facility. Therefore we will present an analysis both “If Vacant” and “As Improved”. 14 th The Appraisal of Real Estate, 14 Edition, Chicago, IL, (Pages 331-332) 15 th The Dictionary of Real Estate Appraisal, 6 Edition, Chicago, IL, (Page 93) 40 FRED H. BECK & ASSOCIATES, LLC

61 Case 19-10989 Doc 4 Filed 05/06/19 Page 61 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. AS IF VACANT LEGALLY PERMISSIBLE USES The first criterion for analyzing highest and best use addresses the uses that are legally permitted under the current zoning regulation s. These uses are best defined as those permitted under the I-2, General Industrial zoning district that was discussed previously. These uses include a variety of office and in dustrial uses, including general office, light manufacturing and distribution warehouse uses. PHYSICALLY POSSIBLE USES The second criteria for examining the high est and best use considers what uses are physically possible. Some uses may be inappr opriate due to physical characteristics such as size, shape, utilities, soil conditions, and topography. Ingress and egress is considered good and the site has access to municipal water and sewer. Soil conditions are assumed to be adequate to support building improvem ents. It is our opinion that the physical characteristics of this portion of the site are conducive to development and that any of the legally permissible uses of the site are also physically possible, with size providing the for the potential uses. primary limiting factor FINANCIALLY FEASIBLE USES The third criterion for determining highest and best use is to determine which uses are financially feasible. Within the immediate neighborhood, the principal land use is a mix of single and multi-tenant industrial uses including both manufacturing and warehouse properties. On the demand side, The Xceligent Report reports the warehouse vacancy at 5.6% for the northeas t sub-market in the Second Quarter of 2017. Average warehouse rents in the northeast market were reported at $4.13 per square foot. The subject is zoned I-2, Industrial which includes outside storage as a permitted use. This zoning is attractive to many industrial users and I-2, zoned land is in very short supply in the Charlotte MSA. It appears to be financially feasible to develop th e property with some type of industrial use as demand and rental rates are increasing. However, there would need to be some pre- leasing in place prior to starting construction. MAXIMALLY PRODUCTIVE USE The fourth and final criteria addresses, which, alternative use would be maximally productive. The land in close proximity to the subject is improved with a mix of single and multi-tenant industrial uses. The subject is located near I-85 in an older industrial area. There has been a very limited number of new improvements developed in the area, primarily due to the scarce industrial zoned land that is available for development. There appears to be good demand for industrial land but some of the land is being used for overflow 41 FRED H. BECK & ASSOCIATES, LLC

62 Case 19-10989 Doc 4 Filed 05/06/19 Page 62 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. trailer storage rather than being develope d with vertical improvements due to the s in the area. There is increasing demand numerous trucking and trailer maintenance shop and declining vacancy rates along with rising rental rates for industrial uses; however, it costs more to build today and there would be pre-leasing in place in order to start new construction. As such, it is our opinion that th e highest and best use of the, if vacant, would be as a speculative hold, for future industrial development. AS IMPROVED – AS IS LEGALLY PERMISSIBLE USES The first criterion for analyzing highest and best use addresses the uses that are legally permitted under the current zoning regulation s. These uses are best defined as those permitted under the I-2, General Industrial zoning district that was discussed previously. These uses include a variety of office and in dustrial uses, including general office, light manufacturing and distribution warehouse uses. The historic use of the subject, as a light manufacturing facility, is a legally permissible use, according to the zoning in place. PHYSICALLY POSSIBLE USES The subject was designed for use as a light manufacturing facility. The site layout provides for adequate access, with adequate truck co urts providing room for the maneuvering of large vehicles. It appears that the design of th e improvements is physically well suited for its intended use as a light manufacturing facility. FINANCIALLY POSSIBLE USES When looking at the financially feasible uses, we consider from the legally permissible, physically possible use, which uses would provide an adequate return on investment to an owner. The subject property consists of a light manufacturing facility, which is currently owner occupied. The owners re cently completed a 41,000 square foot addition to the existing building. This new addition included some super-adequate features such has very heavy concrete floors, 50’ clear ceiling heights, machine pits, heavy electrical upfits. The new addition is perfect for the new metal stam ping product line and the building features are required for the machinery. In the marketplace some of these features would have little value and an end user would not likely pa y “dollar for dollar” of the cost to complete this addition. As we have shown later in this report via the Income and Sales Comparison Approaches to value there is some functional obsolescen ce due to super adequa cy associated with the new addition. We also included a table and br ief dissection at the end of this report in 42 FRED H. BECK & ASSOCIATES, LLC

63 Case 19-10989 Doc 4 Filed 05/06/19 Page 63 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. the reconciliation of value section. While it makes economic sense to the ownership, it in the marketplace for purely real estate does not appear to be financially feasible reasons due to the very limited demand fo r the super-adequate features we have discussed. This is not property specific as we have experience with several super- adequate buildings with similar features that were needed by the owners that did not necessarily translate to dollar per dollar value in the market. MAXIMALLY PRODUCTIVE USE Based on the sales of competing properties in the region, the historic and anticipated use of the subject as a light manufacturing facility represents the maximally productive use of the subject. AS IMPROVED – AT COMP LETION OF THE ADDITON LEGALLY PERMISSIBLE USES The first criterion for analyzing highest and best use addresses the uses that are legally s. These uses are best defined as those permitted under the current zoning regulation permitted under the I-2, General Industrial zoning district that was discussed previously. dustrial uses, including general office, light These uses include a variety of office and in manufacturing and distribution warehouse uses. The historic use of the subject, as a light manufacturing facility, is a legally permissible use, according to the zoning in place. PHYSICALLY POSSIBLE USES The subject was designed for use as a light manufacturing facility. The site layout provides for adequate access, with adequate truck co urts providing room for the maneuvering of large vehicles. It appears that the design of th e improvements is physically well suited for its intended use as a light manufacturing facility. FINANCIALLY POSSIBLE USES When looking at the financially feasible uses, we consider from the legally permissible, physically possible use, which uses would provide an adequate return on investment to an owner. The subject property consists of a light manufacturing facility, which is currently owner occupied. The owners are planning on ma king a 6,800 square foot addition to the existing building. This new addition will include some super-adequate features such has very heavy concrete floors, 50’ clear ceiling heights, machine pits, heavy electrical upfits. The new addition is perfect for the new meta l stamping product line and the building features are required for the machinery. In the marketplace some of these features would 43 FRED H. BECK & ASSOCIATES, LLC

64 Case 19-10989 Doc 4 Filed 05/06/19 Page 64 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. kely pay “dollar for do llar” of the cost to have little value and an end user would not li complete this addition. As we have shown later in this report via the Income and Sales Comparison Approaches to value there is some functional obsolescen ce due to super adequa cy associated with the new 6,800 square foot addition. We also in cluded a table and brief dissection at the end of this report in the reconciliation of value section. While it makes economic sense to ncially feasible in the marketplace for purely the ownership, it does not appear to be fina demand for the super-adequate features we real estate reasons due to the very limited have discussed. This is not property specific as we have experience with several super- adequate buildings with similar features that were needed by the owners that did not necessarily translate to dollar per dollar value in the market. MAXIMALLY PRODUCTIVE USE Based on the sales of competing properties in the region, the historic and anticipated use of the subject as a light manufacturing facility represents the maximally productive use of the subject. 44 FRED H. BECK & ASSOCIATES, LLC

65 Case 19-10989 Doc 4 Filed 05/06/19 Page 65 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. METHOD OF VALUATION The appraisal process typically involves three approaches in determining value, which consists of the Income Approach, Sales Comparison Approach and the Cost Approach. A brief description of each technique is as follows: THE INCOME APPROACH An appraisal procedure using capitalization of expected future income as a basis for estimating market value. The underlying assumption is that an informed purchaser will pay no more for the subject property than would have to be paid for another property with an income stream of comparable amount, duration and quality. THE SALES COMPARISON APPROACH An appraisal procedure using sale prices of properties similar to the subject property as a basis mption is that an informed purchaser will pay for estimating market value. The underlying assu no more for a property than would have to be paid for a similar property of comparable utility. THE COST APPROACH An appraisal procedure using depreciated replacement or reproduction costs of improvements plus land value as a basis for estimating market value. The underlying assumption is that an informed purchaser will pay no more than the cost of producing a substitute property wi th the same utility as the subject property. APPRAISAL PROCEDURES Only two approaches to value the income approach and the sales comparison approach will be utilized in this analysis. The cost approach will be omitted for reasons previously mentioned. Omission will not affect the validity of the reported value. 45 FRED H. BECK & ASSOCIATES, LLC

66 Case 19-10989 Doc 4 Filed 05/06/19 Page 66 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. INCOME APPROACH TO VALUE (“AS IS”) The income approach is an appraisal procedure, which discounts or capitalizes an expected income stream into an indication of market value. The underlying premise is that an informed purchaser will pay no more for the subject property than he would have me stream of comparab le quantity, quality to pay for another property, which has an inco and durability. The direct capitalization of the net operating income is be st suited to measure the net present value of stable income stream, for a single tenant property. This method of valuation is typically of primary significance in the analysis of single tenant properties, or in the analysis of small, non-investment grade, multi-tenant properties that have achieved stabilized occupancy. The subject is a la rge single-tenant property that has been historically owner-occupied by a local company. The first step undertaken in the income appr oach is to make an estimate of the gross potential income for the subject property. In order to do this we must survey the market for comparable properties with which to make a comparison. A brief description of each then compare our estimate of market rent, lease comparable is provided herein. We will to contract rent, in order to ascertain whether the existing lease rate, in our opinion is market oriented. Thereafter, a vacancy estimate is made based on market conditions at the time of the appraisal. The next step involves estimating the expenses, which can reasonably be expected in order to maintain the income st ream set forth in the estimate of gross potential income. By deducting vacancy and expenses from gross potential income, an indication of net operating income is derived. It is this figure, which is capitalized in order to arrive at a net present value for the projected income stream. Leases are being quoted net of TICAM (Taxes, Insurance and Common Area Maintenance) . This structure is commonly referred to ed, from our estimate of in the market as NNN. These expenses will then be deduct effective gross income, in order to obtain an estimate of Net Operating Income (NOI). Finally, we will capitalize our es timate of NOI, at market derive d rates, in order to form our opinion of value. The rate, at which we will ca pitalize the NOI, will be derived through an examination of rates that were obtained from recent sales of similar, alternative investments, from around the region. We present on the following pages rental comparables to provide us with market information to enable us to ascertain a market rental rate. While the comparable leases anal yzed are not located in close proximity to the subject, they are very similar to it in design and appeal. 46 FRED H. BECK & ASSOCIATES, LLC

67 Case 19-10989 Doc 4 Filed 05/06/19 Page 67 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. LEASE COMPARABLE ONE LEASE COMPARABLE ONE LOCATION 2601 Westinghouse Blv d ADDRESS NC Charlotte V-MCB Westinghouse LESSOR Carter Lumber LESSEE October 1, 2015 September 30, 2030 LEASE BEGINS / ENDS $3.16 $339,050 ANNUAL RENT - RENT / SF NNN 15 Years LEASE TERM - STRUCTURE 2.00% None ESCALATIONS - OPTIONS Chris Daly - Childress Klein VERIFIED BY SITE DATA 599,473 Sq.Ft. 13.762 Acres LAND AREA 17.91% BUILDING COVERAGE RATIO IMPROVEMENT DATA Storage WH 107,365 Sq.Ft. IMPROVEMENT TYPE / SIZE 12.13% 13,025 Sq.Ft. OFFICE - SF / % Metal 24 Feet CONSTRUCTION TYPE / CLEAR HEIGHT 1982 - 1990 15 Years YEAR BUILT - EFFECTIVE AGE Second generation former mfg facility, with full heat, full sprinkler, AC in office COMMENTS only. FRED H. BECK & ASSOCIATES, LLC 47

68 Case 19-10989 Doc 4 Filed 05/06/19 Page 68 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. LEASE COMPARABLE TWO LEASE COMPARABLE TWO LOCATION 725 Reese Dr SW ADDRESS Conov er NC Conov er Web, LLC LESSOR Hickory Printing Solutions, LLC LESSEE June 1, 2015 M ay 31, 2020 LEASE BEGINS / ENDS $4.04 $504,844 ANNUAL RENT - RENT / SF NNN 5 Years LEASE TERM - STRUCTURE Flat Tw o, 5-year ESCALATIONS - OPTIONS Lease Document VERIFIED BY SITE DATA 1,714,957 Sq.Ft. 39.37 Acres LAND AREA 7.29% BUILDING COVERAGE RATIO IMPROVEMENT DATA 124,967 Sq.Ft. M anufacturing IMPROVEMENT TYPE / SIZE 17.82% 22,263 Sq.Ft. OFFICE - SF / % Tilt-up 22 - 36 Feet CONSTRUCTION TYPE / CLEAR HEIGHT 15 Years 1994 YEAR BUILT - EFFECTIVE AGE Full HVAC, full sprinkler, 8 dock high & 1 drive-in truck door, 150 paved parking COMMENTS spaces, T-8 lighting, 12,000 SF of 36' clear raw materials storage space. g a renewal Constructed for use as a build to suit for the tenant who is exercisin option in their lease w hich began May 28, 2010. The tenant has tw o, 5-year renew al options $514,941 annually 6/1/20, $525,240 beginning 6/1/25. The tenant has an option to purchase for $4,590,000 through 5/31/20; $4,635,000 through 5/31/25 & $4,680,000 through 5/31/30. The tenant also has a right of first refusal. The lessor provided a $400,000 TI allowance for HVAC repairs, new paint, new carpet & sealing / striping of the parking lot as an incentive to renew . 48 FRED H. BECK & ASSOCIATES, LLC

69 Case 19-10989 Doc 4 Filed 05/06/19 Page 69 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. LEASE COMPARABLE THREE LEASE COMPARABLE THREE LOCATION 10510 Tw in Lakes Parkw ay ADDRESS Charlotte NC Murata Weidman, Inc. LESSOR Aramark Healthcare Technologies LESSEE February 28, 2023 M arch 1, 2013 LEASE BEGINS / ENDS $4.51 $414,000 ANNUAL RENT - RENT /SF 10 Years NNN LEASE TERM - STRUCTURE None Step ESCALATIONS - OPTIONS Norman Walters - Walters Commercial VERIFIED BY SITE DATA 17.311 Acres 754,067 Sq.Ft. LAND AREA 12.17% BUILDING COVERAGE RATIO IMPROVEMENT DATA 91,740 Sq.Ft. M anufacturing IMPROVEMENT TYPE / SIZE 20,000 Sq.Ft. 21.80% OFFICE - SF / % 30 Feet Cav ity Brick CONSTRUCTION TYPE / CLEAR HEIGHT 10 Years 1991 YEAR BUILT - EFFECTIVE AGE Located in the Twin Lakes Business Park, this is a renewal by a Fortune 250 COMMENTS company in a second generation building that was substantially renovated in 2011. Full HVAC, ESFR sprinkler, 3 dock high & 1 drive-in truck door, 162 paved parking spaces, 7,000 amps of three phase power. 49 FRED H. BECK & ASSOCIATES, LLC

70 Case 19-10989 Doc 4 Filed 05/06/19 Page 70 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. LEASE COMPARABLE FOUR LEASE COMPARABLE FOUR LOCATION 1872 Old M ountain Rd ADDRESS Statesv ille NC Nandina Properties III, LLC LESSOR Orv is RPM, LLC LESSEE October 1, 2014 September 30, 2017 LEASE BEGINS / ENDS $206,500 $2.77 ANNUAL RENT - RENT / SF NNN 3 Years LEASE TERM - STRUCTURE Flat None ESCALATIONS - OPTIONS Grant Miller - Colliers I nt VERIFIED BY SITE DATA 15.05 Acres 655,578 Sq.Ft. LAND AREA 11.36% BUILDING COVERAGE RATIO IMPROVEMENT DATA M anufacturing 74,498 Sq.Ft. IMPROVEMENT TYPE / SIZE 3.80% 2,831 Sq.Ft. OFFICE - SF / % M etal 15 to 23 Feet CONSTRUCTION TYPE / CLEAR HEIGHT 20 Years 1978 YEAR BUILT - EFECTIVE AGE COMMENTS Full heat, full sprinkler v ia in rack system, 15 dock high doors, motion activ ated T-8 lighting, 1600 amps of 3-phase serv ice, 71 pav ed parking spaces, 40,000 SF of mfg & 30,000 SF of crossdock WH. The broker reported minimal TI 's and a marketing time of less than 60 days. 50 FRED H. BECK & ASSOCIATES, LLC

71 Case 19-10989 Doc 4 Filed 05/06/19 Page 71 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. ADJUSTMENTS TO COMPARABLE LEASES 1 2 4 Subject 3 2601 Westinghouse Blvd 10510 Tw in Lakes Parkw ay 1872 Old Mountain Rd 1420/30 Metals Dr 725 Reese Dr SW LOCATION Charlotte Conover Charlotte CITY Charlotte Statesville NC NC NC NC NC STATE LESSOR V-MCB Westinghouse Conover Web, LLC Murata Weidman, Inc. Nandina Properties III, LLC N/A LESSEE Carter Lumber Hickory Printing Solutions, LLC Aramark Healthcare Orvis RPM, LLC N/A 1960-2017 1994 YEAR BUILT 1991 1978 1982 - 1990 EFFECTIVE AGE 15 Years 15 Years 10 Years 20 Years 20 Years CONSTRUCTION Masonry/Metal Metal Tilt-up Cavity Brick Metal PERCENT OFFICE 3.96% 17.82% 21.80% 3.80% 12.13% 14 to 50 Feet 30 Feet 22 - 36 Feet CLEAR HEIGHT 15 to 23 Feet 24 Feet PROPERTY TYPE Storage WH Manufacturing Manufacturing Manufacturing Manufacturing BCR 25.63% 17.91% 7.29% 12.17% 11.36% LEASE BEGINS Oct-15 Jun-15 Mar-13 Oct-14 N/A LEASE TERM N /A 15 Years 5 Years 10 Years 3 Years STRUCTURE NNN NNN NNN NNN NNN Flat Flat ESCALATIONS N/A 2.00% Step SIZE 138,544 124,967 91,740 74,498 107,365 BASE ANNUAL RENT 339,050 $ 504,844 $ 414,000 $ 206,500 $ N/A ANNUAL RENT / SF N/A 3.16 $ 4.04 $ 4.51 $ 2.77 $ LEASE ADJUSTMENTS $ 6,785 CURRENT RENT N/A 345,835 $ 504,844 $ 414,000 $ 206,500 $ 4.51 CURRENT RENT / SF N/A 3.22 $ 4.04 $ $ 2.77 $ MARKET CONDITIONS CONDITION OF LEASE STRUCTURE TERMS N/A 3.22 $ 4.04 $ 4.51 $ 2.77 ADJUSTED RENT / SF $ LOCATION 5% 10% SIZE AGE/CONDITION -5% -5% -10% QUALITY 20% -5% -5% 20% BCR 0% 15% -5% -15% 30% TOTAL ADJUSTMENTS INDICATION N/A 3.70 $ 3.84 $ 3.83 $ 3.60 $ 51 FRED H. BECK & ASSOCIATES, LLC

