LDFA Board Annual Meeting September 18, 2012 8:15 am to 10:15 am City of Ann Arbor 301 E.

Huron Street, Ann Arbor, MI 48104

Agenda
I. II. Call to Order Public Comment
Public comment shall be allowed at all meetings. An individual may speak for up to three (3) minutes on any item listed on the Agenda. The Chair may extend an individuals speaking time in his/her discretion. Public comment on non-agenda items may be limited in the Chairs discretion.

III. IV. V. VI. VII.

Approval of the Agenda Approval of the Minutes of the July 24, 2012 Regular Board Meeting LDFA Chairs Report LDFA Treasurers Report Reports from Service Providers a. SPARK Annual report for FY2012 b. SPARK Company testimonials Other Business Motion to Adjourn

VIII. IX.

DRAFT

MINUTES REGULAR BOARD MEETING July 24, 2012 Ann Arbor-Ypsilanti Smart Zone Local Development Finance Authority
Ann Arbor City Hall Council Chambers 301 E. Huron Street, Ann Arbor, MI 48104

Members Present: Richard Beedon, Eric Jacobson, Mark Maynard, Ned Staebler, Christopher Taylor, Phil Tepley, Tom Crawford Ex-officio, Skip Simms-Accelerator Exofficio, Paula Sorrell-MEDC Ex-officio Members Excused: Theresa Carroll, Vince Chmielewski, Stephen Rapundalo Others Present: Ken Bogan-City of Ann Arbor-Finance, Lori Emerson-SPARK, Bill Mayer-SPARK, Liz Perpich-SPARK, Kurt Riegger-Business Engines

I.

CALL TO ORDER: Chair Beedon called the meeting to order at 8:17 am. A quorum was present. PUBLIC COMMENT: There was no public comment. APPROVAL OF THE AGENDA: Taylor moved, seconded by Staebler, to approve the agenda for this meeting in the form presented at this meeting. Motion approved unanimously. MOTIONS & RESOLUTIONS: Minutes of the June 12, 2012 Regular Board Meeting: Taylor moved, seconded by Staebler, to approve the minutes of the June 12, 2012 regular board meeting in the form presented at this meeting. Motion approved unanimously. LDFA CHAIRS REPORT: Chair Beedon suggested a special meeting, around the end of October. Possible topics for the meeting were discussed. Agenda and Date to be determined. LDFA TREASURERS REPORT: a. Treasurer Jacobson presented the LDFA Financial Report for the 4th quarter of FY2012.

II.

III.

IV.

V.

VI.

DRAFT

VII.

REPORTS FROM SERVICE PROVIDERS: a. Simms presented the SPARK Report for the 4th quarter of FY2012. OTHER BUSINESS: a. Election of officers for FY2013: Chair Beedon would like to recommend to the mayors of Ann Arbor and Ypsilanti the reappointment of members Taylor, Carroll and Manyard, pending the agreement of those members. The board agreed with the recommendation. Beedon will discuss those possible reappointments with those members and the mayors. Taylor moved, seconded by Staebler, to reappoint all of the officers positions for FY2013. Motion approved unanimously. The reappointed positions are as follows: Chair: Richard Beedon Vice Chair: Stephen Rapundalo Treasurer: Eric Jacobson Recording Secretary: Tom Crawford b. Cantillon: Chair Beedon reported to the Board that there are discussions between the Cantillon Committee and the University of Michigan for the univeristy to receive an exclusive five year license, with an option to purchase after five years. Tepley moved, seconded by Taylor to empower member Carroll and the Cantillon Committee to negotiate and execute an agreement with the university. Motion approved unanimously. c. Metrics: The Metics Committee will be looking in to research by Larry Molnar. Simms indicated an additional potential source for evaluating metrics would be Business Cluster Development.

VIII.

IX.

MOTION TO ADJOURN: Maynard moved, seconded by Tepley, to adjourn the meeting at 9:16 am. Motion approved unanimously.

