KBC-TSSB Agreement (2)

7/27/2019 KBC-TSSB Agreement (2)

1/4

Agreement for TRENDY SPORTS SDN. BHD rsrzso+-uTRENDY SPORTS SDN. BHD., from here forth referred to as TSSB, under thesupervision of Dato' Paduka Aiddie A Ghazlan (Managing Director), will have SoleDistribution Rights for the entire KBC Helmets and SparX Helmets product range in theentire country of Malaysia. A11 sales relating to these products in the country will behandled via TSSB. Distribution to other countries will be allowed with approval.

I(BC and SparX Helmets Product LinePlease visit :y-uw. hbchg.l mqts. cqnt andlwv'w.sparxhelmets.com for a complete lineup of our products.

In addition to motorcycle helmets, KBC also manufactures a wide range of other products,such as:

o Leather Jackets and Apparel (Aegis). Sunglasses (KBC and Harley Davidson)o Motocross Goggles (KBC)o Bluetooth Communication Devices (Motosonic)In addition to these, KBC is continuously supporting the R&D of new products for theconsumers.As the Sole Distributor of KBC and SparX helmets in Malaysia, TSSB will have accessto all of our products to distribute in the market as they see fit.

Dealer RequirementsTSSB is required to showcase and target the market accordingly to the brand's pricing andimage.KBC Helmets is considered to be in the premium class, and should be showcasedaccordingly. Under the current economic conditions of Malaysia, KBC will most likely begeared towards the motorcycle enthusiasts and hobbyists, rather than the general public, sothe distribution channels should be setup with this in mind.SparX Helmets is one class under KBC and is considered to be in the middle class in termsof pricing and image. These helmets can be targeted for a much larger consumer base, andwill be in direct competition with many of the local/foreign helmets currently in the market.


2/4

TSSB will start with an order of minimun 50 KBC/SparX Helmets in any combination. Allorders shipping from the US will be given to TSSB at the standard FOB prices tocompensate for the extra shipping charges incurred. All orders thereafter originating fromthe shipping destination of China or Indonesia will be subject to a pricing bracket based onthe quantity ordered. The tiers are as follows:

Pavment TermsAll orders are expected to be paid via TT after TSSB receives a Pro-forma Invoice fromKBC and/or SparX. KBC and SparX have their own separate bank accounts, and paymentswill go to each account accordingly. Payments cannot be combined into one.TSSB has the option to pay via TT or open an LC with a bank of their choice on orders thatare greater than a quantrty of 500, which can be shipped as a20' container.

ShippineRegardless of quantity, TSSB has the option to use their own forwarder in the country theshipments are originating from. If TSSB does not have their own, we will use our ownforwarder and charge TSSB on the next order.


3/4

Promotional and Marketing MaterialKBC and SparX will give TSSB promotion and marketing material as fit for the conditionsof the market. In addition to brochures, catalogues, stickers, posters, T-shirts, and othersmall items, KBC/SparX will start with product sponsorships for local riders involved inraces. In addition to these, helmets will be given to local publications that may want towrite a review or use them in pictorials. Initially, these sponsorship helmets will be sent tothe parties directly. Once TSSB has its own inventory, TSSB will send out the helmets firstto the respective parties. Then KBClSparX can reimburse for the helmets or add thehelmets to TSSB next order at no cost.

After Sales ServiceConsumer satisfaction is a top priority for KBC and SparX. This means that the distributormust have in stock spare parts to replace any defects or warranties that the helmet may beunder. These parts/helmets can be given back to the manufacturer for credit/replacement.Also, consumers will want spare parts in addition to their existing helmets forcustomization. (ie. Colored Visors, extra padding, etc.) These spare parts should beavailable to the dealers/consumers directly from the distributor. It is the distributor'sresponsibility to keep the dealers/consumers satisfied with the condition of the helmets andkeep spare parts in stock. These are all available from the manufacturer.


4/4

TRENDY SPORTS SDN. BHD.Distributor's NameLevel 36,Menara CitiBank165 Jalan Ampang,50450 Kuala LumpurMalaysiaDistributor's AddressTel:+603 2169 7448

Fax:+603 2169 7449Distributor's TelephoneAnd Fax numbers

E-Mail Address

I will distribute KBC and SparXHelmets accordingly in the marketand provide excellent customer Noservice to the best of mv abilities.

Signature and DateDato' Paduka Aiddie A Ghazlan

(Managing Director)NAME and Title**-aI:--- -.:- : /*f - ,Jason S. HongKBC HelmetsDirector of Business [email protected]+ 62 8l 3855 02867 (Indo)+ 1 310 666 3591 (US)

Documents

KBC-TSSB Agreement (2)