72 Case 19-10989 Doc 4 Filed 05/06/19 Page 72 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SUMMARY OF RENT COMPARABLES All four lease comparables are for industrial buildings located in the regional market. We made adjustments to reflect the current contract base rent increases as applicable to all of the comparables. A summary of the indivi dual lease comparable adjustments is found below.  Lease Comparable One is located in southwest Charlotte which is considered to be a similar location close to the interstate transportation ne twork. The size is comparable to the subject and no adjustment was applied. This building has a lower effective age and a negative adjustment was warranted. This building has metal panel construction which is somewhat infe rior to the mix of metal and masonry construction found in the subject. The clear ceiling heights and the upfits for manufacturing are inferior. Overall we made a positive adjustment for the inferior quality. Th e BCR is similar to the subject and no adjustment was warranted. is located in Conover, NC. The location is inferior as compared to Charlotte and a  Lease Comparable Two positive adjustment was made. This building has a similar size and no adjustment was made. The superior age/condition required a negative adjustment. The overall quality is superior with masonry construction, larger office percentage and superior clear ceiling heights. A negative adjustment was applied for quality.  Lease Comparable Three is located in north Charlotte. The location is similar and no adjustment was warranted. The building size is similar and no adjust ments were necessary. This building has a superior age/condition and a negative adjustment was applied. The masonry construction and larger office percentage are superior to the subject. The subject has superior manufacturing upfits. Overall the quality is slightly superior to the subject and required a negative adjustment. Lease Comparable Four  is located in Statesville, NC. The location is inferior as compared to Charlotte and a positive adjustment was made. This building has a similar size and no adjustment was made. This building rior to the mix of metal and masonry construction has metal panel construction which is somewhat infe found in the subject. The clear ceiling heights and the upfits for manufacturing are inferior. Overall we made a positive adjustment for the inferior quality. We also found a few listings for industrial spac es in the local market that are presented on the following page. 52 FRED H. BECK & ASSOCIATES, LLC

73 Case 19-10989 Doc 4 Filed 05/06/19 Page 73 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. The asking rents range from a low of $2.95 to a high of $6.00 per square foot. The lowest rate is located outside of Charlotte in Gastonia, NC. This is just west of Charlotte but inferior in location. These buildings are all older, second generation buildings that are similar in age/condition and overall quality that is similar to the subject. Most are listed as manufacturing spaces and may lack some of the manufacturing upfits found in the subject such as heavy concrete floors and elec trical upfits. It is noted that there are no listings in Charlotte that would compete with the subject. RECONCILIATION OF RENTAL RATE The subject contains a total of 138,544 square feet. The adjusted comparable lease rates $3.60 to $3.84 per square foot, with an provide market rent indications ranging from believe a market rental rate of $3.75 is average indication of $3.74 per square foot. We reasonable for the subject. Therefore, the potential gross income for the subject is estimated at $519,540 . REIMBURSEMENT REVENUE The subject would most likely be leased on a triple net basis, wherein the tenant is responsible for the tax, insurance and repair and maintenance expenses. Most of these expenses will be billed directly to the tenant and in reality, will not be reimbursed to the lessor. We have chosen to show these estimate d expenses in this report as the lessor would 53 FRED H. BECK & ASSOCIATES, LLC

74 Case 19-10989 Doc 4 Filed 05/06/19 Page 74 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. be responsible for these costs, should the tenant default on the lease or during periods of , the total of the reimbursable expenses is vacancy. As will be shown later in this report estimated at $82,125 . TOTAL POTENTIAL GROSS REVENUE Total potential gross revenue amounts to base rent of $519,540 , reimbursement income of $82,125 , for a total of $601,665 , or $4.34 per square foot. VACANCY AND COLLECTION LOSS In this report, we have been requested to provide an opinion of value, for the fee simple interest in the subject property. The subject is currently owner occupied. According to local property managers, once a property reaches stabilization, it tends to remain occupied. The risk of vacancy, once a property reaches stabilization from the potential of default on a lease by an existing tenant, or from roll over at the expiration of a lease change in this analysis. In the NNN lease term is minimal. We will exclude a vacancy market, investors typically do not include deductions for vacancy and collection loss, but rather they include the risk to the cash flow, in the overall rate that is applied to the NOI. This is the method that is used by buyers, sellers and brokers in this market. As this is the method used by market participants, we also wi ll reflect the risk to the cash flows, in the capitalization rate that is applied to the NOI. EFFECTIVE GROSS REVENUE Effective gross revenue is th e total potential gross revenu e of $601,665 less vacancy & credit loss of $0. This equates to effective gross revenue of per square $601,665 , or $4.34 foot. EXPENSES In addition to analyzing the income potential for the subject facility, we have considered typical operating expenses. Our calculation of property taxes, insurance, common area maintenance, management, and capital re serves are estimated based on 138,544 square feet. 54 FRED H. BECK & ASSOCIATES, LLC

75 Case 19-10989 Doc 4 Filed 05/06/19 Page 75 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. REIMBURSABLE EXPENSES REAL ESTATE TAXES As discussed previously, real property taxes are based on current tax values and tax rates. The tax expense is estimated at $33,635 or $0.34 per square foot. INSURANCE Comparable properties report the real property insurance expense ranging from $0.05 to $0.12 per square foot annually. The lower end of the range is for properties owned by a national investor, who insures his properties as part of a much larger portfolio. For the subject, we have input this expense at $0.10 per square foot, for a total deduction of $13,854 . We have input this expense, accordingly. REPAIR & MAINTENANCE Our estimate of building repairs and maintenance includes expenses for grounds and landscaping maintenance costs, and building repairs and maintenance costs. CAM expenses for similar properties range of from $0.20 to $0.45 per square foot, with $0.25 to $0.30 per square foot being typical. The subject site has minimal landscaping and the icant repairs on the part of the ownership. economics of the property do not require signif For the subject, we have input this expense at SF . This expense is estimated at $0.25 / $34,636 . NON-REIMBURSABLE EXPENSES MANAGEMENT Management fees for investor owned buildings depend on the number of tenants, the size and quality of improvements and the size of the cash flow. This fee includes both the fee paid to the property manager and admini strative overhead. Larger, single tenant properties tend to have the lowest manage ment costs, while smaller, multi-tenant properties are more management intensive and a higher percentage of the revenue is required for property management. The subject consists of one, single tenant properties, which would require minimal time, for a property manager to oversee. For the subject, we have estimated this expense at 2% of the base rent which is typical in the local market. This expense is estimated at $10,391 . 55 FRED H. BECK & ASSOCIATES, LLC

76 Case 19-10989 Doc 4 Filed 05/06/19 Page 76 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. RESERVES the costs to replace short-lived capital A reserve account is established to cover improvements over a projected holding period. The expense associated with this reserve account excludes routine repair costs, which are covered in our repair and maintenance expense. It also would exclude short lived items that would not n eed to be replaced during the projected holding period. Typical items that may or may not require period would include asphalt pavement, replacement during a projected holding concrete, HVAC, and the roof. The subject has an average effective of approximately 25 years and historically, it has been well maintained. Over the next ten years, some for the roof, parking lots & HVAC systems. repairs/replacements are likely to be needed Based on the design, use and age of the facility, it is our opinion that a reserve expense at $0.10 $13,854 . per square foot is reasonable. This would amount to NET OPERATING INCOME The estimate of Net Operating Income (NOI ) is obtained by deducting the projected expenses of $82,125 from the EGI of $601,665, for a total of $495,295 or $3.58 per square foot. SUMMARY - INCOME APPROACH - AS IS Gross Rent Size Income $ 3.75 138,544 Potential Gross Rent 519,540 $ $ 0.59 Reimbursement Income $ 82,125 4.34 $ Potential Gross Income 601,665 $ - $ - $ 0% Vacancy 4.34 $ Effectiv e Gross Incom e $ 601,665 0.24 $ 33,635 $ Taxes 0.10 $ Insurance $ 13,854 0.25 $ 34,636 $ Repair & Maintenance Subt ot al 82,125 $ 2% Ma nag em ent 10,391 $ 0.10 $ 13,854 $ Reserves Subt ot al $ 24,245 (0.77) $ To t al Expenses (106,370) $ $ 3.58 Net Operating Income 495,295 $ FRED H. BECK & ASSOCIATES, LLC 56

77 Case 19-10989 Doc 4 Filed 05/06/19 Page 77 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. DIRECT CAPITALIZATION Direct capitalization is defined as "a method us ed to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the lization rate or by multiplying the income net income estimate by an appropriate capita 16 estimate by an appropriate factor". Direct capitalization is market oriented and the appraiser analyzes market evidence and places the value on a property by utilizing the assumptions of typical investors observed. Direct capitalization does not explicitly differentiate between the return on and the return of capital because investor assumptions are not specified. However, it is assumed that the selected rate will satisfy a typical investor and those prospects for fu ture benefits over and above the amount originally invested are sufficiently attractive. In selecting an appropriate overall capitalization rate to apply to an income stream, the abstraction method has been utilized. tion rate to apply to an income stream, In selecting an appropriate overall capitaliza several methods may be employed, most notably market surveys, a band of investment and sales abstractions. The subject is a non-investment grade proper ty that we have assumed would be leased for a term of five years to a local or regi onal, non-credit rated tenant. In making our analysis of risk assessment, we assume that th e subject is leased at typical market terms to a tenant with risk parameters that would be similar that associated with the current nt characteristics associated with these assumptions, the ownership. Given the investme most likely purchaser would be a regional investor. As such, we will derive our overall rate by way of a Band of Investment, national surveys and from information extracted from market sales of investment properties. 16 th The Appraisal of Real Estate, 14 Edition, Chicago, IL (Page 419) 57 FRED H. BECK & ASSOCIATES, LLC

78 Case 19-10989 Doc 4 Filed 05/06/19 Page 78 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. BAND OF INVESTMENT Brokers familiar with the market indicated that capitalization rates are directly and closely related to long-term interest rates, and as in terest rates fluctuate, so do capitalization rates. Based on this observation, a band of investment analysis was considered appropriate to estimate the overall capitali zation rate (OAR) of the subject property. Because most commercial properties are acquired with mortgage financing, the band of account that the overall capita investment analysis takes into lization rate must satisfy a lender’s mortgage investment criteria and an equity investor’s investment criteria. A lender’s investment criteria will be reflecte d by the use of a “mortgage constant”. It is the ratio of the annual debt service to the principal amount of the mortgage loan. It is a function of the interest rate, the frequency of amortization, and th e amortization period. The equity investor’s investment criteria are reflected in the “equity capitalization rate”. It is the ratio of annual pre-tax cash flow to the amount of equity investment. The overall capitalization rate is the weighted average of the mortgage constant (Rm) and the . The loan to value ratio (L/V) represents the loan or debt equity capitalization rate (Re) portion of the property investment. The formula is shown below. BAND OF INVESTMENT COMPUTATION Component Formula Result Mortgage (L/V) x Rm = Mortgage component of the OAR Equity (1-(L/V)) x Re = Equity component of the OAR Total Weighted OAR MORTGAGE COMPONENTS In order to estimate the mortgage component in the Band of Invest ment, we relied on house Properties, as of the Third Quarter information found in RealtyRates.com for Ware 2017. Information from this survey is summarized on th e chart below. BAND OF INVESTMENT INPUTS - MANUFACTURING Minimum Average Mortgage Maximum Conclusion Interest Rate 7.25% 5.26% 5.00% 3.26% Amortization Period 35 15 25 20 Loan to Value Ratio 63.00% 75.00% 75.00% 50.00% Mortgage Constant 0.0479 0.0719 0.1095 0.0792 Equity Component Equity Return 11.29% 11.25% 7.47% 15.97% Equity Investment 25.00% 50.00% 30.00% 25.00% RealtyRates.com 3Q 2017 58 FRED H. BECK & ASSOCIATES, LLC

79 Case 19-10989 Doc 4 Filed 05/06/19 Page 79 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. Using the above inputs, the minimum, maximum, average and our concluded y, as developed through the use of a Band appropriate overall rate for the subject propert of Investment are shown as follows. Equity Equity Mortgage LTV Implied Mortgage Equity Investment Component Constant Ratio Component Return OAR Minimum 25.00% 5.46% 3.60% 1.87% 0.0479 7.47% 75.00% 13.46% 50.00% Maximum 5.48% 7.99% 15.97% 0.1095 50.00% 30.00% 7.92% Average 4.53% 3.39% 11.29% 63.00% 0.0719 25.00% 8.75% Conclusion 5.94% 2.81% 75.00% 0.0792 11.25% of investment OAR is 0.0875 or 8.75%. Based on the above inputs, our band MARKET SURVEY METHOD We also gave consideration to information contained in a survey of investors done by RealtyRates.com. The Realty Rate Market Survey indicates that overall rates for Class A & B investor owned both for all industrial properties and for Manufacturing properties. 2017 survey is summ arized below. Information from the First Quarter REALTY RATES INVESTOR SURVEY - 3Q 2017 High Low Average All Industrial Types 4.47% 9.56% 13.48% 11.61% 8.21% 4.47% Warehouse / Distribution Flex / R&D 13.48% 5.57% 9.84% 12.79% 5.19% 8.95% Manufactur i ng MARKET EXTRACTION The final area to be examined is that of ov erall rates that were achieved in sales of competing properties located in the regional market. A deduction for management fees and reserves are included. Information on these sales is summarized on the chart below. OVERALL RATE ANALYSIS # State Adj. Sale Price Sale Date Tenant Size City NOI Rem. Term Credit Location OAR 720 Cel-River Road Rock Hill SC 2,812,181 $ Mar-17 Pratt Industries 72,332 Sq.Ft. 7.83% 220,271 $ 7 Years Not Rated 1 108,000 Sq.Ft. 2711 Comm erce Rd NC 3,489,000 $ Jun-16 DelStar Technologies Wilson 8.65% 301,700 $ 10 Years Not Rated 2 8.41% 10911 Granite St Charlotte NC 4,000,000 $ Apr-15 Quad Graphics 100,276 Sq.Ft. 336,459 $ 6 Years Not Rated 3 7 Years 2801 Interstate St 1,868,495 $ Jan-15 National Oak 41,500 Sq.Ft. 8.20% 153,200 $ NC Not Rated Charlotte 4 Subject Pr operty Charlotte NC N/A N/A N/A N/A - $ 8.27% 8 Years Mea n Indi cat i o n - 8.31% 7 Years $ Median Indication - $ 8.65% 6 Years Minimum Value Indication - $ 7.83% 10 Years Maxi m um Val ue Indi cat i o n 59 FRED H. BECK & ASSOCIATES, LLC

80 Case 19-10989 Doc 4 Filed 05/06/19 Page 80 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. As can be seen in the above chart, four sales of properties with investment characteristics similar to those expected for the subject prop erty were conveyed at overall rates ranging from 7.83% to 8.65%, with an average of 8.27%. All four sales are single tenant, NNN leased properties, with investment characteristics simi lar to what we would expect for the subject ed somewhat since the time of these sales property. Overall rates have generally declin and average a little lower than the hist orical average shown in the table. CONCLUSION – OVERALL RATE In concluding the appropriate rate at which to capitalize the Net Operating Income, we relied upon the use of a Band of Investment and the market extraction method to form our opinion, as to what would be appropriate to the subject. We began our analysis with h this method was the Band of Investment. The overall rate , as developed throug calculated at 8.75%. These calculations are based on typical market terms for properties with risk parameters that are similar to those associated with the subject property. We also gave consideration to information from similar market sales that ranged from 7.83% to 8.65% and they averaged 8.27%. Over the last two years, rates have been gene rally been decreasing, though there is still considerable risk associated with non-credit tenants in second generation buildings that are somewhat specialized. The subject property is a light manufacturing, single user property that is located in Charlotte, NC. The local industrial market has seen decreasing vacancy rates, increasing rental rates and demand has been increasing over the past two years. The subject is an older second generation building that has recently had a specialized manufacturing addition added to the existing facility. The overall rate as developed through the Band of Investment was 8.75%. The market extracted 8.27% is the average of four sales that are considered to be the similar to the subject. We believe that the subject would fall in the middle of the range Based on the above discussion it is our opinion that an overall rate of 8.50% is appropriate for the subject property. 60 FRED H. BECK & ASSOCIATES, LLC

81 Case 19-10989 Doc 4 Filed 05/06/19 Page 81 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. d through the Direct Capitalization of the The value of the subject property, as develope Net Operating Income is summarized below. SUMMARY - INCOME APPROACH - AS IS Gross Rent Size Income $ 3.75 138,544 Potential Gross Rent $ 519,540 $ 0.59 $ 82,125 Reimbursement Income 4.34 $ Potential Gross Income $ 601,665 - $ Vacancy 0% $ - $ 4.34 Effectiv e Gross Incom e 601,665 $ 0.24 $ Taxes 33,635 $ 0.10 $ 13,854 $ Insurance 0.25 $ Repair & Maintenance 34,636 $ Subt ot al 82,125 $ 2% Ma nag em ent $ 7,793 0.10 $ Reserves 13,854 $ 21,647 $ Subt ot al (0.75) $ (103,772) $ To t al Expenses 3.59 $ Net Operating Income 497,893 $ Value Analysis Inputs NOI $ 497,893 OAR 8.50% Value Indication 5,857,565 $ Rounded to 5,860,000 $ VALUE BY DIRECT CAPITALIZATION AS IS – NOVEMBER 15, 2017 FEE SIMPLE INTEREST $5,860,000 FRED H. BECK & ASSOCIATES, LLC 61

