Letter of Transmittal s1

CLIENT LOGO HERE

A Proposal of Partnership Request for Proposal Print/Promotional Products

OWNER COMPANY NAME ADDRESS CITY, STATE ZIP PHONE NUMBER EMAIL CLIENT LOGO HERE

Letter of Transmittal DATE

CONTACT NAME TITLE CLIENT ADDRESS CITY, STATE ZIP

Dear CONTACT NAME,

If establishing a worry-free print and promotional merchandising program is your primary goal, invite Proforma to become an extension of your team and watch how we eliminate the responsibility of managing the programs, allowing you to focus on areas that directly impact your bottom line.

The OWNER COMPANY NAME team fully commits our customer service expertise to the CLIENT print and promotional merchandising program. In addition to our local team, we work with 140 dedicated employees in Cleveland, OH to assist with marketing, vendor relationships, and implementation. Through this partnership, we also have access to complete warehousing and fulfillment facilities.

The success of CLIENT program is a priority for us. My team includes:

 A Creative Services team that acts as a full-service marketing agency  A Vendor Relations team with extensive knowledge of both domestic and overseas sourcing. We employ a full-time product specialist and robust importing resources  An IT team that includes developers and graphic designers.  A Business Development team specializing in a smooth program transition

Proforma offers the best of both worlds – a partnership with the leading promotional product distributor and $500,000,000 in purchasing power, coupled with the personal, attentive service offered through OWNER COMPANY NAME. We are excited to put our YEARS OF EXPERIENCE years of experience toward the success of your program.

Sincerely,

YOUR NAME & TITLE OWNER COMPANY NAME

OWNER COMPANY NAME - DATE Page 2 CLIENT LOGO HERE

Table of Contents

Letter of Transmittal...... 2

Executive Summary...... 4

Supplier Questionnaire

Company Background 6 Market Presence 12 Customer Service 14 Transition and Implementation 19 Inventory 22 Sourcing Capabilities 28 Order Processing and Fulfillment 30 Design 34 Invoicing and Reporting 35 Green/Sustainability Programs & Initiatives 36 Social Responsibility & Supplier Diversity 37

***Content in red font must be provided and/or approved by Owner. These are sample responses from a past proposal and your answers may vary based on your chosen distribution facilities, supplier partners, etc.

Executive Summary

The unique value Proforma brings to CLIENT is our commitment to being your creative business partner – not simply your product vendor. Working closely with CLIENT, our team will simplify your current processes and plan toward your future goals.

Most companies need to do just one thing to streamline workflows, increase revenue and protect their brand across marketing programs – they need to partner smarter. We understand that one of your main concerns is increased return on investment and Proforma is well-equipped to impact your bottom line via both transactional and administrative savings. Our team will work closely with CLIENT to:

 Align with CLIENT Unique Needs: OWNER COMPANY NAME doesn’t force our clients into pre-constructed packages. Our large North American footprint and strategic industry partnerships give us unparalleled flexibility to build our clients’ programs around their key requirements.

o Custom merchandise? We can design and manufacture anything. o Print and Promotional merchandise through a single platform? We can do that, too. o Warehousing on both the east and west coasts? Let’s talk about the best solution. Proforma offers distribution capacity across North America and we look forward to implementing the perfect program for you.

 Reduce transactional spend on print and promotional merchandise by leveraging our $500,000,000 purchasing power, preferred pricing from our manufacturing partners and proactive planning to tap into our overseas relationships. In addition, our on-demand production capabilities allow us to deliver personalized merchandise in short turn times with little or no inventory commitment.

 Eliminate redundancy in product selection and order placement. One of the key benefits of working with a single partner is the bird’s-eye view we will have of print and promotional spending across your company. This provides yet another opportunity for Proforma to step in as your collaborative partner and suggest opportunities to share best practices and save via a company-wide spend.

 Reduce the time and resources you spend on your promotional and print projects by managing the entire process. Our user-friendly eCommerce platform is a secure, intuitive tool that allows you to order, manage, track, report and pay for transactions 24/7. For special orders, you have a single contact who can manage the process from there.

 Protect your brand over multiple manufacturing platforms, control the way it is used on custom-imprinted products and make sure your logo standards are consistent across

marketing pieces. CLIENT brand is a valuable asset, and Proforma combines built-in technology controls with personal attention to ensure compliance.

One Source. Infinite Resources. It isn’t just a tagline…it’s our commitment. Proforma understands the value of a marketing consultant you can trust. We know CLIENT isn’t just looking for shirts, pens and brochures. You are looking for comprehensive, innovative solutions that deliver end-to-end service.

When you partner with Proforma, you don't have to choose between capabilities and service. We offer the product selection and competitive pricing of a large corporation coupled with the personal, attentive service of a dedicated team. Only Proforma promises the best of both worlds.

We look forward to further discussing your marketing goals.

One Source. Infinite Resources.

Supplier Questionnaire

As part of submitting a proposal, Bidders are expected to prepare and include specific responses to all of the following questions individually.

Company Background

1. Provide full company name, headquarters address, telephone number and web address.

Local Account Management Team:

OWNER COMPANY NAME ADDRESS CITY, STATE ZIP PHONE NUMBER EMAIL WEBSITE

North American Support Team:

OWNER NAME is your National Account Manager and TITLE of OWNER COMPANY. Based in CITY, STATE OWNER NAME has been in the premium marketing industry for over YEARS OF EXPERIENCE years. With the full support of his print and promotional specialist team, OWNER NAME will oversee the management of the CLIENT account from STATE. He will lead the development, launch, and marketing of the eCommerce site, as well as work in tandem with the team on special orders to ensure total account coverage.

OWNER NAME has full executive control of your program and can make decisions quickly without escalating change requests through a chain of command. In addition to day-to-day program management, HIS/HER responsibilities include but are not limited to:  Idea generation for innovative products and solutions

 Conducting on-site review meetings and business reviews

 Identifying cost savings opportunities

 Ensuring all interactions with Proforma exceed service expectations

 Monitoring delivery schedules and coordinating sub-contractors

HIS/HER team includes:

 NAME  NAME  NAME

OWNER NAME is also your single-source liaison to the resources available through our warehousing and fulfillment facilities. With a single phone call to OWNER NAME, our team will guide your project from concept to completion – design, production, packaging and distribution.

