PRESS KI T

2016

Innovation

FRENCHPRODUCTION

GUARANTEED TRACEABILITY

VAPOLOGICALAROMAS

REQUIREMENT

About VDLV Data sheet Key figures The management team Our expertise Creator and producer of quality e-liquids Proximity and services Our standards Innovation French manufacturer of vaping-grade liquid nicotine Vapology Story A committed player A partner of LFEL

Our commercial brands Vincent dans les VapesCirKus

Contacts

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DATA SHEET

HiSTOry :

Corporate name: VDLV

Head Office: Château Bersol – Bâtiment 2 218 avenue du Haut-Lévêque 33600 PESSAC FrANCE

Laboratories located in-house

Registration of the Company: April 2012

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Early in 2011, Vincent CUISSET, a research engineer in a Bordeaux laboratory, was amazed to discover how electronic cigarettes worked. He was excited and immediately realized the great drawing power of this original alternative to classic cigarettes.

His initial curiosity quickly developed into fascinated research into the system and how it worked. He realized that many improvements and innovations could be introduced into this booming market, particularly in terms of the composition and quality of e-liquids.

Availing of the network of Bordeaux university laboratories, he commenced a long research and development phase that lasted a year and a half. The VDLV company was registered in April 2012. The registered office was initially established at the European Institute for Chemistry and Biology at Pessac, in premises that belonged to the University of Bordeaux I.

This conjunction produced a durable partnership, based on a service provision contract for the analysis of nicotine bases, aromatic compounds and finished products.

Simultaneously with this research and development work, he began to look for a brand name. He wanted a name with a human element that would pique the curiosity and surprise while remaining unconventional on a market consisting essentially of aficionados.

This led to the birth of the VDLV company and its first e-liquid brand: VINCENT DANS LES VAPES.

Having set up different production, analysis and packaging circuits, VDLV went online at the end of August 2012 with its institutional site: www.vdlv.fr, and its Internet store: www.vincentdanslesvapes.fr

IN 4 YEARS VDLV HAS MADE A NAME FOR ITSELF

AS A DEFENDER OF THE VAPOLOGICAL DEMAND FOR

SAFE VAPES.

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THE kEy DATES

January 2011: The beginning of the adventure - research and development, market analysis.

April 2012: Creation of VDLV with 33 m² of headquarters in the European Institute of Chemistry and Biology in Pessac (FRANCE).

August 2012: Opening of the e-shop www.vincentdanslesvapes.fr with a range of 21 flavours of e-liquids.

September 2012: first BtoB contracts.

2013: Head office moves to 218 avenue du Haut-Lévêque in Pessac (FRANCE). Very strong growth and acquisition of the HPLC chromatograph and a mass spectrometer for in-house analyses. Acquisition of an automatic packaging line (production capacity: 3000 bottles/hour). 40 employees, 9000 private customers, 1000 m² of laboratories and offices. Charly Pairaud, General Manager, becomes a member of the FIVAPE (ex-CACE) office.

March 2014: Creation of an export section for international sales.

November 2014: 38 mono-aroma flavours/tobaccos and 7 e-liquids with more complex flavours: the «Signatures» range by Vincent dans les Vapes. 20,000 private customers – 450 points of sale.

December 2014: Launch of a second commercial brand exclusively for BtoB : CirKus (Authentic and Black) with natural and artificial aromas of high vapological quality.

Spring 2015: Vincent dans les Vapes creates a third range with gourmet fresh and fruity flavours, and launches new mono-aromas.

2016: VDLV become the first french manufacturer of vaping-grade liquid nicotine.

THE kEy FigurES

Workforce (February 2015): 42 peoples

Production capacity: 750.000 bottles/month

THE MANAgEMENT TEAM

VDLV IS RECOGNIzED ExPERTISE buT ALSO A

MOTIVATED TEAM.

The Managing Department: Managing Director: Mr Vincent CUISSET Deputy Director: Mr Charly PAIRAUD Human resources Manager: Ms. Laetitia CABAIL Sales Director: Mr Justin DUVIGNEAU-LOBRE Production Director: Mr Sébastien MONCLIN Export Area Manager: Ms. Amandine BILLAUD Quality Manager: Mr Jacques CINQUIN research and Development Manager: Mr Gilles NARDI Sales Administrator B to C: Mr Alexis MEYNIEL Marketing Manager: Ms. Aurélie LEFEVRE

The partners:

Mr Vincent CUISSET – Managing Director of VDLVMr Charly PAIRAUD – Deputy Director of VDLVMr Laurent DE CRASTO - Founder of WIT France Mr Gilles NARDI – Research and Development Manager for VDLV

LFEL:

LFEL (French E-Liquid Laboratory) is an independent company that works in close collaboration with VDLV teams.