82 Case 19-10989 Doc 4 Filed 05/06/19 Page 82 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. INCOME APPROACH TO VALUE (“AT COMPLETION OF THE PHASE II ADDITION”) The subject is slated to have 6,800 square f eet of production space added to the existing facility. The new space will have heavy concrete floors, 26’ to 50’ clear ceiling heights, heavy electrical upfits, sprinkler, craneway and a restroom. The new addition will expand the gross square footage to 145,344 square f eet. The effective age of the improvements at completion is estimated to be 20 years. We utilized the same lease comparables but changed the lease grid by inputting the new gross size, new office percentage and new BCR for the subject. Our thoughts are the same as the “As Is” analysis for this relatively small expansion of the latest addition to the production area. An adjustment grid for lease comparables is shown as follows. Subject 1 2 3 4 1420/30 Metals Dr 2601 Westinghouse Blvd 725 Reese Dr SW LOCATION 1872 Old Mountain Rd 10510 Tw in Lakes Parkw ay CITY Charlotte Conover Charlotte Statesville Charlotte NC NC NC NC STATE NC N/A V-MCB Westinghouse Conover Web, LLC LESSOR Nandina Properties III, LLC Murata Weidman, Inc. LESSEE N/A Carter Lumber Hickory Printing Solutions, LLC Aramark Healthcare Orvis RPM, LLC YEAR BUILT 1960-2018 1982 - 1990 1994 1991 1978 EFFECTIVE AGE 20 Years 15 Years 10 Years 20 Years 15 Years Masonry/Metal Tilt-up Cavity Brick Metal CONSTRUCTION Metal 3.77% 12.13% 17.82% PERCENT OFFICE 3.80% 21.80% CLEAR HEIGHT 14 to 50 Feet 24 Feet 22 - 36 Feet 30 Feet 15 to 23 Feet PROPERTY TYPE Manufacturing Storage WH Manufacturing Manufacturing Manufacturing BCR 17.91% 7.29% 12.17% 11.36% 26.89% LEASE BEGINS N/A Oct-15 Jun-15 Mar-13 Oct-14 LEASE TERM N /A 15 Years 5 Years 10 Years 3 Years NNN NNN STRUCTURE NNN NNN NNN ESCALATIONS N/A Flat Step Flat 2.00% 145,344 SIZE 124,967 91,740 74,498 107,365 BASE ANNUAL RENT N/A 339,050 $ 504,844 $ 414,000 $ 206,500 $ ANNUAL RENT / SF 3.16 $ 4.04 $ 4.51 $ 2.77 $ N/A LEASE ADJUSTMENTS 6,785 $ $ CURRENT RENT 345,835 $ 504,844 N/A 414,000 $ 206,500 $ 4.51 CURRENT RENT / SF N/A 3.22 $ 4.04 $ $ 2.77 $ MARKET CONDITIONS CONDITION OF LEASE STRUCTURE TERMS N/A 3.22 $ 4.04 $ 4.51 $ 2.77 ADJUSTED RENT / SF $ LOCATION 5% 10% SIZE AGE/CONDITION -5% -5% -10% QUALITY 20% -5% -5% 20% BCR 0% 15% -5% -15% 30% TOTAL ADJUSTMENTS INDICATION N/A 3.70 $ 3.84 $ 3.83 $ 3.60 $ The adjusted rental rates ranged from a low of $3.60 to a high of $3.84 per square foot and averaged $3.74 per square foot. The market rental rate for the subject, At Completion, is estimated at $3.75 per square foot. Given the same discussion for the income, expenses and overall cap rate, the At Completion of expansion value is estimated on the following page. 62 FRED H. BECK & ASSOCIATES, LLC

83 Case 19-10989 Doc 4 Filed 05/06/19 Page 83 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SUMMARY - INCOME APPROACH - AT COMPLETION OF EXPANSION Size Gross Rent Income $ 3.75 Potential Gross Rent 145,344 545,040 $ $ 0.90 Reimbursement Income 131,046 $ 4.65 $ 676,086 $ Potential Gross Income - $ - $ 0% Vacancy $ 4.65 676,086 $ Effectiv e Gross Incom e $ 0.55 Taxes 80,176 $ 0.10 $ 14,534 $ Insurance 0.25 $ Repair & Maintenance $ 36,336 131,046 $ Subt ot al 2.0% Ma nag em ent 10,901 $ 0.10 $ Reserves 14,534 $ Subt ot al 25,435 $ (1.08) $ (156,481) $ To t al Expenses $ 3.58 519,605 $ Net Operating Income Value Analysis Inputs 519,605 $ NOI OAR 8.50% Value Indication 6,113,000 $ Rounded to $ 6,115,000 VALUE BY DIRECT CAPITALIZATION AT COMPLETION OF EXPANSION MAY 15, 2018 FEE SIMPLE INTEREST $6,115,000 63 FRED H. BECK & ASSOCIATES, LLC

84 Case 19-10989 Doc 4 Filed 05/06/19 Page 84 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SALES COMPARISON APPROACH The Sales Comparison Approach is based on the assumption that an informed purchaser will pay no more for a property than the cost of acquiring an existing property of similar utility. Typically, one would estimate the va lue of the subject property by comparing the sales prices of recent transactions involving property similar to the subject. Adjustments are compared to the subject property. These made to each sale for dissimilarities as adjustments may include the date of sale, location, age, floor plan, condition, quality, size or external factors that may influence rents or occupancy levels. Typically, the reliability of the Sales Comparison Approach is based on a number of factors such as:  Availability of comparable sales data.  Verification of sales data.  Degree of comparability to the extent that large or numerous adjustments are not necessary to compensate for the differences between th e subject property and the comparable sales used. We have found that the reliability of the Sales Comparison Approach for traditional real estate is excellent when valuing vacant land, single-family homes or small commercial type properties where there is more activi ty, a larger database and greater degree of comparability. For more complex and larger investment grade properties such as quired adjustments are shopping centers, office buildings, hotels an d nursing homes, the re often numerous and the degree to which they can be performed without a considerable amount of subjectivity is difficult. As mentioned previously, a number of factors must be verifiable and documented in order to make appropriate adjustments for automobile dealerships.  Property Rights  Date of Sale  Condition of Sale  Location (land value)  Building Size  Showroom/office percentage  Age/Condition  Quality/Appeal We have analyzed a number of sales but includ ed only those believed most similar to the subject. The information from the sales analyzed will be used to determine a value opinion for the subject property by the Sales Comparison Approach. The unit of comparison will be the price paid per square foot. The following sales are offered as an indication of value for the subject property as of th e date of this assignment. 64 FRED H. BECK & ASSOCIATES, LLC

85 Case 19-10989 Doc 4 Filed 05/06/19 Page 85 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. IMPROVED SALE COMPARABLE ONE IMPROVED SALE ONE LOCATION 8100 South Boulev ard ADDRESS NC Charlotte 205-164-04 TAX REFERENCE NUMBER SALES DATA BMJ of Charlotte, LLC GRANTOR M SC South Blv d, LLC GRANTEE September 28, 2016 DATE OF SALE 31206 40 DEED BOOK / PAGE $4,400,000 $38.40 SALES PRICE - PRICE / SF $38.40 $4,400,000 ADJUSTED SALE PRICE - / SF Cash to Seller Arm's Length TERMS /CONDITION OF SALE Brad Cherry- Broker, Deed CONFIRMATION SITE DATA 8.985 Acres . Acres LAND AREA / EXCESS LAND 29.28% BUILDING COVERAGE RATIO All M unicipal I -2, I ndustrial UTILITIES / ZONING IMPROVEMENT DATA 114,588 Sq.Ft. M anufacturing IMPROVEMENT TYPE / SIZE 5.97% 6,846 Sq.Ft. OFFICE - SF / % 16 Feet Masonry CONSTRUCTION - CLEAR HEIGHT 25 Years 1968 YEAR BUILT - EFFECTIVE AGE Full HVAC in office, gas heat in w arehouse, Dry sprinkler, 8 COMMENTS Dock high door, tw o interior dock w ells. The asking price w as $5,500,000 FRED H. BECK & ASSOCIATES, LLC 65

86 Case 19-10989 Doc 4 Filed 05/06/19 Page 86 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. IMPROVED SALE COMPARABLE TWO IMPROVED SALE TWO LOCATION 530 East Sugar Creek Rd ADDRESS Charlotte NC 091-071-04 TAX REFERENCE NUMBER SALES DATA Ark Promotions, I nc GRANTOR 530 sugar Creek Partners, LLC GRANTEE August 30, 2016 DATE OF SALE 31126 508 DEED BOOK / PAGE $35.38 $2,300,000 SALES PRICE - PRICE / SF $35.38 $2,300,000 ADJUSTED SALE PRICE - / SF Cash to Seller Arm's Length TERMS / CONDITION OF SALE Scott Hensley - Broker CONFIRMATION SITE DATA . Acres 4.501 Acres LAND AREA / EXCESS LAND 33.16% BUILDING COVERAGE RATIO I -2, I ndustrial All M unicipal UTILITIES / ZONING IMPROVEMENT DATA 65,010 Sq.Ft. Warehouse IMPROVEMENT TYPE / SIZE 4,680 Sq.Ft. 7.20% OFFICE - SF / % Masonry 14 Feet CONSTRUCTION - CLEAR HEIGHT 25 Years 1960 YEAR BUILT - EFFECTIVE AGE Full HVAC in office, gas heat in warehouse. Former manufacturing COMMENTS facility w ith 5 dock high doors, 3 grade lev el doors, dry sprinkler, T-5 lights, heavy power (5,200 Amps). Two 15 -Ton and one 20-Ton bridge crane New roof cover in 2013. Originally built in 1980 w ith w arehouse expansion in 1990 66 FRED H. BECK & ASSOCIATES, LLC

87 Case 19-10989 Doc 4 Filed 05/06/19 Page 87 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. IMPROVED SALE COMPARABLE THREE IMPROVED SALE THREE LOCATION 2027 Gatew ay Blv d ADDRESS Charlotte NC 061-161-14 TAX REFERENCE NUMBER SALES DATA Precision Steel Warehouse, I nc. GRANTOR I TW Charlotte, LLC GRANTEE M ay 20, 2016 DATE OF SALE 30838 426 DEED BOOK / PAGE $51.66 $3,575,000 SALES PRICE - PRICE / SF $51.66 $3,575,000 ADJUSTED SALE PRICE - / SF Arm's Length Cash to Seller TERMS / CONDITION OF SALE John Nichols- Listing Broker CONFIRMATION SITE DATA . Acres 8.04 Acres LAND AREA - EXCESS LAND 19.76% BUILDING COVERAGE RATIO I -1, I ndustrial All M unicipal UTILITIES IMPROVEMENT DATA M anufacturing 69,200 Sq.Ft. IMPROVEMENT TYPE / SIZE 11.85% 8,200 Sq.Ft. OFFICE - SF / % Block/Metal 32 Feet CONSTRUCTION - CLEAR HEIGHT 20 Years 1980 YEAR BUILT - EFFECTIVE AGE Full HVAC , fenced yard, 180 paved parking, heavy power and full COMMENTS wet sprinkler 67 FRED H. BECK & ASSOCIATES, LLC

88 Case 19-10989 Doc 4 Filed 05/06/19 Page 88 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. IMPROVED SALE COMPARABLE FOUR IMPROVED SALE FOUR LOCATION 1118 W Craighead Rd ADDRESS NC Charlotte 087-041-10 TAX REFERENCE NUMBER SALES DATA Alv inn, LLC GRANTOR Aydin A Fazylov GRANTEE February 10, 2014 DATE OF SALE 28997 554 DEED BOOK / PAGE $30.27 $1,000,000 SALE PRICE - PRICE / SF $30.27 $1,000,000 ADJUSTED PRICE - / SF Arm's Length Cash to Seller TERMS / CONDITION OF SALE Ian Bertolina - Listing Broker CONFIRMATION SITE DATA N/A 3.77 Acres LAND AREA / EXCESS LAND 20.12% BUILDING COVERAGE RATIO I ndustrial All M unicipal UTILITIES IMPROVEMENT DATA 33,040 Sq.Ft. M anufacturing IMPROVEMENT TYPE / SIZE 5.75% 1,900 Sq.Ft. OFFICE - SF / % 24 Feet Metal CONSTRUCTION - CLEAR HEIGHT 25 Years 1981 YEAR BUILT - EFFECTIVE AGE Full heat, no sprinklers, 4 driv e-in doors, 50 pav ed parking COMMENTS spaces. 68 FRED H. BECK & ASSOCIATES, LLC

89 Case 19-10989 Doc 4 Filed 05/06/19 Page 89 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. SUMMARY OF IMPROVED SALES COMPARABLES FEE SIMPLE IMPROVED SALES SUMMARY AS IS Subject 1 3 4 Sale Number 2 8100 South Boulev ard 1118 W Craighead Rd 2027 Gateway Blv d 1420 & 1430 M etals Dr Address 530 East Sugar Creek Rd Charlotte Charlotte Charlotte Charlotte City Charlotte NC NCNCNCNC State Sale / List Price N/A $ 2,300,000 $ 3,575,000 $ 1,000,000 $ 4,400,000 Adjusted Sale Price 4,400,000 $ 2,300,000 $ 3,575,000 $ 1,000,000 $ N/A Sale Date N/A Sep-16 Aug-16 May-16 Feb-14 Condition of Sale Arm's Length Arm's Length Arm's Length Arm's Length Arm's Length Manufacturing Manufacturing Warehouse Property Type Manufacturing Manufacturing Size 114,588 Sq.Ft. 65,010 Sq.Ft. 69,200 Sq.Ft. 33,040 Sq.Ft. 138,544 Sq.Ft. BCR 25.63% 29.28% 33.16% 19.76% 20.12% Year Built 1968 1960 1980 1981 1960-2017 Effectiv e Age 20 Years 25 Years 25 Years 20 Years 25 Years % Office & Showroom 3.96% 5.97% 7.20% 11.85% 5.75% Masonry Construction Masonry/Metal Masonry Metal Block/Metal Clear Height 14-50 Feet 14 Feet 32 Feet 24 Feet 16 Feet 30.27 N/A 35.38 $ 51.66 $ $ $ Adjusted Price / SF 38.40 Property Rights Financing Condition of Sale N/A 38.40 $ 35.38 $ 51.66 Subtotal 30.27 $ $ M arket Conditions 6% 32.09 N/A $ 35.38 $ Adjusted Price / SF $ 38.40 $ 51.66 Location -10% Bldg. Size -5% Age / Condition 5% 5% 5% Quality 15% -5% 30% 20% BCR Total Adjustments 10% 25% -5% 30% 0.00% Value Indication N/A 42.24 $ 44.23 $ 49.08 $ 41.72 $ EXPLANATION OF ADJUSTMENTS The following are generally accepted adjustment categories. The first four categories - real property rights appraised, financing, conditions of sale, and market conditions (time) are cumulative. Normally, a sale should be ad justed for the cumulative adjustment where the remaining adjustments such as location and other physical characteristics are applied. Location, physical characteristics and other adjustments are additive, and may be in any order. An explanation of each adjustment category is as follows: PROPERTY RIGHTS APPRAISED The real property rights conveyed is the fi rst adjustment because the appraisal of the subject property rights can only be compar ed to similar property rights. All of the 69 FRED H. BECK & ASSOCIATES, LLC

90 Case 19-10989 Doc 4 Filed 05/06/19 Page 90 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. comparable sales are fee simple transactions, which is the same as the property rights appraised in the subject. No adjustments are necessary. FINANCING A financing adjustment is actually a specif ic motivation adjustment and often is not capable of being accurately derived from the mathematical discounting process. The most reliable financing adjustment is from paired sales that are generally not available through sales information. Cash equivalency is the adjustment of a sales price to an equivalent price if sold for cash, absent th e contract terms of the loan. The adjustment may be negative to reflect favorable terms to positive to reflect unfa vorable terms. All of the comparable sales were cash transactions ; therefore, no financing adjustments are necessary. CONDITIONS OF SALE (MOTIVATION) Typical adjustments under this category in clude adjustments for plottage, purchasing additional land for expansion, or other typi cally motivated sales. All of the sales were typically motivated and no adjustments were indicated. MARKET CONDITIONS (TIME) It is market conditions and not the passage of time that cause prices to change. This is an example of the principle of change. A market conditions adjustment is a cumulative adjustment within the Sales Comparison Appr and three are recent oach. Sales one, two and no adjustments were applied. Sale four is an older sale and market conditions have improved since the time of this sale and a positive adjustment was applied. LOCATION Factors directly related to location as well as trends and characteristics such as population, labor supply, transportation and existing land uses are considered. Sale one is located in south Charlotte along the light rail line. This site is furt her from the interstate location is superior as compared to the transportation network; however, overall the subject and a negative adjustment was applie d. Sales two, three and four have similar locations and no adjustment was applied. BUILDING SIZE Adjustments are considered base d on optimum size, and overall utility of the comparable sales as compared to the subject. Economie s of scale are often considered in this adjustment when market proof supports the pr emise that the larger the buildings size, the lower the unit price and vice versa. The subjec t facility has a size of 138,544 square feet. 70 FRED H. BECK & ASSOCIATES, LLC

91 Case 19-10989 Doc 4 Filed 05/06/19 Page 91 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. Comparable sales one, two and three are similar in size and no adjustment was applied. Sale four is smaller and a negative adjustment was made. AGE/CONDITION The effective age of an improvement differs from the actual age in that it is based on the amount of observed deterioration and obsolescence it has sustained. The effective age of the subject improvements is 20 years. Sales one, two and four have inferior effective ages and positive adjustments are warranted. Sale three has a similar effective age and no adjustment was applied. QUALITY Quality consists of several elements that make up the improvements such as construction materials, clear ceiling heights, column spacing and any amenities such as larger areas of HVAC coverage. The subject has brick/block and metal construction and has a clear ceiling height of 14 to 50 feet. Sale one has masonry construction with low clear ceiling heights and lacks some of the manufacturing upfits found in the subject. A positive ry low clear ceiling adjustment was applied. Sale two has masonr y construction with ve heights and lacks the manufacturing upfits found in the subject. We made a positive adjustment for the overall inferior quality. Sale three has masonry and metal panel construction with full HVAC, fenced yard and overall superior clear ceiling heights. We overall quality. Sale four has metal panel made a negative adjustment for the superior construction with inferior clear ceiling heights. Overall the quality is inferior and a positive adjustment was applied. BUILDING COVERAGE RATIO The BCR is the relationship of the land area to the improvement size. All sites will have open areas for required buffers, setback, and landscaping. Adjustments are made for significant areas of land that could be utilized for expansion or sold. The BCR for the subject is 25.63%. All four sales have BCR’s that fall within the typical coverage range for industrial properties. We refrained from making any adjustments. RECONCILIATION OF SALES COMPARISON APPROACH – AS IS Prior to adjustments, the sales ranged from $30.27 to $51.66 per square foot. The range of the value indications after adjustments is from $41.72 to $49.08 per square foot for the comparable properties . The average of the four compar able sales is $44.32 per square foot. We placed equal weight on the four sales. 71 FRED H. BECK & ASSOCIATES, LLC