Additionally, our Support Center staff of 140 professionals works closely with OWNER NAME and HIS/HER team, providing strategic supplier partnerships, credit management, administrative, and creative marketing assistance. Key personnel include:

 Tom Rizzi – Chief Sales Officer

 Michelle McCafferty – Manager of Business Development, Major Accounts

 Tony Zayas – Director of Sales & Marketing

 Catherine Roney – Manager of eCommerce – Build and maintain company stores

o Engineering and ProGraphics Teams

 Deanna Castello – Chief Marketing Officer

o Team of Marketing and Creative Specialists

 Michele Cardello – Director of Strategic Partner Development

o Vendor Development Team – Promotional, Print, Importing and Value-Add Specialists

o Proforma contracts with more than 550 preferred manufacturing partners that consistently release new products to the market through our network and serve as an extension of the Proforma team.

Although each person performs a specific function, OWNER NAME is CLIENT’S direct account manager and will align the appropriate resources based on the need.

2. How long has your company been in business in this specific industry?

On a national level, Proforma has been in business in the industry for 38 years. OWNERS COMPANY NAME was founded locally YEARS IN BUSINESS.

3. Provide your company's mission statement.

Our go-to-market focus and mission is for our clients to see us as their creative business partner – not simply their print and promotional product vendor. We achieve that by:

 Aligning interests – “Does the solution we’re proposing align the interests of all parties concerned?” This is how we ensure win-win-win situations for our clients, staff and vendors.

 Partnering with the best – as a top distributor with $500 million in purchasing power, we partner with only the best suppliers in all categories. In addition to consolidated purchasing power, our clients enjoy preferred service levels and exclusive offerings.

 Staying true to our promise: One Source. Infinite Resources. It isn’t just a tagline…it’s our commitment.

4. What are the names of the owning/holding companies of your business (if any)?

N/A. OWNER COMPANY NAME is independently owned and operated.

5. Is your company presently on the market to be sold or is your company negotiating a merger or acquisition with another company? If yes, what impact will this have on existing management practices?

No. Proforma is currently celebrating 38 years of growth and offers financial stability that is second to none. Our unique structure affords us continuous growth during times of economic instability, even as our competitors are reducing their service forces and cutting services.

6. How many employees does your company have (full and part time)?

There are NUMBNER OF full-time, and NUMBER OF part-time employees at OWNER COMPANY NAME. This team has the full support of 140 experts at the Proforma Worldwide Support Center in Cleveland, Ohio – offering IT, creative marketing, vendor relations and administrative support. This approach frees up valuable time for your team at OWNER COMPANY NAME to focus on the service and consulting aspects of your program.

In addition, there are more than 750 Proforma offices strategically located across North America. We can seamlessly incorporate their support to offer CLIENT local support anywhere required.

7. Provide an organization chart of your senior management team. Provide the name of the individual that will have overall management responsibility for our business.

Please see following page. OWNER NAME will be your centralized point of contact.

CLIENT

OWNER NAME COMPANY NAME

Customer Service/Creative Team Production/Distribution Team for CLIENT CLIENT

PFG Ventures dba Proforma (Worldwide Support Center)

Tom Rizzi Chief Sales Officer

Michelle McCafferty Manager of Business Development, Major Accounts

Tony Zayas Director of Sales & Marketing

Catherine Roney Manager of eCommerce

Michele Cardello Dir. of Strategic Partner Dev.

Team of Print, Promotional and Overseas Sourcing Specialists

Deanna Castello Chief Marketing Officer

Team of designers and creative specialists

8. Provide the number and location of U.S. offices / plants / factories / DC’s.

There are more than 750 Proforma offices strategically located across North America. We can seamlessly assign local support for CLIENT anywhere required. In addition, we partner with distribution centers across North America and globally to service our clients’ programs. The offices that would be immediately involved in the CLIENT program are:

 CITY,STATE – OWNER COMPANY NAME  CITY,STATE – OWNER COMPANY NAME  CITY,STATE – OWNER COMPANY NAME  Independence, OH – Proforma Worldwide Support Center  CITY,STATE – OWNER COMPANY NAME

10. Provide a copy of your most recent audited financial statements.

Please see Attachment A for our most recent audited financial statement. (Contact the Major Accounts team for most recent audited financial statements)

11. Provide a general overview of the quality control programs that your company currently has in place and any others that are being planned. Indicate any quality certifications received.

We determine quality standards with your input before contract initiation and Proforma documents these standards throughout the program. We believe that an agreed upon set of performance measures is essential to the success of any business agreement. Proforma monitors each of its suppliers and service providers for conformance to standards. Should a substandard product or service be delivered, Proforma will manage the process of bringing the product or service up to standard, at no cost to CLIENT. Quality control processes are in place at all stages of production including:

 Raw materials are inspected upon receipt.  Customer proof approval before beginning production

 Pre-production proofs to ensure accuracy of output

Quality standards are monitored throughout the production process at specific intervals. Should any defects be uncovered those will be removed from the batch and the necessary corrective steps will be taken. Packaging procedures are monitored to assure that they meet proper standards.

We generally recommend quarterly reviews to fully analyze purchasing behavior, inventory levels, the product mix, future needs and any new recommendations. Although regular communication is part of an ongoing process, these quarterly reviews help provide a full analysis and statistical representation of how the company store is doing and we work together on how to improve and enhance sales for the next quarter.

12. Describe your disaster recovery program.

Proforma utilizes a primary and secondary production facility. In the event of a disaster, the products scheduled for production in the primary facility will be produced at a similar production facility. Order history and specification information relevant to the order production is managed by the IS area of each facility, and the disaster recovery process for that aspect is comprised of the disaster recovery manager and disaster recovery operations team. They are responsible for determining the extent of the disaster, monitoring recovery programs, reporting status to the Proforma Executive Team, and managing the reconstruction of systems and structures, if necessary.

