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Inflate A N I N T R O D U C TI ON TO

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Introduction to Inflate

InflateA N I N T R O D U C T I O N T O

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Introduction to Inflate

Thank you

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Introduction to Inflate

.....for your recent enquiry to Inflate concerning your interest in working closer with us in your proposed territory.

The following information is our way of introducing you further to us, what we do and how we do it.

If your passion continues past this point, then we look forward to a long and healthy relationship!

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Introduction to Inflate

Inflate is the branded range of award winning inflatable indoor and outdoor structures, available for sale throughout the globe.

This range is available to be bought and sold on in territories that have not yet been exploited or developed.

Inflate are continuously asked to enter into new partnerships in various countries around the world by people and companies who have been excited by our brand and structures.

We are extremely excited about taking Inflate into new territories, but need to ensure that our relationships are with appropriate partners, are on the right level and are appropriate to the returns required. We also need to ensure these relationships deliver a consistent brand message and are commercially robust.

We are confident in our ability to deliver an unrivalled offer in terms of product, content and price within the designer inflatable structure market - and we have witnessed how our brand, products, engineering and manufacturing and marketing, has helped grow our business around the globe - the value that can be placed on this is considerable.

Introduction

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Introduction to Inflate

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Introduction to Inflate

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Introduction to Inflate

Airflow (Air Inflated Structure)

Airflow systems are the most versatile and cost effective form of inflatables in terms of function and performance, and will offer a creative and competitive way to enclose any space.

They can be constructed from a large range of materials by stitching, and as such this allows for the use of much lighter fabrics which will aid the operational performance and efficiency of your structure on site and for touring if required, as well as the look of it.

We most frequently use PU coated rip-stop nylon as this gives a quality lightweight finish.

These type of structures can be used to span up to 30 meters without trussing, therefore allowing many building to sit comfortably within this method. There is no limit to the potential length with buildings being 30m plus, this working perfectly.

Larger buildings, are of course still achievable, but require us to evaluate the feasibility vs the design.

The majority of our structures are inflated and kept to pressure by a constant airflow from a bank of fans.

Inflate offer for sale a comprehensive range of products that offer stunning opportunities to bring 3D marketing to many brands or events, whether being conducted indoors or out!

This range has been developed over time with careful consideration of the type of structures required by our clients over time, or as creative solutions to a specific gap that we felt there to be in the market.

Inflate is the ONLY global inflatable brand offering this opportunity.

What We Do

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Introduction to Inflate

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Introduction to Inflate

Due to our success, growth and brand awareness over recent years, Inflate has become a much sought after brand to ʻpartner upʻ with, with many individuals and businesses across the globe recognising that the Inflate brand can be a successful brand to deliver commercial gain or benefit, and as such, we are approached on a regular basis to enter into various types of relationships. We try and look at each proposal on an individual basis, with our experience helping to shape the most appropriate route for the given business or territory. Many comments are made that a particular market of inflatables does not exist in certain territories, however, we always view this as an incredible opportunity.

Inflate tends to help create new markets and drive businesses through our versatility and willingness to provide solutions – and as such, we seek to work with like minded partners who are looking to build a brand and business in a given territory.

We deliver the brand, designs, product development and consistency in manufacturing, and in turn, we look for our partners in return to build the sales, marketing and management of our brand within their given territories, along with the logistics of shipping, importation etc.

Our agreements/partnerships, in most cases, are built on a mutual respect and understanding of growing the business based on the range of predesigned structures known as the Inflate Branded Range – however, due to our foundations as a design studio, we also aid in the development of a territory by designing and building bespoke structures to clients individual requirements in conjunction with our partners. Our bespoke back catalogue is often associated with our partners growth, and it of huge benefit to growing individual territories. We have found in most cases, that this works most effectively and delivers more, when we are in direct contact with the end client and work out a commercial return to the partner on a pre agreed commission basis. (Though this service is not part of the license agreements we enter into).

Evaluation

To ensure we enter a worth while dialogue with the type of partners that we believe will suit our requirements and replicate our way of working, we ask that a brief Getting to Know You form, which accompanies this letter. It is a brief form that will help us build a brief knowledge about you and your business, your intentions of how you believe that you can develop Inflate, and your financial integrity.

NDA Agreements

Due to the nature of the majority of the information, designs, specifications and pricing alternatives we provide in these situations, we require anyone who enters this type of dialogue with Inflate, to sign a Confidentiality Agreement. This allows us to share the type of information, which will allow both parties to evaluate the potential, to do so in the knowledge that we are legally covered. The NDA is attached with this letter for you to sign and return, which upon receipt, allows us to openly share that information with you.

How We Work

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To ensure we all benefit commercially, we have a number of ways of working with our partners that we believe are the most appropriate way to help develop the brand and sales.

Inflate have worked tirelessly to build the brand, the design integrity and manufacturing facilities to offer what we believe is a unique global proposition. To that end, we obviously place great value to the brand and the potential we believe that those associated with it have the potential to possess.

To reflect the above we can work in the following ways when we offer our branded range of structures:

sectors.