92 Case 19-10989 Doc 4 Filed 05/06/19 Page 92 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. After analyzing all the available information, it is our opinion that the market value of the fee simple interest in the su bject property is $44.00 per sq uare foot. Based on a gross building area of 138,544 square feet at $44. 00 per square foot, a value indication of $6,095,936 is obtained. We have rounded this figure to $6,100,000. VALUE BY SALES COMPARISON APPROACH AS IS AS OF NOVEMBER 15, 2017 $6,100,000 We utilized the same comparable sales for our “At Completion of expansion” opinion of the relatively small size of the expansion value via the sales comparison approach. Due to only small changes were made for the percentage of office space and the BCR. The clear ceiling heights in this addition are also super-adequate in the market with modern clear heights rarely exceeding 32 feet clear. The 50 foot ceiling heights are necessary to house the production equipment for the owne r. The addition will also include heavy concrete floors, machine pits. The heavy concrete floors are found in some manufacturing facilities in the region, particularly metal stamping, plastic injection molding some printing ral industrial market the 50’ clear ceiling operations that we are aware of. In the gene height section of the production space is super-adequate; however, if that feature is needed we have seen end users pay for that specific feature. Therefore we have considered this fact in making quality adjustments for the completed facility. We have shown the adjustment grid for the subject “At Completion of expansion” on the following page. 72 FRED H. BECK & ASSOCIATES, LLC

93 Case 19-10989 Doc 4 Filed 05/06/19 Page 93 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. FEE SIMPLE IMPROVED SALES SUMMARY AT COMPLETION OF EXPANSION Subject 1 3 4 Sale Number 2 8100 South Boulev ard 1118 W Craighead Rd 2027 Gateway Blv d 1420 & 1430 M etals Dr Address 530 East Sugar Creek Rd Charlotte Charlotte Charlotte Charlotte City Charlotte NC NC NC NC State NC Sale / List Price 4,400,000 $ 2,300,000 $ 3,575,000 $ 1,000,000 $ N/A N/A 4,400,000 $ 2,300,000 $ 3,575,000 $ 1,000,000 $ Adjusted Sale Price Sale Date N/A Sep-16 Aug-16 May-16 Feb-14 Condition of Sale Arm's Length Arm's Length Arm's Length Arm's Length Arm's Length Manufacturing Manufacturing Warehouse Property Type Manufacturing Manufacturing Size 114,588 Sq.Ft. 65,010 Sq.Ft. 69,200 Sq.Ft. 33,040 Sq.Ft. 145,344 Sq.Ft. BCR 26.89% 29.28% 33.16% 19.76% 20.12% Year Built 1968 1960 1980 1981 1960-2018 Effectiv e Age 20 Years 25 Years 25 Years 20 Years 25 Years % Office & Showroom 3.77% 5.97% 7.20% 11.85% 5.75% Metal Construction Masonry/Metal Masonry Masonry Block/Metal Clear Height 14-50 Feet 32 Feet 24 Feet 16 Feet 14 Feet 30.27 38.40 35.38 N/A 51.66 $ $ $ Adjusted Price / SF $ Property Rights Financing Condition of Sale N/A 38.40 $ 35.38 $ 51.66 $ 30.27 $ Subtotal 6% Market Conditions N/A 38.40 $ 35.38 $ 51.66 $ 32.09 Adjusted Price / SF $ -10% Location Bldg. Size -5% Age / Condition 5% 5% 5% Quality 15% 20% -5% 30% BCR Total Adjustments 10% 25% -5% 30% 0.00% 41.72 N/A $ Value Indication $ 49.08 $ 42.24 $ 44.23 RECONCILIATION OF SALES COMPARISON APPROACH – AT COMPLETION OF EXPANSION Prior to adjustments, the sales ranged from $30.27 to $51.66 per square foot. The range of the value indications after adjustments is from $41.72 to $49.08 per square foot for the comparable properties . The average of the four compar able sales is $44.32 per square foot. We placed equal weight on the four sales. After analyzing all the available information, it is our opinion that the market value of the fee simple interest in the subject property will be $44.00 per square foot. Base d on a gross building area of 145,344 square feet at $44.00 per square foot, a value indica tion of $6,395,136 is obtained. We have rounded this figure to $6,400,000. VALUE BY SALES COMPARISON APPROACH AT COMPLETION OF EXPANSION AS OF MAY 15, 2018 $6,400,000 73 FRED H. BECK & ASSOCIATES, LLC

94 Case 19-10989 Doc 4 Filed 05/06/19 Page 94 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. INSURABLE VALUE The computation of an insurable value is more a matter of underwriting and not a matter of valuation, and should be based on items specifically included or excluded from coverage by a specific insurance policy. Insurable value is defined as “ that portion of the owledged or recognized under the provisions value of an asset or asset group that is ackn 17 of an applicable loss insurance policy”. We will proceed with the computation of an insurable value based on 100% replacement cost of the existing structure, which excludes development profit and soft costs, but n for depreciation. The includes adjustment multipliers, and all site costs, with no deductio Replacement Costs New were derived by multiplying the base cost per square foot by the building area. undations below ground, site work and site We will exclude the cost of excavations, fo improvements, architect fees, and undergro und mechanical piping . Inclusions would include appliance packages or personal property, if any. Percentages for excluded items and demolitions costs were derived from the Marshall Valuation Service (Sections 96 and 99). The figures for site improvements were derived from the Site Improvements schedule in the Cost Approach. The estimates for insurable value, based on cost, rather than market information, are summarized on the following page. 17 The Appraisal of Real Estate , 10th ed., (Chicago: Appraisal Institute, 1992), p. 24. 74 FRED H. BECK & ASSOCIATES, LLC

95 Case 19-10989 Doc 4 Filed 05/06/19 Page 95 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. INSURABLE VALUE CALCULATION - AT COMPLETION OF EXPANSION Base Cost Main Structure (Per Square Foot) $ 48.50 Building Area x 145,344 Sq.Ft. TOTAL REPLACEM ENT COST NEW $ 7,153,832 No te: B ase Co st includes Develo pment P ro fit, A djustment M ultipliers, and A ll Site Co sts Per SF Percent Exclusions Excav ations & Site Prep 0.69 $ 1.40% 100,154 $ Foundations $ 4.80% 343,384 $ 2.36 Site Work 0.49 $ 1.00% 71,538 $ Architecture, Engineering & Fees 2.12 $ 4.30% 307,615 $ $ TOTAL EXCLUSIONS 5.66 $ 11.50% 822,691 Percent Per Unit INCLUSIONS Appliance Packages (M ulti-Family Only) $0.00 Patios / Balconies, etc. (M ulti-Family Only) $0.00 Total $0.00 $0 TOTAL INCLUSIONS CONCLUDED INSURABLE VALUE TOTAL REPLACEM ENT COST NEW 7,153,832 $ LESS: TOTAL EXCLUSIONS (822,691) $ PLUS: TOTAL INCLUSIONS - $ CONCLUDED INSURABLE VALUE $ 6,331,141 ROUNDED TO 6,330,000 $ 75 FRED H. BECK & ASSOCIATES, LLC

96 Case 19-10989 Doc 4 Filed 05/06/19 Page 96 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. RECONCILIATION AND SUMMARY OF VALUES Final reconciliation is defined as the proce ss of evaluating alternative conclusions and forming an opinion of value from the approaches used in this report. In this process, we weigh the relative significance, applicability and reliability of the indication of value derived from each approach and place most credence on the one, which, in our professional judgment, best reflects the actions and thought processes of market participants. Both the income and sales comp arison approaches were used to form our opinion of value for the subject and they are presented below: AT COMPLETION AS IS November 15, 2017 OF EXPANSION MAY 15, 2018 INCOME APPROACH $5,860,000 $6,115,000 SALES COMPARISON APPROACH $6,100,000 $6,400,000 onal for the intended owner-user and makes Again, the proposed addition is very functi business sense but may be super-adequate for the typical light industrial user. The difference between cost of $880,000 and value of around $300,000 is attributed to the super-adequate production addition. This is typical for somewhat specialized industrial upfits in the local and regional markets although several industrial users need these type of specific upfits which would be the highest and be st use of the facility at completion of the proposed expansion. Experience indicates that different investors are willing to pay varying amounts for the same property. This phenomenon is due to variations in expectations of income production potential, tax advantages or disadvantages, anticipated reversions, special financing and various other factors. Our opinion of value is based primarily on the value indication as developed within the Sales Comparison Approach. In this report, we are to provide an opinion of value for the Fee Simple in the subject property. When valuing an investor owned property, the income generating capabilities are of primary consideration to the typical owner. The subject property has historically been owner-occupied. We believe the typical buyer would be an owner-user. As such, we have placed primary consideration on the Sales Comparison Approach to value. The Income Approach also provides a good, consistent value indication, which we consider reliable. It is possible that and investor could seek to purchase the facility although due to some of the super-adequate features they would have to have a tenant in hand. The Cost Approach is less relevant in the valuation and the typical buyer would 76 FRED H. BECK & ASSOCIATES, LLC

97 Case 19-10989 Doc 4 Filed 05/06/19 Page 97 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. this form of valuation is omitted from this not consider this approach to value. As such, report. FINAL VALUE CONCLUSIONS Therefore, placing an the most emphasis on the Sales Comparison with support from the Income Approach, it is our opinion that the Fee Simple interest in the subject property is as follows. AS IS AT COMPLETION November 15, 2017 OF EXPANSION MAY 15, 2018 FINAL VALUES $6,100,000 $6,400,000 77 FRED H. BECK & ASSOCIATES, LLC

98 Case 19-10989 Doc 4 Filed 05/06/19 Page 98 of 188 SOUTHEASTERN METAL PRODUCTS, AT 1420 & 1430 METALS DRIVE - CHARLOTTE, MECKLENBURG COUNTY, N.C. ADDENDA NC GENERAL WARRANTY DEED(s) / LEGAL TAX CARDS PHASE II PRELIMINARY EXPANSION BUDGET ENGAGEMENT LETTER ASSUMPTIONS AND LIMITING CONDITIONS APPRAISERS’ CERTIFICATION / POCKET CARD(s) QUALIFICATIONS OF THE APPRAISERS 78 FRED H. BECK & ASSOCIATES, LLC

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125 Case 19-10989 Doc 4 Filed 05/06/19 Page 125 of 188 ASSUMPTIONS AND LIMI TING CONDITIONS GENERAL ASSUMPTIONS 1. The owner of record is assumed to have a free and clear fee simple title with no encumbrances that cannot be cleared through normal channels. 2. The information on which this appraisal is based on has been obtained from sources normally used by FRED H. BECK & ASSOCIATES, LLC and is considered to be reliable, but is in no sense guaranteed. 3. The information furnished by others is believed to be reliable. No warranty is given for its accuracy. 4. FRED H. BECK & ASSOCIATES, LLC reserves the right to alter its opinions of value on the basis of information withheld or not discovered in the normal course of a diligent investigation. The appraiser assumes no responsibility for the legal de scription or matters of a legal nature affecting the 5. property or the title thereto. The appraiser does not re nder any opinion as to title, which is assumed to be good and marketable. Responsible ownership and competent property management are assumed. 6. 7. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined and considered in the appraisal report. It is assumed that all required licenses, certificates of occupancy, consents or other legislative or 9. administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. The appraiser is not required to give testimony or appear in court because of having made this appraisal 10. with reference to the property in qu estion, unless arrangements have been previously made therefore. The fee charged for this appraisal does not include payment for court testimony or for further consultation. 11. No opinion of an engineering nature is intentionally expressed or implied and no responsibility is assumed for matters of this nature. 12. No survey was made especially for this appraisal. Property lines, area, etc., of record or otherwise provided, are assumed to be correct. 13. No engineering survey has been made by the appraiser. Except as specifically stated, size and area were taken from sources considered reliable and no encroachment of real property improvements is assumed to exist. 14. Maps, plats and exhibits are for illustration only as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose. 15. It is assumed that there are no hidden or unapparent conditions of the property, subsoil or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 16. No opinion is expressed as to the value of subsurface oi l, gas or mineral rights. The property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated. 17. Disclosure of the contents of the appraisal is governed by the Bylaws and Regulations of the professional organizations with which FRED H. BECK & ASSOCIATES, LLC is affiliated. 18. Acceptance of and/or use of this report constitutes acceptance of these assumptions and limiting conditions. 19. This report is intended to comply with the Code of Ethics and Standards of Professional Appraisal practice comply with the Uniform Standards of Professional of the Appraisal Institute. It is further intended to Appraisal Practice (USPAP) and the guidelines set forth by the Financial Institution’s Report, Recovery and Enforcement Act of 1989 (FIRREA). Charlotte, North Carolina 28277-6660 8924 Blakeney Professional Drive, www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

126 Case 19-10989 Doc 4 Filed 05/06/19 Page 126 of 188 LIMITING CONDITIONS 1. Possession of this report, or a copy, does not carry with it the right of publication. of this report (especially any conclusions as to value, identity of the 2. Neither all nor any part of the contents appraisers or firm with which they are connected or any reference to the Appraisal Institute or the MAI or ted to the public through the advertising media or any other public SRA designations) shall be dissemina means of communication without the pr FRED H. BECK & ASSOCIATES, ior written consent and approval of LLC and the signatories of the report. Acceptance of an d/or use of this report constitutes acceptance of these restrictions. 3. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 4. The forecasts, projections or operating estimates contained herein are based upon current market conditions, anticipated short term supply and demand factors and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions. 5. Load bearing capacity of subsoil is assumed to be adequate for the present utilization, but no borings or engineering studies have been made especially for this appraisal and the value conclusion could be affected by such information. 6. We have not been supplied with building plans and specifications, site plans, surveys or occupancy permits. No responsibility or representation is assumed or made for any costs associated with obtaining same for any deficiencies discovered before or after they are obtained. e subject property and found no obvious evidence of structural We have personally inspected th 7. deficiencies except as stated in this report; however, no responsibility for hidden defects or conformity to specific governmental requirements, such as fire, building and safety or occupancy codes, can be assumed without provision of specific professional or governmental inspections. 8. No termite inspection report was made available. We personally inspected the subject property and found no significant evidence of termite damage or infestation. 9. Unless otherwise stated in this report, we make no representation or warranties as to the adequacy or condition of appliances, electrical systems, plumbing and heating, air conditioning, presence of insulation, adequacy or condition of structural systems or any other subsystem within the property. We assume no responsibility for any costs incurred to discover or correct any deficiencies present in the property. 10. Unless otherwise stated, no consideration in the valuation process has been given mineral deposits (oil, gas, coal, gravel, etc.) or timber, if any, that may be found on the subject. 11. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not obse rved by the appraiser. The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that th ere is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 12. On January 26, 1992, The Americans with Disabilities Act (ADA) took effect. This report has not considered this act and the impact it may have on the subj ect with respect to reno vation cost and general compliance. Should a report be provided which indicates a possible renovation, we reserve the right to amend this report. The appraisers have prepared this report in compliance with the competency provision explicitly detailed 13. in the Uniform Standards of Professional Appraisal Practice (USPAP). The appraisers are fully experienced in the appraisal of this product type (see Qualifications). 8924 Blakeney Professional Drive, Charlotte, North Carolina 28277-6660 www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

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129 Case 19-10989 Doc 4 Filed 05/06/19 Page 129 of 188 QUALIFICATIONS OF THE APPRAISER FRED H. BECK, JR., MAI, CCIM FRED H. BECK & ASSOCIATES, LLC 8924 Blakeney Professional Drive Charlotte, NC 28277 EDUCATION Bachelor of Science Degree - Appalachian State University, Boone, NC Business Administration Completed The Appraisal Institute Courses:  Course 1A - Real Estate Appraisal Principles  Course 1B - Capitalization Theory and Techniques  Course 1I - Urban Properties  Course IV - Litigation  Standards of Professional Practice - Part A and B Commercial Investment Real Estate Institute:  C1101 - Financial Analysis for Commercial Real Estate  C1201 - Market Analysis for Commercial Real Estate  C1404 - Tax Planning for Commercial Real Estate EXPERIENCE Formed Fred H. Beck & Associates, LLC (November 1994)   Formed Stout-Beck & Associates, Inc. (July 1987)  Appraising real estate since 1973  Principal and Broker In Charge of Torquay Realty , LLC – Charlotte, N.C. (August 2008 – Present) PROFESSIONAL AFFILIATIONS  Member, The Appraisal Institute (MAI #7073)  Member, Commercial Investment Real Estate Institute (CCIM #5568)  State-Certified General Real Estate Appraiser, North Carolina Certificate No. A1329 State-Certified General Real Estate Appraiser, South Carolina Certificate No. CG1117   State-Certified General Real Estate Appraiser, Georgia Certificate No. 2627 State-Certified General Real Estate Appraiser, Virginia License No. 4001 013461   State-Certified General Real Estate Appraiser, Tennessee License ID No. 3523 Real Estate Brokers License, North Carolina No. 26399   Real Estate Brokers License, South Carolina No. 2713  Real Estate Brokers License, Georgia No. 216546  Real Estate Brokers License, Tennessee No. 311532 Member, Charlotte Regional Commercial Board of Realtors  8924 Blakeney Professional Drive, Charlotte, North Carolina 28277-6660 Phone: 704.544.4884 / Fax: 704.544.6520 / Website: www.fredhbeck.com

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132 Case 19-10989 Doc 4 Filed 05/06/19 Page 132 of 188 QUALIFICATIONS OF THE APPRAISER MARK A. MORGAN FRED H. BECK & ASSOCIATES, LLC 8924 Blakeney Professional Drive Charlotte, NC 28277 EDUCATION Master of Science – Georgia State University, Atlanta, GA Real Estate Bachelor of Fine Arts – Southern Methodist University, Dallas, TX Broadcasting Bachelor of Business – Southern Methodist University, Dallas, TX Completed The Appraisal Institute Courses: C1A-1 – Real Estate  Appraisal Principles  C1A-2 – Basic Valuation Procedures  C1B-A – Capitalization Theo ry and Techniques, Part I  C1B-B – Capitalization Theory and Techniques, Part II  SPP – Standards of Professional Practice  C2-1 – Case Studies in Real Estate Valuation  C2-2 – Report Writing Commercial Investment Real Estate Institute:  CI-101 – Principles of Investment Analysis CI-102 – Creating a Real Estate Investment (Market Analysis)   CI-103 – Advanced Real Estate Tax Analysis  CI-104 – Understanding Human Behavior  CI-105 – Case Studies in commercial Investment Real Estate EXPERIENCE Fred H. Beck & Associates, LLC – Charlotte, NC (May 2000 - Present) ser and Consultant  Real Estate Apprai Torquay Realty, LLC – Charlotte, N.C. (August 2008 – Present) Real Estate Broker  Bank of America – Charlotte, NC (3/93 – 5/00)  Appraisal Department Area Manager Schultz-Carr-Bissett – Atlanta, GA (11/89 – 3/93)  Staff Appraiser PROFESSIONAL AFFILIATIONS  State-Certified General Real Estate Appraiser, North Carolina Certificate No. A4554  State-Certified General Real Estate Appraiser, South Carolina Certificate No. CG3890  State-Certified General Real Estate Appraiser, Georgia Certificate No. 689 North Carolina Real Estate Broker - License #189040  8924 Blakeney Professional Drive, Charlotte, North Carolina 28277-6660 www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

