SRC Ajin-Wooshin Fund V

Reports

SRC Ajin-Wooshin Fund V: Contact Information

Contact Person

Moses Choi

Address (contact)

4197 PLEASANT HILL RD STE 100

Phone

6788827756

Email

moseschoi@srceb-5.com

Web Site

www.srceb-5.com

Project Management

SRC Ajin-Wooshin Fund V: Investments

Reg. D?

Yes

Rule 506

506 (b)

Reg. S?

No

Investment type

Loan

Total amount of estimated funding required for all phases of development(in Millions)?

62

Is this a new commercial enterprise or purchase of an existing troubled business?

New commercial enterprise

What percentage of overall funding has been raised to date?

less than 10%

Does the investor need to be accredited to invest?

Yes

Are returns paid on the investment prior to maturity?

No

Can you describe in more detail how returns are paid, and under what conditions? For instance, are they only paid if the project is positive cash flow or profitable. What expenses must be accounted for and paid prior to distributions are paid to investors?

Capital investments from EB-5 foreign investors will be at risk for at least five years, and the return of the capital investment can occur only after five years, if at all. The EB-5 investors will receive their share of interest income from the EB-5 Loan, net of expenses and the management fees payable to the Regional Center as the manager of the Company. It is anticipated that such net payment will be in an amount equal to 0.285% per annum of the EB-5 Loan, but there is no assurance that members will receive any distributions.

Can you please describe the expected exit strategy and what source(s) of debt or equity are expected to be used to repay the investor’s capital investment?

The Developer is expected to repay the EB-5 Loan at maturity with the proceeds of a long-term financing, its operations or from other sources.

What is the expected term of the investment?

5 years

Can you describe what procedures are in place If the investor needs to liquidate his position before the contracted maturity date of the agreement, and what penalties may be imposed?

If (a) USCIS ultimately denies an investor’s I-526 Petition, (b) an investor withdraws his or her I-526 Petition, or (c) an investor fails to complete the Immigration Processing (as defined below), if the amount of the capital contribution is still held in escrow at such time, any portion of the capital contribution that remains in escrow will be returned to the investor without interest as promptly as possible, but in any event no later than 45 days after we have received the written notice from an investor of I-526 Petition denial, I-526 Petition withdrawal, or Immigration Processing failure. If the investor’s capital contribution is not held in escrow, upon the investor’s request we will make commercially reasonable efforts to redeem the membership interests from the investor for the amount of the capital contribution without interest, subject to the availability of funds. • The Escrow Agent will release to such investor 20% of his or her Capital Contribution Escrow Funds then held in escrow in the Holdback Account, if such funds are still in the Holdback Account. • The Escrow Agent will release to the Company’s general operating account $400,000 (in the case where such investor has received 20% of his or her Capital Contribution Escrow Funds from the Holdback Account) or $500,000 (in the case such investor’s holdback amount was previously released to the Company) from the funds then available in the Holdback Account so that the Company can fund the continued operation without deficit caused by the refund of the denied investor’s capital contribution. • Using the funds then available in the Company’s general operating account, the Company will make commercially reasonable efforts to promptly refund the full amount of such investor’s capital contribution (i.e., $400,000 or $500,000, as applicable). In the event that there are insufficient funds available in the Holdback Account to be distributed and disbursed to the Company’s general operating account, the refund may be delayed.

Have all of the permits and permissions for project development been obtained?

No

Is there any patented intellectual property essential to this project?

No

SRC Ajin-Wooshin Fund V: Fees

What is the fee for subscribing to the investment (Subscription Fee)?

50,000

Do potential investors need to pay a fee to obtain the operating documents, PPM or other subscription documents?

No

If Yes, Is that refundable in the event the investor decides not to invest?

No

Could you please describe the procedure for return of escrow in the event of denial of the I-526 by USCIS?

In the event the Escrow Agent receives a written direction from the LLC and the Subscriber Representative that a Subscriber’s I-526 Petition has been denied (without appeal or after denial of any appeal) by USCIS, the Escrow Agent shall promptly return the Holdback Amount, if such funds are still in the Subscription Holdback Account, to the denied Subscriber identified in such written direction, without deduction or payment of interest. The LLC and the Subscriber Representative shall also include in the written direction to the Escrow Agent instruction to release $400,000.00 (in the case where the denied Subscriber’s Holdback Amount is refunded by the Escrow Agent) or $500,000.00 (in the case where the denied Subscriber’s Holdback Amount has been previously disbursed to the LLC’s general operating account) to be distributed and disbursed to the general operating account of the LLC to fund the remainder of the capital contributions of such Subscribers so the LLC can continue operations without deficit being caused by the refund of the denied investor’s capital contribution in accordance with the terms and conditions set forth in the LLC’s Operating Agreement. Escrow Agent shall rely, conclusively and without further inquiry, upon the LLC and the Subscriber Representative to designate, in writing, the Subscribers whose Holdback Amounts shall be disbursed to the LLC’s general operating account for this purpose. In the event there are insufficient funds available in the Subscription Holdback Account or the LLC’s general operating account to refund all of the $500,000.00 Subscription Proceeds to the denied Subscriber, then such refund may be delayed until there is at least $500,000.00 of funds in the Subscription Holdback Account to enable the refund to the denied Subscriber (taking into account any portion of the Holdback Amount of such denied Subscriber then remaining in the Subscription Holdback Account which would be applied towards such refund).

Does that include the processing of the I-526, I-829 or any other legal fees associated with the immigration application?

No

What fees do you pay to 'finders' or agents?

