INDUSTRIES S.A.S.

LEADERS IN SHAPE WEAR & SEAMLESS APPAREL MANUFACTURING

OUR COMPANY OVERVIEW & MANUFACTURING CAPABILITIES

TAUFIK INDUSTRIES S.A.S.

“TAUFIK is a modern, eco-friendly and socially responsible apparel manufacturer. Delighting our customers has been our primary concern for over 65 years, emphasizing service, reliability, hands-on management, & quality.”

Eduardo Merheg- Managing Director & Family Member

1. TAUFIK INDUSTRIES S.A.S. ABOUT US

Taufik Industries has been manufacturing Dominican Republic, Puerto Rico, Venezuela, apparel for more than 65 years, making it one Peru, Ecuador, Bolivia, Chile, Uruguay, of the most experienced and respected garment Argentina, Brazil, Spain, Germany and the UK. companies in South America. Founded in 1950 by Taufik Merheg, a Lebanese immigrant In addition to Taufik Industries, the Merheg’s who became a highly successful Colombian are a multi-business family group, owning other entrepreneur, he currently oversees the business successful businesses throughout Colombia with his two sons, all of whom hold Masters in Commercial Real Estate, Real Estate degrees from American universities. Quite Development and Urbanization, Agriculture successful for many years, the company has and Farming, Plastics Manufacturing and Food never rested on its laurels, always seeking ways Products. to innovate and grow. In the year 2000, the company entered the fast-growing shape wear segment, and shortly thereafter began producing seamless apparel in 2004. • 65 years producing apparelYEARS

Taufik has a strong domestic Colombian manufacturing business along with a well- • 37 years producing pantyhose established exporting background. Current and past countries we have shipped to are; Canada, • 15 + years producing shape wear USA, Mexico, Guatemala, Costa Rica, Panama, • 11 years producing seamless apparel • Export experience to 19 countries 65including the U.S. and Canada

2. TAUFIK INDUSTRIES S.A.S. 10 REASONS TO SOURCE WITH US

OVER A CENTURY OF EXPERIENCE INNOVATIVE TECHNOLOGY CULTURAL SIMILARITIES Colombia has been manufacturing fabrics and Taufik has invested heavily in the best technology Colombia’s time zone overlaps with the Eastern 1apparel, locally and internationally, for more 5and equipment, in order to offer greater efficiency, 7United States and all of our management are than 100 years, and has a long-standing tradition effectiveness, and the flexibility to adapt to our English speakers, allowing for a more seamless of textile development. customers and their consumer demands and integration with your U.S.-based operations. styles at all production levels. QUALITY CONTROL ENVIRONMENTALLY CONSCIOUS Taufik Industries operates under strict quality We practice eco-friendly manufacturing practices 2control standards aimed at guaranteeing design, 8and offer organic textile options. size and color of all garments leaving our factories. We are governed by a culture of excellence, and SOCIALLY RESPONSIBILE our workers take pride in having an eye for detail, Taufik and the entire Colombian textile using high-quality materials, and completing 9industry is committed to supporting the needs work in a timely manner. of their community, and has backed many social programs benefitting single mothers, refugees, SHORT LEAD TIMES and other groups in need. We operate under competitive lead times, 3delivering products in less than 2 months on USA OFFICE average. Fully staffed NYC based team, to service & 10manage all areas of product development between COMPETITIVE COSTS VERTICALLY INTEGRATED INDUSTRY your company & our factory. Due to optimized operations and no import We offer all the necessary services under one roof 4duties or tariffs, we are able to provide a higher 6to provide you with a seamless and cost effective quality product at a comparable price to Asian sourcing partner. suppliers.

