1. Agent
The impersonal entity that agrees with YIFAN relevant administrative provisions of agents, meets YIFAN's requirements of agents and is willing to perform the duties of the agent, can be responsible for the achievement of the sales target of the cooperative target market, can meet civil liabilities independently and has the legal business right and business scope.
2. Distributor
The impersonal entity that is inferior to the agent, agrees with YIFAN relevant administrative provisions of distributors, meets YIFAN's requirements of distributors and is willing to perform the duties of the distributors, can be responsible for the achievement of the sales target of the cooperative target market, can meet civil liabilities independently and has the legal business right and business scope.
3. Channel sales cooperation partner
The impersonal entity that cooperates with YIFAN in certain sales channel, agrees with YIFAN relevant administrative provisions of channel sales partners, meets YIFAN's requirements of channel sales partners and is willing to perform the duties of the channel sales partners, can meet civil liabilities independently and has the legal business right and business scope.
4. Sales cooperation partner for special customers
The impersonal entity that cooperates with YIFAN within the customers having been filed for record to YIFAN, agrees with YIFAN relevant administrative provisions of sales partners for special customers, meets YIFAN's requirements of sales partners for special customers and is willing to perform the duties of the sales partners for special customers, can meet civil liabilities independently and has the legal business right and business scope.
5. Special or specific channels, customers, projects and orders cooperation partner (hereinafter referred to as "orders cooperation partner")
The natural person that cooperates with YIFAN in sales regarding special or owned channels, customers, projects and orders, meets YIFAN's requirements and be able to reach the cooperative agreement.

（一）The common qualifications of cooperation partners
1. Satisfying YIFAN's marketing needs and agreeing to YIFAN's work arrangements in the corresponding market and being able to complete YIFAN's sales target;
2. Legal person needs to have independent legal person qualification, be able to independently bear civil liability, have legal business right and business scope, can provide the original of the Corporate Business License, Tax Registration Certificate, Organization Registration Code Certificate and the copies of other related documents;
3. Individuals need to have good credit standing and business reputation;
4. Accepting YIFAN's management and sales guidance, observing the relevant system, fulfilling the sales targets and meeting other requirements;
5. Priority to who is experienced in being agent, distributor or salesman of YIFAN's equipment or similar equipment.
（二）Qualifications of agents
1. Having sales team and serving vehicles relevant to the agency business and covering the sales in the agent territory;
2. At least having one after-sales service member and can provide general after-sales service;
3. Having standard workplaces, shops (if needed) and certain sales network and being able to achieve market expansion and sales target of the products at the prescribed time;
4. Having the financial capacity to perform the duties of the agents (being able to conduct settlement all except for quality guarantee deposit at once). When the agents reach a certain scale it can be arranged as appropriate.
5. If sales target more than 10 million yuan it can be discussed separately in the first year.
（三）Qualifications of distributors
1. Having sales team and serving vehicles and workplaces relevant to the distribution and covering the sales in the distribution territory. The scale can be smaller than that of agents;
2. The financial capacity can be inferior to that of the agents. If distributors are unable to conduct settlement all at once, they can make payment according to the customer's payment pace upon agreement by the supplier;
3. If sales target more than 5 million yuan it can be discussed separately in the first year.
（四）Qualifications of channel sales cooperation partners
1. Having the explicit expansion and sales capacity for the marketing channels of the specific target market;
2. Having sales team and serving vehicles and workplaces relevant to the marketing channel and covering the sales in the agent or marketing channel;
3. To be the agent or distributor depends on the corresponding financial capacity and the settlement mode by reference to the qualifications of agent or distributor;
4. Being able to get the sale volume above certain percentage of the relevant purchasing volume of the marketing channel. The specific proportion will be discussed separately.
（五）Qualifications of sales cooperation partner to special customers
1. Having certain special customers and submit the customers' records to YIFAN;
2. Having sales team and serving vehicles and workplaces necessary to the sales to special customers;
3. To be the agent or distributor depends on the corresponding financial capacity and the settlement mode by reference to the qualifications of agent or distributor;
4. Being able to get the sale volume above certain percentage of the relevant purchasing volume of the special customer. The specific proportion will be discussed separately.
