Company Overview

Certifications

Programs

Quality/Supplier Ratings

Contents

Company Overview

Company Overview Privately Owned

Tier 3-4 Automotive Leather Supplier

40,000 hides per week capacity on Finishing

10,000 hides per week capacity on Cutting at the Mexico Plant

Company Overview Pearl Leather Finishers founded in 1976

Carmen Ruggiero started his business as a side leather contract finishing operation for the garment, shoe and furniture trade, and soon he and his son John had built a thriving company that supplied leather for many name brand products.

The advent of NAFTA changed the industry. To survive, Pearl had to define a new niche. So in 1995, with Carmen as chief executive office and John as president, Pearl entered the automotive seating market as a Tier 3-4 supplier of finished leather to both original equipment and after-market seating manufacturers.

Today Pearl’s 200,000 square foot manufacturing facility for finishing and 60,000 square foot cutting plant in Mexico are state-of-the-art plants with 350 employees. With current finishing capacity at 40,000 whole hides per week, and cutting capacity of 10,000 hides per week, Pearl has become one of the largest suppliers of automotive leather in the world.

Management Experience (Pearl USA)

John RuggieroPresident

Chief Operating Officer34 years of experience

Carmen Ruggiero (Founder)

Chief Executive Officer65 years of experience

Susan JohnsonVice President

of Administration34 years of experience

Tim HohlerProduction Manager

35 years of experience

Chuck FrascatorePlant Manager

30 years of experience

Mitch InsognaMaintenance Manager 25 years of experience

Kimberly HoltQuality System Manager15 years of experience

Management Experience (Pearl Mexico)

John RuggieroPresident

Chief Operating Officer29 years of experience

Carmen Ruggiero (Founder)

Chief Executive Officer60 years of experience

Susan JohnsonVice President

of Administration29 years of experience

Jorge HolguinPlant Manager

15 years with the operation

Guillermo MataProduction and Materials

Manager 16 years with the operation

Omar DecenaQuality and IT Manager

16 years with the operation

Adriana de la ReeFinance and HR Manager

14 years with the Operation

Pearl Leather Organization Chart

Cutting Plant In MexicoCutting Plant In Mexico

• 60,000 Sq.Ft. Facility60,000 Sq.Ft. Facility• 225 Employees225 Employees• 10,000 Hides per Week Capacity 10,000 Hides per Week Capacity

Operations

Finishing Plant in Johnstown, NYFinishing Plant in Johnstown, NY

• 200,000 Sq.Ft. State-of-the-Art Facility200,000 Sq.Ft. State-of-the-Art Facility• 125 Employees125 Employees• 40,000 Hides per Week Capacity 40,000 Hides per Week Capacity

Finishing Process

Consistently proven quality

Unlimited grain design

Hundreds of leather grain designs available for immediate review

Computerized chemical dispensing with unmatched accuracy

Rigorous testing complies with all automotive standards

Staking / Milling

FinishingSix Roll Coaters

Four Whole Hide Spray Lines

EmbossingEMBOSSING EQUPMENT

3 Bergi Roller Superpresses

2 Koch Roller

1 Mostardini Roller

1 Roto Press Roller

1 Fulco Roller

5 Koch Hydraulic Plate

1 Tyca Logo Embosser

More than 100 Embossing Plates

Grain Rolls

1 Salerno1 Badlands1 G-Grain1 Camino1 Highland1 Nuance1 Vienna1 Milano3 Monticello1 Capelli1 NF Sonata1 Mabella1 Milano

2 Keisel Soleil1 Sandstone2 Nudo1 Wanderer1 Sierra1 Verona1 Sutton1 Nomad1 Buffalo 1 Prado1 Warwick 2 Milled Pebble1 Rawhide1 Ecco-Rio1 Meridian with H.C.1 VW Vienna1 Fury1 Soho2 Haircell1 Royale1 Smooth Roll

Pearl has 8 Whole Hide Embossing Machines with 40 Rolls, over 300 embossing plates and works with an outside embosser that has over 3,000 plates.

New Cutting Operation in Mexico

The operation started in Juarez in 1995 to supply cut components for Ford and General Motors to Lear sewing plants in the city. Thought the last fifteen years we have supplied leather for Ford, GM and Subaru to Magna, Lear, JCI, Takata and Moriden. The operation is experienced on both; roller press and digital cutting, perforation, embossing with a Mostardini press and Tyco embossing.

The operation currently has 225 employees and has an installed cutting capacity of 10,000 hides per week

The operation has been QS 9000 Certified since 1998 and TS 16949 since 2005

Cutting Processes

(Roller Presses) We have in place the

processes and technology to meet the required quality standards by the Automotive leather and to run the operation efficiently

Digitized Cutting State-of-the-art, digitized Gerber cutting system

Most precise and accurate cut offering 100% repeatability

Support for development runs

Two Gerber Digital Cutting Machines

State-of-the-Art Research & Development

Reinvest over 1 million dollars annually in R & D

Provide innovative design and manufacturing expertise

Ensures our leather continually exceeds demanding standards

Demonstrated commitment to excellence

Testing Facilities

Automotive testing laboratories

Experienced and skilled lab technicians

State-of-the-art lab equipment

Full Lab Scope for Ford, GM, Chrysler, and Hyundai Specifications

Community Involvement Support local school and education facilities Fund local community sports teams Provide supplies to the local charity organization

Community Involvement On Christmas we collect founds between us and

other persons outside the plant to buy some presents to the children of our operators

We are part of a community that organize actives such as planting threes or cleaning streets and parks through the city.