3. TAUFIK INDUSTRIES S.A.S. SERVICES, PRODUCTION CAPABILITIES & CAPACITY

SERVICES WE PROVIDE • Full package manufacturing. • Private label brand development from first sample to final production. • Internal product design and development to create product or to assist your design team. • Complete shipping and logistical support from our factory to any North American sea port or airport of choice. Taufik’s Product Women’s with Men’s (Seams & CAPACITY & MINIMUM ORDER QUANITY Capabilites Seams Women’s Seamless Seamless) • 500,000 units per month Pantyhose • 6,000,000 units per year Shape wear • MOQ – Our minimum order quantity is 1000 units per style and in certain cases we will accept less. Leggings Underwear SHIPPING BY SEA & AIR FREIGHT Slimming Tops • Most orders we can deliver within a 60 days x-factory lead time from approved purchase order, approved sample, approved trim Tank Tops and all packaging. Halter Tops • If we have a previous approved sample we often times can deliver your orders within 30 to 45 days. L/S Tops • Boat-Cartagena for the Atlantic Ocean and eastern ports in the S/S Tops U.S. Sport Bras • Boat-Buenaventura for the Pacific Ocean and western ports in the U.S. Dresses • Air-Bogota-El Dorado International Airport • Air-Medellin-Rio Negro International Airport

FABRICS WE WORK WITH • 99% of all our fabrics are produced internally by our own circular knitting machines • Nylon 80% Spandex 20% • Nylon 82% Spandex 18% • Nylon/Polyester blends 4. TAUFIK INDUSTRIES S.A.S. TAUFIK-ALWAYS SOCIALLY RESPONSIBLE & ECO-FRIENDLY

We pride ourselves on operating a socially EMPLOYEE BENEFITS responsible business, offering our 300-plus • 15 paid vacation days, if not taken worker employees a fair wage, paid vacation time, full still gets paid by the company. benefits, and a two-hour lunch period each day, • 18 Paid National Holidays allowing workers to convene with family during • Sunday work or on a holiday all workers are that time, as cultural tradition dictates. We strive paid double time. to go above and beyond the standard employer • 3 months paid maternity leave. responsibilities, providing a daily transportation • One half of all Health Insurance paid by the allowance to our workers and even paying the company. college expenses for our employee’s children who • 100% Pension Plan contribution by company. achieve good grades in school. • 100% Unemployment Insurance all paid by the company. In addition to treating our staff well, we also • Transportation allowance to all employees strive to treat the environment with respect. We per month use only Eco-friendly, water soluble dyestuffs • 48 hour workweek Mon-Sat. imported from Europe. In addition all of the • For the past 20 years the company has paid water used in the dyeing process is gathered from for college expense for the children of workers recycled rainwater, making it a truly renewable who achieve good grades in school. resource. We also donate all of our excess fabric and paper products so that these materials can be recycled and repurposed into items like mattresses and other items. We recognize that a successful business isn’t just a profitable business, but one that also takes care of its environment, our workforce, and our customers.

PHOTO: PRO COLOMBIA PHOTO: PRO COLOMBIA

5. TAUFIK INDUSTRIES S.A.S. DEDICATION & HARD WORK

10 While we pride ourselves on our years of experience in apparel manufacturing, our internal management systems and our state of the industry machinery, the number one reason for our success 8 9 for the past 65 years are all the dedicated workers and staff that have been with us throughout the years. Without their hard work and sincere interest in producing the highest quality garment for every order we receive, Taufik’s success never would have been possible. 3 4 5 7 6 All of us at Taufik Industries look forward to 1 2 being of service to you and your company in the months and years ahead.

1. GLORIA RINCON. CUTTING OPERATOR. 47 YEARS OLD, 22 YEARS ON THE JOB 2. NIDIA VALENCIA: CUTTING OPERATOR. 47 YEARS OLD. 23 YEARS ON THE JOB 3. MARLENY GRAJALES: MANUAL OPERATOR. 48 YEARS OLD, 20 YEARS ON THE JOB 4. BLANCA VALENCIA: SEWING FLOOR CORDINATOR. 42 YEARS OLD, 9 YEARS ON THE JOB 5. MARLENY GRAJALES: SEWING MACHINE OPERATOR. 54 YEARS OLD, 29 YEARS ON THE JOB 6. ROSA QUIROZ: CUTTING OPERATOR. 42 YEARS OLD, 13 YEARS ON THE JOB 7. GLADYS ZULUAGA: ADMINISTRATIVE ASSITANT. 61 YEARS OLD, 36 YEARS ON THE JOB 8. ANGELA CORREA: SEWING MACHINE OPERATOR. 31 YEARS OLD, 9 YEARS ON THE JOB 9. LAURA VANEGAS: DESIGN AND PRODUCT DEVELOPMENT. 21 YEARS OLD, 2 YEARS ON THE JOB 10. SILVIO GALVIS: KNITTING MACHINES TECHNICIAN. 51 YEARS OLD, 30 YEARS ON THE JOB

6. TAUFIK INDUSTRIES S.A.S. SHAPE WEAR 2016

Above are some examples from our most recent collection and of course we’re able in most cases to produce any styles you may want to develop with us.