Respectfully Submitted,

Ken Bogan, for Recording Secretary Tom Crawford

AnnArbor/YpsilantiSmartZone LDFAFinalProgramProgressReport ContractperiodJuly1,2011throughJune30,2012 August30,2012

3.3TheContractorshallprovideawrittenFinalProgramProgressReporttotheLDFAnolaterthansixty (60)daysaftertheendoftheProjectServiceTerm.TheFinalProgramProgressReportshalldisclose:1) acensusoftheannualandcumulativenumberofjobscreatedwithintheServiceArea(asdefinedin AttachmentA)asofJune30,2012(withjobsdefinedastheincrementalincreaseinthenumberofFTEs beginningwiththedateaBusinessAcceleratorproposalissigned,oraloanisprovided,orwhenaSPARK CentralIncubatoragreementisfirstexecuted,orwhenparticipationinBootCampsessionoccurs);2)a censusoftheannualandcumulativenumberofjobsrelatedtoBusinessAccelerator,SPARKCentral Incubator,andBootCampattendeesthathavelefttheServiceAreabecauseofrelocation,merger, acquisition,orbusinessfailureasofJune30,2012;3)acensusofthenumberandidentityofcurrentand pastclientstheContractordeemsnolongereligibleforLDFAfundedservicesasofJune30,2011;and4) acensusofthenumberandidentityofclientsforwhichinformationregardingjobscreationisnolonger beingcollectedasofJune30,2012.TheContractorshalltrackcompaniesforaperiodoffiveyears throughanannualsurveyandmakeeffortstoachieveashighaparticipationrateaspossible.The surveywillnotonlyincludequestionsthatupdatestandardeconomicdevelopmentdatabutalsoask companieswholeavetheareawhy. Annualandcumulativejobscreated ThefollowingtablelistsallcompaniesthatreceivedBusinessAcceleratorservicesinFY201112. Retainedjobsarethosewhichthecompanyreportedatthetimeoftheinitialengagementofservices. Thecurrentjobsarethosejobsupdatedthroughrecentcontactwiththecompanyortheannualsurvey conductedeachJulyandAugust.Newjobsarethedifference.FTEforreportingpurposesmeansFull TimeEquivalents.FTEsmayormaynotbepaidandmaybeworkingfordeferredcompensationincash orstock.FullTimemeansa40hourperweekcommitmenttothecompany.
Uniq ID 4581 297 4519 4547 3476 AccountDescription Companybuildsdevicesenablingtheblindtouse moderntouchscreendevices. Softwaretohelpforeignnationalsreducetheiraccent andEnglishspeakerstounderstandforeignaccents. Adnetworkformobilegamingandapplications. Advancednanofabricationmethodsandanovelthree dimensional(3D)approachtosensorassembly Highquality,solidstatelightingcombiningorganicand inorganicmaterials,lowercostthanotherLEDs. Retained FTEJobs 2 4 3 2 3 Current FTEJobs 2 22 3 3 3 NewFTE Jobs 0 18 0 1 0

1 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

4431 4544 479 2752 4517 1282 3006 4167

4141 4552 4551 4523

Assistivetechnologytoallowpeoplewithfinemotor disabilitiestointeractwiththemobileandtouchscreen Pharmaceuticalfortreatmentofadrenalcancer. Knowledgemanagementplatformforautovertical Entrylevelneurophysiology(brainsignalrecording)kits forstudentstolearnaboutthebrain Innovativeelectromechanicallyassistedbassdrum pedal Spectralanalysisforredbloodcells Ourcoremarketiscustomersneedingsimulation applicationsforrealworldactivities Anintubationdevice(theSmartAirway)thatiseasyto useandimprovesfirstpasssuccessratesfor inexperiencedpractitioners Creatorofonlineportaltoconnectcareconsumersand careproviders ChildCarefacilitybackendandcustomerfacingsoftware. TheConnectMonitorusesanovelmethodtoassess anesthesiaintheORandsedationintheICU. Technologyforsortingberriesbyfirmness,applicableto cranberriesandblueberriesforinstancewithpossible applicationtosortingothersmallobjectslikeperhaps tartcherries,orcoffeecherries. Providesmobileapplicationsforlargetraveldestinations CompleteRecommenderSystem(RS)forwebsitesbuilt withDrupalContentManagementSystem Design,assemble,andsellaninnovativeelectricfield sensorcalledtheChargeTrackerfortheelectronic manufacturingsectortowarnagainstelectrostatic discharges. VacuumandhermeticpackagingofMEMSusingsolder. Developersofphysicallysecurecomputers Softwareforcloudbasednotetaking Portalforgraphicartspurchasers SaaSmodelsoftwaretohelpcompaniesfindandaccess grants,andcollaborate. Electricaltestandmeasurementinstrumentation Amedicaldevicefirmthatprovidesfoamdressingkits thatareusedinnegativepressurewoundtherapy. Producthelpsconsumersgeteverydiscountthey deserve,membershiporganizationsincreaseloyalty,and merchantsgeneratebusinessfromta Interactiveclassroomsoftwareandtoolstoincrease studentlearning. Onlinemarketplaceforfooddistribution CreatorofAppfortheApplestoredealingwithchildren withdisabilities