LFEL Sales Manager: Mr Antoine CUISSET LFEL research and Analysis Manager: Ms. Hélène LALO

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Our EXPErTiSE

VDLV ISN’T JuST AbOuT «VAPES». IT’S ALSO A COMMITMENT TO

QuALITY AND SAFETY.

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For 3 years, VDLV has devoted itself passionately to creating and producing e-liquids for electronic cigarettes. From product design to sales, VDLV applies precise safety rules to provide optimal protection for consumers: quality raw materials, traceability, metrology, strict monitoring, chemical and microbiological analyses (cf. our standards)

CrEATOr AND PrODuCEr OF QuALiTy E-LiQuiDS

VDLV e-liquids enable consumers to discover a new sensory and taste universe in the best possible conditions.

Since it was founded, VDLV has created a total of more than sixty different flavours; each one available with different dosages of nicotine (10 different grades) and different dosages of propylene glycol and vegetable glycerin (8 grades available).

In a constantly changing market confronted with increasingly demanding consumers, it is of primordial importance to create novelty. The composition of VDLV liquids is developed by the research and development department in collaboration with an aroma professional who focuses on developing original aromas, optimizing dosages and assembling aromas, and consultancy in olfactory marketing.

THE PrODuCTiON WOrkSHOP

Nicotine base and aroma production

laboratory

A labelling and graphic publication

room

1 grey room for completely auto-matic packaging

3000 btls/hour

1 grey room for semi-automatic

series packaging

4500 btls/hour(x2 if needed)

3 rooms for packaging and

preparing orders

Toll production laboratory

VDLV production workshops

HPLC Laboratory / Mass Spectrometer

For customers of the Vincent dans les Vapes online boutique, but also for its professional customers, VDLV is adapting and offering a complete palette of services:

VDLV Services �France and Export commercial departments �Online boutique after sales services: very active

informing clients in less than 24 hours �The marketing and communication department �Production laboratories �The quality and analysis department �The R&D department �The logistics department �Powerful support in terms of sector regulations and

analysis

Our production :Production standards go hand in hand with innovation and VDLV adapts its industrial tools perfectly to the type of order.

Toll production :VDLV is one of the rare French producers of e-liquids that enables each consumer to choose their levels of nicotine (on a scale of 0 to 19mg/ml) and propylene glycol and vegetable glycerin (8 concentration levels solely for Vincent dans les Vapes). This service means that toll production is available for small quantities.

PrOXiMiTy & SErViCES

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ur STANDArDS

VDLV IS CONCERNED AbOuT VAPERS AND THEREFORE RESPECTS PRECISE SAFETY RuLES TO PROVIDE

OPTIMAL PROTECTION FOR CONSuMERS.

; Systematic analysis of nicotine bases as soon as manufactured in laboratory, conducted in-house using HPLC chromatography and comparing them with reference solutions.

QuALiTy COMMiTMENT :

guArANTEED TrACEABiLiTy Thanks to an information system that enables real-time piloting and management of the production tool throughout the production process, VDLV ensures complete traceability of 100% of its products.

VDLV suppliers provide the company with raw materials, including EP (European Pharmacopeia) quality nicotine, propylene glycol and EP (European Pharmacopeia) quality vegetable glycerin, as well as food aromas produced exclusively in France that meet applicable European standards.

Each bottle of e-liquid has a batch number that can be used to check its quality at each stage in its manufacture.

FrENCH PrODuCTiON

All our raw materials are produced in France or the European Union (with the exception of liquid nicotine, which comes from India). They are supplied with safety data sheets and quality certificates and are also subjected to a number of important analyses internally (cf. our quality commitment).

; Regular monitoring of nicotine levels in our e-liquids. ; Regular microbiological analysis of e-liquid samples by a COFRAC accredited laboratory (accreditation No. 1-0797):

� Micro-organisms at 30°C – Presumed enterobacteria – Coagulase positive staphylococci. � Yeasts and moulds – E. coli – Salmonella.

; Regular analysis of heavy metals (iron, aluminium, arsenic, mercury, lead, cadmium), aldehydes (formaldehyde, acetaldehyde, acrolein), diacetyl and paraben.

O

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VAPOLOgiCAL ArOMAS

NNOVATiON

« Because the respiratory system lacks the powerful enzymes and detoxifying metabolic pathways of the digestive system, food aromas may present a toxic potential when inhaled »

Thus, based on scientific research, VDLV has developed its own set of specifications for all aromas selected: that’s what we mean when we talk about vapological standards !