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135 Case 19-10989 Doc 4 Filed 05/06/19 Page 135 of 188 QUALIFICATIONS OF THE APPRAISER PAUL J. RUBERG FRED H. BECK & ASSOCIATES, LLC 8924 Blakeney Professional Drive Charlotte, NC 28277 EDUCATION Mingle Real Estate School Courses completed at Bob Ipock and Associates:  R-1 Introduction to Real Estate Appraisal  R-2 Principles of Real Property Valuation  R-3 Advanced Techniques of Real Property Valuation  R-4 USPAP me Property Valuation G-1 Introduction to Inco  Courses completed at West Appraisal Analysis, Inc.: G-2 Advanced Income Capitalization Procedures   G-3 Applied Income Property Valuation EXPERIENCE FRED H. BECK & ASSOCIATES, LLC – CHARLOTTE, NC (JANUARY 2005 – PRESENT) Staff appraiser assisting in the appraisal analysis of various commercial and investment properties. Torquay Realty, LLC – Charlotte, N.C. (August 2008 – Present) Real Estate Broker PROFESSIONAL AFFILIATIONS State-Certified General Real Estate Appraiser North Carolina Certificate No. A6611 State-Certified General Real Estate Appraiser South Carolina Certificate No. CG5578 North Carolina Broker License No. 219612 8924 Blakeney Professional Drive, Charlotte, North Carolina 28277-6660 www.fredhbeck.com Phone: 704.544.4884 / Fax: 704.544.6520 / Website:

136 Case 19-10989 Doc 4 Filed 05/06/19 Page 136 of 188 EXHIBIT B M&E APPRAISAL {00325129 v 1 }

137 Case 19-10989 Doc 4 Filed 05/06/19 Page 137 of 188 CEA Collateral Evaluation Associates, Inc. COLLATERAL EVALUATION ASSOCIATES, INC. ORDERLY LIQUIDATION VALUE AND FAIR MARKET VALUE APPRAISAL OF THE MACHINERY & EQUIPMENT OF: SOUTHEASTERN METAL PRODUCTS, INC. EFFECTIVE DATE: NOVEMBER 14, 2016 APPRAISAL REPORT ELECTRONIC REPORT

138 Case 19-10989 Doc 4 Filed 05/06/19 Page 138 of 188 CEA Collateral Evaluation Associates, Inc. December 19, 2016 Mr. Doug Smith Senior Vice President Park Sterling Bank 1043 East Morehead Street Suite 101 Charlotte, NC 28204 Dear Mr. Smith: As requested, Collateral Evaluati on Associates, Inc. (“CEA”) ha s performed an inery & equipment of Southeastern Metal Products, Inc. appraisal of the mach (“SMP”), located in Charlotte, NC. The purpose of this apprais al is to provide an of the subject opinion of the Orderly Liquidation Value and Fair Market Value November 14, 2016 items as of . CEA has arrived at the follo wing value conclusions: $3,546,725 Orderly Liquidatio n Value Fair Market Value $5,403,725 art of a new or The above amounts include items t hat SMP will be receiving as p These items ar the Equipment e noted within expanded manufacturing contract. and were not inspected by the appraiser. For Schedule as being located in Ohio additional information pl ease see Pages 5 & 8. This report is subject to the val ue definition, scope of work, methods, and limiting conditions stated within this r eport. The appraiser has compli ed with the Uniform al Practice (“USPAP”) in the p reparation of this Standards of Professional Apprais Appraisal Report. Appraisal, Valuation Consulting & Liquidation Support Services 10020 Monroe Road, Suite 170-303, M atthews, NC 28105 Phone: 704-536-1620 Fax: 704-536-9513

139 Case 19-10989 Doc 4 Filed 05/06/19 Page 139 of 188 Thank you for the opportunity to be of service and please conta ct CEA with any questions or further requests. Sincerely, Collateral Evaluation Associates, Inc. R. Lee Robinette, ASA President 2

140 Case 19-10989 Doc 4 Filed 05/06/19 Page 140 of 188 DEFINITION OF ORDERLY LIQUIDATION VALUE (“OLV”) nt which could typically be real The estimated gross dollar amou ized from an orderly sale of the subject asse ts, held under forced or distre ssed conditions, with a limited market ing period. Inherent i n the definition is the disposal of all with all expenses of removal and assets in an "as is" condition transportation incurred by the buyer. It is assu aged sale would med that a professionally man familiar with this type of eq be conducted by a qualified party uipment. This value definition is based on the published definition as s et forth by the American Society of Appr aisers in the text, Valuing Machinery & Equipment (2005). Although the published defini , CEA’s definition tion is not used verbatim includes the basic t enets of the published de finition, namely a forced or compelled seller and an or derly method of sale. In the case of Southeastern Metal Products, Inc. , the values stated herein reflect an approximate six-mont ems. It is assumed h period in which to sell all it that sale proceedings would begin immediately upon the decision to cease operations. This is importan t as allowing the equipment to sit idle and unattended for any period of time could have a significant nega tive impact on ems would be sold value. It is also assumed tha t, unless otherwise noted, all it from their current location. DEFINITION OF FAIR MARKET VALUE (“FMV”) The amount, expressed in dollars , which could reasonably be exp ected to exchange between a willin g buyer and a willi ng seller with each aware of any factors affecting value or u ther under compu lsion to buy or sell. tility and with nei It is assumed that all items woul d be sold "as is, where is" an d without any warranties or guar antees provided. The value definition is based on the publishe d definition as se t forth by the American Society of Appr aisers in the text, Valuing Machinery & Equipment tion is not used verbatim (2005). Although the published defini , CEA’s definition includes the basic t enets of the published de finition, namely a willing buyer and a willing seller, and tha t each party is know ledgeable and aware of all relevant factors. The values concluded in this appr aisal assume that all items wo uld be removed from their existing lo cation and that the related removal and r elocation expenses would be incurred by the buyer(s). 3

141 Case 19-10989 Doc 4 Filed 05/06/19 Page 141 of 188 PURPOSE alue of the subject The purpose of this appraisal is to provide an opinion of the v ope of work the definitions of value and sc machinery & equipment, based on aiser that this informatio n will be used by the stated. It is understood by the appr client, Park Sterling Bank, for t he determination of collateral value as related to a loan transaction for which the subject machinery & equipment se rves or will serve as collateral. This appraisal is not valid for any other use. METHODS The appraiser considered the sale s comparison, cost, and income approaches in ss. The sales compar ison and cost approache s have been the valuation proce emphasis on the sales compariso used in determining value, with n approach. The income approach was not utilized as it does not provide the best indication of value for the subject equipment. The income derived from th e use of a given item of machinery & equipment can fluctuate significantly based on a variety of factors. In most cases, prospec tive buyers for an item of mach inery & equipment an equally desirable substitute. consider the cost of acquiring Therefore, the sales comparison and cost approac n of value. hes provide a better indicatio The current use of the subject m of a metal achinery & equipment is as part fabrication and machining operat ion. Alternative uses could be in other such applications. In the case of sta ndard plant and support items, alternative uses would be in other industrial or c ommercial applications. The v alues concluded in native use. In the context of this appraisal reflect the alter alternative use, it is assumed that the subject machi nery & equipment would be used fo r the same function or purpose for whic h it was originally designed. to be solved are the determina tion of Orderly For this appraisal, the problems Fair Market Value of the subject machiner Liquidation Value and y & equipment. ject included an inspection of th e subject The scope of work for this pro machinery & equipment at its exi was necessary in sting location. The inspection order to collect information re levant to the appraisal process. The appraiser previously appraised the mach inery & equipment of SMP in 2014. As part of that process, the appraiser created a detailed equipm the machinery & ent schedule of time. As part of the inspec tion for this equipment on hand at that point in hedule was used as a basis to c onfirm the appraisal, the 2014 equipment sc presence of all items that wer e previously on hand. As part of the equipment inspection for this appraisal, a ll major and minor equipment wa s inspected and serial numbers were verified appraisal, SMP where applicable. Since the 2014 had very few disposals or delet ions. They also purchased sever al new pieces of equipment including (2) laser cu tting systems, a press brake, a powder coating system, and a spot welder. 4

142 Case 19-10989 Doc 4 Filed 05/06/19 Page 142 of 188 METHODS cont. SMP is in the process of enter ing into a manufacturing agreemen t with a provide to SMP ent, the customer is going to customer. As part of that agreem he customer is currently using in an Ohio facility. various items of equipment that t The items SMP will re ceive are included in this appraisal on a desktop basis. ded make, model, The appraiser was provided a lis t of this equipment which inclu In addition, the some cost and age information. capacity or specification, and appraiser was provid ed with photographs of t he major items. Al l of these items are noted as being located in “Oh io” within the Equipment Sched ule. The value hat, in the event of sale, they would be installed for all of these items assume t rrent location or in the expa and under power in either their cu nded SMP facility. as if this equipment is not ins This is an important assumption talled, partially dismantled, or stored in some form of warehouse environment, it s value would likely be lower than concluded herein. nspections, market research w as performed. Upon completion of the equipment i ent dealers or resellers of us Parties contacted included equipm ed equipment, (oem’s), and other such source s. In addition, original equipment manufacturers data obtained from pub ’s database lished sources and data maintained in CEA was also considered. The primar y sources of information consid ered include current offerings and recent sal es of comparable items, includi ng auction sales. Where applicable, auction sales da ta was adjusted to better ref lect an orderly io. Based on the use of stand ard appraisal liquidation or fair market scenar concluded. methodology and consideration of a ll relevant data, values were he use of three approaches to va lue: sales Valuation methodology entails t comparison, cost, and income. The sales comparison, or mark et, approach to value entails the use of market items in determining the valu e of a subject offerings and sales of comparable property. The cost approach involves the use of the current replacement c ost new of an item, less all forms of depreciati on to determine the value of a subject property. Depreciation in terms of the co st approach includes physical de terioration, and economic obsolescence. functional obsolescence, ss in value stemming from wear & tear, exposure to Physical deterioration is a lo the elements, etc. Functional obsolescence is a lo ss in value stemming from a flaw inherent in the subject property, in comparison to its current replacement. Ex amples of slower output or cycle time, in ability to perform a functional obsolescence include specific function, excess capita l or operating costs, and other such factors that may be inherent in a subject property. 5

143 Case 19-10989 Doc 4 Filed 05/06/19 Page 143 of 188 METHODS cont. Economic obsolescence is a loss in value stemming from external causes. on or e include government interventi Examples of economic obsolescenc onditions, changes in reimburse ment, and other regulation, a change in market c such factors that are ext ernal to a subject property. he premise that value is a fun ction of the The income approach is based on t future monetary benefit to be re ceived from the ownership of a property. This quantified via capitalization o monetary benefit, or income, is r present value discounting of cash flows to a is difficult to apply rrive at a value. This approach nery & equipment or to isolate to a diverse population of machi to a single item of machinery & equipment and is no t regularly used in the valuatio n of machinery & s not used in this appraisal as a defined equipment. The income approach wa ed to a single item, and the in come approach income stream cannot be attribut does not provide the best indicati on of value for the subject e quipment. The majority of items are indivi dually listed and valued. Mino r equipment, miscellaneous, furniture, etc. ma y be included on a “lot” or gr ouped basis by the on of the appraiser. area at the discreti To the best knowledge of the apprai ser, there is no leased or v endor provided sal. For the 2014 appraisal, there was a Trumpf equipment included in this apprai press brake and Trumpf laser c by Park Sterling utting system that were financed Bank via a separate note. Those it ems were not included in the 2014 appraisal. They are included in this appr aisal and no adjustment has been made to their value to reflect any outstandi ng liens or balance due. vide the reader(s) with a genera l overview of the Photographs are included to pro subject machinery & equipment. As noted in the certif ication, Mitchell Robinette provided assi stance in this appraisal assignment. Mr. Robine tte’s assistance primarily inc luded the item and serial number verification and reconciliation of the 2014 equip ment schedule. 6

144 Case 19-10989 Doc 4 Filed 05/06/19 Page 144 of 188 OBSERVATIONS AND CONSIDERATIONS This appraisal reflects Orderly et Value opinions. Liquidation Val ue and Fair Mark nt sale of ed operations and the subseque OLV assumes the business has ceas t. FMV reflects the sum value of any given the subject machinery & equipmen item of machinery & equipment w ere it to be sold to another par ty but with neither me frame imposed party acting under any form of dur ess. There is no specific ti ) will incur all t is assumed that the buyer(s under FMV. In both OLV and FMV, i costs of transfer, removal, and relocation. OLV reflects the premise that a ll items would be offered and av ailable to the t the timeframe for such a sale would be limited marketplace concurrently and tha to approximately six months. I t is also assumed that the sale would be nowledgeable and has expertise in conducted by a party that is k selling equipment such as the subject. FMV reflects the amount that would be agreed upon between a wil ling buyer and both parties acting in their own best int erest and being aware a willing seller with Market Value concluded herein of all relevant facts. The Fair assumes any costs fer of title would be paid by t he purchaser. of removal, relocation, or trans Charlotte, NC Equipment SMP is a contract manufacturing operation specia lizing in metal fabrication and stamping. In addition, the compan y also does some machining wo rk. The current machinery & equipment popul ation includes a variety of metal stamping e 35-ton up to 300-ton capacity . In addition, presses, ranging from approximat ipment, including there are a variety of standard pieces of metal fabrication equ press brakes, laser cutting systems, a shear, turret punch, and assorted welding machines. Additional equipment i ncludes two CNC (Computer Nume ric Control) machine tools, a small tool & hine tools, an die shop with assorted manual mac EDM (electrical discharge machi ne), small items of fabrication equipment, and finishing equipment. In addition to the primary produc tion equipment, the equipment population includes standard plant & support i tems such as air compressors , forklifts, gauges and inspection tools, etc. ean and orderly on the date of in The facility as a whole was cl spection and the to be average to above averag e for its age equipment is generally considered and type. The values noted in the followi ng paragraphs are FMV with OLV b eing proportionately lower. tems in terms of value are the tw o Trumpf laser The most significant current i cutting systems. The value of t hese systems is $600,000 and $2 00,000. Individual values are a functi on of the sheet capacity, wattage , and material handling system. 7

145 Case 19-10989 Doc 4 Filed 05/06/19 Page 145 of 188 OBSERVATIONS AND CO NSIDERATIONS cont. Items with individual values r anging from $150,000 to $50,000 r espectively press brakes, roboti ess, majority of the c welding cell, include the 300-ton pr Cincinnati laser cutting system, and a horizontal boring mill. spectively include Items with individual values r anging from $45,000 to $30,000 re c system, machining esses, a turning center, a roboti the majority of the smaller pr center, and a robotic cell. Additional items include the re maining production equipment, we lders, support compressors, and a variety of s maller items. items such as forklifts and air Ohio Equipment aining via their new contract The Ohio equipment that SMP is obt primarily includes multiple presses plus a dditional metal fabrication and general plant items. Within this group, the presses and the laser cutting sy stem are the most he majority of the pr esses that SMP is obt significant items. T aining fall into the “large press” category and are either at the upper end in terms of capacity as SMP’s existing press equipment o r in some cases larger. The most significant items bei ng obtained from the Ohio operati on include the Danly press ($400,000), Komatsu laser cutting system ($400,000) , (7) 600-ton presses ($200,000 each), a bri dge crane ($110,000) n 300-ton , and a Verso press ($100,000). with OLV is pr oportionately lo wer. The above dollar amounts are FMV Conclusion e market for met There is a broad and active resal equipment. The al fabrication standard nature, broad applicat ion, and reasonably good conditi on of the SMP equipment would make it desirable to the marketplace were it to become available for sale. The individual value of any g iven item is based on its age/cond ition, appearance, size or capacity, design, functi on, utility, and overall antici pated market appeal. concluded assume that the subjec t equipment The orderly liquidation values would be sold under the constraint ale held over a six- s of an orderly liquidation s month period. The fair market v alues concluded reflect the amo unt that would be agreed upon for each item individ ually between a willing buyer and a willing seller with both parties acting in thei r own best interest and being a ware of all relevant facts. For both values, the buyer (s) would incur all related c osts of removal, transfer, and reinstallation as applicable. 8

146 Case 19-10989 Doc 4 Filed 05/06/19 Page 146 of 188 LIMITING CONDITIONS Southeastern Metal Products, It is assumed that all items are the property of . The value assigned to all item s is a gross estimate of value with no Inc anding liens or encumbrances. Fu rther, no adjustments made for any outst ing costs have been made. No v alue guarantee is adjustments for selling or carry implied with the provision of th is report as values are anticip ated to change in the future. The ownership interest being app raised is that of fee simple. rrect to the best knowledge of th e appraiser. All information included is co Information provided by other sou rces, including the subject co mpany, is considered to be correct as provided. This appraisal strictly incl udes the machinery & equipment and furniture & fixtures of the subject company and does not include any invent ory items, software, supplies, leas ehold improvements, etc. ended or implied with the provis ion of this report. No warranty or guarantee is int CEA is not responsible for changes i n value which could result from deterioration nditions, or in the condition of the subject equipment, changes in market co c obsolescence. Liability st emming from the increased technological or economi limited to the fee charged for t he appraisal. provision of this appraisal is The liquidation values stated in this appraisal reflect the pre mise of value and are based on the assumption that, in the event of a liquidation, sa le proceedings would be scheduled imm ediately upon the decis ion to liquidate. This is important as allowing the equipment to sit od of time prior to idle and unattended for a peri being made available to the mark et could have a negative impact on value. No investigation has been made r egarding the presence of enviro nmental contamination or the use of hazardous materials which would spe cifically affect the value of the it ems listed herein. 9

147 Case 19-10989 Doc 4 Filed 05/06/19 Page 147 of 188 LIMITING CONDITIONS cont. Condition codes may have been ily upon the appea rance of an assigned primar item and are not the result of a d etailed mechanical or electro nic inspection that may be performed by a prospective no liability for buyer. The appraiser assumes actual condition and provides no warranty or guarantee therein. The code symbols and definitions are as follows: N- (New) Item in new condition. E- (Excellent) Some use, but almost new. VG- (Very Good) In above avera or recently ge condition; low hours or miles, overhauled or refurbished. G- (Good) Average or as would be expected for items of similar age and utility. F- (Fair) In below average condi tion; has seen considerable use or is an older item. P- (Poor) Needs major repairs , may or may not be operable. S- (Scrap) Scrap valu e only with value adjus ted to reflect any cost of removal. 10

148 Case 19-10989 Doc 4 Filed 05/06/19 Page 148 of 188 EQUIPMENT SCHEDULE he following schedule is a uniq ue computer generated record NOTE: The item # reference in t identifier. Item #’s may be missi sed on the manner in which data ng or may skip in sequence ba was entered or edited.