1 3 4 3 2 3 2 4

1 3 4 9 2 3.5 2 4

0 0 0 6 0 0.5 0 0

2 5 4 1

2 5 4 1

0 0 0 0

4566 4406 4569

1 3 2

1 3 2

0 0 0

2316 4255 4807 481 3368 3105 4354 4471

2 2 3 1 15 2 2 2

1 2 7 1 15 3 2 2

1 0 4 0 0 1 0 0

793 3045 4052

4 5 2

8 5 1

4 0 1

2 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

4243 4257 1465 3577 4913 3995 2539 4341 4210 4982 386 4111 3614 4067 3502 3637 3010 4898 1648 4383 4525 3454 1488 3074 2880 4501 4472 4174 4407 4562

Websiteforbuildingconstructionproject,repairand supplybids. MobileLBSbasedretailoutlet SelfStructuringAntennaforwirelessapplications Stateoftheartproteinmassspectrometry Technologythatencapsulatesadrugfordeliveryin stableperfluorocarbonliquid 3DVisionSystem Hospitalbedcommunicationtablet Scheduling/dispatchsolutionsforruraltransitsystems Supplychainsoftwaredevelopmentcompany Deviceforbodytemperaturemonitoring VisionTechnologyw/Sportsapplications YouthRiskAssessmenttool NextgenerationElectronicHealthRecordssolutionSaaS model. JEEsoftwareapplication Developerofonsitealternativeenergy,anaerobic digestionoffoodwastetoenergy Therapeuticfortreatmentofretinaldiseases FasterandmoreeffectiveIntegratedCircuit(IC)design qualitycontrolsoftware. Intravenousformulationforpatientswithacute decompensatedheartfailure. Monitoring,awarenessanddataloggingforpatient behavioraction. Newmaterialforcoolingandpowergeneration applications. Innovativeprintingtechnologycoupledwithniche advertising. HealthdeviceforthepreventionofSexuallyTransmitted Infectionsthatotherwisearetransmittedbyoralsex Engineering,3Ddesign,softwareconsulting Systemtoprovidemodernhospitalswithaninnovative communicationssolution. SaaSforservesindependentlypracticingtherapists DesignandMfg.ofInnovativeSmartHomeaccessories. Anonlineplatformthatempowerscollegestudentsto showcasetheirworkandskillstostartups. Creatorofaconductingpolymer Digitalinstrumentsandsoftwarecapableofaccurately recreatingthevoicesofvaluablehistoricinstruments. Softwarethatenablessportsfanstoaccessaudio and textbasedcommentaryprovidedbyothersportsfans

1 1 1 4 1 1 2 2 2 1.5 6 1 3 1 4 2 2 2 3 3 2 2 3 3 1 2 4 1 4 1

1 1 1.5 4 1 1 6 2 2 1.5 6 1 4 1 4 2.5 7 2 5 5 4 2 4 3 1 2 8 5 4 1

0 0 0.5 0 0 0 4 0 0 0 0 0 1 0 0 0.5 5 0 2 2 2 0 1 0 0 0 4 4 4 0

3 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

4815

Onlineplatformthatcanbeusedbyanyonetoeasily createinteractivetriviagames.

162.5 221 62.5 GrandTotal TheseBAcompanieshavecumulativelyreceivedmorethan$4,995,662millioningrantsand$4,458,524 millioninprivateequityfundingtodate.

ThefollowingtablelistsallcompaniesthatattendedBootCampthisfiscalyear(March22&23). RetainedjobsarethosewhichthecompanyreportedatthetimeofattendanceatBootCamp.The currentjobsarethosejobsupdatedthroughrecentcontactwiththecompany.Newjobsarethe difference.