（六）Qualifications of special or specific channels, customers, projects and orders cooperation partner
1. Having the sales expansion capacity for specific channels, customers, projects and orders and being able to win customers' trust and contribute to the orders and turnover;
2. To give the corresponding reward according to the support of cooperation partner in the transaction process.

Support for official partner
1. YIFAN provide timely, customised and high performance service and support for fficial partners through market and technical support, various medias, sales promotion and perfect after-sale service.
2. YIFAN increases investment for e-commerce, e-commerce runs long-term publicity in each big business platform and professional magazines to provide strong advertising support and improve brand awareness.
3. YIFAN will attend influential industry exhibition every year, and will also hold product launch press conference and industry orders; Shande Group will support official partners in the aspect of personnel and charges.
4. YIFAN should send Professionals to assist negotiations when official partners meet some difficulties during large and medium-sized project negotiations. If official partner can not make a deal, Shande Group has the right to negotiate this project；if the project is made a deal, YIFAN can give official partners certain remuneration not pay partners profits.
5. Official partners signed by Shande Group will share free product knowledge training and business training every year. The group will help official partners to create excellent team.
Cooperation price and reward principle
1. Legal person official partners adopt base price settlement system, official partnets quote and settle accounts to customers according to regulations; natural person official partners adopt personal rewards method.
2. The price provided to official partners is set according to annual target, in principle, the bigger sales volume and better clearing form, the lower price.
3. YIFAN should reward those official partners who fulfill or overfulfill year-end task. In principle, the way of reward relys on the scale of sales volume, realizing through year-end rebate.Specific see relevant provisions.
Rewarding return bonus according to the situation that agents fulfill agency business plan, in principle, return bonus is completed according to corresponding preferential price accessories amount.
4. Specific cooperation price is confirmed according to the provisions of foreign cooperation settlement price. For example, YIFAN will sign sales contract directly with final customer, official partners who get price differentials will bear the tax by their own.

(1)General principles
YIFAN selects and manages official partners according to unified regulations and requirements; each operating agency manages official partners according to systems.
1. Cooperation period is three years,cooperation agreement is sighed one time a year. In principle, only assigning one regional agents,and assigning several dealers.Channel sales cooperation business, special account sales cooperation business, order cooperation business determine the scope of customer sales according to corresponding channels, special customers and orders.
2. This system prescribes YIFAN specially permit the limits, of official partners, operation and business process of official partners.
3. Since the day of the enforcement of cooperation agreement and authorized by YIFAN, official partners should be responsible for market exploitation, promotion, after-sale service, external environment coordination etc.
4. Official partners employed by YIFAN should follow the provisions of YIFAN to be engaged in agent or distributor activities, should not damage the group interests and image.
5. Official partners should collect industry information actively,especially the sales and marketing of other brand; should feedback market information in time in order to promote enterprise and product image of YIFAN and to strengthen the construction and management of sales network.
6. If the group have special terms to official partners, see specific cooperation agreement. (2) Sales management
1. YIFAN is in charge of building communication and contact channel with official partners and providing publicity material, information, policy and supports of promotion programmes and management system etc.
2. YIFAN fully respect designated areas selling right of official partner. But if there is one of the following situations, YIFAN will keep the right of develop the second official partner in this area.
a. At the time of year-end liquidation, official partner can not complete gross sales.
b. YIFAN new products, new process and new technique is on trial.
c. The normal business can not work because of poor management of official partner.
d. Force majeure factors, like national policy changes.
e. In case of important customer complains because of the poor management of official partner.
f. The behaviors of damaging YIFAN image and product image.
3. Official partner should ensure complete agreed sales target.YIFAN has the right to cancel the cooperation qualification or to end cooperation agreement of the official partner which can not achieve agreed target and the gap is big at the appointed time.
4. Official partner should notify sales volume and submit next quarter prospectus to YIFAN at the end of quarter, and submit next year sales planning at the end of the year.
5. As for the areas where is not established official partners, other official partners should communicate with YIFAN to get written authorization to support products to these areas and be responsible for maintain the local price; stop supporting products if this area has already established official partner or transfer to legal official partner.
6. Official partner should promote YIFAN image actively, and introduce YIFAN products to customers and new products in time, and take YIFAN and a series of products to the market.