VDLV meticulously selects food-quality natural and artificial aromas produced exclusively in France but…

For the last 4 years VDLV has continued to innovate and has equipped a research and development department focussing on the creation of new flavours, but also to study the vapes of tomorrow.

Today VDLV represents a catalogue of 9750 references (excluding equipment), two commercial brands: Vincent dans les Vapes and CirKus (cf. pages 13 and 14) with many new flavours being developed.

A major player, VDLV is also the first manufacturer of e-liquids to offer its professional customers a contact-free patented e-liquid test system with propulsion of sterile air: the Juke-Vapes®.

With this system, VDLV progresses its quality procedure and vapological expertise by offering innovative test equipment designed to preserve our products fully intact until tasted in the boutique.

i

IN EACH PERIOD IN HISTORY, AN OLD TOOL MAKES ALL THE DIFFERENCE:

THIS IS INNOVATION !CHARLY PAIRAUDDeputy Director

But because innovation also means changing mentalities, VDLV is an ardent defender of the concept of «vapology». Vapology is the art of vaping, combining in complete safety both pleasure and the discovery of flavours: this is the science of e-liquids. Just as oenology is linked to the art of tasting wine, vapology corresponds to the art and practice of vaping in the best possible conditions.

Vincent CUISSETPrésident

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FrENCH MANuFACTurEr OF VAPiNg-grADE LiQuiD NiCOTiNE

VDLV has always been particularly attentive to the quality of raw materials. Nicotine is, of course, an important component. It has been proven that nicotine from burning cigarettes is the main factor of smokers’ addiction. However, contrary to preconceived ideas, it is not harmful in this raw form, unlike tars and additives used by tobacco manufacturers.

Nicotine is an alkaloid, rapidly eliminated by the body and non-carcinogenic, which acts as a stimulant at low doses but is toxic at high concentrations, and may be addictive in case of regular consumption. The presence of nicotine in an e-liquid provides the «throat hit» (contraction of the larynx as the smoke or vapour passes through) that smokers look for. With an e-cigarette, vapers can vary the nicotine content to suit their needs and may choose to reduce levels gradually and eventually stop it. Nicotine is extracted from tobacco leaves to obtain a pure liquid form.

VDLV has now become the leading French manufacturer of vaping-grade liquid nicotine, with the aim of obtaining greater control over production and improving consumer safety.

While several European firms import and/or purify nicotine, until now, only three countries worldwide had facilities for extracting and producing liquid nicotine from tobacco leaves: China, India and very recently the United States. At the moment, the Chinese and Indian production is mainly reserved for insecticides and contains high concentrations of impurities (nitrosamines, nicotine oxides, etc.), as manufacturing techniques have not changed for over 30 years and involve relatively toxic solvents, such as dichloromethane.

By late 2016, this facility will manufacture several types of products:

• pure, French, vaping-grade nicotine,• non-aromatised nicotine bases for the preparation of e-liquids, consisting of mixtures containing varying proportions of propylene glycol (PG) and vegetable glycerine (VG).

In 2016, all VDLV e-liquids containing nicotine will be based on this new technology.

Distillation column

In view of this situation, in order to enhance the quality and traceability of their products, VDLV decided to produce «vaping-grade» liquid nicotine, reserved for use in e-cigarettes, applying green chemistry processes with appropriate solvents, to eliminate impurities and obtain a higher-quality product.

The design and industrial methods are focus to control the material circulation, as well as product quality monitoring and waste management. The extraction process is based on a «soft technology», avoiding any aggressive treatment of the product.

Thanks to this innovation, VDLV, the leader in vapological excellence, will also become a fullintegrator of vaping products and a privileged partner in France, as well as on export markets.

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CONQuEriNg NEW MArkETS: VAPOLOgy STOry

Last September 3rd 2015, VDLV’s American dream came true. In association with Mr. Jean-Christophe Le Feuvre (co-founder), VDLV opened its first flagship store in the Unites States, named “Vapology Story”. Located in the heart of Los Angeles, on Wilshire Boulevard – Beverly Hills - , this first store reflects the determination of VDLV to invest massively in new markets and in particular in the American one.

This opening is the beginning of a long series of stores. A second one will open soon in California too.

Despite the many juices manufacturers in the US, the American e-liquids market is mainly focused on expert vapers rather than on new vapers.

With Vapology Story, VDLV adapts its strategy by offering a higher Vegetable Glycerin ratio than the standard one on the French market. Moreover, VDLV brings to America its own vision of vaping: an expression of natural flavorings and new sensory horizons, associated with the know-how and a recognized expertise.