Uniq AccountDescription ID 4581 Companybuildsdevicesenablingtheblindtousemodern touchscreendevices. 4586 H2eattechnologygeneratesnonelectric,reusableheaton demand. 4525 Innovativeprintingtechnologycoupledwithniche advertising. 4522 TissueEngineeredLigamentreplacementfordogs 4567 Mobileapplicationforthepurposeofconnectingelectric vehicle(EV)driverswithchargingstations. 4558 Highendmechatronicbackbrace 4551 TheConnectMonitorusesanovelmethodtoassess anesthesiaintheORandsedationintheICU. 4562 Softwarethatenablessportsfanstoaccessaudio andtext basedcommentaryprovidedbyothersportsfans 4584 Regaingoprovidesfastvolumemarketingcampaigns, throughtheuseofonlinecoupondeals 4577 Onlinelanguagelearning(Chinese)throughvirtual environmentsandgameplay 4582 Integrationofonlineservicesintoacentrallocationbacked byanalyticsofintegratedservicestoassistinuseofthe platformswithinthesystem 4588 ResumeSoftware 4583 SoftwareproductEuhedra,aprogramthattocreatinglife like3Dmodelsofmineralcrystals. 4566 Providesmobileapplicationsforlargetraveldestinations Retained FTEJobs 2 2 2 3 2 2 4 1 2 2 2 CurrentFTE Jobs 2 7 4 3 2 2 4 1 2 2 2 New FTE Jobs 0 5 2 0 0 0 0 0 0 0 0

1 2 1 28

1 2 1 35

0 0 0 7

5BootCampcompaniesreceivedBusinessAcceleratorPhaseIIIengagements.8teamswereoutofthe UniversityofMichigan*(CenterforEntrepreneurship,MedicalInnovationCenter,OfficeofTechTransfer andZellLaurieInstitute/RossSchoolofBusiness). 5companiesattendedtheMarch2012camponSmartZoneIncubatorgrants. 4 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

 ThefollowingtablelistsallcompaniesthatreceivedaMicroLoanthroughtheLDFA.Retainedjobsare thosewhichthecompanyreportedatthetimetheloanwasreceived.Thecurrentjobsarethosejobs updatedthroughrecentcontactwiththecompany.Newjobsarethedifference. Thesecompanieshaveraised$3,404,500inprivateequityand$595,000ingrantssincereceivingloans.

Uniq ID AccountName
AccountDescription

Loaned

1585 ProcuitInc. 2804 AllinnovaLLC

Educationalsoftwareengines Assessmenttoolfordetermininga corporation'scapabilitytobe successfulinstrategicpartneringwith anotherorganization Websitedesign,socialmedia Webbasedmarketingservicesfor educationorganizationsandrelated nonprofitandgovernmententities Onlinemarketplaceforfood distribution Picoammeters,electricaltestand measurementinstrumentation Designer,manufacturer,salesand marketerofspecializedvideo equipmentforshootingsportsand outdoorsindustry. Commercializingdentalappliance mouthguard Informationandnewsaggregatorand filter. Webbasedsystemthatmeasuresthe confidencebehindwhatstudents learntoincreaseknowledge retention Onlinemarketplaceforfood distribution Onlinecommunitythatsellsaccessto musiciansintheformofvirtual shares Children'sfinanciallearningprogram Softwarefortrackingvehiclesusing mobilephoneGIS Awebbased,tollfreesuperhighway forthemultidirectionalexchangeof IntellectualProperty,Technologyand Products

$30,000 $10,000

Dateof Repaid Retaine Initial dFTE Investment Jobs 9/8/2009 4 10/22/2009 1

Current FTEJobs 5 1

1982 TheWholeBrain Group,LLC 2181 MemCatchOut ofBusiness 3045 LocalOrbit,LLC 3105 IxInnovations, LLC 2153 RiserCam,LLC OutofBusiness 1585 ProcuitInc. 1885 Akervall Technologies,Inc. 338 DigitalKnowledge Corporation 3176 RoadtoRado,LLC

