BLUEGRASS STATE SKILLS CORPORATIONANNUAL REPORT

INTR

OD

UC

TION

Introduction

The BSSC plays a significant role in keeping Kentucky’s business and industry competitive in the global economy by assisting them in providing the necessary training for their workforce by: • Administering and funding Kentucky’s customized business and industry-specific training efforts through training agreements for Grant-in-Aid and Skills Training Investment Credit projects that are approved by the BSSC Board of Directors; • Acting as a broker, by coordinating the resources of providers of skills training and employment services;• Facilitating the creation of public/private partnerships through education and training programs designed to meet unfilled training needs of individual and multiple-company training projects, or consortia; and• Administering any special state appropriation for customized business and industry-specific training.

The BSSC has built a strong reputation for meeting and exceeding industry needs for customized, flexible and industry-driven skills training by partnering with other employment and training organizations to tailor a comprehensive program of skills training services for new, expanding and existing companies.

The BSSC is attached to the Cabinet for Economic Development for administrative purposes in recognition of the relationship between economic development and workforce development. An eighteen-member Board of Directors made up of private sector as well as public officials governs the BSSC. Private-sector representatives comprise more than half of the total board membership.

2012-2013 Board of Directors

Daniel AtzingerRetiredLouisville, KY

Brenda BankstonDirectorBig Brothers/Big SistersLouisville, KY

Beth BrinlyCommissioner Department of Workforce InvestmentEducation and Workforce Development Cabinet

Larry Roberts (Proxy Mike Donta)SecretaryKentucky Labor CabinetFrankfort, KY

Randy Fox*BSSC ChairSenior PartnerCapstone Human Resource ServicesBenton, KY

Eston GloverPresident/CEOPennyrile Rural Electric Coop.Elkton, KY

Reed Hall*BSSC Member at Large RetiredSomerset, KY

Larry M. Hayes (proxy Katie Smith) SecretaryCabinet for Economic DevelopmentFrankfort, KY 40601

Tom Kelly*BSSC Vice-ChairPublisher’s Printing CompanyShepherdsville, KY

Dr. Robert King (Proxy Reecie Stagnolia), PresidentCouncil on Post-Secondary EducationFrankfort, KY 40601

John KuzuokaMerrick-Kemper ConstructionLouisville, KY

Karen Lawson*BSSC SecretaryClay County SchoolsManchester, KY

William “Carl” Lay *BSSC TreasurerPresidentHuman Resource Management ProfessionalsElizabethtown, KY

Tom LundMarion County Economic DevelopmentLebanon, KY

Michael McCall, Ph.D. (Proxy Jay Box)President./CEOKCTCS Versailles, KY

Joe Meyer (Proxy Tom West)SecretaryEducation and Workforce Development CabinetFrankfort, KY

Rita L. Combs-SterrettRecommended Consultant ServicesLouisville, KY

Eric WolffVP ManufacturingL’OrealHebron, KY

The BSSC program enabled Wausau Paper to apply world-class training resources to develop and deliver training materials and processes as part of new technology paper machine start-up.

*Denotes Executive Committee Member

as of June 30, 2013

FRO

M TH

E S

EC

RE

TAR

Y

October 2013

The Cabinet for Econom

ic Development is pleas

ed to present the Fiscal

Year

2012-2013 Annual Rep

ort of the Bluegrass Sta

te Skills Corporation (B

SSC). The

BSSC plays a significan

t role in keeping Kentuc

ky’s business and indus

try competi-

tive in today’s global ec

onomy by assisting the

m in providing quality

training for

their workforce.

Through the hard work o

f the BSSC board and s

taff, the Cabinet has b

uilt a strong

reputation for providing

customized, flexible an

d industry-driven skills

training

opportunities, and comp

anies continue to place

a high value on the prog

rams

offered by the BSSC. T

his past year, the BSSC

Board of Directors app

roved

grant-in-aid application

s for 104 companies an

d training consortia to

train over

14,000 Kentucky-reside

nt employees and tax cr

edit applications for 33

companies

to train over 12,000 K

entucky-resident emplo

yees.