Back up procedures have been established and are followed for full daily back-ups with information stored off site. Proforma web services are hosted in house with battery back up, daily tape backup, offsite storage, and a diesel generator. The internet connection is dual ringed OC# with separate paths.

Market Presence

13. What metrics do you use to measure your company’s performance in your industry?

Proforma consistently ranks among the top companies in our industry. We are proud to have received the following recognition for our accomplishments in the business documents, commercial printing, and promotional products industries:

2016  #2 Top Distributor, Promo Marketing magazine

2015  #2 Top Distributor, Promo Marketing magazine  #3 Top Distributor, Counselor magazine

2014  #1 Top Distributor, Promo Marketing magazine  #2 Top Distributor, Counselor magazine  #2 Top Distributor, Print Solutions magazine  #2 Top Distributor, Print + Promo magazine

In addition, in an independent survey*, Proforma received a 99.4% satisfaction rating from our customers, making us the only supplier to receive a rating above 99%. The survey went on to show the following results:

 63% of customers surveyed indicated that the #1 benefit of doing business with Proforma was personal attention/good service/prompt follow-up  25% of customers surveyed indicated that the #2 benefit of doing business with Proforma was low cost/discount pricing  22% of customers surveyed indicated that the #3 benefit of doing business with Proforma was prompt delivery

*Great Lakes Marketing

14. What truly distinguishes your company in this industry? Remember stock answers are not appreciated. Please be prepared to respond more specifically as to the unique nature of these characteristics.

The unique value Proforma brings to CLIENT is our commitment to being your creative business partner – not simply your product vendor. Through working closely with CLIENT, our team will simplify your current processes and plan toward your future goals.

Our team can help:

 Reduce transactional spend on promotional merchandise and printing by leveraging $500,000,000 purchasing power, preferred pricing from our manufacturing partners and proactive planning to tap into our overseas relationships. In addition, our on-demand production capabilities allow us to deliver personalized merchandise in short turn times with little or no inventory commitment.

 Eliminate redundancy in product selection and order placement. One of the key benefits of working with a single partner is the bird’s-eye view we will have of promotional spending across your company. This provides yet another opportunity for Proforma to step in as a consultant and suggest opportunities to save via a company-wide spend.

 Reduce the time and resources you spend on your promotional and print projects by managing the entire process. Our user-friendly eCommerce platform is a secure, intuitive tool that allows you to order, manage, track, report and pay for transactions 24/7. For special orders, you make one phone call and we manage the process from there.

 Protect your brand over multiple manufacturing platforms, control the way it is used on custom imprinted products and make sure your logo standards are consistent across marketing pieces. The brand is a valuable asset. Proforma combines built-in technology controls with personal attention to ensure compliance.

Proforma understands the value of a marketing consultant you can trust.

Each component of any successful campaign or program – a branded product, signage, a mobile app – is one part of a bigger, comprehensive picture. Our account team is a single source for every piece of that puzzle. Our focus is on taking a leadership role to improve innovation and workflows, reduce costs (both administrative and product-based) and free up your administrative resources so you can focus on growing your business. By establishing such partnerships, we continue to grow along with our clients and continually improve existing programs.

When you partner with Proforma, you don't have to choose between capabilities and service. We offer the product selection and competitive pricing of a large corporation coupled with the personal, attentive service of a dedicated team. Only Proforma promises the best of both worlds.

Customer Service

16. Please outline your company’s customer service philosophy.

It is our goal to be the best strategic partner for you. Proforma does this through outstanding, proactive customer service. We will provide innovative solutions to virtually any challenge on target, on time and on budget. While many suppliers consider your satisfaction the only indicator of program success, we don’t stop there. Proforma isn’t satisfied until we’ve significantly increased your return on investment and are absolutely sure that the program is creating value for both of our organizations. We have a strong dedicated team to serve your needs, backed up by a robust support group at our Worldwide Support Center. Their specialties include logistics, importing, new product analysis and other areas of support to help make us the strongest team in the industry. Proforma employs the use of a customer satisfaction surveys to acknowledge feedback from our users. This information is very important to us. We recommend regular business reviews to fully analyze purchasing behavior, inventory levels, the product mix, future needs and any new recommendations. Although regular communication is part of an ongoing process, these quarterly reviews help provide a full analysis of the program and ensure we’re meeting or exceeding service level standards.

17. What do you consider to be the key elements of a good customer relationship?

Quite simply: Integrity, trust, reliability, honesty and open communication. We’ve identified several key components our clients bring to the table of our most successful partnerships:

 A dedicated, knowledgeable contacts to act as internal advocates for the program and provide necessary information  Assistance to Proforma in marketing the program to end users  A commitment to regular business reviews (at least quarterly) to engage with the Proforma account management team and proactively develop the program

18. What customer service awards, if any, has your organization received since the beginning of 2009?

Proforma consistently ranks among the top companies in our industry. We are proud to have received the following recognition for our accomplishments in the business documents, commercial printing, and promotional products industries:

2016  #2 Top Distributor, Promo Marketing magazine

2015  #2 Top Distributor, Promo Marketing magazine  #3 Top Distributor, Counselor magazine

In addition, in an independent survey*, Proforma received a 99.4% satisfaction rating from our customers, making us the only supplier to receive a rating above 99%. The survey went on to show the following results:

19. How will your company align its services with our company’s business objectives?

OWNER COMPANY NAME doesn’t force our clients into pre-constructed packages. Our large North American footprint and strategic industry partnerships give us unparalleled flexibility to build our clients’ programs around their key requirements.

 Custom merchandise? We can design and manufacture anything.  Print and Promotional merchandise through a single platform? We can do that, too.

 Warehousing on both the east and west coasts? Let’s talk about the best solution. Proforma offers distribution capacity across North America and we look forward to implementing the perfect program for you.

We look forward to continued discussions with your team to discuss how Proforma’s resources can provide a perfect fit for CLIENT needs.

20. Provide the names, titles, and locations of any other of your people who may call on CLIENT with any level of regularity.

 NAME, TITLE, CITY, STATE  NAME, TITLE, CITY, STATE  NAME, TITLE, CITY, STATE  NAME, TITLE, CITY, STATE

21. How do you ensure responsiveness and availability of key account and management personnel to your clients? Do you have performance standards in this area? Please provide copies of your standards and sample scorecards.