$50,000 $25,000

11/9/2009 12/14/2009

$50,00 0 $0

5 1

15 0

$10,000 $35,000 $25,000

1/8/2010 3/4/2010 4/13/2010

$1,000 $18,40 0 $17,30 0 $17,19 5

$20,000 $15,000 $29,000 $25,000

4/27/2010 5/27/2010 6/17/2010 6/22/2010

1 1 1

6 3 1

3045 LocalOrbit,LLC 2868 MyBandStock CorporationOut ofBusiness 3418 FamilyMint,Inc. 2838 Shepherd Intelligent Systems 3600 AutoHarvest Foundation

$40,000 $45,000

7/20/2010 8/13/2010

$0 3 0

$50,000 $45,000

9/15/2010 11/1/2010

2 2

2 10

$25,000

12/20/2010

5 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

3105 IxInnovations, LLC 2880 TherapyCharts, LLC

Picoammeters,electricaltestand measurementinstrumentation TherapyChartsservestherapistswho areindependentlypracticingwitha softwareasaservice(SaaS)platform tomanagepatientinformation. Onlinemanagementsystemfor automotiveincentives Manufacturesanddevelopssolid statelightingsystemsforcommerical andindustrialapplications Developmentoftherapiesfor treatmentofbonerelatedconditions Creatorofonlineportaltoconnect careconsumersandcareproviders FasterandmoreeffectiveIntegrated Circuit(IC)designqualitycontrol software. Creatorofonlineportaltoconnect careconsumersandcareproviders Mobileloyaltysystemforquick servicerestaurantswhichcreatesa crosspromotionalplatformwith customizeddeals Anonlineplatformthatempowers collegestudentstoshowcasetheir workandskillstostartups.

$15,000 $47,000

1/28/2011 2/24/2011

2 3

3 1

2610 Buycentives,Inc OutofBusiness 2578 Openworld EnergyLLC 2679 FreeStride TherapeuticsInc. 4141 CareCheq,LLC 3010 RevealDesign Automation,Inc. 4141 CareCheq,LLC 4425 FlockTAGLLC

$25,000 $25,000

3/16/2011 5/9/2011

$0

3 3

0 1

$28,000 $10,237 $45,000

8/31/2011 10/10/2011 10/12/2011

3 4 3

1.5 2 7

$9,223 $40,000

12/15/2011 1/19/2012

4 1

2 8

4472 truApp,Inc.

$50,000

6/11/2012

Totals

$798,46 0

$103,8 95

60

83.5

6 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

ThefollowingtablelistsallcompaniesthatareorwereIncubatortenantsthisyear.Retainedjobsare thosewhichthecompanyreportedatthetimetheymovedintotheincubator.Thecurrentjobsare thosejobsupdatedthroughrecentcontactwiththecompany.Newjobsarethedifference. Tenants

Uniq AccountDescription ID 3914 AdvancedPlanningandSchedulingsolutionsforHealthcare Facilities 4431 assistivetechnologytoallowpeoplewithfinemotordisabilities tointeractwiththemobileandtouchscreen 1282 Spectralanalysisforredbloodcells 4409 Softwaresolutionprovidesforrealtimeclaimsadjudication betweentheproviderandpayerandisHIPPA5010compliant. 3360 comprehensive,realtimemonitoring,managementand supportfornetworks,wireless 2610 Onlinemanagementsystemforautomotiveincentives 4141 Creatorofonlineportaltoconnectcareconsumersandcare providers 2975 Forumtoupload,customize,andcreatemobilemultimedia 438 Ultralowpowersemiconductorchips 4566 Providesmobileapplicationsforlargetraveldestinations 338 Informationandnewsaggregatorandfilter. 2634 WebbasedapplicationsforChambersofCommerce 4464 Softwaretomanagesocialnetworksforhighschoolsand colleges. 3418 Children'sfinanciallearningprogram 4255 Developersofphysicallysecurecomputers 271 riskmanagementITsecurity,etc. 3221 Providerofadvancedsoftwaresolutionsforsewermodelingto municipalitiesandengineeringconsultants 2550 Patentadvisor 3045 Onlinemarketplaceforfooddistribution 2790 Softwarethatwillprovideneededhealthcarequality managementbusinesssolutionsforhospitalsusingSaaS 4791 EventManagementSoftware 4243 Websiteforbuildingconstructionproject,repairandsupply bids. 2854 MIstateincubatorassociation 2159 Onlinehealthcareportalforconsumers 3645 MassSpecresultsdataimprovementforthepurposeof discoveringdiagnosticbiomarkers 2821 Afirmwareapplicationforcollecting/analyzingmultiplepatient parametersinanICUinrealtime 5557 DigitalMarketingIntelligence Retained Current FTEJobs FTEJobs 2 1 1 1 5 2 3 2 3 1 1 2 1 2 2 1 2 1 5 1 1 1 0.5 2 2 2 1 2 1 3.5 1 5 2 2 2 5.5 1 3 10 1 2 2 9 3 1 5 4 1 1 0.5 2 2 2 1 New FTE Jobs 0 0 2.5 0 0 0 1 0 2.5 0 2 8 0 0 0 8 1 0 0 3 0 0 0 0 0 0 0

