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1) General Principles

A. Overseas distributors include non-exclusive distributors and exclusive distributors.

B. Any new distributor is a non-exclusive distributor firstly.

Even though, for the first year, to protect the new distributor, DFM will not develop other distributor in the territory.

C. After an evaluation period for one year, the non-exclusive distributors who reach the evaluation requirements can be promoted to exclusive distributor.

2) Selection Criteria of Distributors

A. Necessary conditions:

a) Have the willingness to grow business together with DFM.

b) Have enough funds to engage in trade of DFM business, i.e. at least 60% total sum of yearly import plan.

c) Has qualification of automobile importation.

d) Locates in a major city.

e) Have fixed facilities (the showroom, maintenance workshop,Garage, parts warehouse).

f) Have independent team for sales, maintenance and parts.

B. Other criteria:

a) Have sales and service network.

b) Have corresponding experience in automobile business.

c) Have favorable enterprise decision-making mechanism and achievements.

3) Selection Process of New Distributor

A. Communication

a) DFM provides the candidates with necessary introduction regarding the company.

b) The applicant provides Introduction of the Nation and the Company, Business License and Economic Statement.

c) Establishes steady communication channel.

B. Approval of the distributor candidates

a) DFM evaluates the distributor candidates.

b) DFM notifies the distributor candidate who is acceptable after evaluation.

c) Upon receipt of the notification, the distributor candidate shall submit Import Schedule, Showroom Construction Schedule, Network Construction Schedule, Yearly Ad. & Sales Promotion Schedule, Human Resource Schedule, and Spare Parts Purchase Plan.

C. Checking and accepting the distributor

a) Location.

b) Fund (loans agreement acceptable).

c) Team (interviews with full time general manager, sales manager and service manager).

D. Signing Distributorship Agreement