Our standard hours are 8 a.m. to 5 p.m. M-F, with key account personnel available 24/7 via cell phone in urgent situations. Our entire team understands this is a deadline-driven industry and we work off-hours as required to meet time-sensitive requests.

Our standard response guarantees are:

 Voicemails returned within 4 hours (when received during normal business hours)  Emails returned within 4 hours (when received during normal business hours)  24/7 availability of the online platform, complete with FAQs and intuitive interface

In order to assure CLIENT will receive the highest level of service at all times, we are prepared to have one of our staff on site at the CITY office on a weekly basis. That primary person will be OWNER NAME.

In general we recommend regular business reviews to review program performance, evaluate end user feedback, and identify areas for ongoing enhancement.

22. Do you provide a 24-hour toll-free call center?

This is not a standard offering or need for our clients’ programs. Our offices are open from 8:00 a.m. to 5:00 p.m. Monday through Friday. We have extended hours on an as-needed basis and are generally available by cell phone over the weekend. We have various production facilities that have 2nd shift or weekend shift hours so we stay available to them with all project coordination.

Should our service hours need to be expanded to meet CLIENT needs, we are happy to work together to define the best solution.

23. Is your call center outsourced to a third party? If so, where are they located?

No; N/A

24. What mechanisms are in place to ensure prompt, accurate response to client / client end-user calls?

In NUMBER OF years of being in this business we have found it to be extremely important to have quick and concise communication with our clients. Therefore, any communication can be expected to have a response by the close of business of that same day. We are assuming that these calls will be generated from the CITY office. If calls are coming from other time zones, we need to be aware of that in order to establish policy. Additionally, the cell phone numbers of OWNER NAME would also be available after hours.

Our standard response guarantees are:

 Voicemails returned within 4 hours (when received during normal business hours)  Emails returned within 4 hours (when received during normal business hours)  24/7 availability of the online platform, complete with FAQs and intuitive interface

In order to assure CLIENT will receive the highest level of service at all times, we are prepared to have one of our staff on site at the CITY office on a weekly basis. That primary person will be OWNER NAME.

25. What are your call center’s performance metrics, and what have you achieved? Please provide a copy of your standards and a sample scorecard.

We do not have a call center, however in an independent survey*, Proforma received a 99.4% satisfaction rating from our customers, making us the only supplier to receive a rating above 99%. The survey went on to show the following results:

26. Do you have any formal procedures in place for resolving areas of concern that may arise with your customer service? Please provide a copy of your standards.

Yes. Regardless of the reason or situation that may arise in the process of conducting business, our stance has always been to do whatever is necessary to resolve any issues to make sure the client is 100% satisfied. We also have great relationships with excellent vendors. As a result, we can respond to emergencies quickly.

Our standard escalation procedures

Customer service personnel are our first line of communication. They are empowered to do whatever it takes to make the customer's life easier. They are not permitted to turn down a client request - they must escalate to the account manager if they are unable to fulfill any request. They are the client concierge, handling any and all requests.

In most cases the CSRs can make it happen, but if they can’t the account manager can. OWNER NAME is your Account Manager and has full executive control of your program. He has access to custom solutions that the customer service team may not have the expertise to enlist.

Proforma uses a dedicated account team and corporate account management model to ensure our clients benefit from the structure and support of a large corporation while enjoying local, personal and attentive service. This structure allows us to continually hold our place as a leader in the industry.

Transition and Implementation

27. Your ability to implement the program quickly and efficiently will be considered in your evaluation. Assuming you are chosen to provide services to our company, please provide detailed action plans for your ramp-up and transition of the processes.

Our team is ready to begin implementation immediately if Proforma is selected as your partner for this program. We have perfected a formal implementation process designed to drive project success in a timely and cost-effective manner. Below is a brief, sample timeline of the plan we would follow. As you can see, the program can be up and running within the first 30 days after selection. Of course every program is different, so we customize a formal rollout plan to meet your unique needs. We will develop this more detailed plan with CLIENT involvement.

First 30 days  Identify CLIENT internal implementation coordinator and designate Implementation Team  Develop a program rollout schedule  Develop and customize company store site  Test and launch company store site  Conduct user training  Proforma and CLIENT representatives determine service levels, reports, and procedures  Convert current inventory to be managed by Proforma  Mission critical items identified, inventoried, and ordered if necessary to ensure product availability during implementation  All items entered into the Proforma inventory system  Current projects identified  Begin production and develop initial inventory levels  Introduce agreed-upon reports

Days 31 – 90  Develop monthly inventory review schedule with your representative  Initiate budget-tracking reports by location  Serve as an extension of CLIENT on concept and strategy development  First quarter review with your staff to confirm satisfaction with product and services provided by Proforma

Days 91 – 180  Review current processes to identify additional improvements  Determine if the current reports and system requirements are acceptable and develop an understanding of any new or updated needs  Identify other areas for value driven savings

Days 180+

 Determine if operational studies could reduce expenses  Identify where technology could further automate manual processes  Develop additional procedures  Conduct 6 month and annual reviews

The Proforma implementation plan centers on our ability to provide personal, dedicated service to CLIENT.

28. What is the typical set-up time for the software program you are proposing?

Our sites are typically up and running within 30 days of receiving final sign off from the client on products and specifics. There is no software installation required as our platform is web-based.

29. Provide examples of joint process improvements and/or cost savings initiatives that your company has successfully implemented with current clients. Describe the benefits to the clients.