7. TAUFIK INDUSTRIES S.A.S. SEAMLESS 2016

Above are some examples from our most recent collection and of course we’re able in most cases to produce any styles you may want to develop with us.

8. TAUFIK INDUSTRIES S.A.S. THE U.S.- COLOMBIAN FREE TRADE AGREEMENT

In addition, nearly 1,000 exports that did not When it was implemented, the FTA symbolized a he U.S.-Colombia Free Trade Agreement T benefit from one-way trade preferences under the new chapter in the economic partnership between (FTA) was implemented on May 15, 2012, and Andean Trade Promotion and Drug Eradication Colombia and the United States, as it established is generating opportunities for both countries Act (ATPDEA) are now covered under the FTA. a common framework for bilateral trade and that are increasing economic growth and These exports – sugar, confectionery goods, investment and the protection of intellectual supporting job creation. With the FTA in place, textiles, tuna and dairy products, among others property and labor rights and the environment. the U.S.-Colombia trade partnership is stronger – increased by 185 percent since the FTA went The FTA has and will continue to expand both than ever and the highly complementary U.S. into effect. economies through increased exports, investment and Colombian economies are reaping the and job creation. benefits. One of the most important points of the agreement is the elimination of any duties, quotas or tariffs between Colombia and the U.S. on the vast majority of products the two countries either Exports import or export between each other. US$ Millions Between June 2012 and February 2013, compared to the previous year, two-way trade 70.000 accounted for $28.5 billion, an increase of five 58.847 60.000 percent. During that period of time, U.S. exports to Colombia increased 20 percent, including 50.000 significant increases in oil and derivatives, aircraft and parts, electric machinery, iron and 40.000 steel products, cereals, soybean products and 30.000 pharmaceutical products – accounting for $11.4 billion. U.S. agricultural exports alone increased 20.000 13.158 by 68 percent. 10.000 Colombian exports to the United States accounted for $17.1 billion, and 57 percent of total Colombian exports benefited from the FTA 2000 2013e including 33 percent of agricultural exports.

9. TAUFIK INDUSTRIES S.A.S. COLOMBIA’S TEXTILE & APPAREL INDUSTRY

The indigenous people of the Amazon were skilled artisans, crafting colorful and durable textiles whose styles still influence our tastes today. The modern Colombian textile industry has carried on this tradition of craftsmanship, while leveraging many modern technological advancements, to create one of the world’s most reliable textile manufacturing sectors. Over the past century, Colombia’s textile and apparel industry has grown to over 10,000 manufactures, which contribute about 1.5% to Colombia’s GDP and 10.7% to its total manufacturing revenue, while employing about 1/5th of the country’s workforce. Its legacy of craftsmanship and quality has made Colombia one of the most trusted sources for textiles and apparel, and has earned it the business of industry leaders like Levi’s, Victoria’s Secret, and Adidas.

IMAGE: PRO COLOMBIA

10. TAUFIK INDUSTRIES S.A.S. COLOMBIA DID YOU KNOW?

Colombia is currently the home to nearly 50 million people, with a olombia is located in the northwestern quadrant of South America, C nominal GDP exceeding $400 billion, making it the fourth largest bordering Brazil, and is one of the world’s 17 most ecologically diverse economy in Latin America. Colombia is considered amongst the worlds countries. With land spanning from the Andes Mountains to the Amazonian six most favored emerging markets due to its diverse, dynamic economy rainforest to the Caribbean and Pacific coastlines, Colombia boasts the world’s and young, growing population, which, along with its recent Free Trade highest biodiversity per square mile. The country was colonized by Spain in Agreement with the United States, has made it an attractive partner for the 16th century, and achieved its independence in 1819. many American businesses.