7 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

10

3052 OnsiteInsuranceMedicalPaymentSolutionSoftware 2539 Hospitalbedcommunicationtablet 4227 Engineeringservices,includingadvancedFEA,CAD,andhigh enddesignsolutions 4790 Technologytosupportsmallscalewastetoenergysystems basedonanaerobicdigestion 3502 Developerofonsitealternativeenergy,anaerobicdigestionof foodwastetoenergy 3010 FasterandmoreeffectiveIntegratedCircuit(IC)designquality controlsoftware. 3616 Gasolinesystems 2966 Weprovideexclusiveworldclassenterpriselevelinternete commercesolutionsforsmalltomediumsizedbusinessesat breakthroughpricingthroughrelentlessinnovationandsingle pointofaccess. 4349 ConsultantfirmfocusingonChineserelations 4772 SalesForce 4346 TheecommerceCompanyspecializinginfurnitureand appliances. 4472 Anonlineplatformthatempowerscollegestudentsto showcasetheirworkandskillstostartups. 2156 Specializesinvisionassistedrobotguidanceapplications 2945 Energymonitoringtechnologyforresidentialapplications Total

2 1 1 1 4 1 1,300 1

2 6 1.5 1.5 4 7 1,300.00 1

0 5 0.5 0.5 0 6 0 0

2 2 2 3 3 1 1,373

2 4 2 8 3 1 1,417.50

0 2 0 5 0 0 44.5

SPARKCentralgraduatesinclude:CycloseSemiconductor,RevealDesignAutomation,Inc.andtruApp, Inc.All3arelocatedintheCityofAnnArbor. 8jobswerelostthisyearrelatedtoclientsthathavelefttheLDFAServiceAreabecauseofrelocation, merger,acquisition,orbusinessfailure. Methodologyutilizedinthecensus. ContractorusesSalesforce.comasitsCustomerRelationshipManagementsystemtorecorddataabout companies.Informationaboutallcompaniesisgatheredthroughavarietyofmethods. 1. Implementedinlate2008wasaprocedurerequiringallentrepreneursrequestingassistance ofAnnArborSPARKforBusinessAccelerationservices,incubatorspaceorapplyingtoBoot CamptofilloutanonlineformwhichcouldbeaccessedthroughtheSPARKwebsite.Basic informationincludingname,address,phone,emailandbriefdescriptionofcompanyis required.ThisinformationisautomaticallyfedintoourCRMsystem. 2. Aneffortismadetoconnectwithallinquirieswithin48hours.Inaninitialcommunication additionaldataisgatheredbySPARKpersonneltodetermineiftheentrepreneurmeets minimumcriteriatowarrantfurtherdiscussionandassistance.Atthattimeabetter descriptionofthepersonsneedsarecapturedandputintothesystem. 8 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

