Franchise policy
　　A. Channel system：
　　1. The franchisers should have strong entrepreneurship, strong desire and expansion enthusiasm in oil paint industrial development.
　　2. The franchisers need to acknowledge our brand development philosophy and marketing operation mode, and make clear planning goal and development strategies according to market regions.
　　3. The franchisers must possess legal business place, and supply right certificate and effective business license of the place.
　　4. The franchisers should have a high effective team who specially takes charge of the project.
　　5. The area of business place should meet business requirements. Country level ≥20m2; city level≥40m2; city center≥60m2
　　6. The franchisers should be provided with sales experience and investment power
　　7. The lowest amount of the first ordering is RMB 30,000.

　　B. Projects
　　1. Should have the qualification of independent legal representative and long-term project resources.
　　2. Possess professional construction team and management experience and construction experience.
　　3. Set one terrace project supplier and exterior wall project supplier in every region.
　　4. The lowest amount of the first ordering is RMB 20,000.

　　support for starting business
　　be limited to the only agential specialty store
　　Decoration subsidy standard for specialty store

Area of specialty store	Decoration subsidy standard
≥60m2	50,000
≥40m2	35,000
≥20m2	20,000

　　Notes：
　　1. Decoration subsidy includes fees for door head, background wall, cultural wall and all kinds of decoration for specialty store.
　　2. Decoration result of specialty store must meet standard VI design of specialty store.
　　3. Decoration subsidy will be implemented after our planning department confirming decoration result and areas.
　　4. Decoration subsidy will be returned by product form.
　　5. Decoration subsidy fee will be calculated into annual sales fee.
　　6. Free supply: authorized copper medal, all kinds of qualified certificates, publicity disc, sample board, advertisement products and others.

　　Award policy
　　the policy is only suitable for new dealers in 2014. The old customers should be implemented by original plan. The following policies are only for reference; the details should take dealing contracts as the standard:

Completing actual sales volume	Return policy	Corresponding award
Completing RMB 300,000 for annual sales volume	Return 2% for completing; return 1% for no completing	Another RMB 2,000 if completing RMB 300,000
Above 300,000 to 500,000	Return 3%	Another RMB 3,000 if completing RMB 500,000
Above 500,000 to 1,000,000	Return 3.5%	Another RMB 5,000 if completing RMB 1,000,000
Above 1,000,000 to 1,500,00	Return 4%	Another RMB 10,000 if completing RMB 1,500,000
1,500,000 or above	Return 5%	Another RMB 15,000 if completing RMB 2,000,000

　　Note: the above policies can’t be accumulated repeatedly.