I Agent channel system 1. Primary agents Primary agents are the exclusive agents at the level of province (autonomous region, municipality directly under the Central Government), take full charge of local sales business and may develop secondary and tertiary agents locally. 2. Secondary agents Secondary agents are the exclusive agents at the level of prefecture and city (provincial capital and separately listed city excluded), take full charge of local sales business and may develop secondary and tertiary agents locally. Secondary agents shall not be designated in the areas where primary agents are present; secondary agents may be developed directly in the centers of the areas where primary agents are temporary absent, after primary agents are present in these areas, original secondary agents will be directly put under primary agents. 3. Tertiary agents Tertiary agents are the excusive agents at the level of county (county-level city), take full charge of local sales business, but shall not develop tertiary agents directly. Tertiary agents are developed by primary and secondary agents. II Qualifications of Agents 1. Applicants shall identify the cooperation concept of “creating value through saving and joins hands for great development” and shall be committed to the goal of “jointly constructing an energy-saving society”. 2. Applicants shall build the awareness of energy saving and environmental protection and shall be capable of starting from ego and bits in daily work and life. 3. Applicants shall have been registered with the administrations for industry and commerce and shall be corporate legal entities or natural persons with independent accounting and responsibility for their own profits and losses. 4. Applicants shall have some economic strength, fixed business places and capability of independent financial and personnel management. 5. Applicants shall be the absolute or major shareholders of applying enterprises. 6. Applicants shall be commercially-minded and experienced at operation, shall have strong communication capability and social relations and shall be credit-worthy. 7. Applicants shall be familiar with local markets and shall have the capability of market development. 8. Applicants shall have good channel management and development capability. (Provincial agents) III Operation Standards of Agency Channel Agents at all levels shall abide by the following rules in order to ensure their and our long interests 1. Agents shall protect the brands and images of products of the center 2. Agents shall keep market prices uniform and carry out related work at the market prices stipulated by the center. 3. Agents shall strictly carry out business in the regions specified in the contracts instead of conducting cross-region marketing. 4. Agents shall providing after-sale service locally. 5. Primary and secondary agents shall take charge of developing, managing and training inferior agents. 6. The center will not directly supply goods to all the local secondary and tertiary agents developed by primary agents and all the local tertiary agents developed by secondary agents. 7. Agents at all levels shall regularly report local market information. 8. Agents at all levels shall supervise one another and duly contact the center in case of any violation, and the center will punish the violator upon verification. IV Agency Fee Primary agents with estimated annual sales of RMB 3,000,000-5,000,000 shall pay an amount of RMB 300,000 as agency security; secondary agents with estimated annual sales of RMB 2,000,000-3,000,000 shall pay an amount of RMB 100,000 as agency security; tertiary agents with estimated annual sales of RMB 500,000-1,500,000 shall pay an amount of RMB 50,000 as agency security, agency security will be returned after the expiration of contract.
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