149 Case 19-10989 Doc 4 Filed 05/06/19 Page 149 of 188 RECAPITULATION L PRODUCTS, INC. SOUTHEASTERN META ORDERLY LIQUIDATION VALUE AREA OLV % OF VALUE $1,873,725 Charlotte, NC 52.8% Ohio $1,673,000 47.2% TOTAL $3,546,725 100.0%

150 Case 19-10989 Doc 4 Filed 05/06/19 Page 150 of 188 SOUTHEASTERN METAL PRODUCTS, INC. ORDERLY LIQUIDATION VALUE Charlotte, NC Ohio

151 Case 19-10989 Doc 4 Filed 05/06/19 Page 151 of 188 SOUTHEASTERN METAL PRODUCTS, INC. ORDERLY LIQUIDATION VALUE 47.2% 52.8% Charlotte, NC Ohio

152 Case 19-10989 Doc 4 Filed 05/06/19 Page 152 of 188 RECAPITULATION L PRODUCTS, INC. SOUTHEASTERN META Charlotte, NC ORDERLY LIQUIDATION VALUE OLV % OF VALUE AREA Assembly $9,200 0.5% Assembly/Warehouse $9,000 0.5% 2.8% CNC Machining $52,500 59.8% $1,121,200 Fabrication Finishing $15,000 0.8% Large Press $228,625 12.2% $4,700 0.3% Maintenance $44,200 Mobile Equipment 2.4% $18,500 Outside 1.0% Powder Coating $100,000 5.3% Quality Control $11,000 0.6% $136,850 7.3% Small Press Spot Welding $56,000 3.0% $24,450 1.3% Tool Room Welding 2.3% $42,500 TOTAL $1,873,725 100.0%

153 Case 19-10989 Doc 4 Filed 05/06/19 Page 153 of 188 SOUTHEASTERN METAL PRODUCTS, INC. Charlotte, NC ORDERLY LIQUIDATION VALUE Assembly/Warehouse Assembly CNC Machining Fabrication Finishing Large Press Maintenance Mobile Equipment Outside Powder Coating Quality Control Small Press Spot Welding Tool Room

154 Case 19-10989 Doc 4 Filed 05/06/19 Page 154 of 188 SOUTHEASTERN METAL PRODUCTS, INC. Charlotte, NC ORDERLY LIQUIDATION VALUE 0.5% 0.5% 1.3% 1.0% 0.6% 2.9% 3.1% 7.5% 2.4% 5.5% 0.3% 12.5% 61.2% 0.8% Assembly Assembly/Warehouse Fabrication CNC Machining Large Press Finishing Maintenance Mobile Equipment Outside Powder Coating Quality Control Small Press Spot Welding Tool Room

155 Case 19-10989 Doc 4 Filed 05/06/19 Page 155 of 188 RECAPITULATION L PRODUCTS, INC. SOUTHEASTERN META FAIR MARKET VALUE AREA FMV % OF VALUE $2,658,725 Charlotte, NC 49.2% Ohio $2,745,000 50.8% TOTAL $5,403,725 100.0%

156 Case 19-10989 Doc 4 Filed 05/06/19 Page 156 of 188 SOUTHEASTERN METAL PRODUCTS, INC. FAIR MARKET VALUE Charlotte, NC Ohio

157 Case 19-10989 Doc 4 Filed 05/06/19 Page 157 of 188 SOUTHEASTERN METAL PRODUCTS, INC. FAIR MARKET VALUE 49.2% 50.8% Charlotte, NC Ohio

158 Case 19-10989 Doc 4 Filed 05/06/19 Page 158 of 188 RECAPITULATION L PRODUCTS, INC. SOUTHEASTERN META Charlotte, NC FAIR MARKET VALUE FMV % OF VALUE AREA Assembly $14,200 0.5% Assembly/Warehouse $14,050 0.5% 2.7% CNC Machining $72,500 55.4% $1,472,125 Fabrication Finishing $25,350 1.0% Large Press $345,750 13.0% $7,300 0.3% Maintenance $56,750 Mobile Equipment 2.1% $27,000 Outside 1.0% Powder Coating $200,000 7.5% Quality Control $20,250 0.8% $221,750 8.3% Small Press Spot Welding $85,500 3.2% $36,800 1.4% Tool Room Welding 2.2% $59,400 TOTAL $2,658,725 100.0%

159 Case 19-10989 Doc 4 Filed 05/06/19 Page 159 of 188 SOUTHEASTERN METAL PRODUCTS, INC. Charlotte, NC FAIR MARKET VALUE Assembly/Warehouse Assembly CNC Machining Fabrication Finishing Large Press Maintenance Mobile Equipment Outside Powder Coating Quality Control Small Press Spot Welding Tool Room Welding

160 Case 19-10989 Doc 4 Filed 05/06/19 Page 160 of 188 SOUTHEASTERN METAL PRODUCTS, INC. Charlotte, NC FAIR MARKET VALUE 0.5% 0.5% 2.2% 1.4% 2.7% 3.2% 0.8% 8.3% 7.5% 1.0% 2.1% 0.3% 55.4% 13.0% 1.0% Assembly Assembly/Warehouse Fabrication CNC Machining Large Press Finishing Maintenance Mobile Equipment Outside Powder Coating Quality Control Small Press Spot Welding Tool Room Welding

161 ll approx. 16" x 20" T‐slot table, tapping attach., 4" throat, hyd., w/spiral bowl feeder, cond. G press, Aro 2‐spindle pneu. screwgun, Mead cond. G marking press, Dake manual H‐frame press, etc. cond. F‐G 12" throat, ped. base, mechanical flywheel driven, cond. F‐G 750 12" throat, ped. base, mechancial flywheel driven, $750 20", w/14" x 20" T‐slot table, cond. F‐G 0 $2,000 tag #277, 4‐ton, hyd., cond. G OLV FMV Description $500 $750 20", $500 $ $500 $750 $500 $1,20 $1,000 $1,700 incl. Atlas Clausing 18" drill press, Atlas 15" dri $5,000 $7,500 2 $9,200 $14,200 Serial # n/a 88C75002 1167 366 I4582 Mdl n/a 310.REV.3 20 DF4C02A59C17A80 14385 250.REV.3 20722 Page 1 of 19 EQUIPMENT SCHEDULE Mfg By Dennison Milford Milford Delta Wilton Strand Haeger Case 19-10989 Doc 4 Filed 05/06/19 Page 161 of 188 Item drill press miscellaneous press drill press rivet machine insertion press rivet machine Assembly Total Qty. Area 2 Charlotte, NC 1 Assembly 1 Charlotte, NC 1 Assembly 102 Charlotte, NC 1 Assembly 129 Charlotte, NC 1 Assembly 103 Charlotte, NC 1 Assembly 131 Charlotte, NC 1 Assembly 130 Charlotte, NC 1 Assembly Item # Location

162 s , pwr. rack, etc. infeed, coolant, cond. F 0 24", C‐frame, cond. F OLV FMV Description $500 $800 incl. 2" belt grinder, die table, pallet jack, material $500 $75 $6,500 $10,000 semi‐auto., pwr. clamping, pwr. downfeed $1,500 $2,500 (2003), manual chop‐type, approx. 10" dia. blade $9,000 $14,050 Serial # 10196973 03‐04206 0A Mdl 315‐S‐Cut S‐2 Page 2 of 19 EQUIPMENT SCHEDULE Mfg By Dake Chicago Pneumatic Hyd‐Mech Case 19-10989 Doc 4 Filed 05/06/19 Page 162 of 188 Item Assembly/Warehouse Total Qty. Area 43 Charlotte, NC 1 Assembly/Warehouse punch 48 Charlotte, NC 1 Assembly/Warehouse miscellaneous 47 Charlotte, NC 1 Assembly/Warehouse cold saw 46 Charlotte, NC 1 Assembly/Warehouse horizontal bandsaw Item # Location

163 to. chip removal screw, cond. F‐G tool changer w/20‐pos. tool magazine, coolant, Servo Bar‐300 automatic barfeeder (s/n 91817), approx. 5' max. bar length, cond. G tailstock, coolant, chip removal screw, incl. Haas 0 $40,000 (2006), Haas controls, slant bed, 12‐pos. turret, OLV FMV Description $22,500 $32,500 (1997), Haas controls, 28" D x 64" W table, au $52,500 $72,500 $30,00 589 Serial # 73289 12 Mdl SL‐30T VF‐6 Page 3 of 19 EQUIPMENT SCHEDULE Mfg By Haas Haas Case 19-10989 Doc 4 Filed 05/06/19 Page 163 of 188 Item turning center vertical machining center CNC Machining Total Qty. Area 6 Charlotte, NC 1 CNC Machining 7 Charlotte, NC 1 CNC Machining Item # Location

164 ‐ lf , int, ton, on ontrols, 6' x x 12' sheet cap., l brush heads, laser generator, configuration, cond. F‐G cond. F‐G through feed belt, cond. G electric cable hoist, 6‐ way pendant controls, w/Mansaver 5‐ton sheet handling device, cond. F‐ cond. G sgl. girder, underslung, 1‐ton cap., 40' span, 1‐ton SEE PHOTO #1745 showing sheet handling device SEE PHOTO #1744 showing laser Compact sheet handling device, cond. G electric cable hoist, 6‐ way pendant controls, w/sheet handling device attach., (1,080‐lb. cap.), supporting, w/electric hoist G Riedel dedicated chiller, 5' x 10' sheet cap., programmable controls, shuttle tables, LiftMaster grinders, carts, 12" W manual bending roll, 2' W manual shear, shelving, etc. 12' sheet cap., Ge Fanuc C4000‐E 4,000‐watt laser, SEE PHOTO #1746 dust collection, etc., cond. G approx. 7' x 15' staging table, approx. 7' x 15' cutting table, w/Koolant Koolers chiller, related programmable controls, shuttle table, dedicated chiller, cond. G etc. SEE PHOTO #1759 cond. G 1,300‐KN, w/Trumabend controls hyd., w/Cincinnati mdl. Autobend 7 controls, safety curtain, cond. G ,500 48" W x 16‐18 gauge cap., 3" roll dia., initial roll 0 $17,500 6' W x .25" cap., 7" roll dia., screw‐type, pinch adj., 00 $1,750 riding‐type, LPG, hard tire, cond. F OLV FMV Description $500 $1,000 incl. port. worktables, chairs, fans, pallet shelving $2,500 $4,000 1,000‐lb. cap., approx. 12' span x 20' L runway, se $1,000 $1,750 throughout plate area, incl. asstd. belt‐type bench $1,0 $1,000 $1 $4,000 $6,000 $10,000 $15,000 (2006), 40" W, sgl. top head, dua $50,000 $75,000 (2006), tag #742, w/Cincinnati CNC c $15,000 $17,500 w/41 3/4" W, laser sensor around the brake po $14,000 $20,000 10‐ton, dbl. girder, top riding, 40' span, w/10‐t $50,000 $70,000 (1995), tag #750, 144‐ton, 10' bed, 5‐axis, hyd., $17,500 $27,500 (1991), tag #815, 11' cap., 6' W, 4" stroke, 135‐ $10,00 $150,000 $200,000 (2011), 4,000‐watt, CO2 laser, 6' $500,000 $600,000 (2012), TruDisk 5001 fiber optic 1003 Serial # 85206‐1654 D009A7062 53611 B0702A 215‐4607 47003 59905 PR26‐115 309RTT 0418260030 3040 5030 6 X 12 Mdl TruBend 7036 Trumabend V130 885583 TruLaser TruLaser 215 PROFI SPW 3‐42 135AF X 6' E‐72 CL‐7A Page 4 of 19 EQUIPMENT SCHEDULE Mfg By Trumpf Cincinnati Trumpf Acco Louden Gorbel Tennant Trumpf Trumpf Cincinnati H.O. Bütfering Wysong Niagara Case 19-10989 Doc 4 Filed 05/06/19 Page 164 of 188 Item bridge crane floor sweeper bridge crane laser cutting system laser cutting system bending roll bridge crane bending roll miscellaneous laser cutting system belt grinder press brake miscellaneous press brake press brake Qty. Area 3 Charlotte, NC 1 Fabrication 51 Charlotte, NC 1 Fabrication 20 Charlotte, NC 1 Fabrication 19 Charlotte, NC 1 Fabrication 17 Charlotte, NC 1 Fabrication 21 Charlotte, NC 1 Fabrication 16 Charlotte, NC 1 Fabrication 128 Charlotte, NC 1 Fabrication 173 Charlotte, NC 1 Fabrication 172 Charlotte, NC 1 Fabrication 121 Charlotte, NC 1 Fabrication 132 Charlotte, NC 1 Fabrication 125 Charlotte, NC 1 Fabrication 133 Charlotte, NC 1 Fabrication 220 Charlotte, NC 1 Fabrication Item # Location

165 pprox. angle shear, mechanical, motorized backgauge, 450‐DI pwr. supply, robot enclosure, rotary table/weld positioner, booth enclosure, Avani dedicated 6‐bag dust collector, cond. VG cond. G w/Autoform controls, Link‐Lite safety curtain, w/Cincinnati Adaptive Autoform backgauge, CNC w/programmable controller, Miller Auto/Axcess SEE PHOTO #'s 1747 ‐ 1748 G w/Autform controls, Link‐Lite safety curtain, cond. w/Cincinnati Adaptive Autoform backgauge, CNC cond. F‐G controls, Link‐Lite safety curtain, cond. G Adaptive Autoform backgauge, CNC w/Autoform conveyor, cond. F 60" W x 165" roller bed, w/scrap discharge SEE PHOTO #1758 backgauge, est. 137.5‐ton, 8.5' W cap., cond. F‐G ,500 tag #512, 140" W, 1/4" mild steel cap., w/right OLV FMV Description $7,500 $12,000 tag #565, CNC, w/GE Fanuc OP controls, a $2,200 $4,125 sgl. sided, cantilever arms, approx. 8' W x 16' H $45,000 $60,000 hyd., Toyokoki controls, programmable $40,000 $60,000 (1998‐1999), tag #674, hyd., 175‐ton, 10' W, $70,000 $95,000 (1996), tag #629, hyd., 230‐ton, 10' W, $50,000 $75,000 incl. Panasonic TA‐1800 360‐deg. robot $60,000 $80,000 tag #674, hyd., 175‐ton, 10' W, w/Cincinnati $20,000 $27 $1,121,200 $1,472,125 5 47 55 03657 Serial # 509 496 5408 47125 c 3000/Q 741 Mdl 12530 (HYB‐125) 70 Centrum 175AF x 10' 230AF x 10' 175MX X 10' 2CC12 Performar Page 5 of 19 EQUIPMENT SCHEDULE Mfg By Cincinnati Cincinnati Cincinnati Toyokoki Cincinnati Murata Wiedemann Miller Case 19-10989 Doc 4 Filed 05/06/19 Page 165 of 188 Item shelving sections turret punch press brake press brake robotic welding cell shear press brake press brake Fabrication Total Qty. Area 23 Charlotte, NC 11 Fabrication 26 Charlotte, NC 1 Fabrication 25 Charlotte, NC 1 Fabrication 126 Charlotte, NC 1 Fabrication 174 Charlotte, NC 1 Fabrication 127 Charlotte, NC 1 Fabrication 123 Charlotte, NC 1 Fabrication 124 Charlotte, NC 1 Fabrication Item # Location

166 , cap., pendant controls, value incl. 40' L oval , rotary, approx. 36" L x 24" dia., cond. F 290, horiz., rotary, approx. 50" L x 40" dia., heated, cond. F‐G x 24" W x 9' L, 15‐hp motor, cond. F interior post, 7‐1/2 hp, cond. F‐G cond. F‐G monorail, cond. F‐G chairs, work surfaces, warehouse ladders, etc. pallet jack, fans, etc. 0 $5,000 tag #528, vibratory, 25" D x 56" dia., 29" dia. ,000 $4,500 tag #653, vibratory, U‐shape trough, approx. 22" D OLV FMV Description $750 $1,500 53" W x 55" H x approx. 9' L, dbl. walls, steam $800 $1,500 incl. worktables, parts baskets, steel baskets, etc. $300 $600 adj. pallet‐type, approx. 30" W x 9' L x 12' H $400 $750 incl. steel storage baskets, chairs, tables, manual $750 $1,500 horiz. $2,500 $4,500 incl. (6) flammable liquids storage cabinets, desks $3 $3,50 $1,500 $3,000 1‐ton $1,500 $2,500 tag # $15,000 $25,350 Serial # 3796 n/a 2531 n/a Mdl n/a ODH2412 V6 n/a RF1412 Page 6 of 19 EQUIPMENT SCHEDULE Mfg By Shaw‐Box UltraMatic Rosemont Rampe Case 19-10989 Doc 4 Filed 05/06/19 Page 166 of 188 Item finishing mill cleaning tanks finishing mill finishing mill finishing mill miscellaneous hoists miscellaneous miscellaneous shelving sections Finishing Total Qty. Area 84 Charlotte, NC 3 Finishing 89 Charlotte, NC 1 Finishing 85 Charlotte, NC 2 Finishing 86 Charlotte, NC 1 Finishing 87 Charlotte, NC 4 Finishing 113 Charlotte, NC 1 Finishing 114 Charlotte, NC 1 Finishing 115 Charlotte, NC 1 Finishing 116 Charlotte, NC 1 Finishing 117 Charlotte, NC 1 Finishing Item # Location

