Evergreen

Engagement Summary – Evergreen Portfolio Companies

Hudson Consulting Group (HCG) was engaged by the Cleveland Foundation (Ohio) to
help organize, administer, and capitalize three start-up companies. These companies
employed workers from disadvantaged neighborhoods, organized them into worker
cooperatives, sold services to Cleveland’s premier anchor institutions, focused on green
industries (such as alternative energy, energy conservation, local food streams, and
environment conscious waste practices) and were to be capitalized with various forms of
long term, low cost capital.

Hudson Consulting Group raised almost $13 million for two of the three companies it
helped start. The third company (EBS) was a back office service company funded by
charges to the first two operating companies.

Evergreen Cooperative Laundry (ECL)
US Bank NM Tax Credit $1,300,000
HUD 108 1,500,000
Term Debt (Bank) 750,000
Evergreen Fund (Grant) 1,500,000
Government Loan 200,000
Employee Ownership Loan 250,000
TOTAL $5,500,000

Ohio Cooperative Solar (OCS)
Evergreen Fund (Grant) $1,000,000
Federal Energy Tax Credit 600,000
Ohio Energy Grants 600,000
OAQDA Term Loan 1,500,000
KeyBank Loan 2,400,000
KeyBank Revolver 1,000,000
Government Loan 200,000
Employee Ownership Loan 100,000
TOTAL $7,400,000

Other “brokers” collaborated with Hudson Consulting Group in this effort to raise capital
including the City of Cleveland Economic Development office and Cleveland Enterprise.
This type of capital made the process very attorney intensive.

The three companies were launched at approximately the same time in the fall of 2009.
In addition to raising capital, the principals of HCG were engaged to run the companies
during launch as the CEO. This experience allowed HCG to participate, along with the
Cleveland Foundation, the Democracy Collaborative and the Ohio Employee Ownership
Center, in formulating key policies. These include governance, profit distribution,
worker ownership, employment, and operating policies.

The Evergreen transaction demonstrates the versatility of the Hudson Consulting Group.
Navigating in previously un-chartered waters for us (or any one else), we developed a
capital structure by combining various forms of taxpayer based capital with senior credit
and grant-sourced equity. Adding to the degree of difficulty, was the start-up nature of
the venture and era of credit scrutiny.  We take pride in the results, and getting it done in the face of  very low odds.