1 ZIMMER & LMS IN 2010

2 2 CONTENTS 3 SALES CLAMPING ELEMENTS SALES SHOCK ABSORBERS MAJOR NEWS FOR PLANS FOR PLANS : SUGGESTIONS FOR ZIMMER TO CONSIDER 9: SUGGESTIONS FOR ZIMMER TO CONSIDER 10: SUGGESTIONS FOR ZIMMER TO CONSIDER 11: SUGGESTIONS FOR ZIMMER TO CONSIDER 12: SUGGESTIONS FOR ZIMMER TO CONSIDER 13: PRICELIST 14: FINAL STATEMENT

3 3 REVIEW OF 2009 SALES CLAMPING ELEMENTS Our sales for clamps in 2009 are decreased, this is due to the recession in the UK, our overall sales are down approximately 35% we are finding more customers for Zimmer clamps & our new LMS website is more effective. We would like to do a larger national mailshot in 2010, can Zimmer help with costs ? We would expect to mail around 2000 companies Mail costs will be app. € Print costs (2000 flyers) €450.00

4 4 REVIEW OF 2009 SALES SHOCK ABSORBERS We have had no success to date with Zimmer Powerstop products This is partly due to our lack of effort promoting the product We now have an shot letter we can send & a printed mailshot we can send to existing & new potential customers We will try to make better use of these in 2010 There are other more well established brands such as ACE in the UK market & I feel it may be a little more difficult to sell than the clamping elements We can also make a separate mailshot for shock absorbers Costs will be app. €750.00

5 5 MAJOR NEWS FOR 2010 Dan Ford will take over & run as MD, LMS South Ltd I retain a 10% stake in the new company.Dan will focus on other business areas, particularly antenna bearings for the defence industry. Dan was active & successful in this market prior to joining LMS He will continue to promote our core product range including Zimmer clamps on an agency/commission basis.

6 6 PLANS SHOTS We are increasinly using our shot to customers when we quotes, CAD files or tech.data We intend to develop more manufacturer specific shots for Zimmer & others. NEW ZIMMER COMPANIES To allow us to promote Zimmer products & the Zimmer brand more we have registered 2 new limited companies Zimmer Clamping Systems Ltd Zimmer Shock Absorbers Ltd In 2010we will direct Zimmer business through these companies directly.

7 7 PLANS 2010 NEW WEBSITE We are developing a new ecommerce website for Zimmer products exclusively, We have 2 new domain names Zimmerclampingsystems.co.uk & Zimmershockabsorbers.co.uk The website will allow ecommerce & increase the visibility & availability of Zimmer products to a wider market. see We have already invested over 1000 Euros & will spend between 5000 & 7000 Euros in total developing this facility for Zimmer. I would like a firm commitment from Zimmer that we will remain the exclusive UK/Ireland distributor/stockist for Zimmer for an agreed period of 5 years.

8 8 SUGGESTIONS FOR ZIMMER TO CONSIDER Our enquiry numbers are extremely important We should always supply ZIMMER with an enquiry reference number (eg. LMS 8828), on any enquiry for ZIMMER products This number should always be quoted on any reply. If we enquire for ZIMMER products without an enquiry no. please ask us to give you our enquiry number.

9 9 SUGGESTIONS FOR ZIMMER TO CONSIDER We hope selling the Zimmer product range separately will eliminate resistance from companies who compete in the same market & see LMS as a threat/enemy. They know we offer Franke & Hiwin ranges & see a conflict of interest. The 2 new companies should help solve this problem ZIMMER CLAMPING SYSTEMS LTD ZIMMER SHOCK ABSORBERS LTD Subject to your agreement we will in 2010 separate Zimmer products out of Linear Motion Systems & promote & sell the Zimmer range via the new companies

10 10 SUGGESTIONS FOR ZIMMER TO CONSIDER In November we exhibit at AERO engineering 09 in manchester. This is an exhibition specific to Aerospace Industry Visit to see more informationwww.aeroconf.com Can Zimmer offer any support for Samples For the exhibition or financial support. We have a 6 metre square stand Cost for basic stand is £ Would Zimmer make a contribution ?

11 11 SUGGESTIONS S FOR ZIMMER TO CONSIDER REFERALS Is it possible for ZIMMER to provide lists of OEM Machine build customers & the industry segments the OEM’s service. We can then target UK machine agents & endusers in those industries to try to secure replacement business & improve the service to those customers for Zimmer products. We may also find other OEM users in those industries. It may also help reduce the situation where Zimmer clamps are sold on 3 or 4 times via resellers & the end user pays a higher price

12 12 SUGGESTIONS S FOR ZIMMER TO CONSIDER SAMPLE CASES Is it possible for ZIMMER to provide 2 SAMPLE CASES to show existing & new customers ranges of clamping elements & shock absorbers We have 2 people who will need sample cases please if possible since our meeting I know you now have an excellent sample case ready, thank you

13 13 SUGGESTED PRICELIST A PROPOSED PRICELIST IS PROVIDED ELSEWHERE

14 FINAL STATEMENT We have a strong commitment & loyalty to Zimmer. We are demonstrating this to Zimmer with our new company & website Zimmer clamping systems Ltd, & With this commitment we can promote Zimmer more strongly & separately from Linear Motion Systems Ltd. Other companies who might not in the past deal with LMS can have no reason not to buy Zimmer products from Zimmer Clamping Systems Ltd. It will make the Zimmer brand stronger in the UK. We have been made offers in the past from other suppliers of clamping elements but we have refused these offers. Our commitment is 100% to Zimmer. We are now and will remain loyal to Zimmer. We are a small company but we are making what is for us a real financial investment in Zimmer by forming the new company & developing the new website. This will be a significant cost to our company so it is important to us that we have a strong relationship & agreement with Zimmer & an agreed period of time to develop Zimmer Clamping Systems Ltd, & the new ecommerce website as your exclusive UK agent & stockist. We believe 5 years is a reasonable time & we would be happy to discuss a development strategy & target/schedule to grow the business over the agreed period. Finally, you should know we promote & sell Zimmer products as Zimmer make/brand & we use correct Zimmer part numbers. This is important as most of our resellers/competitors change part numbers to their own part number. In somer cases resellers claim the clamps are their own product. This does not help to develop or promote the Zimmer brand. As you know we have only this month moved our business to larger & better premises which we have bought & paid for in full. We are in a strong independent position financially with good cash reserves & no overdrafts or loans. With your agreement we will continue to prepare our development of our programme for Zimmer & will begin in January I hope we can discuss, agree & finalise these plans soon.