In addition, the CED co

ntinues to work closely

with our statewide work

force partners

to provide quality traini

ng opportunities to our

business clients across

the Common-

wealth in order to maxi

mize the resources ava

ilable to help them ach

ieve their

workforce development

goals. We appreciate

the support of Governo

r Steve

Beshear, the Kentucky

General Assembly, the K

entucky Economic Deve

lopment

Partnership Board, the

Bluegrass State Skills C

orporation Board, as we

ll as our

many workforce develo

pment partners to ensur

e that Kentucky’s work

force is

prepared for the jobs o

f the future.

Sincerely,

Larry M. Hayes

FRO

M O

UR

B

OA

RD

CH

AIR

October 2013

As Chairman of the Bo

ard of Directors and th

e Executive Director of

the Bluegrass

State Skills Corporatio

n (BSSC), we are pleas

ed to present this repo

rt as an accurate

accounting of the acti

vities of the BSSC for f

iscal year 2012-13 (Ju

ly 1, 2012 to

June 30, 2013). The

annual report, which is

required pursuant to

KRS 154.12-

208, provides informat

ion about the approva

l of Grant-In-Aid (GIA)

and Skills

Training Investment C

redit (STIC) projects.

The report also provid

es information on

the final approval of G

IA expenditures, STIC

tax credits, and the M

etropolitan

College Tax Credit (MC

TC), and highlights the

excellent public and p

rivate partner-

ships necessary to acc

omplish the goal of pro

viding Kentucky emplo

yers with a

highly skilled workforc

e.

Quality customer servi

ce has always been a h

allmark of the Bluegra

ss State Skills

Corporation, and the s

taff continues to be co

mmitted to providing e

xcellent

customer service and

continuous improveme

nt. That high level of s

ervice is

reflected in the feedba

ck we’ve received in o

ur Performance Evalua

tion Question-

naire (PEQ), which are

completed by the com

pany at the end of eac

h project.

During FY 2012-13, th

e BSSC received and r

eviewed 177 PEQs, of

which

99 percent stated the

y would recommend B

SSC to others in the f

uture. The other

1 percent had no respo

nse. The primary reaso

ns cited on the PEQ fo

r conducting

the training were to pro

vide skills necessary fo

r company operation,

to incorporate a

new product or process

, improve worker moral

e, and to introduce a n

ew technology.

The responses to the P

EQ’s clearly demonstr

ate that the funds prov

ided to the BSSC

are used in a manner

that improves and prom

otes the employment o

pportunities of

Kentucky’s residents a

nd enhances the abilit

y of Kentucky compan

ies to remain

competitive in the glob

al economy.

On behalf of the Blueg

rass State Skills Corpor

ation, we respectfully s

ubmit this

report as an accurate a

ccounting of the activi

ties of the BSSC for F

Y 2012-13.

Randall D. Fox

Robert L. Cu

rry

Board Chairman

Executive Dir

ector

Bluegrass State Skills

Corporation Bluegras

s State Skills Corporat

ion

GR

AN

T-IN-A

ID R

EC

AP

Grant-in-Aid (GIA) Recap

Grant-in-Aid (GIA)

The GIA program provides reimbursement funds for the training of employees of Kentucky's new and expanding companies and for skills upgrade training of employees of Kentucky's existing companies.

Listed below is a summary of the GIA projects approved during FY 2012-13 by the BSSC Board of Directors:

• 113 skills training grants valued at $4,808,626.03 to provide skills training services to 104 individual companies and training consortia; training 14,021 Kentucky residents at an average cost of $342.96 per trainee.

• GIA applications in the amount of $1,300,637 for 47 companies were received and processed by the BSSC but were not funded due to insufficient funds.

• GIA net disbursements for FY 2012-13 totaled $5,394,637.97 for skills training projects for 142 individual companies and training consortia. The FY 2012-13 disbursements included $302,450.00 expended on FY 2012-13 approved projects and $5,092,187.97 expended on projects that were approved prior to FY2012-13.

Kentucky’s BSSC program proved to be

well-structured and proactive while

supporting IBM in training our employees

in new IT methodologies, products and services.

