The Company's range of Point of use Products namely, Non Electric Water Purifier, Double Filter, Contaminant Removers, Ultra- Violet Systems, Reverse Osmosis Systems shall be marketed through Distributors and Direct Sales Agents (DSA' s).

AREA

The Company proposes to appoint Distributors in each territory segment, which could include a District or a population segment of 20 lacs. The area will be clearly specified by the Company.

SECURITY DEPOSIT

Each Distributor shall deposit Refundable Security with the Company. This shall not bear any interest and shall be refundable within 7 day from demand, subject to such deductions for damage or non-return of Company's material lying with the Distributor at the time of cancellation.

CONSIGNMENT STOCK

The Company shall give to the Distributor Stocks on Consignment basis. The Consignment Stocks shall be sold to the Direct Sales Agents (DSAs) or directly to customers at prices fixed by the Company from time to time. A periodic Statement of Stock and Sales shall be submitted to the Company and a complete account submitted to the Company.

INSTALLATION

The Distributor shall install the stocks sold by the DSAs in its territory. The Company shall train the Distributor in the procedures for installation of the products of the Company.

AFTER SALES SERVICE

The Distributor shall provide after sales service on all products of the Company installed in his territory either directly or through the DSAs.

TRAINING

The company shall provide complete training to the Distributors in the Sales, Installation and After Sales Service of the products of the Company.

SALES MATERIAL

The company shall provide the Distributors reasonable quantities of catalogues as the Company deems fit. Larger quantities may be supplied by the Company at cost price.

ADVERTISEMENT

The company shall undertake to advertise the products in the National media. Such media includes newspapers, magazines, radio, TV as the Company may think appropriate. The Company's decision in the selection of media is final. Half the cost of such advertising shall be borne by the Company and the balance half shall be borne by all the Distributors and DSAs of the Company.

For advertisements of the company’s products in the local media (including local newspaper, cable TV, local Radio etc.) half the cost of advertising shall be borne by the Company and the balance half shall be shared by all the Distributors and DSA’s of the area.

PROMOTIONS

The Company shall undertake such promotions like Road Shows, Product shows, etc. in the area of the Distributors as it deems fit and the Distributors and DSA of the area shall take active interest in such promotion.

PRODUCT PRICES

The Distributors and DSAs shall sell the products of the Company at the prices as set by the Company from time to time.

DISCOUNT/ COMMISSIONS

The Distributor shall be entitled to Commission, as fixed by the Company. Of the above commission the distributor shall extend to the DSA a Commission of the Sales Price.

The Distributor shall also make sales to the DSAs of bulk packed products at such discounts as may be fixed by the Company from time to time.

PROCEDURE

The Company shall supply the Distributor goods on Consignment basis up to the value of the Security Deposit or such additional stock as the Distributor requests by additional security deposit. The Distributor shall dispose of the stock either directly through his own sales network or through the DSAs as appointed by the Company. The Distributor shall secure the payment for such sales on delivery.

The DSAs shall secure orders in the name of the Company on the Order Form of the Company. The order form shall be sent to the Company or its authorized Distributor. The Distributor shall with in a reasonable time arrange to deliver the ordered products and install the same at the premises of the customer as its own cost.

Alternately the DSA may procure the goods in bulk packaged form from the Distributor at such discounts as may be fixed by the Company.

PAYMENT TO COMPANY

The Distributor shall deliver the goods to the customer or the DSA against payment and shall render to the Company a complete account of the sales of the consignment Stock. The Company shall then issue to the Distributor the payment of Commission on the Consignment Sales.

The DSA shall secure the payment form the customer as advance along with the order before the delivery and installation of the equipment at the customers premises. In case any cheque is returned unpaid by the Customers Bank the DSA shall be liable for the payment and such unpaid amount will be adjusted with the security held by the Company.

TARGET PERFORMANCE

The minimum target for each Distributor shall be fixed by the company.

INCENTIVES

The Company may at its option offer such additional incentives and promotion schemes as it deems proper from time to time