11. TAUFIK INDUSTRIES S.A.S. SHIPPING & LOGISTICS

Working with us you are afforded a number of logistical advantages, due in large part to Colombia’s proximity to major markets in North America. Colombia provides access to major ports on both the Caribbean Sea and Pacific Ocean, offering transit times of merely 3 to 8 days to the East and West coasts of the United States, compared to 3 to 4 weeks for goods shipping from Asia. The industry’s growth has led to the development of logistics in the distribution chain, and there are currently 17 major shipping companies, nearly 300 ships, and over a dozen cargo airlines serving routes between Colombia and the U.S. The short 3-hour flight time from Bogota to Miami not only allows for rapid freight delivery to the U.S., but also affords retailers the opportunity to check in on their manufacturing operations with relative ease.

PHOTO: PRO COLOMBIA

12. TAUFIK INDUSTRIES S.A.S. THE SHAPE WEAR & SEAMLESS APPAREL INDUSTRIES

Shape Wear The seamless apparel evolution has proven to In recent years, the shape wear category has be beneficial not only to the consumer and the exploded, growing into a multi-billion dollar Shapewear exports from Colombia retailers, but also the manufacturers. Unlike a segment, and attracting many of fashion’s most exports to the USA reached US traditional knitting machine, which requires first established brands, such as Victoria’s Secret and $5,386.480 in 2011. the production of fabric and then the garments to be cut and sewn, seamless garments are made on DKNY, the latter of which now accrues a large and Colombias shapewear reaches growing percentage of its revenue from shape wear. a computerized machine that are preprogrammed more than 130 countries Thanks in large part to celebrity endorsements, worlwide. to produce fully completed items. This cuts down as well as manufacturing innovations that have on labor costs and reduces manufacturing time made body-shaping garments thinner, lighter, up to 40%. As companies continue to innovate and more comfortable, the shape wear business is around comfort and versatility, the growth of stronger than ever. these garments is happening rapidly. Seamless Apparel For centuries, women have worn garments to In recent years, these comfortable and form shape their figures, squeezing into suffocating fitting seamless garments have become quite corsets and fumbling with cumbersome buckles popular, with growth in active wear, sportswear and strings, all in the name of beauty. But, a recent and lingerie. However, as consumer demand has revolution in the shape wear industry has allowed grown in these categories, many have called for the modern woman to achieve this slimming greater comfort and more fashionable designs. effect without having to sacrifice comfort. The This has inspired manufacturers and retailers to shape wear category underwent a renaissance innovate their product design, leading to the in the late 2000’s, when celebrities such as Lady proliferation of seamless and tagless apparel. In Gaga and Oprah Winfrey began to vocalize their recent years, seamless apparel has become one of use of shaping undergarments, making shape the most lucrative categories in the wholesale and wear an essential in any woman’s wardrobe. retail apparel industry. PHOTO: PRO COLOMBIA

13. TAUFIK INDUSTRIES S.A.S. WHY WORK WITH US?

The advantages of manufacturing with Taufik

• Founders/Owners personally manage all orders. • The ability to produce small test quantities or high volume production runs. • Flexible structure to fit your specific product designs and delivery needs. • In house design and product development team. • Superb service and quick turn on sample development. First prototype usually within 8-10 days. • The latest technology for the seamless and shape wear industry, using Santoni and Lonati machinery • Competitive pricing to compete with any country in the world. • Our factory always maintains a social responsibility to our workers. • Never do we use child labor in any of our operations. • Factory operations and facility to meet all international standards. • Shorter transportation times to the US than from Asia or India. - 3 days by boat to the U.S. • Shorter air travel flight times to Colombia than those to fly to Asia or India. - 3 hours to Miami • All our management is thoroughly fluent in Spanish and English. • A New York City based sales and product development office.

14. TAUFIK INDUSTRIES S.A.S. OUR CONTACT INFORMATION

CORPORATE HEADQUARTERS:

INDUSTRIAS TAUFIK S.A.S. Calle 8- #10-21 Dosquebradas, Risaralda Colombia, South America email: [email protected] Phone: + (57) (6) 330 5343 Fax: + (57) (6) 330 1660 www.indtaufik.com

NORTH AMERICAN OFFICE:

TAUFIK INDUSTRIES S.A.S. Mr. Stephen R. Goodman-Director of Sales C/o SRG VENTURES LLC 225 E.36th St- Suite 5E New York, NY 10016 [email protected] Phone-203-613-1242 www.indtaufik.com

PHOTO: PRO COLOMBIA

15. TAUFIK INDUSTRIES S.A.S.