Top FAQ’s from
New Distributors

Do you offer Net Terms?
Do you offer Exclusive Territories?
Can we get Free Samples?
Do you offer Consignment programs?

(1)   "Do you offer Net Terms?"
"Yes, we do offer net terms and here is how our program works"....
- Net Terms are offered to accounts that have a proven, established purchasing history with S.W.E.AR;

- We set your net terms based on your purchasing history and payment history;

- In order to establish your net terms we will evaluate your purchases for the first 6 to 12 months;

- We look for: how often you order, how well you pay and the size of your order;

- Based on a minimum of 6 month evaluation we can project an estimation of your sales pattern & set up a net term
  account and the credit limit based on the pattern that you have established in your business;

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(2)   "Do you offer Exclusive Territories?"
"Yes, of course we offer exclusive territory, in fact that is our goal with our Distributors is to offer one or more exclusive territories."
- As we (S.W.E.AR.) lay the ground work towards building the brand recognition of our products, we will support
  each Distributor to successfully market our products and to use all of our available programs to help build product
  loyalty within their market territory. Based on that success....we have had the opportunity to carefully evaluate
  which Distributor has worked most aggressively and successfully with us to help build their market share of the
  USAgro products. As part of our review we will seek the following:
- Distributors who have kept their staff trained and motivated;
- Distributors who have maintained competent sales staff to service and build new sales;
- Distributors who have worked with us to spread the brand name of USAgro, along with building their name;
- Distributors who have maintained enough product in stock to service customers needs in a timely manner;
- Distributors who have eagerly made themselves available to work with our DRM team, whose job is to help build
  a stronger sales team for our Distributors;
- Distributors who have met their sales quotas, and have given us no concerns about payments;
- Distributors who have achieved success within their selected territory to open new markets.

From this evaluation method, we will find our strongest candidate with whom we will offer Exclusive Account...

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(3)   "Can we get Free Samples"
Yes, we do have a Free Sample Program and it is tightly controlled to protect our Importers who have an investment in building a strong territory for their USAgro product line I will explain how it works"...
We offer our "Free Samples" through our PILOT RUN PROGRAM. Our Pilot Run Program:
- Only allows “Free Samples” to Distributors who completed DAP’s & have a signed agreement on file;

- Is limited in the amount of “free samples” that we allow in the marketplace;

- Each Distributor will only be allowed just one Pilot Run for the length of their agreement;

To order through our Pilot Run program:
- The Importer will initially invest in their sample run;

- Pilot Run program will permit the one time exclusion of the $25,000 minimum policy;

- However, Importer will not be allowed to order more than $1,500 Pilot sample run;

- After the pilot purchase, Importer has 120 days in which to make their first full purchase;

- If full purchase is made within 120 day period they will receive full credit for the PILOT purchase;

- PILOT RUNS must be paid in full and in advance;

- Pilot Run fees do not include any transportation, custom, duties, tariff or document fees.

EXAMPLE:
- Importer request pilot run of $ 1,500 (usd);
- 65 days later Importer request first full order of $200,000;
- Importer will be only invoiced for $198,500 (usd);
- Since full order is less than 120 since Pilot Run was ordered. Importer will be given credit for Pilot Run,
  making Pilot Run the FREE SAMPLE.
"Why is our PILOT RUN PROGRAM so tightly regulated?"”
Too much sample & too much time are required in order to perform a total evaluation .....
- USAgro products are not a “one time use/ instant benefit” product. A single sample will offer no immediate
  benefit. USAgro products require a full season of use in order for each farmer to offer their most thorough
  evaluation;

- if we provided enough free product for each farmer for a full season, there would be a large amount of free
  product required by each farmer. Too many Importers will allow too many farmers to benefit & profit w/o
  paying;

- multiply this high amount of FREE SAMPLE to be used by each importer and each distributor’s customers, we
  would have to allow tens of thousands of liters FREE product to saturate each market place.

The problem with FREE SAMPLES...
There is NO FREE LUNCH!
- No company will give thousands of free samples of anything away for free. Importer does pay, and so does
  everyone else. It will be reflected in the wholesale prices that Distributors are given. Any successful business
  knows how this really works.

- We have been able to keep our wholesale prices low and steady for years because we strongly control our
  cost and that includes the cost and use of FREE SAMPLES. Even with the ever increasing cost of doing business,
  we have been able to reliably offer our Distributors the same low wholesale prices since 2004.

We will always protect our Importers and Distributors!
- Imagine if we allowed tens of thousands of FREE SAMPLES to float loosely around each marketplace;

- Now just imagine you are one of our SERIOUS Importers who have just invested hundreds of thousands of
  dollars in product with an aggressive and solid plan to in hopes to become an Exclusive Importer/Distributor and
  to build a market position in your territory. Yet everywhere your sales people visit, they find it impossible to sell
  our products to their established and new accounts because someone just left and offered the exact same USAgro
  product at prices so low that you could never compete. And because they can charge any low price they desire,
  you could not compete...all because they got our products for FREE!

  This can happen very quickly if we let free samples just flow freely throughout your marketplace. Needless to
  say,you will not be happy with your USAgro products, you would not be happy with us. We would lose money,
  we would lose our reputation & we would lose a valuable relationship with you.

This will never happen, because, we will always control FREE SAMPLES. And we will always protect our relationship with you!
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(4)   "Do you offer Consignment programs?"
"No. S.W.E.AR. International, will never offer products on any type of consignment. - USAgro products are not suitable for consignment sales".
- we could not control the quality control of any product that can be sold on spec; - USAgro products do have an
  expiration date;

- time to ship product & allow for ocean transport, time for sales & possible ocean time to return would greatly
  reduce the lifespan of the any returned product;

- the risk is too great for not receiving payment for goods sold;

- the risk is too great for not receiving product returned;

- the risk is too great for not receiving product back in the same unaltered condition.

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