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3. Wecaptureforthefirsttimethejobsorfulltimeequivalentworkersthatacompanyhadat thetimeofanengagementofanykind.Thisnumberbecomesourretainedjobsnumber andisnotaltered.However,forreportingpurposesitispossibletheretainedjobsnumber canchangeforacompanyifthatcompanytakesadvantageofmultipleservicesandtheir FTEcountchangesbetweenthoseservices.Forexample,whenacompanyattendsBoot Camptheremaybeonlyoneemployee,theentrepreneur.Whenthatcompanyreturnsfor BusinessAcceleratorservicestheremaybetwoorthreepartners/employees.Sowhen reportedbasedonBootCampattendeestheretainedjobsisone.WhenreportingonBA clientstheretainedjobsaretwoorthree. 4. Throughouttheyearcurrentjobsiscollectedanecdotally.WhenSPARKemployeesmeet entrepreneursinthecommunityorinmoreformalsessionswetrytogetanFTEupdateand recordthatnewinformationintheCRMsystem.Amoreformalattempttocaptureall companyinformationisdonethroughanannualsurvey.ThissurveyofallSPARKengaged clientsissentaskingforseveralpiecesofdataincludingcurrentemploymentandnewhires thepreviousyear.Unfortunatelytheresponsetooursurveyshasbeenlessthan100%.For thiscontractyearourresponseratewas13%.Wemakecallstononrespondentsbutwith limitedsuccess.Thesurveyandphonefollowupiswithcompanieswhohavereceived servicesthepastfiveyears. 5. Tocalculatethenumberofnewhiresforacompanywemerelysubtracttheretainedjobs fortheparticularserviceweprovidedfromthecurrentjobcountwhichgivesustheadded jobssincethatparticularengagement. Contractorcontinuestorefineprocedurestocapturedatamoreefficiently,accuratelyandtimely.

9 AnnArbor/YpsilantiSmartZoneAnnualReport20112012

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AnnArborSPARKCompanyTestimonials LDFAAnnualReport August2012

MicroloanFreeStrideTherapeutics FreeStrideTherapeuticsisalifesciencescompanycommittedtothedevelopmentoftherapiesfortreatment ofbonerelatedconditionsinhorseslikerheumatoidarthritis,multiplemyeloma,bonemetastases,and osteoporosis. TheSPARKBusinessAcceleratorteamhasbeenassistingFreeStrideTherapeuticssince2008withvarious formsofsupport,includingmicroloanfunding.TheyvereceivedaBusinessAcceleratorgrant,aswellasraised $200,000inprivateequity.ForFreeStride,theimpactSPARKsassistancehadontheircompanysgrowthis clear: AnnArborSPARKhasbeeninstrumentalinthedevelopmentandlaunchofFreeStrideTherapeuticsfromthe initialphasesofmarketresearchandpreliminaryclinicalteststhroughongoingfundraisingactivities,the cultivationofapresalecustomerlist,andsubsequentclinicaltrials.Themicroloanwereceivedwasa keystoneinourcompanysdevelopment,andthePreSeedfundingwereceivedhelpedusrecruitprivate capitaltostartthenextstagesoftesting.Throughcarefulplanning,wewerealsoabletousethesefundsto obtainservicesinothercrucialareascriticalforoursuccess,suchaslegal,intellectualproperty,research,and regulatoryaffairs.Lastly,wedliketothankAnnArborSPARKforalsoprovidingvaluableadviceandhelpingto facilitatekeyrelationships. DavidOlson,PhD,CEO BusinessAcceleratorAtterocor,Inc. Atterocorisawomanownedlifesciencescompany,focusedondevelopinganoveltherapyforthetreatment ofadrenocorticalcancer(ACC)andotheradrenaldisorders.CurrentlytherearenoeffectivetherapiesforACC, aparticularlylethalandaggressivecancer. SPARKhasprovidedAtterocorwithsevenseparatebusinessacceleratorengagementsin2012.Theseseven includeconsultingonAPI&clinicaltrialguidance,seedfinancingfinancialwork,seedfinancinglegalwork, designwork,employeerecruiting,nonclinicaldevelopmentsupport,andfinancialmodeling.