::: Stephen Dodd, Project Executive IBM Corporation

STIC

RE

CA

P

Skills Training Investment Credit (STIC) Recap

Skills Training Investment Credit (STIC)

The STIC program provides tax credits to offset a portion of approved costs to support skills upgrade training for employees of companies that have been engaged in a qualified activity within Kentucky for not less than three years.

Listed below is a summary of the STIC projects approved during FY 2012-13 by the BSSC Board of Directors:

• 33 companies received preliminary approval for investment credits valued at $2,500,000; training 12,093 Kentucky residents at an average cost of $206.74 per trainee; and

• 25 companies received final approval of $1,174,688.39 in tax credits through the STIC program for 9,702 trainees at a cost of $121.08 per trainee.

By statute, a minimum of 30 percent of companies receiving preliminary approval for tax credits by the BSSC Board of Directors must be high performance companies. A high performance company is one that has met and maintained an industry recognized quality certification such as ISO, QS, etc. In FY 2012-13, approximately 73 percent of the prelimi-narily approved tax credit applications were for high performance compa-nies.

We found BSSC provided exceptional service when helping us introduce our employees to Lean Manufacturing principles and implementation procedures.

::: Jerry Gagliardi, Stamping Manager, Spalding & Day Tool and Die

Public and Private Parternships

Special Appropriation

Since 2007, the BSSC has administered a special appropriation of $10,000,000 for workforce training included in HB 536. Working with labor and management at both the Louisville Assembly Plant (LAP) and the Kentucky Truck Plant (KTP), a memorandum of agreement (MOA) with Ford Motor Company was developed and completed on December 10, 2007. The purpose of the MOA was to establish guidelines for the use and disbursement of the special appropriation. At the end of the FY 2012-13, grants in the amount of $10,000,000 had been approved by the BSSC Board of Directors for both Ford facilities in Louisville and $10,000,000 had been disbursed.

The MOA also established an employment threshold of 5,299 full-time employees as of June 30, 2012. The actual number of full-time employees at LAP and KTP as of June 30, 2012 was 8,123.

Metropolitan College Tax Credit (MCTC)

In addition, per KRS 141.381 enacted in the 2009 regular session, the BSSC was given the authority to approve tax credits on behalf of a

qualified tax payer that is a party to the Metropolitan College Agreement. “Metropolitan College” means a

nonprofit consortium that includes educational institutions located within the Commonwealth and the qualified taxpayer as members. A “Qualified Taxpayer” means any taxpayer who, on June 26, 2009, is a party to the Metropolitan College Consortium Agreement approved November 5,

2005. The purpose of Metropolitan College is to provide postsecondary educational opportunities to

employees of the qualified taxpayer as part of a combined work and postsecondary education program.

Having been given this authority, the BSSC approved its third MCTC for United Parcel Service (UPS) during FY 2012-13 in the amount of $2,989,422.82.

Both our employees and our entire company benefit greatly from the trainings that are supported by grant funds. This program provides us with opportunities that we may not have had if we didn’t participate.

qualified tax payeCollege Agreem

nonprofit coinstitutionthe qualifTaxpayer”2009, isConsortiu

2005. Theprovide post

employees of tcombined work an

t ofthe BSSCties in n

ment es as of of full-time e 30, 2012::: Stacey Longon, HR Manager

Genscape

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BLIC

AN

D P

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HIP

S

Collaborative Partnerships

Workforce Services

Kentucky provides a variety of services to help people find jobs and achieve their career goals while also providing companies with resources to find, train, and retain a skilled workforce. Comprised of partner organi-zations including the Cabinet for Economic Development, the Kentucky Community and Technical College System, the Labor Cabinet and the Education and Workforce Development Cabinet, the Commonwealth’s comprehen-sive workforce system brings together the resources that individuals, employers, and workforce professionals need to prosper in the global economy. These agencies all play key roles in helping Kentucky business and industry be successful by offering an integrated set of services and financial tools including:

• Grants and tax credits for training, tuition and certification• Safety and health training and consultation• Pre-employment assessment and training• Trainer provider services• Pre-employment job screening• Labor market research• Job fair assistance

Work Ready Communities

In 2011, the Kentucky Workforce Investment Board (KWIB) initiated the Work Ready Communities initiative and certified the first counties as being “Work Ready” on February 16, 2012. Counties are certified as “Work Ready” based upon the quality of their workforce as measured by criteria established by the steering committee and approved by the KWIB board of directors.

