system objective

Kanghua Company is recruiting for global cooperation dealers. Based on the concept of win-win hand in hand, regulate the behavior of regional distributors, the following management system of dealers is especially established to request the dealers to implement earnestly and abide by it strictly.

Distributor area
Recruiting distributors around the whole world

Conditions of becoming a distributor
Organizations or individuals applying to become distributors of the company shall meet the following requirements:
1.Must be an organization or individual that can independently bear civil liability
2.Having good social relations locally.
3.Familiar with local stone mining industry. Having the ability of market development. Provide the necessary technical and consultation service for users.
4.Having the ability to develop and implement market plans. Cooperate with Kanghua Company to carry out promotion activities. Having the professional dedication spirit and good service awareness. Be interested in promoting the development of local wire rope saw machines. Having the needed professional sales personnel and office space.

Procedures for applying to be distributors

1.Fill in “the qualification form for applying dealers”. Send it back to the company via email to check by the relative specialist.
2.For the approved dealer applicants, who are companies, they should provide the copy of business license and legal representative certificate (copy of ID card). The approved individual applicants of the dealers should provide the valid certificate (ID copy) for the company record.
3.The approved applicants should fill in the relevant information of dealers and sign the distributor contract.

Distributors’ product and services
1. The selling products of the authorized dealers must be the current products of Kanghua Company.
2. The dealers shall not engage in any business similar to or in conflict with the business of the company. Otherwise, the company has the right to revoke its dealership.

Distributors’ responsibilities
1.Comply with the relevant regulations of the company's dealer system. Obey the company's market management.
2.The distributors are responsible for the promotion of kanghua wire rope saw machine in the dealer area. Cross-regional sales are not allowed.
3.The distributors are needed to submit the regular sales performance reports，the information of market analysis survey and market feedback to the company.
4.The distributor should respect the copyright and intellectual property rights of the company regardless of the termination of the distributor contract. The product document of the distributor cannot be copied or leaked to any third party other than the users. The distributor cannot develop or assist any third party to develop products similar to that of distributors. Otherwise, the company reserves the right to pursue legal and economic liability.
5.The dealer shall keep confidential for the company's business information and customer information acquired during the cooperation and shall not disclose it to any third party.
6.Distributors shall strive to improve service levels, and shall not harm the image and reputation of the company. The distributor shall not deceive to or illegally sell products. If the company’s reputation is damaged for this, the company reserves the right to claim for compensation in accordance with relevant laws.

Distributors awards and punishments
1.During the validity period of the agreement, the company will reward the dealers who have excellently completed the sales.
2.The dealer shall, according to the seriousness of the case, be given a warning, a fine and the cancellation of the dealer's qualification.

• Violation of national laws, regulations, policies and company rules and regulations, resulting in economic losses or adverse effects.
• Disclose company confidential
• Ask customers for kickbacks, referral fees, etc.

3.Strictly prohibited to spread rumors and damage the company's reputation
4.It is strictly prohibited for the dealer to do anything irrelevant to the company in the name of the company. Once found, the dealer shall be disqualified immediately and be fined below RMB 50,000 yuan.
5.If having no sales performance for continual six months, the company has the right to cancel this dealer’s qualification

Promotion and popularization
The company supports the dealers for market promotion, provides complete product and market promotion material, and provides long term of product and sales training.

Related illustration
The company has the right to interpret this system.
Matters not covered in this system shall be handled in accordance with relevant rules and regulations and other supplementary documents.
The dealer must consciously accept the restriction of this system. If the dealer violates the provisions of this system, the company has the right to terminate the qualification of the dealer.
If the dealer relationship needs to be terminated for other reasons, it shall submit a written application to the company one month in advance and settle the transaction amount and fund after the approval of the company. Settlement of funds shall be carried out in accordance with the provisions of the distributor contract.
The economic dispute between the company and the distributor shall be judged by the court at the place where the company is located. This system, as an attachment to the distributor contract, has the same legal effect as the distributor contract.

This system will be implemented from June 8th, 2018.