Internationally proven as a method of business expansion, Licensing combines the motivation of people wishing to own their own business with the credibility, experience and expertise of an established Brand such as Inflate.

In an ongoing relationship, the larger organisation (Licensee) provides assistance and advice throughout the term of the License agreement.

At Inflate we recognise the value of fresh ideas and marketing input from people who know their local area and have the ability to fully exploit the potential of a great business system.

In Summary:

You will very much be operating your own independent business – with some boundaries, restrictions, minimum performance levels and standards. At the same time, you will receive support, advice and communication from your Licensee – Te Koop Ltd. (Inflate UK)

Ways of working with Inflate

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Introduction to Inflate

Exclusive Inflate License Agreement

Why License with Inflate?

The event and exhibition market is very fragmented yet lucrative multi million$ market across the globe and covers many market sectors. You can earn an incredible income on just a fraction of this huge market in your territory.

Inflate is a sales driven business. Operating in numerous territories across the world. One of the unique characteristics of our model is that the brand and products are already established, and this allows you as the Licensee to focus on selling and building strong and lasting relationships in a given territory.

Authorised Exclusive Inflate Licensee able to build other re-seller relationships to grow the net work and income.

Authorised Inflate reseller

• Low cost

• Low risk

• Low overhead

• True residual income

• High income potential

• Inflate Branded Structure range system that is proven

• The right company / right model

• You will be providing a value added service creating unique Sales opportunities across numerous market sectors.

Internationally proven as a method of business expansion, Licensing combines the motivation of people wishing to own their own business with the credibility, experience and expertise of an established Brand such as Inflate.

In an ongoing relationship, the larger organisation (Licensee) provides assistance and advice throughout the term of the License agreement.

At Inflate we recognise the value of fresh ideas and marketing input from people who know their local area and have the ability to fully exploit the potential of a great business system.

In Summary:

You will very much be operating your own independent business – with some boundaries, restrictions, minimum performance levels and standards. At the same time, you will receive support, advice and communication from your Licensee – Te Koop Ltd. (Inflate UK)

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Introduction to Inflate

Market Sector Opportunities

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Introduction to Inflate

Below are just some of the market sectors that can be penetrated using the Inflate range of structures, many of which have already been worked with at some point around the globe with an Inflate structure.

It is our belief, that some of these sectors on their own, present unbelievable potential and opportunity!

• Food & drink • Fashion• Sport - Global - National - Local• Travel• Banking/commercial• Entertainment - Music - Film - Arts - Corporate• Pharmaceutical• Health & beauty• It/telecommunications

• Transport - Auto - Boats - Air• Energy/green?• Social/public• Property/hotels • Venues - Exops - Conference• Retail • Consumer electronics• Products • Advertising• Architecture• Etc,etc,etc

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Introduction to Inflate

Whatyou get

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Introduction to Inflate

• Instant business set up opportunity• A brand with heritage and full 3D marketing product range for events, exhibitions, product launches, festivals etc• Proven business model• Access to established manufacturing base and exclusive purchase rates• Sales & marketing materials• Structure log books & build manuals• Product training & support• Access to case studies & global brand link ups• Continued range expansion/product launches and product development on an annual basis• Link on Inflate main website (for flow of contacts and credibility)• UK based contact and support• Ability to penetrate numerous market sectors.• Inflate URL and e-mail addresses• Inflate Brand Guidelines to help deliver the brand consistently in your territory.• Feedback in relation to performance.• Leads that come via the parent company in the UK.• Undertake marketing initiatives on behalf of the global brand with input from all Licensees to:- build awareness of the Inflate name and offer.- help attract new business.- Co-ordinate and support franchisees in local marketing initiatives.

The key focus for Inflate is to ensure that when the time comes to launch - we don’t just walk away from you and expect you to get on with it. Our training and support programmes are impressive and will focus on developing a close working relationship with you and your team.

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Introduction to Inflate

You, the Licensee

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Introduction to Inflate

• Establish and promote Inflate Brand & Products in your designated territory.• Seek to maximize the brand and sales by looking to recruit not just direct clients but potential Inflate Resellers.• Supply and meet minimum sales expectations• Supply only the structures designed and developed by Inflate and always meet prescribed standards.• Purchase stock only from Inflate or its approved suppliers.• Build local relationships with 3rd party service providers.*• Maintain high presentation standards that reflect the Inflate brand and ethos.• Liase with Inflate and provide regular feedback as required to ensure continued evaluation and improvement across all areas of the business.• Liaise with and pass on any potential bespoke/design projects to the Inflate team for an agreed commission fee (as not covered in the agreement)• 3rd Party Providers would include the likes of:• Trussing – Doors – Flooring – Lighting – Logistics – Heating & Cooling – Power supply – Furniture – Audio & Visual as well as having links with the likes of Security and potential Maintenance & Cleaning companies.

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Introduction to Inflate

The Exclusive Inflate License Agreement:

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Introduction to Inflate

When entering into an ‘Exclusive Agreement’ there are certain criteria that needs to be met which are as follows:

• Exclusive means that we only work with a selected partner in a given territory, thus handing over the potential for that territory in its entirety.