Through FY 2012-13, 22 Kentucky counties had been certified as either “Work Ready” or “Work Ready in progress”. The BSSC executive director serves on both the Work Ready steering commit-tee and the application review team.

Sector Strategy

In January 2012, the Kentucky Economic Development Partnership Board adopted a comprehensive strategic plan to guide the state’s economic development efforts over the next five years. The plan, Kentucky’s Unbridled Future, laid the foundation for moving Kentucky toward economic prosperity. The plan identifies emerging business sectors, as well as six overarching priorities designed to improve Kentucky’s ability to successfully attract and retain businesses within the target sectors. The target industries identified within the report were advanced manufacturing, transportation, healthcare, technology, and sustainable manufacturing. In Fiscal Year 2012-13, the BSSC board of directors approved 147 grants and tax credits in the amount of $10,298,048.85 (GIA, STIC, MCTC). Ninety-six percent, or $9,865,048.85, of the grants approved by the BSSC board were for business and industry within the Cabinet’s targeted industry sectors.

CO

LLAB

OR

ATIVE PA

RTN

ER

SH

IPS

The BSSC program is a great resource to help local small business owners receive subsidized training to improve worker / employee job and skills training to grow our business.

In 2012, Kentucky’s workforce collaboration facilitated thetraining of

84,933Kentuckians

::: Robert Conklin, Plant Manager Johnson Controls

Company Name City Funding AmountA.C.E. Compressor Parts & Service Inc. Mayfield $19,990.00Accuromm USA, Inc. Lexington $3,712.50AEP Industries, Inc. Bowling Green $25,000.00AEP Industries, Inc. Nicholasville $14,450.00AGC Automotive Americas Co. Elizabethtown $25,000.00Alternative Energies Kentucky, LLC Danville $10,000.00Amazon.com kydc, LLC Campbellsville $50,000.00Amazon.com kydc, LLC Lexington $77,787.50Amazon.com kydc, LLC Hebron $75,000.00Amifne Chemical Corporation Hopkinsville $16,160.00AMZN wacs, INC Winchester $550,000.00AO Smith Corporation Florence $25,000.00Arkema Chemical Inc. Carrollton $25,000.00ASAP Automation, LLC dba Bastian Software Solutions Louisville $25,000.00Baptist Healthcare Systems Louisville $75,000.00Benda-Lutz Corporation Independence $24,987.50Bingham McCutchen LLP Lexington $400,000.00Bluegrass Business Consortium Richmond $75,000.00Carmeuse Lime & Stone, Inc. Butler $25,000.00Carmeuse Lime & Stone, Inc. Maysville $25,000.00Casco Products Corporation dba Sequa Automotive Group Morgantown $140,000.00Catalent Pharma Solutions Winchester $25,000.00Combined Public Communications, Inc. Cold Springs $25,000.00Comefri USA Inc Hopkinsville $25,000.00Corken Steel Products Company Louisville $24,000.00CSS Distribution Group, Inc. Louisville $25,000.00Designs Direct, L.L.C. Covington $25,000.00Domtar Paper Company LLC Hawesville $25,000.00Dow Corning Inc. Carrollton $24,995.00Duro Bag Mfg. Florence $25,000.00Duro Bag Mfg. Company Walton $25,000.00Eagle Manufacturing Company, LLC Florence $24,992.50Energy Management & Services Co. Versailles $25,000.00ESCO Corporation Covington $25,000.00FET Engineering Inc. Bardstown $24,950.00Flex Films (USA), LTD Elizabethtown $278,100.00Flottweg Separation Technology, Inc. Independence $24,978.53Fortis Manufacturing Glasgow $25,000.00Fuel Total Systems California Corporation Lebanon $25,000.00Gallatin Steel Ghent $25,000.00Gonzalez Enterprises, LLC dba Ferrous85'Co. Wilder $25,000.00Grandview Welding Tompkinsville $25,000.00Holley Performance Products, Inc. Bowling Green $25,000.00IBM Corporation Louisville $25,000.00Kentucky Rebuild Corp. Independence $25,000.00KI (USA) Corporation Berea $14,631.00Kop-Flex, Inc. Florence $25,000.00L'Oreal USA Florence $224,980.00Mackey Advisors Bellevue $18,000.00Magna Seating of America dba Louisville Seating Systems Shepherdsville $202,500.00Magni Industries Inc. Independence $23,000.00Marion County Jobs Training Consortium Lebanon $33,800.00Marquette Transportation Company Paducah $25,000.00Mazak Corporation Florence $25,000.00Memorial Hospital, Inc. Manchester $25,000.00Meritor Inc. Frankfort $25,000.00Messier-Bugatti USA, LLC Walton $24,996.50Motorwheel Commercial Vehicle Systems, Inc. c/o Stemco LP Berea $30,000.00