167 l, ‐point tag #92, 75‐ton cap., OBI, air clutch, 2‐1/2" listed & valued separately cond. F suspension, 48" D x 84" W T‐slot bed, 30" W x 20" H windows, incl. safety curtain, OmniLink‐II LCD electronic controls, cond. G‐VG, feeder & coil reel x 42" W bed & 23" D x 30" W ram, w/Weldotron adj., 17" shut height, 40‐SPM, OBI, air clutch, 27" D D x 95" W T‐slot bed, approx. 25" D x 72" W ram, Taiwan), cond. G W T‐slot bed, 24" D x 64" W ram, w/safety curtain, SPM, 19.7" die height, 4.3" slide adj., approx. 33" suspension, air clutch, dbl. crank, 9" stroke, 25‐45 sgl. crank, air clutch, 4.5" stroke, 17.5" shut height, 3.75" slide adj., 25" D x 72" W T‐slot bed, 24" D x 68" W ram, w/air cushion, cond. F‐G slide adj., 20" shut height, 30 ‐ 60 SPM, 30" D x 84" point suspension, cond. G operator controls, (oem Shieh Yih machinery, w/safety curtain, OmniLink‐II LCD electronic safety curtain, cond. G System 2500 operator controller, dbl. crank w/2‐ 10036CLC, s/n 054486CLC, 60" dia. & 30" max. coil guide, mdl. 30PTT21, s/n 054486PTT, 30" width curtain, cond. F‐G hyd. expanding mandrel; coil cradle, mdl. stroke, 4" slide adj., 13" shut height, 26" D x 36" W SEE PHOTO #1751 054486SR, 60" max. coil ID, 30" max. coil width, SMX30H, s/n 054486SEF, 30" width cap., incl. programmable electronic controls, edge guide width, 240‐1200 IPM, incl. pneu. hold‐down for rolls, pneu. pinch adj., etc.; considered as cap. w/electronic eye, folding guides; feeder, mdl. cond. G w/entry & exit pinch rolls, apron, etc.; looping pit uncoiler, pneu. pinch adj., 3‐stand leveling section bed & approx. 13" D x 16" W ram, w/Link safety width; coil leveler, mdl. 30D7, s/n 54486, 30" max. complete system & integrated into press controls, 0 (1988), tag #546, 110‐ton cap., 8" stroke, 4" slide 0 (1957), tag #93, 125‐ton cap., gap frame, 2‐point 000 $30,000 tag #534, 175‐ton cap., gap frame, 10" stroke, 6" ,500 $27,500 ServoMax‐II, incl.: uncoiler, mdl. 4.5R‐30, s/n OLV FMV Description $4,000 $6,500 (1956), $1,500 $2,000 (1979), 2,500‐lb. cap., manual expanding mandre $12,000 $20,00 $17 $20, $17,500 $30,00 $30,000 $40,000 (2000), 200‐ton cap., gap frame, 2‐point $100,000 $150,000 tag #652, 300‐ton cap., straight side, 2 98 35690 Serial # 75107 K‐7093‐9 H‐71184 EW‐B‐200‐1 7740 H P54588 60 B5‐72 SE2‐300‐84‐48U 7 Mdl C‐110 SG2‐175 84x30 SN2‐220 Page 7 of 19 EQUIPMENT SCHEDULE American Steel Line Cooper‐Weymouth Seyi (Taiwan) Clearing‐Niagara L & J Bliss Niagara Bliss Mfg By Case 19-10989 Doc 4 Filed 05/06/19 Page 167 of 188 centering reel press press press press press press press feed system Item Qty. Area 153 Charlotte, NC 1 Large Press 151 Charlotte, NC 1 Large Press 158 Charlotte, NC 1 Large Press 157 Charlotte, NC 1 Large Press 160 Charlotte, NC 1 Large Press 161 Charlotte, NC 1 Large Press 155 Charlotte, NC 1 Large Press 152 Charlotte, NC 1 Large Press Item # Location

168 entry & (2) exit stands, add'l. 3‐stand work rolls, w/programmable controller; considered as mandrel, pneu. hold‐down arm; leveler, mdl. 24‐C, coil ID, 24" max. coil width, hyd. expanding w/after market entry guide stand, screw‐type pinch adj., est. 5‐stand leveling exit apron; loop controller, mdl. 24PTT11, s/n 052496, pneu. ServoDial, cond. G pneu. feed roll; electromechanical controls, M30051, 24" w/entry apron, adj. edge guide, complete line & servicing Seyi press, cond. G apron, electronic eye; feeder, mdl. 24SD, s/n 061776D, 8,000‐lb. cap., 60" max. coil dia., 18" max. coil width, hyd. expanding mandrel, hold‐ down arm; leveling stand, mdl. 18B, s/n 061776, 18" max. width, .018" max. thickness, incl. (2) max. width, .093" max. thickness, complete exit apron; loop controller, mdl. 18PTT‐11, s/n 061776PTT, sgl. side w/folding apron, electronic eye, (note: press operation does not require a looping pit, loop controller is at floor level mtd. over coil); feeder, mdl. SMX18, s/n 061776B, 18" s/n M30052, 24" max. coil width, 100‐FPM, ,000 $22,500 ServoMax‐II, incl.: uncoiler, mdl. 4R‐18, s/n ,000 $15,000 incl.: uncoiler, mdl. 3R‐24, s/n M30053, 60" max. OLV FMV Description $1,125 $2,250 adj. pallet‐type, asstd. $15 $10 $228,625 $345,750 Serial # Mdl Page 8 of 19 EQUIPMENT SCHEDULE Cooper‐Weymouth Cooper‐Weymouth Mfg By Case 19-10989 Doc 4 Filed 05/06/19 Page 168 of 188 press feed system press feed system shelving sections Item Large Press Total Qty. Area 4 Charlotte, NC 15 Large Press 154 Charlotte, NC 1 Large Press 156 Charlotte, NC 1 Large Press Item # Location

169 type, approx. 30" x 60" platform, self‐ propelled, electric, cond. F drill press, 20‐ton H‐frame hyd. press Miller CP‐200 welder, Walker Turner bench‐type flammables cabinet, hand & power tools, etc. pressure washer, Lincoln EasyMig‐140 welder, OLV FMV Description $1,500 $2,500 incl. furniture, shelving, storage cabinets, $1,200 $1,800 asstd. items of minor equipment incl., Homelite $2,000 $3,000 scissor‐ $4,700 $7,300 Serial # n/a Mdl 1932E2 Page 9 of 19 EQUIPMENT SCHEDULE Mfg By JLG Case 19-10989 Doc 4 Filed 05/06/19 Page 169 of 188 Item miscellaneous lift equipment Maintenance Total Qty. Area 13 Charlotte, NC 1 Maintenance 15 Charlotte, NC 1 Maintenance 14 Charlotte, NC 1 Maintenance Item # Location

170 mast, e mast, e mast, e mast, ift age mast, age mast, age mast, sideshift attach., LPG, cond. F‐G sideshift attach., cond. G sideshift attach., cond. G sideshift attach., cond. G sideshift attach., cond. G‐F LPG, 3‐stage mast sideshift attach., cond. G attach., hard tire, LPG, cond. G sideshift attach., cond. G cond. F‐G 0 $5,500 (2002), 3,000‐lb. cap., hard tire, headache rack, OLV FMV Description $2,900 $3,400 3,200‐lb. cap., LPG, ROPS, hard tire, 3‐stag $8,500 $9,300 9,100‐lb. cap., hard tire, LPG, ROPS, 3‐stag $3,000 $3,500 3,100‐lb. cap., hard tire, LPG, ROPS, 3‐stage $2,500 $3,250 2,900‐lb. cap., ROPS, 3‐stage mast, hard tire, $3,500 $5,000 riding scrubber, LPG, cond. F $4,00 $44,200 $56,750 CF0000860 $4,000 $5,500 4,680‐lb. cap., ROPS, hard tire, LPG, 3‐st PF0000862 $3,800 $4,800 4,680‐lb. cap., hard tire, LPG, ROPS, 3‐st TF0000875 $4,000 $5,500 4,680‐lb. cap., hard tire, LPG, ROPS, 3‐st VF0000883 $4,000 $5,500 4,680‐lb. cap., ROPS, 3‐stage mast, sidesh F000863 $4,000 $5,500 4,680‐lb. cap., hard tire, LPG, ROPS, 3‐stag 22 A G2325 ‐9N3312 8702211 Serial # 676176 62126 AT CP1F1 P1F1‐9 7400‐51 HHKHHC08 HHKHHC08 HHKHHC08 HHKHHC08 HHKHC08K Mdl FG18HT‐20 MCP1F1A18LV MP1F1A18LV 7FGCU15 GC45K‐SWB 25LC‐7A 25LC‐7A 25LC‐7A 25LC‐7A 25LC‐7A 7400 Page 10 of 19 EQUIPMENT SCHEDULE Mfg By Hyundai Nissan Komatsu Caterpillar Hyundai Hyundai Nissan Hyundai Hyundai Toyota Tennant Case 19-10989 Doc 4 Filed 05/06/19 Page 170 of 188 Item Mobile Equipment Total Qty. Area 36 Charlotte, NC 1 Mobile Equipment floor machine 73 Charlotte, NC 1 Mobile Equipment forklift 199 Charlotte, NC 1 Mobile Equipment forklift 197 Charlotte, NC 1 Mobile Equipment forklift 198 Charlotte, NC 1 Mobile Equipment forklift 200 Charlotte, NC 1 Mobile Equipment forklift 206 Charlotte, NC 1 Mobile Equipment forklift 204 Charlotte, NC 1 Mobile Equipment forklift 201 Charlotte, NC 1 Mobile Equipment forklift 202 Charlotte, NC 1 Mobile Equipment forklift 203 Charlotte, NC 1 Mobile Equipment forklift Item # Location

171 e, cond. G, rated rvices welding area, 4' x 4' cabinet‐type s/n's 2006008080020, 2006008090039 OLV FMV Description $1,500 $2,500 refrige $3,000 $4,500 se $18,500 $27,000 $14,000 $20,000 (2006), screw‐type, 50‐HP, w/enclosur description Serial # 26225 see Mdl n/a 3700II (3709‐A) Downflo Page 11 of 19 EQUIPMENT SCHEDULE Mfg By Zeks Sullair Torit Case 19-10989 Doc 4 Filed 05/06/19 Page 171 of 188 Item air compressors dust collector air dryer Outside Total Qty. Area 81 Charlotte, NC 2 Outside 79 Charlotte, NC 1 Outside 82 Charlotte, NC 1 Outside Item # Location

172 60" approx. 72' L; sgl. pass dry oven, sandwich panel SEE PHOTO #1749 showing washer monorail not yet in service component and system controls, cond. E, new and considered as complete line w/all related SEE PHOTO #1754 showing partial view of SEE PHOTO #1752 showing curing oven circulation; self‐supporting monorail system; dual manual spray stations w/Nordson Encore W openings, reservoirs & pumps, carbon steel frame w/polypropeylene tunnel, s/steel access drs., all related controls, water treatment system, 50' L x 16' W, triple pass, gas‐fired, w/air construction, approx. 4' x 4' opening, 42' L; approx. 18' L powder spray booth, 4' x 4' openings, SEE PHOTO #1751 showing spray booth spray guns, powder recovery units, spray booth housed inside larger approx. 20' x 40' x 14' H enclosure; curing oven w/4' x 4' openings, approx. SEE PHOTO #1750 showing dryer OLV FMV Description $100,000 $200,000 (2016), incl.: 5‐stage tunnel washer w/48" H x $100,000 $200,000 Serial # Mdl Page 12 of 19 EQUIPMENT SCHEDULE Mfg By Case 19-10989 Doc 4 Filed 05/06/19 Page 172 of 188 Item powder coating line Powder Coating Total Qty. Area 175 Charlotte, NC 1 Powder Coating Item # Location

173 granite surface top interface gauge, Brown & Sharpe Micro‐Hite 350, 24" plate, cond. G electronic height gauge, calipers, asstd. pin gauge sets, 18" digital caliper, rules, squares, 24" x 24" x 3" surface plate, etc. $750 cond. F OLV FMV Description $500 $1,500 $2,500 (1999), Revision .09, port., lap $4,000 $7,000 (1993), approx. 8" D x 48" W x 60" $5,000 $10,000 incl. asstd. ID & OD micrometers, 24" height $11,000 $20,250 Serial # G08029901481 93080282 5037 Mdl BH706 G08‐02 4JR Page 13 of 19 EQUIPMENT SCHEDULE toyo o Mfg By Wilson Case 19-10989 Doc 4 Filed 05/06/19 Page 173 of 188 Item coordinate measuring machine Far gauges hardness tester coordinate measuring machine Mitu Quality Control Total Qty. Area 91 Charlotte, NC 1 Quality Control 90 Charlotte, NC 1 Quality Control 180 Charlotte, NC 1 Quality Control 163 Charlotte, NC 1 Quality Control Item # Location

174 " F‐ ets, ight, , cond. G ype, approx. 24" x 32" x 16" D reservior, ), tag #90, OBI, air clutch, 50‐ton, 6" stroke, 73), tag #226, OBI, 45‐ton, 3" stroke, 12‐1/2" 1996), tag #621, OBI, 35‐ton, 2‐1/2" slide adj., 3" 1995), tag #606, OBI, 35‐ton, 2‐1/2" slide adj., 3" 1989), tag #483, OBI, 60‐ton cap., 3" slide adj., 4" 1993), tag #547, OBI, 60‐ton cap., 3" slide adj., 4" G Sodick Fine EX21‐controls, dedicated water treatment unit, cond. G cond. G controls, 17" D x 26.5" W bed, safety curtain, SEE PHOTO #1752 SEE PHOTO #1753 stroke, 10‐3/4" shut height, air clutch, 17" D x stroke, 10‐3/4" shut height, air clutch, push button 26.5" W bed, push buƩon safety controls, cond. G shut height, 18" D x 30" W bed, air clutch, safety curtain, cond. F‐G lockers, desks, chairs, 4' x 4' platform scale, etc. controls, 28" W x 18" D bed, air clutch,125‐SPM, 11‐1/4" shut height, 3" stroke, cond. F‐G stroke, 12" shut height, 3.5" slide adj., cond. F D x 32" W bed, push button safety controls, 4" SPM, air clutch, cond. F‐G approx. 34" W x 32" D bed, 18" x 14" ram, 100‐ SEE PHOTO #1754 50‐SPM, 11" shut height, 19" D x 26" W bed, push stroke, 14‐1/4" shut height, mechanical, approx. button safety controls, cond. F 21" D x 32" W bed, safety curtain, air clutch, cond. stroke, 14‐1/4" shut height, approx. 21" D x 32" W bed, safety curtain, air clutch, cond. G F‐G OLV FMV Description 2,500 $3,500 (1972), tag #215, OBI, 45‐ton, push button safety 3,000 $5,000 (1966), tag #89, OBI, air clutch, 60‐ton, approx. 21 $350 $500 $2,500 $3,500 (1946 $3,500 $5,500 15" W x 36" dia. coil cap., 4‐stand leveler $4,000 $6,500 tag #235, OBI, 60‐ton, 4" stroke, 15" shut he $1,500 $2,000 2,500‐lb. cap., expanding mandrel, cond. G‐F $6,500 $10,500 (19 $1,500 $2,500 incl. shelving, fans, port. die carts, storage bask $1,000 $1,750 4,000‐lb., cond. F $3,500 $5,000 incl. coil box, 10" W strip cap., cond. F‐G $2,750 $4,000 10" W x 36" dia. coil cap., 4‐stand leveler, cond. $7,500 $12,000 ( $7,500 $12,000 ( $2,750 $4,000 12" W, cond. G $ $ $10,000 $17,500 ( $12,000 $20,000 ( $18,000 $27,500 wire‐t 20 Serial # 118255 461856 S‐1089‐67 4‐79 39410683 n/a 73106 H‐71415 65205 H‐71631 056000‐STR H70742 H71195 72155 66100 . Mdl JVRE‐1013‐1 60 50 40‐18 C‐35 C‐35 C‐45 JSGCC‐15 Combination A530D C‐60 C‐60 45FW‐AC 60FW‐AC 60W‐B.G.‐A.‐C n SE12B Page 14 of 19 EQUIPMENT SCHEDULE American Steel Line Littell Jaco Mfg By n/a Bliss Bliss Bliss Southbend Johnson Southbend Johnson Southbend Johnson Warco Sodick Bliss Bliss Cooper Weymouth Peterso Jaco Jaco Case 19-10989 Doc 4 Filed 05/06/19 Page 174 of 188 Item centering reel leveler centering reel miscellaneous coil leveler centering reel coil cradle coil cradle press press press press press press press press press edm Qty. Area 8 Charlotte, NC 1 Small Press 178 Charlotte, NC 1 Small Press 148 Charlotte, NC 1 Small Press 177 Charlotte, NC 1 Small Press 164 Charlotte, NC 1 Small Press 165 Charlotte, NC 1 Small Press 150 Charlotte, NC 1 Small Press 166 Charlotte, NC 1 Small Press 176 Charlotte, NC 1 Small Press 138 Charlotte, NC 1 Small Press 137 Charlotte, NC 1 Small Press 136 Charlotte, NC 1 Small Press 139 Charlotte, NC 1 Small Press 140 Charlotte, NC 1 Small Press 141 Charlotte, NC 1 Small Press 142 Charlotte, NC 1 Small Press 143 Charlotte, NC 1 Small Press 144 Charlotte, NC 1 Small Press Item # Location

175 88‐ 88‐ le clutch, safety curtain w/OmniLink LCD operator control, cond. F‐G w/no consideraƟon for proprietary aspect specific application, valued on component basis Series length control system; built & tooled for 18" x 24" ram, 75‐SPM, air counterbalance, air ton, 6" stroke, 19" shut height, 24" D x 36" W bed, Weldotron light curtain, centering reel, MP300 terminal, cond. G 18‐1/2" shut height, 90‐SPM, approx. 30" x 36" bed, 16" x 24" die area, push button safety controls, safety curtain, air clutch, air cushion & counterbalance, cond. F‐G SEE PHOTO #1755 Airam flying pneu. shear; small parts conveyor; forming section w/approx. 2" dia. arbors, coolant; clutch, safety curtain w/OmniLink LCD operator 18" x 24" ram, 75‐SPM, air counterbalance, air ton, 6" stroke, 19" shut height, 24" D x 36" W bed, terminal, cond. G 00 tag #97, 110‐ton cap., OBI, mechanical, 6" stroke, 000 incl.: Airam flying pneu. punch; 3‐stand roll OLV FMV Description $8,000 $12,5 $6,000 $12, $2,500 $4,000 8" width cap., Servomatic IV programmab $15,000 $25,000 tag #611, mechanical, open back stationary, $15,000 $25,000 tag #610, mechanical, open back stationary, $136,850 $221,750 54231 54230 Serial # 11052810165 Y8564‐995 P P 113103 Mdl Bison BN‐80‐I Bison BN‐80‐I SMIV‐6 110 Page 15 of 19 EQUIPMENT SCHEDULE Mfg By Cooper‐Weymouth, Peterson Danly Clearing‐Niagara Clearing‐Niagara Yoder Case 19-10989 Doc 4 Filed 05/06/19 Page 175 of 188 Item press roll former press feed press press Small Press Total Qty. Area 145 Charlotte, NC 1 Small Press 146 Charlotte, NC 1 Small Press 147 Charlotte, NC 1 Small Press 149 Charlotte, NC 1 Small Press 162 Charlotte, NC 1 Small Press Item # Location