13

Recently,Atterocorannounceda$16millionSeriesAventurecapitalfinancing.FrazierHealthcareand5AM VenturesledtheroundandproceedsfromthefinancingwillsupportAtterocorsaccelerateddevelopmentof itsleadprogram. "Spark'sBusinessAccelerationprogramwasessentialforAtterocortogetanimportantfoundationinplacein ourearlydaystofacilitateourrecent$16Mventurecapitalfinancinground,whichwillnowleadtoourhiring ofanumberoflocalemployeesandconductingclinicalstudiesattheUniversityofMichigan.Wewereableto haveafinanceexpertassistuswithproformafinancials,gettechnicalexpertisetoroundoutkeyaspectsof ourdevelopmentstrategyandassistanceinlegalworkaroundourseedfinancing(whichwasultimately matchedbythePreSeedfund).Thisprogramdefinitelyhelpedusmovefartherfaster!" JuliaOwens,PhD,CEO BootCampKevoMedicalSupplies KevoMedicalSuppliesisamedicaldevicefirm,establishedin2011,thatprovidesfoamdressingkitsthatare usedinnegativepressurewoundtherapy.SPARKhasprovidedKevowithtwobusinessaccelerator engagements,oneforregulatoryassistanceandtheotherformarketmapping. TheKevoteamattendedSPARKsBootCampinthefallof2010,whichhelpedtoidentifycriticalgapsintheir businessmodel.Theirparticipationresultedinansweringquestionsandidentifiedactionableitemsgoing forward. Recently,KevowasawardedFDAclearance,anachievementofwhichKevoacknowledgesSPARKwas instrumentalinsupporting: Withyourguidanceandsupport,weformedKevoMedicalSupplies,hiredanFDAconsultant,andwalkedup thesteepmountainofobtaininganFDAcertificationfortheentireNPWTkit.Afteraninemonthbattleand back&forth,I'msoverypleasedtopresenttheattached510KcertificationawardedlastweektoKevo. JohnNanos IncubatorThinkTechLabs ThinkTechLabsisanITconsultancycurrentlyutilizingofficespaceattheSPARKCentralincubator.They specializeinthedeliveryandoptimizationofSalesForce.com,NetSuite,andGoogleAppsimplementations. Besidesbeingatenantoftheincubator,ThinkTechLabshasalsoreceivedhelpfromSPARKconsultantsto redesigntheirwebsite,andparticipatedintheLDFAsInternMatchingFundprogram.

14

SPARKhasprovidedThinkTechLabswithanetworkhereinSoutheastMichiganthathasenabledusto quicklyscaleourteamandbusiness,whileallowingustofocusonourcoreproductandservices.SPARK providedourteamwithprofessionalClassAofficespaceatanextremelyaffordableratethatallowedusto investourstartupfundstorevenuegeneratingresources.Inlessthan12months,wehavebeenableto quadrupleourcompanysizeanddoubleourrevenuewiththesupportthatSPARKhasprovided. VijaywasrecentlyfeaturedinaSPARKvideodescribinghowSPARKsresourceshavehelpedThinkTechLabs: http://www.youtube.com/watch?v=tBQy5qAAVoc&feature=player_embedded OverallSeelio,Inc.(FormerlytruApp) Seelio,Inc.isadigitalportfolioplatformthatallowscompaniestodiscoverandconnectwithtalentedcollege studentsbylookingbeyondblackandwhiteresumesandseeingstudentsvividaccomplishmentsand personalities.Presentedwithacomprehensiveviewintothebackgroundandaccomplishmentsofthe students,employerscanholisticallyevaluatecandidatesinlesstimethanpreviouslypossible. SeeliohastakenadvantageofawidespreadofSPARKservices.AgraduateoftheSPARKCentralIncubator, theyquicklyoutgrewthespaceandnowresideintheOfficesatLibertySquareindowntownAnnArborwith8 fulltimeemployees. TheyvereceivedlegalassistancefromSPARKconsultants,aswellasdesignhelp.Seeliowasalsoaparticipant intheSummerInternshipProgram,receivingmatchingfundsfromtheLDFAtohireaninternforthesummer. TheyvealsoreceivedseveralroundsoffundingfromSPARK. Seeliowasfeaturedinavideo,producedbySPARK,discussinghowthefundingtheyvereceivedthrough SPARKhasbeeninstrumentalintheirexpansionandgrowth.Itisavailabletowatchatthislink: http://www.youtube.com/watch?v=mBIzMUWGJo&feature=player_embedded "First,Sparkhelpeduswiththeincubatorspace.Wehadoutgrowncafesandpublicspacesandneedto professionalizethecompany.Next,wewereabletotapinto$90Kofmicroloansthathelpedusgettoourseed roundoffunding.Inaddition,thegrantsatSparkhelpedustoreceiveprofessionallegalanddesignhelpfor ourcompany.Ourcompanyisnowgeneratingrevenueandwearegrowingrapidly!" MosesK.Lee,Founder,Seelio

15