2013 New Grant-in-aidsG

RA

NT-IN

-AID

New Grant-in-Aids for Fiscal Year 2012-2013The BSSC board approves new grant-in-aid projects based upon the availability of

funds for each board meeting. Once the board approves the grant-in-aid, training may commence and documentation submitted for reimbursement.

Mubea Inc. Florence $50,000.00Murphy Catton Inc. Walton $25,000.00NIEMCO Fabricators Inc. Louisville $25,000.00Nisshin Automotive Tubing LLC Versailles $24,000.00North American Stainless Ghent $50,000.00Northern Kentucky Training Consortium Highland Heights $61,187.50Northwest Kentucky Training Consortium Henderson $26,915.00Norton Healthcare Louisville $63,055.00ORBIS Corporation Bardstown $25,000.00Outdoor Venture Corporation Stearns $22,320.00Parkway Products Inc Erlanger $25,000.00Patel Services, LLC Cold Springs $8,000.00Pioneer Plastics, Inc. Dixon $11,890.00Post Glover Resistors, Inc Erlanger $25,000.00Precision Mechanical Inc. Winchester $25,000.00Prestige Tool & Die, LLC Corydon $16,000.00Qualex Machining, LLC Richmond $24,000.00Qualex Manufacturing LC Lexington $25,000.00Qualex Manufacturing LC Georgetown $25,000.00Rainbow Design Services, Inc. Louisville $25,000.00RL Schreiber Lebanon $25,000.00Safai Enterprises LaGrange $25,000.00Shelby County Associated Industries, Inc. Shelbyville $74,540.00Software Information Systems, LLC Lexington $25,000.00Solus Industrial Innovations, LLC Florence $25,000.00Southeast Kentucky Regional Training London $75,000.00Southern Air Inc Florence $75,000.00Stanley Black & Decker, Inc. Shelbyville $100,000.00Summit Biosciences Inc Lexington $25,000.00Taylor Machinery Company Lancaster $19,440.00Titan Fabricators Inc. Owensboro $25,000.00Toyota Boshoku Kentucky Bardstown $25,000.00Toyotomi America Corporation Springfield $25,000.00Trace Die Cast, Inc. Bowling Green $23,540.00Training Consortium of South Central Bowling Green $27,540.00Universal Woods, Inc. Louisville $25,000.00Webasto Roof Systems, Inc. Lexington $50,000.00Westlake PVC Corp. Calvert City $25,000.00Westlake Vinyls Inc. Calvert City $25,000.00WILD Flavors, Inc. Erlanger $25,000.00Zappos Fulfillment Centers, Inc . Shepherdsville $125,187.50ZirMed, Inc. Louisville $75,000.00Zotefoams Inc. Walton $25,000.00