7. In the process market operation, every official partner should take notes when receiving market complaint, and inform YIFAN to duly handle.
(3) Daily work management of agent, dealer, channel sales cooperation business
1. Submiting written customer documentary progress ten working days in advance to YIFAN to ensure timely product suppling.
2. Submiting network status and sales status of cooperation region to YIFAN marketing department every half year.
3. Submiting cooperation region market forecast report(including analysis to competitors, future market forecast and support degree of government departments),annual sales target, working plans and work proposal to YIFAN.
4. Official partner should sell products monthly or annually according to sales task which is established by YIFAN.
5. Annual report:Summarizing by year and holding annual official partner conference, the result is used to assess official partner qualification.
(4) Daily work management of special account sales cooperation business
1. Reporting to YIFAN domestic sales department when there is new customer. Official partners of designated areas or salesmen have the rights to develop this customer if not be reported or not make a deal in a certain period.
2. Submiting written customer documentary progress ten working days in advance to YIFAN to ensure timely product suppling.
3. Submiting profile of developed customers and preliminary developing customers to YIFAN sales department every half a year.
(5) Order cooperation business
1. Reporting to YIFAN domestic sales department when there is new order. Official partners of designated areas or salesmen have the rights to develop this order if not be reported or not make a deal in a certain period.
2. Submiting written customer documentary progress ten working days in advance to YIFAN to ensure timely product suppling.
3. Submiting profile of signed orders and preliminary signing orders to YIFAN sales department every half a year.
(6) Trading and settlement management
1. Delivery
Signing company of YIFAN supplys products according to the written supply agreement and is in charge of shipping and transportation.
2. Sales price
YIFAN unified sales price and negotiate a price according to project.
Official partners should carry out the unified sales price,in principle, the price should shall not be higher than the provisions price.
3. Payment for goods
In principle, payment for goods should be paid through bank transfer(also through acceptance draft). The deadline relys on the time when YIFAN financial department receives it.
4. Return of goods
According to relevant regulations, if the goods is not qualified or freight model, variety are not meet the criteria because of YIFAN, YIFAN is in charge of return or exchange.

In order to promote the healthy development of the foreign sales cooperation and realize the purpose of the cooperation, the construction and daily operation of foreign sales cooperation should follow the following principles:
1. The principle of unified construction, management and control
Yifan Machinery encourages conducting foreign sales cooperation in the clear target market and exercising unified construction, management and control of foreign cooperation;
2. The principle of informality
In order to achieve the sales target, on the premise of the YIFAN's basic interests and realization of goal foreign sales cooperation modes can be discussed and innovated according to the specific circumstances of a region, a channel or a customer, etc.
3. The principle to ensure the realization of YIFAN's market development strategy
Foreign sales cooperation should follow closely YIFAN's market development strategy
4. The principle of prudence
In the spirit of jointly responsibility, the market expansion and product sales of partners at all levels must seriously carry out YIFAN's working procedures and mustn't jump the gun;
5. The principle of riskiness
In order to ensure the cooperation and common interest, YIFAN will analyze market together with partners and make reasonable suggestions, which will reduce any potential risks as much as possible;
6. The principle of limitation
All partners are responsible for the product sales within a certain range of target market; in a certain range of target market can be only one partner; in no circumstances should sales outside the target market stipulated in the contract be allowed
7. The principle of price unities and flexibility
Nationally uniform price, partners must sell products within the corresponding price range in accordance with YIFAN's price system; in exceptional circumstances which need to change the sales price, different matters can be confirmed in written through discussion and then carried out
8. The principle of standardized administration
YIFAN practices the planned management system and gives sales plan to partners by natural business year. We carry out monthly inspection, quarterly appraisal and annual summary and give rebates and rewards to partners at the end of the year in accordance with the relevant provisions;
Partners must work according to YIFAN's plan and their sales representatives must submit the customers' information to YIFAN for the backup.
9. The principle of active assistance
YIFAN Marketing Department will actively cooperate with each partner. We'll cooperate with the partners positively to dissolve the problems that they will encounter in the work.
10. The principle of integrity
Both sides must be honest and creditable and should never provide false information.
11. The principle of long-term co-operation
Based on the market, YIFAN will build long-term cooperation with partners and reassure them about the marketing.