Several of America’s leading brands trust Proforma as their full-service partner for creativity and cost-savings. For example:

Large Retailer Uniforms, apparel, gifts, and promotional items. Six years into our partnership, this program:

 Saves $300,000 monthly on invoice processing costs alone through Electronic Data Interchange (EDI)  Serves more than 5,000 locations and 40,000 end users (4,000 stores in US, Canada, Puerto Rico and Caribbean and we ship to addresses all over the world)  Processes 3,000 orders per month  Maintains just $7,500 in inventory – mostly on-demand program  Is continually promoted across locations by the client’s corporate office and Proforma’s attendance at company conventions

Large Benefits Provider  Wide range of commercial print solutions  Print and fulfillment vendor for on-demand, fully-customized and co-branded sales literature  Overnight shipping; daily production  Proforma achieved savings of 15% over their previous brick-and-mortar print vendor  Also expanded the product options available for order on the site  Created and host a fully-customized pre-enrollment tool platform o Allows users to create customized fliers, payroll stuffers and posters that are sent to client offices in advance of pre-enrollment sessions to increase participation and drive traffic to these events

o Proforma successfully integrated this site into the client’s processing by working closely with their IT team. This allowed us to leverage the combined volume of both the Pre-Enrollment and Sales Lit online ordering tools, which lowered the client’s overall print spend while offering more options and customization. This was all done at a lower price than the client’s IT group would have incurred creating the platform on its own.  Make-and-ship print distributor partner for a variety of commercial print projects, ranging from 500,000 piece runs of letterhead distributed to two different offices, to presentation folders, direct mail pieces, provider directories and customized brochures that our client creates on behalf of its clients

Inventory

30. If awarded the contract, how would you handle current inventory in printed material, apparel and promotional products?

If selected as your partner, Proforma will request an inventory analysis with CLIENT to review your current stock and determine 1) is there any obsolescence, 2) how can we deplete as much as possible ahead of program transition?

Once an inventory amount is identified, we would propose that Proforma transfer the inventory to our facilities following an 80/20 procedure in which 80 percent is transferred immediately while 20% stays where it is so orders can continue to be filled during transition.

We would track the movement of this inventory and review monthly with CLIENT administrators to ensure it is moving at a good pace. Every program is different and we see it as our responsibility to fully understand your unique situation before implementing the best solution.

31. How would obsolete stock be handled?

This is open to discussion. We would work with CLIENT to creatively deplete as much merchandise as possible and would need a better understanding of the situation before proposing a tailored solution.

32. What is your backorder percentage?

For corporate programs it is less than 1%.

33. Discuss your ability to maintain sufficient inventory to assure good service and prompt delivery.

It is our goal to transition as many items that make sense to our on-demand program, limiting any liability to both CLIENT & Proforma. Proforma will not order any products for inventory without the approval of CLIENT. For inventoried items, it would be our goal to only order a 90-day supply for inventory at any given time.

Our on-demand items are shipped either as stand-alone orders or are merged with other items in our warehouse, as required by each client. The majority of our manufacturers have agreed to very short production times with our contract orders, many turn orders around as quickly as within 48 hours.

Cycle Counting/Physical Inventory:  Regularly-scheduled cycle counts  Annual physical inventory  Assess quality and quantity  If our team identifies negative trends, or the client's goals are not being met, we initiate corrective action

In-Process Quality Inspections:  Conduct internal process checks at picking audits  Provide ongoing feedback to our team members as to their performance

Key Performance Indicators (KPIs) tracked for each program:  Order accuracy  Inventory accuracy  Fulfillment statistics  Customer satisfaction levels  Company store up-time

We work jointly with our clients to develop program-specific KPIs according to unique business objectives and goals. All KPIs are tracked and reported. We regularly review data for trends to proactively take corrective action if needed.

34. Would we have real time access to inventory information?

Yes. Our company store technology features real-time inventory information.

35. Describe your order fulfillment process from order receipt to delivery?

Ordering process: 1. User logs on to site 2. User selects product category 3. Specifies quantity, pre-approved branding, color, size (if applicable) 4. Add to cart 5. Continue shopping 6. User selects Checkout 7. User selects shipping address 8. User submits order 9. An email notification is sent to the requestor, communicating order received, and notifying supply chain to proceed with production 10. Order goes direct to supply chain for manufacturing and fulfillment

Fulfillment process: 1. Inventory orders sent direct to fulfillment center (Proforma internal) a. Order printed in the warehouse b. Employee 1 pulls the order c. Employee 2 verifies the order d. Order set aside to wait for any on-demand items 2. On-demand item (e.g. brochure or shirt) a. While inventory order is sent to Fulfillment Center, on-demand request is sent to manufacturing partner b. Blank goods partner prints and ships the order either directly to client or to Proforma fulfillment center

c. On demand item either delivered to client or reunited with inventory item at Proforma fulfillment center 3. Employee 3 verifies complete order is correct and packs the order together 4. UPS, FedEx, or USPS, pick up and deliver product to customer 5. A second notification, complete with tracking number, is sent to the requestor when the order ships

36. Describe your company's purchasing practices. Include a brief description of leveraging efforts, top suppliers, what services or products they provide you with, etc.

As an industry-leading distributor, Proforma works with a network of 15,000 worldwide suppliers, 550 of which are part of our exclusive network of Preferred Limited Partners (PLPs). These manufacturing partners offer Proforma the following advantages we will share with CLIENT:

 “Good, Better, Best” Product Options at Various Price Points o In-stock and on-demand  Superior Quality Brands  Preferred Pricing  Exclusive Product Offerings  Custom Manufacturing  Dedicated Contacts Worldwide  Private Label Opportunities  Product Safety Compliance

CLIENT will also benefit from the following resources your Proforma team leverages to make your program a success:

 Our membership in industry organizations such as Advertising Specialty Institute (ASI), Promotional Products Association International (PPAI) and PPPC (Promotional Product Professionals of Canada)

 Seven regional meetings and a national Convention each year where our Account Managers and preferred supplier partners meet to discuss the latest industry developments. A new product showcase is an integral part of each of these events.

 Training sessions and webinar tutorials hosted by Proforma and our preferred manufacturing partners that keep our Account Managers up to date with new product and service releases

Through our vetted preferred manufacturing network Proforma has access to millions of products, but we don’t simply source orders. Our experience is in helping our clients realize better ROI by matching the right product selection with the expected marketing outcome, and eliminating products or processes that aren’t achieving results.