• The partner has the ability to trade as Inflate, (though we do not endorse setting up new companies as Inflate).Please note that a Territory does not automatically mean a country or state and will be defined during the process. We provide the branding guidelines, sales and marketing literature templates, back catalogue of images and designs, the product range and the ability to set up a new business.

The structures are bought under license with the following costing opportunities.

1) Ex-Works UK from UK Price List -20% discount (only applies to inflatable components).

2) FOB China. This allows greater margin to be made, but obviously puts a certain amount of responsibility onto the importer, and less onto Inflate as we reduce cost by reducing our involvement.

In return, there are obviously expectations and requirements.When signing up to this relationship, there is a legally binding agreement that allows a period of due diligence to be had in a territory (usually 6 months). This is entered, by providing all the about data and materials for either of:

1) An upfront £5000 (or US$ equivalent) payment invoiced on receipt of a signed agreement OR

2) An opening stock order to the value of £20000 (or US$ equivalent).

The expectations of this agreement are obviously considerably and reflect what any potential licensee may receive – which fundamentally is the opportunity to open up an established business overnight.The two key elements that make up the vital expectations of Inflate are: - minimum sales guarantees across the term of the contract- continual communication and input to develop the brand and relationship. The brand and sales will need to be marketed and established, and regular, concise communication with the UK is required to ensure a smooth transition into establishing the brand.

Inflate spans many Market Sectors that it can be used in, and as a result, the potential for building business across them or, or a specific one (i.e. leisure & travel) are considerable if approached in the correct way. We believe that we have the experience to help build these sectors in any given territory, but the communication with us is key to this being a success.Please note, all of the above relates to the SALES of the Inflate Branded Range. Hire Agreements are also available upon request if required.

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Introduction to Inflate

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Introduction to Inflate

We are looking to appoint locally based entrepreneurs/businesses that have the drive and motivation to work closely with us to make a success of their own business in specific global territories. You will need to demonstrate a track record of working successfully in similar event and exhibitions environment, with access to key brands and decision makers, as well as third party re-sellers who can help build the territory . You will need to have a passion for making the end clientsʻ experience reflect the quality of the Inflate Brand.We are looking for Business Partners that can commit to excellence and growth – there is no limit to the scale of this opportunity.

In addition to experience and drive you will need to be able to motivate others, manage teams and maintain effective relationship with clients, brands and the end users.

We’re sure that you will want to know more about our ideas and plans and we will want to know more about you..

Have you got what it takes?

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Introduction to Inflate

Under this heading, we supply our structures under two different categories to be able to trade with the Inflate structures.

Non-Exclusive Agreement:

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Introduction to Inflate

A Premium Re-Seller, or just an Authorised Re-Seller?

Premium Re-SellerThis is similar in execution as above in terms of building the brand and sales within a given territory, however, minimum sales expectations are not attached, as exclusivity is not being discussed for a specific territory.We work closely with the company, and would expect that the Inflate brand is the primary source of sales and income within such a relationship, which in time, could progress to an exclusive if warranted and the minimum sales expectations were met.

A sign on fee of £5000 (or US$ equivalent) is the initial charge, or an initial order upon signing of c.US$20000Most of the benefits are available in terms of being able to use the brand, images, materials etc but would be available as a Re-Seller with preferred rates which can be similar to those that follow:

1) Ex-Works UK from UK Price List -20% discount (only applies to inflatable components). We will issue you with the UK price list and invoice at 20% off the quoted price.

2) FOB China (payment in US$). This allows greater margin to be made, but obviously puts a certain amount of responsibility onto the importer, and less onto Inflate as we reduce cost by reducing our involvement.

3) We also offer sliding scales of reductions that increase with the sales on a monthly basis which allow you to earn more, the more you sell. These rates are available upon request of required, but are only available on the Ex-works UK from UK price list basis.

Authorised Re-SellerThis is the next stage down, where a company may take the Inflate range into their product portfolio and just act as a seller of the range.

We would provide images, materials and the preferential costs as above for a set fee over a given period of time (or for a specific opening order), and in return, the Authorised re-seller would display the official “Authorised Inflate Re-Seller logo that helps relate the products and Inflate brand together.

A sign on fee of £2000 (or US$ equivalent) is the initial charge, or an initial order upon signing of c.US$10000 A Non-Exclusive Agreement allows Inflate UK or any other company to sell into that given territory, but the benefits are via preferential costing and Inflate marketing support depending on the value of the business.

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Introduction to Inflate

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Introduction to Inflate

Once you have read the above, filled in and signed the appropriate forms with any additional feedback that you feel may help, our process begins to help us both arrive at the most appropriate type relationship of the three outlined above. Licensee, Premium Re-Seller or Authorised Re-Seller.

In our feedback, we will outline our reason behind our views, and provie an outline of the contract that would then be put in place.

We look forward to liaising with you and to what we trust will be a mutually meaningful and fun journey into the future.

What next?

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