Negotiated at the time of the agent agreement

If there is no finder or agent, would you reimburse that fee to the investor?

No

Do you pay finder’s fees to attorneys?

Yes

Do you pay fees to unlicensed broker’s or agents?

No

SRC Ajin-Wooshin Fund V: Risks

Risk Factors

Can you please describe what conditions could occur in the market that would negatively affect profitability and commercial operations or job creation?

Demand for the Developer’s products is directly related to the vehicle production levels of the Developer’s customers. New vehicle sales and production can be affected by general economic or industry conditions, the level of consumer demand, labor relations issues, fuel prices, fuel efficiency and vehicle safety regulations and other regulatory requirements, government initiatives, trade agreements, the availability and cost of credit, the availability to the Developer’s customers and suppliers of critical components needed to complete the production of vehicles, restructuring actions of the Developer’s customers, end-OEMs and suppliers and other factors. Financial difficulties experienced by any major customer could have a material adverse effect on the Developer if such customer were unable to pay for the products the Developer provides or the Developer experienced a loss of, or material reduction in, business from such customer. As a result of such difficulties, the Developer could experience lost revenues, significant write-offs of accounts receivable, significant impairment charges or additional restructurings, sometimes significantly, from year-to-year, which, in turn, causes fluctuations in the demand for the Developer’s products. The automotive industry is cyclical and sensitive to general economic conditions and other factors, including the global credit markets, interest rates, consumer credit and consumer spending and preferences. An economic downturn, severe weather or other adverse industry conditions that result in even a relatively modest decline in vehicle production levels could reduce the Developer’s sales and thereby adversely affect the Developer’s financial condition, results of operations and cash flows.

SRC Ajin-Wooshin Fund V: Structure

Has the Principal invested their own equity in the project?

No

Are financial statements or records available from the borrower?

Yes

Is collateral on the investment or loan provided?

Yes

SRC Ajin-Wooshin Fund V: EB-5

Is this a loan?

Yes

If the investment into the project is a loan, is the borrower a:

Commercial third party (not related to Regional Center principals)

Can you best describe your operating procedure for the filing of the I-526?

You will select, or offer to the foreign national, an attorney, or list of attorneys that are approved to submit for you

Does this project have approved I-526's?

No

Does this project have approved I-829's?

Yes

Does this Regional Center have approved I-526's?

Yes

Does this Regional Center have approved I-829's?

Yes

Is any of the subscription fee refundable in the event of a denial of the I-526 by USCIS?

Yes

Amount of EB-5 investors anticipated for this phase?

84

What percentage of overall funding is expected to be sourced from EB-5 investors?

translation missing: en.percentage_funding_from_investors.50_75

Are non EB-5 investor’s allowed to participate?

No

Project Exemplar Approval

Does this Project have Exemplar Approval?

No

Date of Exemplar Approval:

Requests for Evidence

Does this Project have Exemplar Approval?

No

I-526

Date of first I-526 Submission:

2011-03-18

Date of first I-526 Approval:

2013-03-05

I-829

Date of first I-829 Submission:

2015-04-08

This data was last updated on:June 08, 2015 05:16 PM

SRC Ajin-Wooshin Fund V: EB-5

Has this project been the subject of a USCIS/SEC/FBI/DOJ/AAO Review, Notice, Investigation or Action

No

This data was last updated on:June 08, 2015 05:16 PM

SRC Ajin-Wooshin Fund V: Job Creation

Is Regional Center located within a Targeted Employment Area (TEA)?

Yes

Is this a Public / Private partnership?

No

Job creation methodology

Implan

Does the job creation rely on direct jobs, capital expenditure, or a combination?

Combination

How many jobs are expected to be created in total? (Direct)

473.7

How many jobs are expected to be created in total? (Indirect & Induced)

479.3

How many jobs are expected to be created in per investor? (Direct)

4.97

How many jobs are expected to be created in per investor? (Indirect & Induced)

5.05

How are jobs allocated to the pool of investors?

10 jobs per investor

Can you describe the job creation model? For instance, is it based on capital injection, or on a direct job creation and indirect job multiplier, or other?

$62 million capital investment will generate new revenue of about $205.7.million. This report utilizes the IMPLAN input/output for Chambers and Lee counties in Alabama and Troup County in Georgia. The IMPLAN final demand multiplier for this 3-county region for auto parts manufacturing is about 4.6335 (see Table B-2), so a total of 953 new jobs would be created. Of these, 473.7 would be direct, 309.3 would be indirect, and 170.0 would be induced jobs.

SRC Ajin-Wooshin Fund V: Reporting

Do you offer periodic reports to investors on the status of the investment?

Yes

If so, what is the frequency of these reports?

Annually

Are these reports produced by you, or by an independent third party such as a auditing or accounting firm?

Yes

If performed by a third party firm, can you please provide details of the scope of the audit and what the report released entails?

Audited financial statements from borrower

Do you have a third party firm that performs employee payroll & HR record keeping services for the project?

No

Do you have a third party firm that performs I-9 verification?

Yes

If Yes, can you provide the name of that firm?

the borrower performs all I-9 verifications

If No, do you perform I-9 verification of the employees?

No

Would you have any objection to an accounting or law firm performing an audit on the payroll, employment or financial records of the project?

No

If you lease space in your facility to third party firms, are they willing to allow an audit of their employment records for the purposes of verifying employment?

Yes

SRC Ajin-Wooshin Fund V: Media

SRC Ajin-Wooshin Fund V : Escrow

Escrow: Yes

Project: Videos

Inside SRC Ajin

June 29, 2015