PROMOTIONAL AGREEMENT BETWEEN TITAN MOTORCYCLE CO. OF
AMERICA (TITAN) AND PAISANO PUBLICATIONS INC. (PAISANO)
PAISANO agrees to supply to TITAN a total of $500,000 worth of promotional
services over a two-year period beginning January 1, 1998 through December 31,
1999. These services will be selected purely at the discretion of TITAN.
TITAN will pay for these services by:
a) Transferring 60,000 shares of it's restricted treasury common stock to
PAISANO.
b) Supplying $250,000 worth of TITAN motorcycles at regular dealer pricing
and terms. Motorcycles will be supplied in two increments, the first $125,000
worth by December 31, 1997 and the second $125,000 worth in December 1998. Any
invoice overages on these shipments will be invoiced and payment due at time of
shipping.
PAISANO agrees to at all times maintain a continuous stock of new TITAN
motorcycles offered for sale on the showroom floor of their Easyriders,
Columbus, Ohio retail store (or any other such PAISANO owned retail store as
they may choose).PAISANO further agrees that it shall exercise it's best
efforts, consistent with good business practices to ensure that a mutually
agreeable inventory of new TITAN motorcycles is continuously maintained
throughout the two year agreement period.
TITAN agrees to sell five (5) TITAN motorcycles to PAISANO with delayed payment
terms. Payment for these five (5) motorcycles will be made by PAISANO the sooner
of the first of January, February, March, April, and May of 1998 or the date the
specific motorcycle is sold.
Promotional services provided under this agreement will be at the following cost
rates:
a) Magazine ad space (full page, four color, full bleed)
Easyriders Magazine - $13,966 per insertion
VQ - 2,763 per insertion
Quick Throttle - 1,789 per insertion
In the Wind - 2,474 per insertion
b) Annual Buyers guide -- Ten (10) pages at best preferential rate minus
fifteen percent (15%) agency discount. Placement in book to be first among other
advertisers inclusive of front cover and first nine pages.
c) Rodeo and Convention circuit services -- at best discount granted to
most favored Paisano customers.
d) Other magazines, special editions, events, etc. -- at best discount
granted to most favored Paisano customers.
Should, in TITAN'S sole discretion the full $500,000 not be spent by the end of
this agreement, PAISANO agrees to carryover any unused balance into the calendar
year 2000 at the same rates as indicated in this agreement.
TITAN and PAISANO further agree to use their joint efforts to place a maximum
number of feature articles in PAISANO publications with TITAN and TITAN
MOTORCYCLES as their primary subject matter. Included would be a separate
monthly listing of TITAN'S exhibition truck schedule and similar such TITAN
promotional information.
AGREED UPON BY:
/s/ Xxxxx Xxxx, President 1/21/98
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Xxxxx Xxxx Date
President
Paisano Publications, Inc.
/s/ Xxxxxxx X. Xxxxx 1/27/98
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Xxxxxxx X. Xxxxx Date
Chairman, CEO
Titan Motorcycle Co. of America
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