Core Products/Services

Custom Promotions  Innovative product ideas  Campaign solutions  Custom manufactured products  Private label and custom apparel  Executive gifts and recognition awards  On demand production

Complete Printing Solutions  Business cards, documents a nd labels  Targeted direct mail (1:1 mar keting)  Commercial print  Environmentally-friendly pro ducts

Web Engagement  Engagement strategy  Interactive website development  Search Engine Optimization (SEO)  Campaigns to drive leads and referrals  Mobile sites and applications  Social media outreach  Blogging

Multimedia  Instructional video presentations  Commercials  Creative productions  Full-service multimedia  Motion graphics and 3-D animation  Professional photography  Advertising strategy

eCommerce – Developed at Proforma  Mobile compatible  Custom design to reflect the look & feel of your brand  Streamline purchasing across product lines/departments  Convenient and user-friendly; 24/7

 Login-based permissions – tailor purchasing experience to end user  Real-time reporting and inventory levels  Secure artwork library = guaranteed brand compliance

Global Presence  Worldwide partner distribution  Direct importing – direct savings  Custom manufacturing

Your Program is Uniquely You.

All aspects of our programs are designed with the client's needs in mind. We don't expect our clients to fit into a box. Instead, we create the box around our clients’ requirements and processes.

37. How do you liquidate discontinued or slow moving inventory?

Proforma will help CLIENT take a creative approach to slow-moving inventory, including incorporating products into kits, publicizing product closeouts and specials, etc.

It is our goal to move as many items as possible to an on-demand approach to safeguard against slow moving inventory and obsolescence. For items that must be kept in inventory, inventory management systems are in place to monitor order history as well as good product selection. This will help avoid excess or slow moving inventory items.

We can also engage several options to address this issue, including on-line specials and on-site (local) promotions. We generally have a 3-month timeline to move through an item to rotate and refresh inventory on a regular basis. If an item is not doing well, we will help develop uses to diminish the inventory.

38. In the case of printed material what mechanisms are in place to avoid excess or obsolete inventory? What is your current obsolescence rate on printed material, apparel and promotional products?

Our extensive partner network allows us to print customized pieces quickly and in small quantities while avoiding the financial risks of holding inventory. As time goes on and our successful program develops, we come to learn your trends and purchasing habits - allowing even better proactive monitoring of your inventory requirements.

39. What are your desired inventory turns?

We generally have a 3-month timeline to move through an item to rotate and refresh inventory on a regular basis.

40. Are you able to report inventory usage over a rolling 12 month period?

Yes, our online platform offers real-time inventory reporting.

41. Do you offer virtual (on demand) apparel and promotional products? If so, what is the turn time?

Yes, turn times vary by product; however Proforma offers thousands of on-demand apparel and promotional products that ship within 4 business days.

42. What do you charge for inventory storage?

This depends in various factors, including number of pallets, SKUs, etc. We look forward to reviewing with the CLIENT team as conversations progress.

Proforma offers innovative inventory options that ensure product availability while guaranteeing efficiency and cost-effective program management. Whenever possible, we strive to establish “on demand” programs that eliminate the need to maintain large inventories. In addition to freeing up additional funds to use toward other projects, this approach drastically reduces the risk of waste and obsolescence.

We look forward to customizing a solution that best fits the needs of CLIENT.

Sourcing Capabilities

43. Please describe in detail your special order or custom order capabilities.

Proforma offers complete special/custom order services. Capabilities include but are not limited to:

 Copywriting  Campaign planning  Print sourcing  Packaging  Kitting  Delivery and Distribution

In addition to an unlimited selection of “off-the-shelf” print and promotional merchandise, we offer custom manufacturing from the ground up, often creating completely original products from little more than a rough sketch or idea.

44. Describe your special order process from order receipt to delivery.

Through our signed strategic partnerships, Proforma can offer CLIENT complete custom manufacturing. For individual/custom projects, our recommended communications process includes:

1.Conversation with OWNER NAME about goals, target audience, budget, etc. 2.Working closely with his team, OWNER NAME brainstorms creative solutions at multiple price points and prepares the proposal for the client 3.Presents proposals and samples to client 4.Proposal adjusted as needed (summary, estimate, updated samples, obtain art files, develop layout) 5.Approval to proceed

Proforma then works with our supplier partners to: 1.Enter order, forward with art 2.Submit PO(s) to suppliers 3.Review and approve order acknowledgement 4.Add approval to order notes 5.Obtain proof and review against layout 6.Share proof with client 7.Incorporate changes if necessary 8.Monitor production 9.Confirm shipping

Proforma and CLIENT: 1.Receive goods 2.Send and pay invoice

3.Approve invoice; process for payment

45. Do you have restrictions with vendors you work with?

No, however we strive to partner with our signed Preferred Limited Partners as often as possible to provide our clients with preferred pricing, product access and service.

46. How does your buying power affect pricing and service?

Proforma leverages $500,000,000 buying power and preferred manufacturing partnership to secure the most competitive pricing in the industry. In addition, many of our partners offer Proforma below end quantity pricing.

47. When designing apparel or promotional products with special graphics will your company provide electronic proofs at no charge?

Absolutely – Yes. When the process involves embroidery, you will see not only the electronic proofs, but you will also see the actual sewout to assure the quality of the work. Additionally, that work will not be completed until you are satisfied with the embroidery.

48. During the product selection process, do you provide samples before ordering items? Do you charge for the samples?

Yes, if time allows it is our standard operating procedure to provide samples.

Usually there would be no charge. For more expensive items, the products are brought in for the client to review, and then returned so no charges are incurred. If the customer would prefer to keep the sample, then you would be invoiced for that item.

Order Processing and Fulfillment

49. How long has your eCommerce platform been in operation?

17 years

50. How many companies are using it?

Proforma oversees company store programs for more than 600 clients.

51. Are there any enhancements or modifications planned?

Yes – we’re currently revamping our mobile capabilities and continually implement quarterly enhancements.

52. Are credit card approvals online available?

Yes – credit card approvals are available online.

53. How long is the delay that the customer experiences from the time an order is placed, to approval for credit cards?

Orders are placed in real-time when received by authorized users. The user will receive an instant email confirmation both when the order is received and when it ships.

54. Assuming the product is in stock, what is your standard order processing time from the time the order is placed until it is shipped? What is the cutoff time each day in order for a product to be shipped out the same day?

In stock items can ship same day if the order is placed before 3 p.m. Standard lead time for in-stock items is 1-5 days.

