SEKAI TECHNOLOGY, S.A. de C.V Reynosa, Tamps, Mexico W/H SERVICE VMI Operation Sorting-Inspection-Rework

1. Introduction COMPANY NAME: SEKAI TECHNOLOGY, S.A.DE.C.V COMPANY NAME: SEKAI TECHNOLOGY, S.A.DE.C.V (ISO 9001:2008) QUALITY POLICY: QUALITY POLICY: At SEKAI TECHNOLOGY, we commit ourselves to provide customers with the best solutions of logistics that fulfill the requirements of customers, in order to be market leaders and ensure of the personnel that works with us ADDRESS: Parque Industrial Reynosa ADDRESS: Parque Industrial Reynosa Mike Allen#2105, REYNOSA, TAMPS C.P MEXICO TELEPHONE: +52(899) , Fax: +52(899) TELEPHONE: +52(899) , Fax: +52(899) BUSINESS STATUS: IMMEX (MAQUILADORA) BUSINESS STATUS: IMMEX (MAQUILADORA) OPERATIONS : W/H SERVICE OPERATIONS : W/H SERVICE VMI OPERATION SORTING-INSPECTION-REWORK 1

1-2. Contact window H. AKIYAMA Cel phone +1 (956) PRESIDENT / CEO Evelyn Torre Cel Phone +52(899) VMI OPERATIONS MANAGER CARLOS LARA Cel Phone +52 (899) QC & SORTING MANAGER 2

2. WAREHOUSING SPACE : 30,000 SqFt (Including Offices) SPACE : 30,000 SqFt (Including Offices) BUILDING: STEEL STRUCTURE AND PREFABRICATED CONCRETE PANEL BUILDING: STEEL STRUCTURE AND PREFABRICATED CONCRETE PANEL CONTAINER YARD: 5 CONTAINER PARKING CAPACITY CONTAINER YARD: 5 CONTAINER PARKING CAPACITY DOCK: RECEIVING1 DOCK: RECEIVING1 SHIPPING1 PICK UP1 PALLET STORAGE CAPACITY: 7,000SqFt (1470 pallets) PALLET STORAGE CAPACITY: 7,000SqFt (1470 pallets) SECURITY FEAUTURE: SECURITY FEAUTURE: GATED SITE,24/7 SECURITY SECURITY WEB CAMERA VIDEO DATA MAINTEINED FOR 3 MONTHS SCHEDULED PATROL BY SEQURITY GUARD 3

FACTORY LAYOUT 4 Pallets Capacity on Racks= 1,170 Pallets Capacity on Floor= 300 Inspection Rooms= 5 Rework Room= 1 Receiving/ Shipping Area NG Area VMI Racks Inspection Parts Area Inspection Rooms Administrative Office Rework Rooms To expand

Security Camera View 5

3. SORTING & INSPECTION 6 OUR RELIABLE AND EXPERICENCED QA STAFF WILL WORK WITH YOU

7 CHASSIS (METALLIC STAMPING PARTS) HEAT SINK (DIE CASTING) 3.1 SORTING SECTION PANEL,ESCUTCHEON,LENS (PLASTIC PARTS) PC BOARDS LCD

8 3.2 LCD INSPECTION INSPECTION INSTRUMENTS OSCILOSCOPE POWER SUPPLY SOURCE

9 4. Daily Report Daily report is sent via according to costumer distribution list on next day.

5. VMI SUPPORT OPERATIONS (1) BENEFITS CUSTOMER INVENTORY REDUCTION WAREHOUSE COST REDUCTION ⇒ BETTER CASH FLOW CLOSENESS TO SUPPLIERS’ INVENTORY ⇒ SHORTER TRANSIT TIME SEKAI’S DELIVERY TRUCK IS AVAILABLE FOR URGENT MATERIAL SUPPLIER SERVICE IMPROVEMENT AT COMPETETIVE COST OF SEKAI ⇒ BUSINESS EXPANSION COMMON BENEFIT MINIMIZING EXPEDITED AIR FREIGHT COST NO EXTRA COST FOR TRANSPORTATION WHEN SORTING, REWORKING, AND VMI 10

(2) VMI OPERATION SEQUENCE 1. CUSTOMER: RESERVATION / BLANCKET ORDER TO SUPPLIER 2. SUPPLIER:SHIPMENT TO SEKAI VIA NIPPON EXPRESS (cross-dock for Sekai) 3. SEKAI:BORDER CROSSING 4. SEKAI:RECEIVING & INSPECTION WHEN NECESSARY 5. CUSTOMER:DELIVERY ORDER TO SEKAI 6. SEKAI:SHIPMENT (VIRTUAL EXPORT) TO CUSTOMER 7. SEKAI:SHIPPING REPORT TO SUPPLIER 8. SUPPLIER:INVOICING * VMI Warehouse Inventory Can be monitored at Portal Site 11

2 SHIPPING 2 SHIPPING VMI PROCESS VMI PROCESS USA 3.CROSS-DOCK MEXICO CUSTOMS CUSTOMS INSPECTION INSPECTION CUSTOMS CUSTOMSCLEARANCE 1.P/O 1.P/O 8.PAYMENT 8.PAYMENT 9. INVENTORY CHECK CHECK CUSTOMER CUSTOMER 5. PULL ORDER 6. DELIVERY 7. INVENTORY CHECK INSPECTION SEKAI WAREHOUSE SUPPLIER 12

ASN (advance shipping notice) Electronic ASN between Nippon-Sekai-Customer when shipment is in transit. Shipment arrival to Sekai; Sekai scans Nippon’s order number and supplier’s barcode label. Sekai’s system will match and verify against ASN data. Minimal amount of manual work in the process of receiving. High level of efficiency in receiving and productivity Supplier Nippon Express Electronic ASN 13 Panasonic Electronic ASN

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