$4,808,626.03

GR

AN

T-IN-A

ID

New Grant-in-Aids for Fiscal Year 2012-2013 continued

Company City Expense PaidAAF International Louisville $9,458.75AEP Industries, Inc. Nicholasville $3,180.00Alpla, Inc. Florence $16,000.00Alternative Energies Kentucky Danville $2,100.00AMZN wacs, Inc Winchester $89,550.00AO Smith Corporation Florence $23,718.11Arkema Inc. Calvert City $24,687.74Arkema, Inc. Louisville $7,157.50Balluff Inc. Florence $48,403.00Baptist Healthcare System Louisville $75,000.00Beam Inc. Clermont $25,000.00Beam Inc.- Boston Plant Boston $24,900.00Benda-Lutz Corporation Independence $23,550.00Bendix Spicer Foundation Brake, LLC Bowling Green $17,522.51Bluegrass Business Consortium Richmond $50,827.50Buffalo Trace Distillery, Inc. Frankfort $1,572.50Carhartt, Inc. Hanson $18,637.50Carmeuse Lime & Stone, Inc. Maysville $22,894.92Carmeuse Lime & Stone, Inc. Butler $23,012.64CDR Manufacturing dba Ayrshire Harrodsburg $20,388.48Citi Group, Inc. Florence $49,775.00Combined Public Communications, Inc. Cold Springs $25,000.00Corken Steel Products Company Louisville $20,000.00Corken Steel Products Company Florence $25,000.00Corken Steel Products Company Covington $24,075.00Dant Clayton Corporation Louisville $10,061.34dbaDirectInc. Florence $15,805.64Defender Security Company Newport $18,012.50DENSO Air Systems Michigan, Inc. Hopkinsville $23,231.25Designs Direct Covington $23,283.55Duro Bag Mfg. Florence $25,000.00Duro Bag Mfg. Company Walton $24,987.50Eagle Manufacturing Company, LLC Florence $24,992.50Ellison Surface Technologies Hebron $8,650.00Emerge Technologies LLC dba Emerge Erlanger $3,223.75Emerson Power Transmission Florence $24,937.50Energy Management & Services Versailles $17,422.00Fastemp Glass Company Newport $975.00Faurecia Exhaust Systems, Inc. Louisville $18,750.00Faurecia Interior Systems Inc. Louisville $162,401.82Felker Brothers Corporation Glasgow $20,000.00Ford Motor Company (KTP) Louisville $200,000.00Ford Motor Company (LAP) Louisville $800,560.00Gallatin Steel Ghent $24,999.20Gator Made Inc. Somerset $25,000.00General Electric Company Louisville $350,000.00Genscape, Inc. Louisville $9,527.89Glenro, Inc. Maysville $3,529.17Hafendorfer Machine, Inc. Louisville $11,530.00Hahn Automation Inc. Hebron $23,600.00IBM Corporation Louisville $25,000.00IBM Corporation Lexington $49,052.32ITW Ramset Paris $4,000.00Johnson Controls Inc. Shelbyville $3,175.00Kellogg Company Kimper $23,970.33

Expenditures for Fiscal Year 2012-2013Expenditures for Fiscal Year 2012-2013

EXP

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Reimbursements made to Kentucky companies in FY 2012-2013 to offset the costs of Kentucky resident employee training.