55. How do you handle "rush" orders? Do you offer next day delivery? Are there charges for processing a rush order?

In many cases we can accommodate rush orders without additional charges, but we may need to upgrade typical standard or ground shipping to an expedited service in order to meet a firm in-hands date. If we must include rush charges, we will bring them to your attention before we fill the order.

Proforma works with all major carriers and will always ship via the most cost-effective method available. Thanks to our size we receive preferred shipping rates that we pass along to our clients. We can also compare our preferred rates to CLIENT, and if yours are lower we will use your shipping accounts to guarantee cost-effective shipping for your program.

56. How do you prevent backorders?

Proforma’s extensive on-demand capabilities and real-time inventory management features largely help us avoid backorders in our clients’ programs. Resolutions are handled on a case-by-case basis.

57. Describe your replacement procedure and policy concerning defective and damaged units. Discuss your return policy.

Proforma stands behind our products 100%. As such, we will gladly take back any orders that do not meet your requirements within 30 days of your purchase's arrival. Your returns or exchanges will be handled immediately by our Quality Assurance department. There are no returns on discounted or closeout items.

All warranties and guarantees, including return policies, are negotiable as part of a program. We will not accept returns on printed, decorated or washed merchandise unless defective.

CLIENT may return any store branded unused product(s), in their original container or package, to Proforma for exchange or credit with no restocking fee. You may return customized products if damaged or erroneous, for exchange or credit, at the current contract price during the term of this contract with no restocking fee.

58. Describe your quality control standards and procedures to assure merchandise quality and adherence to corporate and brand identity standards.

Nothing is more important to Proforma than your satisfaction with every aspect of the program, especially product quality. Quality standards are determined during contract negotiation. Proforma monitors each of its suppliers and service providers for conformance to standards. If a substandard product or service is delivered, Proforma will manage the process of bringing the product or service up to standard. Quality control processes are in place at all stages of production including:

 CLIENT proof approval before beginning production  Pre-flight of all disks for accurate and complete artwork  Pre-production proofs to ensure accuracy of output  We inspect raw materials upon receipt  We monitor quality standards throughout the production process at specific intervals  Should any defects be uncovered we will remove them from the batch and take necessary corrective steps  We monitor packaging procedures to ensure they meet proper standards  We sample and inspect outgoing packages and we track on time shipping

59. Please list your methods of delivery and shipping providers.

Proforma's normal shipping method is UPS and FedEx Ground Service depending upon the area of the country. We will use a freight line for cost efficiencies if the shipment is of a larger quantity and/or heavier than usual. Expedited services such as Airborne, Fed Ex, UPS, and messenger are available for rush orders.

Proforma has preferred relationships with UPS and FedEx and receives discounted rates thanks to our size.

60. What order methods do you accept?

You can place orders with Proforma by phone, fax, e-mail or online through your company store.

63. Would we have dedicated customer service representatives? Will we have one point of contact?

OWNER NAME, TITLE, will be your main person as point of contact. It is his plan to be in the CLIENT office a minimum of one day each week. A second point of contact who will be equally as responsible for your order processing, etc., will be NAME, who is TITLE of Proforma OWNER COMPANY NAME. She will have all information regarding all orders, order entry, tracking, etc. for the CLIENT orders.

OWNER NAME will be your first and main point of contact.

64. How does your system provide confirmation after an order has been placed?

Users receive an instant email confirmation when an order is received in the system. A second email is generated – complete with tracking number – when the order ships.

65. How are customers able to track their order?

Via the tracking number provided in the email confirmation.

66. Can one customer have security access to order for multiple agencies?

Yes. Proforma can establish permissions based on login information.

67. How is quality control maintained within your warehouse facilities?

Warehouse: Inbound QA As new products are received into our warehouse, they go through a strict quality control check. Nothing leaves the dock until our receiving team has confirmed the decoration of the product matches client quality, marketing and branding guidelines. We confirm the item is exactly what was ordered, and check both quality and quantity before they are entered into our system. If there are any questions about a new shipment, a sample is pulled and our CSR team will immediately work with the manufacturer to make it right. We work with our clients at the beginning of the program to define inbound Quality Assurance criteria via check sheets. Our team conducts internal process training via QA training modules.

Cycle Counting/Physical Inventory Quality of inventory is assessed during regularly scheduled cycle counts and annual physical inventory. Cycle count data is analyzed and reported on the scorecard. If our team identifies negative trends, or the client's goals are not being met, we initiate corrective action.

In-Process Quality Inspections We conduct internal process checks at picking audits and provide ongoing feedback to our team members as to their performance.

Our team tracks several Key Performance Indicators (KPIs) for each client. In addition to the standard KPIs (e.g. order and inventory accuracy, cases picked, employee training, etc.), we work jointly with our clients to develop program-specific KPIs according to unique business objectives and goals. All KPIs are tracked and reported. We regularly review data for trends to proactively take corrective action if needed.

During our pick and pack operation, every order is checked three times. First, it is pulled by our order department, then a second person double-checks the order against the contents collected before it is checked a 3rd time by the packaging and shipping crew. Shipping numbers and dates are entered into the system, which automatically sends out an email to the recipient to alert them their order has processed and provides a tracking number. Our on-demand items are shipped either as stand-alone orders or are merged with other items in our warehouse, as required by each client. The majority of our manufacturers have agreed to very short production times with our contract orders, many turn orders around as quickly as within 48 hours.

68. Do you maintain hazard/liability insurance for the merchandise warehoused in your facilities?

69. If an item is out of stock does it come off of the website? Does your website accept backorders?

This depends on the preferences of the client. There are several ways to address back order issues:

1. Proforma has the ability to prohibit backorders at the client's request, so we can achieve 100% complete shipments if required. We can suppress display on the store when an item is out of stock, or we can still display item but not allow ordering 2. Ship what’s in stock and backorder the rest 3. Ship what’s in stock and cancel the rest 4. Backorder entire order if anything is out of stock 5. Backorder entire line if there is not enough to fulfill 6. Select alternative product

If an item is temporarily out of stock, Proforma will work with our preferred manufacturing partners to expedite production. We also notify the buyer immediately with their options and assist in selecting alternative products if desired. No product will be substituted without your approval.

Backordered products can be filled in as little as 24 hours depending on product and sourcing specifics. On average, it takes 1 to 7 business days to fill backordered items.

Our on-demand capabilities allow us to avoid backorders because we can decorate and ship your products with short turnaround times.

70. Can artwork be uploaded to the website and retained for future use? Are customers able to select their artwork on the site and preview their logo on business cards and other printed materials?

Yes and Yes.

71. We are looking for two separate sites. One for company use and one for employee purchases. The company use would all be paid for by the company while the employee purchase site would need to accept personal credit cards. Can your company handle this solution?

72. Can printed material, apparel and promotional products all be ordered from the same website?

Design

74. Do you have a design department?

75. How would you provide graphic design and proofing?

Proforma has a team of graphic designers. It is standard operating procedure for us to offer proofs.

76. In what formats can you accept files?

Acceptable formats include but are not limited to: PDF, JPG, EPS and TIF. We look forward to further discussing your requirements.

77. Are you able to provide electronic proofs to customers?

78. Do you do your own decoration? If so, discuss your equipment and processes.

Yes and no – it depends on the situation. We have on-site embroidery in select fulfillment centers, however we outsource some decoration to our network of trusted partners. Our team looks forward to reviewing a customized plan for CLIENT as the RFP process progresses.

Invoicing and Reporting

79. What are your reporting capabilities?

Our standard reports include but are not limited to:  Product Usage Report  Inventory Management Report  Inventory Management Report by Warehouse  Usage Report by Location, Region, Brand and Product Summary  Usage Report by Groups  Reorder Report/Low Balance  Report by PO Number  Annual Usage Reports  Report by Item  Report by Item Group  Cost per Item  Obsolete Item  Backordered Items Report  Open Orders Report  Shipped Orders Report  Shipping Method Report  Items Ready to Ship  Report by Address  Order Closeout Reports  Catalog Snapshot  Order Master  Transactions by Item, Location, and/or User

80. What is your file transfer communications method? Are you able to communicate using FTP or XML?

Yes – Proforma can communicate using both.

81. Can you provide monthly summary invoicing?

82. Will you use FedEx for shipments using our 3rd Party Billing account number?

83. Will you accept credit card for all payments?

Green/Sustainability Programs & Initiatives

84. Please outline the extent of your green products and services.

Environmental issues are at the forefront of the print and promotional product industry and Proforma works closely with manufacturers who are as conscious as we are of the impact we're leaving on the environment. We partner with a network of 550 Preferred Limited Partners (PLPs), which include some of the industry’s best manufacturers. We invited these suppliers into our exclusive PLP network after years of proving time and again that they are powerful business allies.

Our manufacturers have worked hard to achieve certifications including:

 Forest Stewardship Council (FSC)  Sustainable Forestry Initiative (SFI)  Fair Labor Association (FLA)  Environmentally Preferred Rating (EPR).

We use recycled inks and material packaging as much as possible and we eliminate unnecessary packaging altogether. For example, we will reuse boxes that are in good condition and typically do not use poly bags or extra padding unless absolutely necessary.

We recycle post-industrial waste, such as plastic, leather, glass and fiber, into new products. We also encourage our clients to reuse their products and we offer creative suggestions.

In 2008, Proforma introduced our eco-friendly catalog. Titled, "It's Only Natural," our catalog encouraged many of our clients to incorporate biodegradable apparel and bags, as well as promotional products made of corn plastic and solar-powered electronics, into their programs.

We’ve expanded our eco-friendly offerings every year since and made the catalog available electronically through our web site. Proforma has many initiatives in place to enhance environmental awareness in the print and promotional product industry and we will work with you to develop a customized program that meets your goals.

85. Please outline the extent of your company’s internal green initiatives.

Our practices include:

 Using natural light  Using energy efficient light bulbs  Using eco-friendly forms of power (such as waste, wind, solar, etc)  Purchasing renewable energy credits (RECs) to offset their carbon footprint  Using non-sweatshop/child-free labor

Social Responsibility & Supplier Diversity

86. Does your company qualify as a minority or women owned business based on the following definition:

The term "minority" refers to ethnic minority of either gender of the following categories: African American, Hispanic American, Native American, Asian-Pacific American and Asian-Indian American.

The business is 51% or greater owned and controlled by one or more minorities or women. The company must be able to show that the history of company management and daily business operations are controlled by one or more minorities or women.

IF YOUR COMPANY HAS THIS CERTIFICATION, HIGHLIGHT IT HERE. OWNER NAME is the TITLE of OWNER COMPANY NAME. He/she is involved on a daily basis in all phases of the business, handling 100% of the order processing, research, order tracking etc. There is no aspect of the business that OWNER NAME does not handle.

Our parent company, PFG Ventures dba the Proforma Worldwide Support Center, is certified woman-owned by the NWBOC. In addition, there are Proforma offices + supplier partners that hold various certifications – including woman-owned, minority-owned and veteran-owned. This allows us to tailor our account team to CLIENT purchasing requirements.

87. If your company does qualify as a minority or women owned business, what certifications do you have:

 WBENC (Women's Business Enterprise National Council)  NMSDC (National Minority Supplier Development Council)  SBA certifications such as 8(a) and SDB certify socially and economically disadvantaged business owner(s).

 HUBZone certification is for those businesses located in "Historically Underutilized Business Zones".  Other (Some local and state governments have their own MWBE, MBE, WBE and small business certifications)

IF YOUR COMPANY HAS THIS CERTIFICATION, HIGHLIGHT IT HERE.

88. Does your company have a documented Supplier Diversity Program installed? If Yes, please provide a copy of the document.

Although Proforma does not have a documented policy, our unique structure allows us to tailor your program to meet your diversity-spend goals. Many of Proforma’s 750 North American offices hold various certifications, as do our supplier partners. We can partner with any of them to create a solution for your requirements.

89. Currently, what percentage of your supplier base are minority/women owned businesses?

Approximately 10%.

OWNER NAME PHONE NUMER EMAIL ADDRESS

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