VDLV launched in the US 70 juices under the brands “Vincent dans les Vapes” and “Vapology Story”. This last one was entirely created and manufactured in VDLV’s laboratory, always following the highest quality standards. All these juices can be tasted in our shops by using the Juke-Vapes: a practical and funny patented device to taste e-liquids flavours without mouth contact with the clearomizer.

To conquer the American market, Vapology Story offers through its e-shop a large range of devices and also its big variety of juices, providing a shipping service across the US area.

All information is available on the Vapology Story website: www.vapology-story.com

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COMMiTTED PLAyEr

ON A LOCAL, NATiONAL AND iNTErNATiONAL LEVEL

AEver since its creation, VDLV has constantly committed to developing a real trade sector for electronic cigarettes in order to promote and protect vapology but also to advance the debate on the safety of vaping (composition of e-liquids, choice of aromas).

Based in the Gironde department in France, VDLV established from its inception a strong partnership with Bordeaux University analysis laboratories. This partnership still lives on: VDLV created a research centre (the LFEL) and recruits student researchers from the university to conduct in-depth studies in optimal conditions of all the elements involved in vapology.

By increasing its links with universities and institutions, VDLV has established a vast network to enable a maximum number of people to benefit from its know-how and expertise. Moreover, the company is engaged in the AFNOR standardization process in order to establish a French standard for electronic cigarettes and e-liquids in collaboration with the FIVAPE*.

*Collective of the Fédération Interprofessionnelle de la Vape (Inter-professional Federation of the Vape):

To assert the rights of the profession but also to push the legislation to develop toward a true recognition of e-liquid manufacturers and distributors in France, VDLV is part of the Inter-professional Federation of the VAPE (FIVAPE). Moreover, Charly PAIRAUD, Deputy Director of VDLV, is the secretary general of the manufacturers in the federation, for France but also internationally.

With ongoing debates in the European Union and France concerning the supervision of electronic cigarettes and vape products, the FIVAPE proposes to contribute to elaborating regulations that take the reality of the sector and its issues into account, for the benefit of distribution players and, by extension, consumers. It also asserts the fact that vape products are neither a tobacco product or a medicine. The FIVAPE also tries to combat the disinformation in certain media concerning the potential risks linked to the use of electronic cigarettes.

Thanks to its network, the company is now present in 600 points of sale in France (specialized boutiques and

Internet sites).

VDLV exports internationally and is currently present in 31 countries (in Europe and throughout the World).

Charly PAIRAUD, Deputy Director and Vincent CUISSET, President

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The first LFEL domain is based on providing services consisting in:

1- creating made-to-measure flavours specific to vapology 2- producing and packaging e-liquids 3- analyses in the interest of consumers and distributors.

The second domain is organized around research and development.

The aim is to be able to answer legitimate questions asked by the public concerning e-liquids, their composition and their applications, but also to study the equipment used in vaping and the interactions between e-cigarettes and e-liquids. To this end, it hosts a variety of research projects and conducts in-depth studies of every aspect of vapology (e.g. physics, biochemistry, technology, sociology).

PArTNEr OF THE FrENCH E-LiQuiD LABOrATOry (LFEL)

AN OrigiNAL PLAyEr iN THE TrAiNiNg CENTrE FOr ELECTrONiC CigArETTES AND VAPOLOgy SkiLLS (FOrVAPE)

The French E-liquid Laboratory (LFEL) was founded in April 2014 on the initiative of VDLV and a private partner. The LFEL is nevertheless a totally independent organization, apart from certain equipment that is shared (packaging line, means of analysis). The team consists of ten people (production, development, research) in two domains.

In 2014, Forvape offered two training programmes :• A professionalization contract for business leaders wishing to recruit future

Electronic Cigarette sales-consultants, • Ongoing training (short modules lasting a few days) targeting the «heart of

the trade», specially designed to develop the skills of professionals already working in the sector.

In 2015 Forvape joins the FIVAPE.

VDLV participated in a module devoted to e-liquids, market analysis and regulations.

Anxious to create a genuinely responsible sector with regard to end consumers and to complement the training provided internally for its employees, in June 2013 VDLV and one of its sales partners created FORVAPE which became the first Training

u-SAVIn order to analyse the substances inhaled by consumers, but also by those around them (passive vapers), the LFEL laboratory reproduces the vapour linked to real consumption of e-liquids and the ongoing

development of vaping equipment.

To conduct a quantitative and qualitative study of the vapour produced by the use of electronic cigarettes (in conditions of regular usage), the LFEL set up a universal system for analysing Vape, or Universal System for

Analysis of Vaping: the U-SAV project.

