World-Class Support For Manufacturers

1. World-Class SupportFor Manufacturers The Offshore Group Innovative Outsourcing Our Team Of Over 500 Experts Working For You

2. Who is The Offshore Group? • The Offshore Group is the largest shelter service provider in Mexico with over 13,000 people employed in Mexico today on behalf of 55 foreign manufacturers and 5 foreign BPO, ITO, & Contact Centerproviders. • Over 24 years, The Offshore Group has developed an unmatched support infrastructure of leaders, experts, processes, and state-of-the-art systems that small, medium, and large manufacturers (clients) leverage every day. • The Offshore Group enjoys the highest client retention rate in the industry. • The Offshore Group provides unparalleled facilities support within secure and strategically located industrial parks totaling nearly 4 million square feet of construction. World-Class Support For Manufacturers The Offshore Group

3. Who is The Offshore Group? An integrated group of U.S. and Mexican companies that provide peace of mind to foreign manufacturers and service providers through U.S. based contractual agreements and a solid reputation for operational excellence and regulatory compliance in Mexico. World-Class Support For Manufacturers The Offshore Group

4. Our Challenge: For our clients to achieve overall cost reductions by operating in Mexico; and for our clients to simultaneously preserve or even improve quality and delivery while avoiding financial and operational risks that may be associated with doing business in a foreign country. World-Class Support For Manufacturers The Offshore Group

5. Four Ways Our Shelter Model Meets The Challenge: • Locations. Operate within our flexible, scalable, secure, and strategically located industrial parks in Mexico; or choose a location that better meets your site requirements. • Focus. The manufacturer or service provider focuses its resources on productivity, efficiencies, quality, innovation, and on-time delivery. We focus our resources on non-production-related functions. • Leverage. Manufacturers immediately leverage The Offshore Group’s world-class administrative infrastructure and economies of scale in Mexico that reduce costs and eliminate long and costly learning curves. • Shared Risk. With The Offshore Group, foreign companies have no need to establish a legal presence in Mexico resulting in: • Virtually no administrative startup costs. • Greatly reduced risk and exposure. • No burden associated with maintaining a legally and fiscally compliant company in Mexico. World-Class Support For Manufacturers The Offshore Group

6. What Are Some of The Benefits Our Shelter Program Provides? • No upfront costs, no need to form and maintain a legal entity & fast startup • Expert logistics support • Access to local vendors and service providers • Experienced labor recruiting • Secure & safe industrial parks • Experienced leadership/mgmt. recruiting • Fast response to building maintenance, repair, and utilities issues • Reduced labor turnover • Improved labor attendance • Building upsize / downsize flexibility • Effective labor union relations & negotiations • No government reporting • Ensures market wages and benefits • No income tax • Expert employee problem resolution • Reduced border crossing costs and delays • Assurance of Mexican Customs Compliance • Assurance of Mexican Environmental Compliance World-Class Support For Manufacturers The Offshore Group • The Offshore Group

7. Our Core Competencies Labor Management Recruiting, Selection, Hiring, Severance, Payroll, Benefits, Labor Law Compliance, Union Relations , Workforce Transportation Import & Export Management Importing and Exporting, Cross Docking, Warehousing, Distribution, International Freight Management Regulatory Compliance Accounting, Tax Compliance, Government Reporting, Local Vendor Management, Purchasing, VAT Reimbursement Facilities Management Construction Management, Tenant Improvements, Building Maintenance, Environmental, Security and Safety. World-Class Support For Manufacturers The Offshore Group

8. What You Do & Control: Production Supply-Chain Manufacturing Technology Customer Service Training Engineering Quality What We Do: Human Resources Payroll & Benefits Import & Export Labor Union Relations Accounting & Taxes Local Procurement Facilities Maintenance Park Management World-Class Support For Manufacturers The Offshore Group Employee Busing Environmental & Safety Corporate Citizenship

9. A Close-up At Our Labor Management Service: • Executive recruiting • Recruiting ads in local media and web • Maintain candidate databases • Recruiting of direct, indirect, and salaried labor • Recruiting of specialized labor • Offsite recruiting • Applicant prequalification • Applicant testing • Applicant background check • Hiring (per client requirements and approval) • New hire orientation • In-plant HR representation • Employee records upkeep • Attendance monitoring • Employee counseling • On-site child care services G • Employee termination • Workforce redeployment • Employee dispute resolution • Labor statistics and analysis • Labor union negotiations • Labor dispute resolution • Day-to-day labor union interaction • Mexico labor law compliance • Mexico labor law reporting • Local community leaders alliance • Education activity coordination • Skills training program facilitation • Alliance with local trade schools • Employee satisfaction surveying • Recreational activity coordination G • HR field services • In-Park Medical Services World-Class Support For Manufacturers The Offshore Group

10. Manufacturers We Serve Today: 55 1 Companies with both stand alone and shelter operations • Headcounts range from 7 to 4,000 people • Years in shelter range from 3 to 14

11. Client Retention:

12. Our Strategic Locations Los Angeles Tucson Tijuana Mexicali Cd. Juarez Nogales Houston Hermosillo Chihuahua Guaymas Mission Sea of Cortez Brownsville Asian, European, & South American Ports Monterrey Reynosa Saltillo Gulf of Mexico Mazatlan San Luis Potosi Altamira Queretaro Guadalajara Mexico City Manzanillo World-Class Support For Manufacturers The Offshore Group Guatemala Honduras El Salvador

13. Legal Structure/Roles Client U.S. Contract Offshore International U.S. U.S. Mexico Mexico MX Affiliates Maquilas Teta Kawi Manufacturas Zapaliname Client Operations In Guaymas Client Operations In Saltillo Legal Presence in Mexico • Mexican Governmental & Regulatory Entities • - Fiscal • - Labor & Unions • - Social Security & Welfare • - Customs • - Commerce • - Environmental • - Health & Safety • Trade within Mexico • Legal Council

14. The Offshore Group’s La Angostura Industrial Park Located in Saltillo, Coahuila Mexico

15. Employee Busing La Angostura Industrial Park Saltillo, Coahuila Mexico

18. The Offshore Group’s Bella Vista Industrial Park Located in Empalme, Sonora Mexico

19. Exchange Rate History: Mexico Inflation Rate History: World-Class Support For Manufacturers The Offshore Group

20. Our Value Proposition • Focus on what you do best.By outsourcing non-production-related functions to us, you focus on productivity, efficiencies, and innovation; on meeting product quality and delivery commitments; and on operating at the lowest possible cost in Mexico. • Achieve a competitive advantage from day one. By leveraging our resources, infrastructure, expertise, economies of scale, and legal presence in Mexico. World-Class Support For Manufacturers The Offshore Group

21. For more information: • www.offshoregroup.com • Eduardo R Saavedra • VP Business Development • The Offshore Group • Email: eduardo.saavedra@offshoregroup.com • Ofc: (520) 889-0022 • Cell: (520) 360-6644 Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico