LAZER H

Introduction

The content of this file is confidential and made to Lazer Sport, by Fepase Sports, Lazer helmets distributor in Brazil since 2006. The propose of this detailed plan is to put Lazer helmets back on the top of Brazilian bicycles helmets rank, occupied by this brand in the past. The success of this plan depends on a mutual effort from manufacture (Lazer), distributor (Fepase) and its team.

Brazil is an important and growing market, very complex to work with its legal demands and extremely high taxation.

This is Brazil: www.www.www

In name of Fepase team, is expect full support and dedication from Lazer helmets team, in case of going forward with the suggested plan detailed bellow.

Timeline

2003 – Fepase was established in Brazilian market, focused on global bicycle brands distribution inside the country;

2004 – Fepase received its first container of bicycles (KHS) and focused on the brand for the 1st two years;

2006 – First contact with Lazer helmets, meeting Sean at Interbike 2006. In October/06 we sign the agreement between Lazer and Fepase;

2007 – First Lazer order arrived. At that time, market was less competitive and main brand was Giro, who was being distributed by Plimax, with horrible service;

2007/08/09 – Lazer cycling business was doing very well for the Brazilian market, growing fast under Giro bad service;

2009 – Fepase made one of its biggest mistakes by importing Lazer motorcycle helmets: great product, but extremely expensive and not known by motorcycle users in our market. Big competition;

2010 – Brazilian market, because of the exchange rates and economy growth, attracted a lot of new brands and new distributors to the market: Alpina, Met, Cratoni, Spiuk, Fox, Louis Garneau, Specialized, Catlike, Scott and many others.

2011 – Giro/Bell moved to a new and much more professional distributor. The brand (Giro) sells “alone”, so was a matter of being constant (products) in the market, and they made it. Today they are selling around 8.000 helmets year (both brands).

2011 – A lot of new Chinese brands/odm also arrived in the market, so entry level helmets suffered another impact. Main supplier was Strategic (China), with FOB USD 8,00 to USD 10,00 (MTB helmets, similar to X3M).

2012 – Competition was in its limit and seems that the offer was bigger than demand, especially for entry level helmets (FOB USD 8,00 to USD 12,00). On that time Fepase was overstocked, with products from 2011/2012, so there was no news (design) on the line and the market starts to felt this lack of new/refreshment on Lazer line.

2013 – We reach a critical moment and decision: go for entry level market, with KHS brand which is strong and recognized in Brazil, producing with Strategic with KHS authorization or getting back with Lazer helmets, with a new plan for the market. This was a one side decision: KHS helmet or Lazer helmet.

2013 – We decide to get back with Lazer, with more focus and more information to the market. Of course there were several mistakes from Lazer and Fepase in the past. As you can see in Fepase statement, Lazer never applied