U-SAV enables them to simulate vaper behaviour, to measure the influence of each parameter (the heating element, battery, wick, puff time) when vaping in order to study the composition of the vapour. But it should also enable them to conduct comparative studies and to present long-awaited conclusions of capital importance for the public and for institutions.

With the help of this scientific knowledge we will be able to establish the bases for a comparison of products and, above all, to provide answers concerning the toxicity of vapour and the potential risks linked to

the use of electronic cigarettes.

Centre for Electronic Cigarette and Vapology Skills (a discipline devoted to studying and learning more about e-liquids).

Jérémy SORIN, analyst for LFEL

EXPErTiSE

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Our COMMErCiAL BrANDS

For a long time Vincent dans les Vapes was VDLV’s one and only brand. As soon as it was launched, it was immediately adopted by the vaping community. Featuring on many forums, blogs and social networks, the brand rapidly established itself as a reliable value in a nascent e-cigarette market.

What makes Vincent dans les Vapes special is the fact that it uses exclusively natural aromas for its e-liquids in order to subtly render the authentic expression of these flavours. Also, as a pioneering e-liquid brand using natural French aromas, it very quickly won the confidence of e-cigarette users. In addition, Vincent dans les Vapes is now one of the only French brands that guarantees the authenticity of its flavours and offers toll manufacturing (the option of choosing nicotine, PG/VG levels).

ViNCENT DANS LES VAPES

VINCENT DANS LES VAPES THE NATuRAL ExPRESSION OF

FLAVOuRS

31 mono ARomAS

DISCOVER OuR bRAND-NEW SWEET AND FRESH

FLAVOuRS:8 ToBACCoS 4 BLEnDS

The brand provides two types of packaging options for bottles: 10 and 20 ml in recycled (PET1) polyethylene terephthalate (without bisphenol) bottles, equipped with a dropper system, a tamper-proof ring and a child-resistant cap (ISO 8317).

Vincent dans les Vapes has its own online boutique: http://www.vincentdanslesvapes.fr/ and is currently distributed in 550 French points of sale (WEB sites and physical boutiques).

RED BERRIES

CherryStrawberryraspberryBlueberry

Black grapes

EXoTIC FRUITSPineappleBananaLitchi

MangoCoconut

RoASTED nUTS Vanilla

HazelnutPistachio

Signatures ConsensusConvoitise LatitudesPréambule

oRIGInAL AnD mIX

T. Cocoa, Hampton T., T. green Mate,

T. Vanilla, Virginia T., T. 1975,

Jefferson T. ,Marshall T.

oRCHARD FRUITS

MelonPeachPear

AppleApricot

CITRUS FRUITS, PLAnT, HonEY Anise, Lemon, Orange Blossom, Fresh Mint,

ice Mint, Honey, Cola, grapefruit, Licorice,

Violet, Black Tea, red berries tea, green Tea

+ +

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CirkuS

To complete its commercial offer and satisfy clients that are ever more demanding in terms of a powerful taste and aromatic complexity, VDLV commercialised a completely new brand in December 2014: CirKus. Unlike Vincent dans les Vapes, CirKus e-liquids are based on natural and artificial food aromas. The same high standards are applied in the composition of its e-liquids as in the historic brand. CirKus e-liquids have more complex and more intense flavours but are produced with a constant eye to traceability and optimal safety (French production, microbiological analyses, chemical analyses: nicotine, impurities, aromatic compounds, formaldehyde, acetaldehyde, paraben, diacetyl).

By creating a new entity and giving it a very specific brand territory, VDLV wished to mark the difference between e-liquids with natural aromas and those containing artificial aromas.

CirKus comes in two ranges with powerful and different flavours:

The Authentic CirKus range offers a selection of 20 flavours packaged in 10 ml recycled PET bottles that reuse the market bestsellers:

The Black CirKus range will attract a clientele in search of complex and powerful liquids with refined maturing. It comes in ten emblematic circus numbers.

This refined collection is packaged in 20 ml translucent anthracite glass bottles. CirKus has its own Internet site where it presents its flavours (www.vapecirKus.com) but is sold only in specialized boutiques and on certain Internet sites.

With CirKus, VDLV enriches its commercial offer by adding powerful flavour and mastery that perfectly complement the authenticity and distinctive subtlety of Vincent dans les Vapes flavours.

CIRKuS: A JOuRNEY TO ENCOuNTER THE CIRCuSES OF THE

bELLE-ÉPOQuE: A FANTASTICAL uNIVERSE, AuTHENTIC AND

« SPLENDIOSE ».

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Press Contact

Charly PAirAuD Deputy Director of VDLV

communication@vdlv.fr