176 ‐ xhaust, inside height, design, manual hyd., cond. G baskets, shelving, etc. auxiliary grinding area, cond. VG SEE PHOTO #1743 dbl. dr., w/exhaust, cond. E controls, cond. F‐G type, foot activated, w/programmable weld control, cond. G‐VG rocker arm‐type, water cooled, w/Sciaky programmable controls, cond. F‐G 120‐KV at 50% duty cycle, water cooled, cond. G F‐G approx. 20" throat, electronic weld controls, cond. throat, rocker arm‐type, w/Unitrol Solutions programmable digital controls, cond. F‐G ,000 120‐KVA at 50% duty cycle, 24" throat, pneu. press ,000 tag #545, 200‐KVA, 60% duty cycle, water cooled, 7,000 tag #65, 150‐KVA, 50% duty cycle, 42" throat, 0 $7,500 75‐KVA, 100% duty cycle, water cooled, 34" OLV FMV Description $750 $1,250 throughout area, incl., pallet jacks, carts, material $750 $1,500 C‐frame $3,000 $5 $4,000 $7,000 150‐KVA, 42" throat, Unitrol programmable weld $4,000 $ $5,00 $1,000 $1,250 $17,500 $25,000 (2016), approx. 90" W x 88" D x 96" $10,000 $15,000 approx. 3' x 3' x 4' H booth, downdraft e $56,000 $85,500 $10,000 $15 AI16‐204 19 Serial # 930016 161807 9581R 1164‐R H6058 H6058 2016‐ Mdl GR‐6088 P‐100 SPTM2 n/a PMC0.3STM150‐36 110 PMC2SC n/a T51005 WDDT‐3‐1 Page 16 of 19 EQUIPMENT SCHEDULE Mfg By Schmidt H & H H&H Sciaky Peer Sciaky Sciaky Airex Avani Environmental Case 19-10989 Doc 4 Filed 05/06/19 Page 176 of 188 Item spot welder finishing booth grinding station spot welder spot welder spot welder press miscellaneous spot welder spot welder Spot Welding Total Qty. Area 34 Charlotte, NC 1 Spot Welding 32 Charlotte, NC 1 Spot Welding 29 Charlotte, NC 1 Spot Welding 169 Charlotte, NC 1 Spot Welding 171 Charlotte, NC 1 Spot Welding 170 Charlotte, NC 1 Spot Welding 215 Charlotte, NC 1 Spot Welding 119 Charlotte, NC 1 Spot Welding 118 Charlotte, NC 1 Spot Welding 120 Charlotte, NC 1 Spot Welding Item # Location

177 ole 2‐ te 2‐ 12" throat 2,000‐deg. F cap., electric, approx. 16" x 16" dr., Sentry 20 microprocessor control, cond. G through‐spindle, cond. F‐G 30" x 48" x 6" D) asstd. gauges, etc. HP spindle, shaper attach., cond. F axis DRO, cond. F‐G cond. F‐G x 38" T‐slot base, cond. F automatic, cond. G HP spindle, cond. F‐G 1,200 cond. F‐G 1,500 16", w/20" x 20" table, blade welder, cond. F‐G 0 $2,500 tag #27, 10" dia. column x 4' arm, multi‐speed, 26" 0 $600 24", w/24" x 24" table, sliding head, cond. F 00 $1,500 (1994), 6" x 18" magnetic chuck, semi‐automatic, 000 $7,500 12" x 24" electromagnetic chuck, coolant, 500 $3,500 9" x 42" power feed table, Acu‐Rite 2‐axis DRO, 2‐ OLV FMV Description $40 $800 $ $250 $500 rotary, manual, $1,0 $3,000 $4,500 9" x 48" pwr. feed table, 2‐HP spindle, Acu‐Ri $1,500 $2,500 tag #20, 16" swing x approx. 48" CC, taper, 1" h $2,500 $3,500 9" x 48" power feed table, Acu‐Rite 2‐axis DRO, $1,000 $1,500 w/Budgit 1‐ton hoist, 3‐ton cap., cond. F‐G $2,500 $3,500 $1,500 $2,500 incl.: Herman Stone granite surface plate. (6" x $5, $2, $1,000 $ $1,50 $24,450 $36,800 6928 02981 630 Serial # 9422‐309 434326 MA‐7033 83497 3JR‐7809 12‐BR‐2 12BR‐19 12‐BR‐116109 1651834 F‐4/60 B21815 Mdl AGS‐618 (Style) MA‐6 12‐24ST KMTG18 3JR Series I Series I V16 Page 17 of 19 EQUIPMENT SCHEDULE Mfg By Wilson Okamoto Acer Knight Colchester Clausing Wiedemann DoAll Avey Bridgeport Bridgeport Bridgeport Caser (Italy) Case 19-10989 Doc 4 Filed 05/06/19 Page 177 of 188 Item drill press engine lathe furnace gantry crane hardness tester Punch radial drill inspection equipment surface grinder surface grinder vertical mill vertical bandsaw vertical mill vertical mill Tool Room Total Qty. Area 99 Charlotte, NC 1 Tool Room 94 Charlotte, NC 1 Tool Room 97 Charlotte, NC 1 Tool Room 93 Charlotte, NC 1 Tool Room 98 Charlotte, NC 1 Tool Room 95 Charlotte, NC 1 Tool Room 108 Charlotte, NC 1 Tool Room 101 Charlotte, NC 1 Tool Room 104 Charlotte, NC 1 Tool Room 106 Charlotte, NC 1 Tool Room 109 Charlotte, NC 1 Tool Room 167 Charlotte, NC 1 Tool Room 105 Charlotte, NC 1 Tool Room 100 Charlotte, NC 1 Tool Room Item # Location

178 lt 250‐amp, duty cycle n/a, LN‐7 wirefeed, cond. F‐G grinders, dbl. end bench grinders, pneu. handheld racks, etc. table, asstd. jigs & fixtures, manual clamps, etc. welding screens, welding benches, 30" x 60" Acorn 10" dia. ped. & 12' L jib grinders, etc. amp, 3,450‐RPM, cond. G SEE PHOTO #1756 amp, 3,450‐RPM, cond. G amp, 3,450‐RPM, cond. G Coolmate 3, cond. G SEE PHOTO #1757 Miller cooling unit reach wirefeed wirefeed, Miller cooler G G 0 cond. G 000 210‐amp, 60% duty cycle, cond. G 000 210‐amp, 60% duty cycle, connected to Miller $6,000 1 1/2‐HP, 120/240‐volts, 60% duty cycle, 14/7‐ $6,000 1 1/2‐HP, 120/240‐volts, 60% duty cycle, 14/7‐ $6,000 1 1/2‐HP, 120/240‐volts, 60% duty cycle, 14/7‐ $2,500 300‐amp, 100% duty cycle, Miller 24A wirefeed $3,000 300‐amp, 60% duty cycle, w/Miller 22A wirefeed $2,000 300‐amp, 60% duty cycle, w/Miller XR extended 0 $600 46‐amp, 100% duty cycle, cond. F‐G 500 $2,250 250‐amp, 40% duty cycle, built‐in wirefeed, cond. 250 $2,000 350‐amp w/built‐in wirefeed 750 $3,000 350‐amp w/built‐in wirefeed 500 $2,250 250‐amp, 40% duty cycle, built‐in wirefeed, cond. ,000 $1,200 cond. G ,000 $1,200 cond. G ,000 $1,200 cond. G ,000 $1,200 cond. G ,000 $1,200 cond. G OLV FMV Description $40 $800 $1, $750 $1, $650 $1,000 ped. base, 500‐lb. cap., w/electric hoist, approx. $500 $1,000 (receiving), incl. asstd. bins, baskets, stackable $500 $1,000 $800 $1,00 $1 $1 $1 $1 $1 $1, $1, $1, $1, $1,250 $2,000 (1997), 350‐amp, 40% duty cycle, w/built‐in $1,600 $2,800 (receiving), adj. pallet‐type, asstd., avg. $2,500 $3,500 throughout area, incl. asstd. pallet shelving, $1,000 $1,500 incl. abrasive chopsaw, 6" belt grinder, 1" & 2" be $1,500 $1,250 $2,000 350‐amp, 40% duty cycle, w/built‐in wirefeed, $5,000 $5,000 $5,000 $1,750 $1,250 $42,500 $59,400 907 65‐007386 Serial # MF380567L MG151089L LJ160182C LF287347 154713 154230 154710 LC243604 LC464068 U197110816 Powermax 65 Mdl Dynasty 210 Millermatic 350P MB210108N Coolmate 3 Millermatic 350P MC082086N Millermatic 350P MC082087N Millermatic 350P MB180567N Dynasty 210 Millermatic 350P MC151432N Invision 354MP Millermatic 350P MB280589N Syncrowave‐250DX LJ130565L Syncrowave‐250DX LH140449L Millermatic 350P MB280587N Deltaweld 302 Invision 354MP SPC‐2000 SPC‐2000 SPC‐2000 CV‐250 Square Wave Tig‐350 AC764710 Square Wave Tig‐355 U1970208 Page 18 of 19 EQUIPMENT SCHEDULE Mfg By Miller Miller Miller Miller Lincoln Miller Hypertherm Miller Miller Miller Miller Miller Miller Lincoln Miller Miller Miller Miller Lincoln Gorbel Avani Avani Avani Case 19-10989 Doc 4 Filed 05/06/19 Page 178 of 188 Item shelving sections welder welder welder welder welder dust collector dust collector dust collector welder welder welder welder welder miscellaneous jib crane miscellaneous equipment welder welder welder welder welder welder welder welder welder Welding Total Qty. Area 74 Charlotte, NC 1 Welding 72 Charlotte, NC 1 Welding 75 Charlotte, NC 1 Welding 76 Charlotte, NC 16 Welding 71 Charlotte, NC 1 Welding 67 Charlotte, NC 1 Welding 60 Charlotte, NC 1 Welding 68 Charlotte, NC 1 Welding 50 Charlotte, NC 1 Welding 58 Charlotte, NC 1 Welding 70 Charlotte, NC 1 Welding 69 Charlotte, NC 1 Welding 56 Charlotte, NC 1 Welding 57 Charlotte, NC 1 Welding 212 Charlotte, NC 1 Welding 179 Charlotte, NC 1 Welding 208 Charlotte, NC 1 Welding 211 Charlotte, NC 1 Welding 210 Charlotte, NC 1 Welding 209 Charlotte, NC 1 Welding 216 Charlotte, NC 1 Welding 207 Charlotte, NC 1 Welding 219 Charlotte, NC 1 Welding 213 Charlotte, NC 1 Welding 221 Charlotte, NC 1 Welding 218 Charlotte, NC 1 Welding 214 Charlotte, NC 1 Welding Item # Location

179 A, per photo 42), 13" dia. column x 5' arm 0‐HP w/receiving tank, 400‐CFM height, 28" min. shut height, 24" stroke, 100‐ton cushion, sgl. action, s/n's 10‐4615 ‐ 10‐4621, w/coil handling equipment and updated controls or together, 120" x 66" bed w/120" x 84" ram ($70,000 rebuild in 2014 incl. Bearings & Gibs) 600‐ton inner ram, rams can operate independent w/10" throat, 10' cap. (1) 100‐KVA, avg. 00 (2012), 5‐axis, 6' x 10' table, 3,300‐watt CO2 laser 000 (1984), dbl. action w/1,000‐600 ton outer ram, 000 $1,400,000 (1980), 600‐ton, 144" x 84" bed, 50" max. shut 5,000 $50,000 (1955), 6" dia. spindle, 12' x 12' table, rebuilt OLV FMV Description $3,000 $5,000 $5,000 $7,500 (19 $65,000 $110,000 50‐ton, incl. 15‐ton auxillary hoist, 70' span $10,000 $15,000 1,000‐lb. cap. $20,000 $30,000 (2003), ABB mdl. IRB6400 RM 2000 robot $75,000 $100,000 300‐ton $25,000 $35,000 incl. Motoman robot (2002), 100‐KVA welder $17,500 $25,000 asstd., ranges from 18" ‐ 35.5", incl. (4) 150‐KV $37,500 $52,500 asstd., port., 100‐200 KVA, 2" ‐ 20" throat $20,000 $30,000 15 $30,000 $40,000 200‐ton, cond. G $30,000 $45,000 250‐ton, gap frame $3 $300,000 $400, $700, $300,000 $400,0 $1,673,000 $2,745,000 $3,546,725 $5,403,725 Serial # see description 78370301‐02 8846 Mdl S4‐600‐144‐84 TLM‐610 D2720 INA 400 DE‐1000‐120‐84 GA110W Hole Wizard 560F Page 19 of 19 EQUIPMENT SCHEDULE Mfg By Ingersoll Rand Knight Clearing Verson USI Clearing Danly Cincinnati Komatsu Atlas Copco Cincinnati Giddings & Lewis Case 19-10989 Doc 4 Filed 05/06/19 Page 179 of 188 Item bridge cranes spot welding guns air compressors bridge crane air dryer horizontal boring mill laser cutting system press press presses robotic system robotic cell radial drill press press spot welders Grand Total Desktop Total 1 Desktop 1 Desktop 1 Desktop 2 Desktop 1 Desktop 1 Desktop 1 Desktop 1 Desktop 7 Desktop 1 Desktop 1 Desktop 1 Desktop 1 Desktop 5 Desktop 10 Desktop 15 Desktop Qty. Area 184 Ohio 190 Ohio 188 Ohio 191 Ohio 189 Ohio 193 Ohio 194 Ohio 192 Ohio 182 Ohio 196 Ohio 181 Ohio 187 Ohio 185 Ohio 195 Ohio 183 Ohio 186 Ohio Item # Location

180 Case 19-10989 Doc 4 Filed 05/06/19 Page 180 of 188 PHOTOGRAPHS

181 Case 19-10989 Doc 4 Filed 05/06/19 Page 181 of 188 1751.JPG 1752.JPG 1754.JPG 1753.JPG 1755.JPG 1756.JPG 1757.JPG 1758.JPG 1 Southeastern Metal Products, Inc.

182 Case 19-10989 Doc 4 Filed 05/06/19 Page 182 of 188 1759.JPG 1760.JPG 1762.JPG 1761.JPG 1763.JPG 1764.JPG 1765.JPG 1766.JPG 2 Southeastern Metal Products, Inc.

183 Case 19-10989 Doc 4 Filed 05/06/19 Page 183 of 188 1767.JPG 1768.JPG 1770.JPG 1769.JPG 1771.JPG 1773.JPG 1774.JPG 1775.JPG 3 Southeastern Metal Products, Inc.

184 Case 19-10989 Doc 4 Filed 05/06/19 Page 184 of 188 1776.JPG 1777.JPG 1779.JPG 1778.JPG 1780.JPG 1781.JPG 1782.JPG 1783.JPG 4 Southeastern Metal Products, Inc.

185 Case 19-10989 Doc 4 Filed 05/06/19 Page 185 of 188 1784.JPG 1785.JPG 1786.JPG 1787.JPG 1788.JPG 1789.JPG 1791.JPG Southeastern Metal Products, Inc. 5

186 Case 19-10989 Doc 4 Filed 05/06/19 Page 186 of 188 APPRAISER’S CERTIFICATION AND QUALIFICATIONS

187 Case 19-10989 Doc 4 Filed 05/06/19 Page 187 of 188 CERTIFICATE OF APPRAISER I certify that, to the best of my knowledge and belief: orrect. The statements of fact containe d in this report are true and c The reported analyses, opinion s, and conclusion are limited on ly by the reported ial, and unbiased assumptions and limiting conditions and are my personal, impart professional analyses, opinions and conclusions. is the subject of this I have no present or prospective interest in the property that report and no personal interes t with respect to the parties inv olved. t of this report or to the I have no bias with respect to the property that is the subjec parties involved with this assignment. My engagement in this assignmen t was not contingent upon the d evelopment or reporting of a predetermined value or direction in value that f avors the cause of the client, the amount of the value op inion, the attainment of a st ipulated result, or the ed use of this occurrence of a subsequent event directly related to the intend appraisal. s report has been My analyses, opinions, and conclusions were developed, and thi prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. rsonal inspecti on of the prope rty that is the subject On November 11, 2016, I made a pe of this report. nce to the person signing Mitchell Robinette provided personal property appraisal assista this certification. Mr. Robine tte’s assistance is stated withi n the body of the report. perty on March 6, 2014. I have provided an appraisal service related to the subject pro Signed December 19, 2016 R. Lee Robinette, ASA* * The American Society of Appraisers has a mandatory recertific ation program for all of its Senior members. I am in comp liance with that program.

188 Case 19-10989 Doc 4 Filed 05/06/19 Page 188 of 188 QUALIFICATIONS OF R. LEE ROBINETTE, ASA _______________________________________________________________ ___ EXPERIENCE AND EDUCATION Associates, Inc. (Vice Preside President, Collateral Evaluation nt 1998-2012) President, Valuation Resources, Inc. Senior Appraiser & Vice Presid ent, MB Valuation Services, Inc. thern District; Kentucky, Testified as Expert Witness, U.S. Bankruptcy Court - Texas, Sou Eastern District; Divorce Cases – Various Jurisdictions agement - University of North Carolina at Wilmington Bachelor of Science, Business Man _______________ _________ __________________ _________________ PROFESSIONAL ASSOCIATIONS Board Member, Appraisal Standards Board, appointment expires De cember 31, 2018 , American Society of Appraise rs, Machinery & Equipment Accredited Senior Appraiser (ASA) Discipline, recertified through December 14, 2018 8 AQB Certified USPAP Instructor, certified through March 31, 201 Chair, American Society of Appraisers Machinery/Technical Speci alties Committee, (2005- 2007) Vice Chair, American Society of A Specialties Committee, (2003- ppraisers Machinery/Technical 2005) pecialties Committee, (2001- Secretary, American Society of A ppraisers Machinery/Technical S 2003) Treasurer, American Society of Appraisers Machinery/Technical S pecialties Committee, (1999- 2001) Member, American Society of Appraisers Machinery/Technical Spec ialties Committee, (1997- 1999) raisers NC Chapter-Western Br anch (1999-2002) President, American Society of App Vice President, American Societ rn Branch (1997-1999) y of Appraisers NC Chapter-Weste Instructor, Principles of Valuation Courses - American Society of Appraisers: ME201, ME202, ME206 (Appraisal of Inventory) Course Developer (1 of 3), Principles of Valuation Course ME206 Member, American Bankruptcy Institute _______________________________________________________________ ____ *Specific references can be provided upon request.

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