Kentucky Rebuild Corporation Independence $24,989.00Kimberly Clark Corporation Owensboro $11,305.00Kindred Healthcare Louisville $17,752.14Kiswel USA Inc. Florence $19,680.67Kop-Flex, Inc. Florence $46,340.00LaFarge North America Inc. Silver Grove $24,662.32Lantech.com LLC Louisville $21,375.54Lightfoot Software Company Lexington $20,000.00Lily Creek Industries Russell Springs $21,621.44Littleford Day, Inc. Florence $4,300.00LockNet LLC Nicholasville $3,995.00LOGOMAT Automation Systems, Inc. Hebron $6,478.32L'Oreal USA Florence $24,390.00MAG IAS, LLC Hebron $11,796.80Magna Seating of America dba Louisville Seating Systems Shepherdsville $202,500.00MagnaTex, Inc. Louisville ($1,246.21)Magni Industries Inc. Independence $24,950.00Malone Staffing Georgia, LLC Louisville $24,990.00Marquette Transportation Company, LLC Paducah $25,000.00Martinrea Heavy Stamping Shelbyville $15,760.00Memorial Hospital Inc. (Manchester Memorial) Manchester $24,000.00Metal Solutions Design & Fabrication Dayton $20,454.12Metalsa Structural Products, Inc. Owensboro $7,638.84Metalsa Structural Products, Inc. Hopkinsville $6,311.50Metalsa Structural Products, Inc. Elizabethtown $6,250.00Millennium Forge, Inc. Louisville $2,368.72Montebello Packaging Lebanon $35,820.48Morgantown Plastics, a Delta Faucet Company Morgantown $23,608.62Mubea Inc. Florence $50,000.00Mubea Precision Springs Inc. Florence $21,550.00NACCO Materials Handling Group, Inc. Berea $35,225.00NIEMCO Fabrication, Inc. Louisville $25,000.00North America Stainless Ghent $47,238.06North American Spring Enterprises, Co. LLC. (ACE Manufacturing) Hebron $5,993.60Northern Kentucky Training Consortia Highland Heights $22,936.13Olympic Steel, Inc. Mount Sterling $25,000.00ORBIS Corporation Bardstown $24,950.00ORBIS Corporation Georgetown $25,000.00PDCI Automotive, LLC Lebanon $24,000.00Pineville Community Hospital Pineville $1,227.50Post Glovers Resistors, Inc. Erlanger $28,317.50Precision Mechanical Inc. Winchester $25,000.00Promotional Wood Products, LLC Boston $12,923.05Qualex Machining, LLC Richmond $24,850.00R. C. Bigelow, Inc. Louisville $23,256.00RB Distribution Inc, dba Dorman Warsaw $22,353.80Remington Arms Company, LLC Elizabethtown $18,750.00Riken Elastomers Corporation Hopkinsville $24,987.50Ross Acquisitions Inc. dba Galerie Hebron $13,384.80Rotek Incorporated Florence $25,000.00Safai Enterprises LaGrange $21,575.00Sazerac Company, Inc. Louisville $1,047.50Sazerac North America Owensboro $1,000.00Signature HealthCARE, LLC Louisville $250,000.00Sister Schubert's Homemade Rolls, Inc. Horse Cave $16,182.40SITEX Corporation Henderson $7,262.60Skilcraft Burlington $22,025.50Solus Industrial Innovations, LLC Florence $16,150.00

Expenditures for Fiscal Year 2012-2013 continued

EXP

EN

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SORD KY LLC Frankfort $2,000.00Southeast Kentucky Regional Training Consortium Corbin $20,345.00Southern Graphic Systems, Inc. Florence $21,902.80Southern Star Central Gas Pipeline Owensboro $18,906.13SRC of Lexington, Inc. Lexington $5,491.59Stanley Black & Decker, Inc. Shelbyville $100,000.00Steinkamp Molding, LP Erlanger $24,000.00Stonehouse Building Products Florence $24,900.00Summit Biosciences Inc. Lexington $14,714.87T Marzetti Company Horse Cave $9,000.00T.J. Samson Community Hospital Glasgow $37,668.73Taylor Regional Hospital Campbellsville $20,283.88Tiffany and Company Jewelers, Inc. Lexington $160,500.00Titan Contracting & Leasing Co. Inc. Owensboro $7,742.50Titan Fabricators Inc. Owensboro $17,125.00Truitt Brothers, Inc. East Bernstadt $161,473.02U.S. Bank Home Mortgage Owensboro $115,000.00Universal Woods, Inc. Louisville $25,000.00Vascor Ltd. Georgetown $7,193.97Von Lehman & Company Inc. Fort Mitchell $14,282.61Warren County Industrial Training Consortium Bowling Green $20,601.00Wausau Paper Towel & Tissue, LLC Harrodsburg $171,227.50Werner Co. Louisville Division Louisville $6,183.13Western States Envelope & Label Erlanger $15,800.63Whip Mix Corporation Louisville $3,692.50WILD Flavors, Inc. Erlanger $23,385.96ZF Steering Systems Florence $135,250.00ZirMed, Inc. Louisville $24,599.50

$5,394,637.97

EXP

EN

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Expenditures for Fiscal Year 2012-2013 continued

STIC

PR

ELIM

INA

RY

Company Name City STIC AmountAGC Automotive Americas Co. Elizabethtown $100,000.00Amazon.com kydc, LLC Hebron $100,000.00AO Smith Corporation Florence $17,000.00Beam, Inc. Clermont $99,922.55Benda Lutz Corporation Independence $11,496.52Best Buy Stores, L.P. Brooks $100,000.00Bremner Food Group Princeton $88,297.51Catlettsburg Refining, LLC Catlettsburg $100,000.00Crounse Corporation Paducah $74,458.03CSS Distribution Group, Inc. Louisville $3,000.00Fabricated Metals, LLC Louisville $43,125.08FET Engineering, Inc. Bardstown $13,000.00Heaven Hill Distilleries, Inc. Bardstown $100,000.00IBM Corporation Lexington $100,000.00Invensys Rail Corporation Louisville $100,000.00Kaba Mas, LLC Lexington $59,466.00Kellogg's-Pikeville Plant Kimper $100,000.00Link-Belt Construction Equipment Lexington $100,000.00Logan Aluminum, Inc. Russellville $100,000.00Marathon Petroleum Company LP Catlettsburg $100,000.00Marquette Transportation Company LLC Paducah $97,244.00Messier-Bugatti USA, LLC Walton $34,487.67Morningstar Foods, LLC Murray $96,453.52Mubea, Inc. Florence $99,989.14Southwire Company Hawesville $91,423.84Sun Products Corporation Bowling Green $99,989.58United Parcel Service Company Louisville $100,000.00UPS Worldwide Forwarding Inc. Louisville $55,812.25Vascor Ltd. Georgetown $31,834.31Westlake PVC Corporation Calvert City $28,500.00Westlake Vinyls Inc. Calvert City $100,000.00WireCrafters, LLC Louisville $54,500.00Zappos Fulfillment Centers, Inc. Shepherdsville $100,000.00

$2,500,000.00

2013 STIC Preliminary ApprovalsSTIC Preliminary Approvals for Fiscal Year 2012-2013Companies must first receive preliminary approval by the BSSC Board of Directors for STIC projects. Once companies receive preliminary approval training may commence.

STIC

FINA

L PR

OJE

CTS

STIC Final Projects for Fiscal Year 2012-2013

Company City Preliminary Approval Amount

Best Buy Stores LP Brooks $100,000.00 $78,602.61Bremner Food Group Princeton $26,204.50 $15,202.70Carmeuse Lime & Stone, Inc. Maysville $100,000.00 $92,217.60Corken Steel Products Company Covington $20,000.00 $10,039.92Emerson Power Transmission Florence $99,991.18 $9,861.56FET Engineering Inc. Bardstown $17,000.00 $14,000.00Heaven Hill Distilleries, Inc. Bardstown $99,504.32 $96,075.00IBM Corporation Lexington $100,000.00 $77,335.47Kentucky Cooperage Lebanon $77,500.00 $61,500.00Kingsford Manufacturing Company Summer Shade $40,500.00 $38,500.00Metalsa Structural Products, Inc. Hopkinsville $100,000.00 $93,106.40Morningstar Foods, LLC Murray $81,776.72 $72,457.15NACCO Materials Handling Group Inc. Berea $100,000.00 $3,909.88Pilgrim's Pride Hickory $99,521.45 $47,154.61Precision Mechanical Winchester $11,482.74 $7,988.00R. C. Bigelow, Inc. Louisville $35,500.00 $29,500.00RB Distribution, Inc. dba Dorman Products Warsaw $74,493.75 $58,994.10Southwire Company Hawesville $100,000.00 $45,940.82Sun Products Corporation Bowling Green $99,997.29 $69,480.14United Parcel Service Co. Louisville $100,000.00 $92,139.12United Parcel Service Inc (OH) Louisville $66,139.66 $62,373.88Universal Woods, Inc. Louisville $20,948.00 $19,451.71UPS Worldwide Forwarding Inc. Louisville $48,124.27 $42,253.12Vascor Ltd. Georgetown $34,500.00 $29,201.60Western States Envelope & Label Erlanger $8,749.28 $7,403.00

TOTALS $1,661,933.16 $1,174,688.39

STIC Final Projects for Fiscal Year 2012-2013

Final Approval Amount

After preliminarily approved companies complete training and submit documentation to verify training, a final tax credit is determined and reported

to the Kentucky Department of Revenue.