Awards

Supplier Hall of Fame Award2002

Commitment to the Environment

Devoted to environmental protection and preservation

Maintain waste reduction and environmental control systems

Certified ISO 14001

Embossing A virtually unlimited number of embossed patterns

Embossed Logos

Embossing

Perforation Traditional or custom perforation Created with a state-of-the-art digital machine

Perforation (continued)

Special Effects Variation and Creativity Custom Special Effects are welcome

Laser Engraving Unlimited Design Creativity Using Cutting-Edge Laser Equipment

Embroidered Custom Logo and Design Embroidery

Automotive Programs

Ford Mustang (Base, GT, Shelby)- CurrentFord Five Hundred- CurrentFord Edge- CurrentFord Flex- CurrentFord Escape- CurrentFord Fusion- CurrentFord Explorer- CurrentFord Explorer Sport Trac- CurrentFord F150- CurrentFord Econoline- CurrentLincoln MKX- CurrentLincoln MKS- CurrentLincoln MKT- Current

Automotive ProgramsLincoln MKZ- Mercury MontegoMercury MarinerMercury MountaineerMercury Milan- 2009Hyundai Sonata- CurrentHyundai Santa Fe- CurrentFord Freestyle

Certifications

CertificationsCertificationCertification DateDate

TS 16949TS 16949 Automotive Standards (Pearl USA)Automotive Standards (Pearl USA) Dec 2003Dec 2003

ISO 17025ISO 17025 Laboratory Certification (Pearl USA)Laboratory Certification (Pearl USA) May 2001May 2001

ISO 14001ISO 14001 Environmental Certification (Pearl USA)Environmental Certification (Pearl USA) July 2003July 2003

TS 16949TS 16949 Automotive Standards (Pearl Mexico)Automotive Standards (Pearl Mexico) Oct 2005Oct 2005

ISO/TS 16949 (USA)

ISO/TS 16949 (USA)

ISO/TS 14001 (USA)

ISO/TS 14001 (USA)

ISO/TS 16949 (Mexico)The Operation is Certified since 1998

Quality Data

Quality Data

Quality Data (Continued)

Quality Data (Continued)

Supplier Rating Magna Sabinas (Feb, 2012) (Escape U377, Econoline VN127)

Issued Date:March 3, 2012Supplier Name:PEARL LEATHERContacts:Miguel Carrasco

PPM´S SUPPLIER PERFORMANCE DETAIL FEBRUARY * Minimum Overall Performance Rating Must Be 80%

* Minimum PPM´s Rating Must Be 600

SEATING SYSTEMS OF SABINAS MONTH FEBRUARY

WEIGHT FACTORS REQUIRED SCORE ACTUAL POINTS

QUALITY - 40%PPM- Parts Per Million ( within goal ) rolling average 40 40Sort activity 20 20No customer compliants including field returns 20 20No 100% contaiment in house or at costumer facilities 20 10

100QUALITY SCORE 90

DELIVERY- 40%Shipped vs Release (Qty/Description) 50 50Shipped documentation accurancy (labels, documentation) 50 50

100DELIVERY SCORE 100

RESPONSIVENESS - 10%1.- 8D Written Response in timea. Initial Response withing 24 hrs (interim action, contaiment & clean point) 20 20b. Root cause and Corrective action within 3 bus. Days 20 20c. Imlementation of permanent corrective actions 25 25

2.- Completeness of paperworka. All sections of 8D completed 5 5b. FMEA & Control Plans, updated with new changes 10 10c. Test result , verification results ,data, provided as applicable 5 5

3.- Technical Supporta. Quality, Materials & Engeniring Support (includes on-site visits) 5 5b. Communication: fast response to any reported issue 5 5c. Courteous, Professional service 5 5

100RESPONSIVENESS SCORE 100

PART APPROVAL - 10%Full PPAP package approval ( received on time) 50 50Approve PSW prior to receiption of parts 40 40Waiver / Desviation issued on time when applicable 10 10

100PPAP SCORE 100

TOTAL SCORE 100 96

Quality Data (Continued)

Supplier Ratings Magna Acuña (Feb 2012) (Edge U387, Lincoln MKX U388 Base, Ford Flex D471)Acuna Supplier Overall Performance Summary - 2012Supplier Name: PEARL LEATHER FINISHER

SPR Status:

SEATING SYSTEMS OF ACUNA JANUARY FEBRUARY MARCH ABRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

WEIGHT FACTORSREQUIRED

SCOREACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

ACTUAL POINTS

QUALITY - 50%

PPM - Parts Per Million 100 100 100QUALITY SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

DELIVERY - 25%

Shipped to releases and documentation 40 40 40

Bar Code labels, Packaging and Correct Engineering Level 10 10 10

Shipping documentation accuracy (EDI, ASN, packing slips, etc) 25 25 25

FIFO 5 5 5

Premium Freight 20 20 20DELIVERY SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

SERVICE- 10%A. Proactive comunication 30 30 30B. Return phone calls 20 20 20C. Follow up critical situation 50 50 50

SERVICE SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%RESPONSIVENESS - 10%1. Corrective Action

a. Initial response within 24 hrs (interim action, containment & clean point)50 50 50

b. Root cause identified within 5 bus. days & PCA defined within 10 business days 25 25 25

c. Implementation of permanent corrective actions (closure by 30 days)25 25 25

RESPONSIVENESS SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

PART APPROVAL - PPAP - 5%

Approved PSW, or TASP received by Supplier Quality prior to receipt of parts 50 50 50

PPAP package received by Supplier Quality 50 50 50

PPAP SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%