INFORMATION MANUAL

Welcome to the ConServ Flag Co. Representative Manual Policies and Procedures 1003 Illinois Street P.O. Box 649 Sidney NE 69162

Phone 308-254-4720 Fax 308-254-2419

Toll Free Phone 888-369-7636

Toll Free Fax 888-302-8812

email: conservflag@conservflag.com

Website: www.conservflag.com SERVING: · GOVERNMENT · CORPORATE AMERICA · EDUCATION · SMALL BUSINESS · CIVIC ORGANIZATIONS · PARKS · HOMES · AND MORE



Table of Contents Introduction The Vision Independent Contractor Status Becoming a Representative Sales Career No Purchase Required Other Products No Exclusive Territories Indemnity Agreement Sales or Transfer Termination by Company Termination by Representative Record Keeping Earned Commissions Commission Cycle Income Claims Payment Policy Partial Invalidity Waiver Amendments Purchases by Representatives Cut Price Policy Bonus Program Prospecting The Presentation Making Appointments Close the Sale Communication with Company Sales Tax Accounts Status Special Quotes



INTRODUCTION We would like to take this opportunity to welcome you to ConServ Flag Co. Conserv Flag Company is a ready made flag and banner as well as all kinds of flagpole company, marketing many different products through retail ,catalog, internet, and independent sales representatives. The "policies and procedures" herein are applicable to all independent representatives of the company.

ConServ Flag Company is your partner in business. Our job is to provide you with the support you need to be successful. By choosing to join us, you took the first step of developing a business of your own. We provide you with catalogs, sales aids, brochures, flyers, literature, order forms etc. In addition we do the research necessary to provide you with an extensive product line, coupled with good service and competitive prices to help you make a sale. We pay our sales representatives generous commissions for products with high demand and repeat business.

We put this Manual together to help you take your first steps in the right direction. It contains information on reading catalogs, writing an order, prospecting as well as making the presentation. We feel it's a great tool to help you get started. The missing ingredient is your own personal goals. What do you want to accomplish? There are sales representatives in this business that make high incomes, while others choose only to supplement their present incomes. The choice is yours, and ConServ Flag Company is here to help you accomplish your goal.

THE VISION

ConServ Flag company is dedicated to provide Premier Service and distinct Relationship Advantages for our product sales representatives and their customers.

Our Guiding principles are: · Working together as a team · Nurturing relationships with sales representatives, each other and our suppliers. · Developing new opportunities with our sales representatives Through this program, the possibilities can be unlimited. We invite you to share our vision and to help in achieving our goals. We wish you the best of luck. INDEPENDENT CONTRACTOR STATUS

As a ConServ Flag Company sales representative, you are an independent contractor. You are your own boss. This means we don't require you to comply with any strict guidelines on how, when and where you sell our products. The only thing necessary for you to sell through ConServ Flag Company is your ability to sell these products. You are running your own business, so you decide what to do and how it is done. You decide what hours you will work, whether it is full or part time. Customer calls can be made in person or by telephone.

Every independent sales representative develops their own selling habits. We don't provide formal training nor require reports to us on a regular basis. This manual , however, was created to help you with some of the basics and to get you started in the right direction.

You are paid on a strictly commission basis, with commissions paid based upon the specific orders written. Your business profit realized is entirely up to you. You will receive a yearly 1099 statement, which will show the commissions earned for tax purposes. Any business or travel expenses incurred are your responsibility. Expenses you incur in your business may be tax deductible. We suggest you consult with your accountant on these matters.

ConServ Flag Company is committed to providing the best line of flags, banners and flagpoles available to assist you in servicing your customer base. As an independent contractor, you are free to represent any other type of product to compliment our line in satisfying all of your customer needs.

We feel our service and support will insure a continuous relationship with ConServ Flag Co. However, as an independent contractor, you have the ability to terminate our relationship at any time.





BECOMING A REPRESENTATIVE 1. A representative is a person who has completed an Independent Representative Application and Agreement and has been accepted by the company as a representative. Each applicant is required to have a Federal I.D. number or a Social Security number. Representatives will be assigned their own identification number with the company. ConServ Flag Co. reserves the right to accept or reject any application. 2. A partnership or corporation may be a representative. However, no individual may participate in more than one representative name and ID number without an approval from the company. 3. Each applicant becomes an independent representative of ConServ Flag Co. and is not a purchaser of a franchise or a business opportunity. No employer/employee relationship, agency, partnership, or joint venture exists between ConServ Flag Company and the independent sales representative. 4. All representatives are responsible for paying local, state, and federal taxes due from earnings of commissions generated. 5. Each representative who's earnings are at least $600.00 (six hundred dollars) for the year will be provided with an IRS form 1099 6. Each representative is encouraged to set up his/her own hours and to determine his/her own methods of sale, so long as he/she complies with the "policies and procedures" of the company. 7. All representatives shall conduct their business honestly and fairly. Deceptive, misleading or unethical practices by any representative will be grounds for termination of agreement. SALES CAREER You are about to embark on a career in sales with the ConServ Flag Co. Your goal may be to develop your ConServ Flag Company business into a full time career or you may be satisfied with a part time income. The choice is yours, and ConServ Flag Company is willing to help you. You have to make the decision. With the ConServ Flag Company, you are an independent sales contractor. This means you are a self employed business person. You are not an employee of the ConServ Flag Co. No one will tell you how many hours to work or require you to fill out weekly activity reports. Also, no one will put a limit on how much you can earn. With commissioned sales, you are paid for what you do. It doesn't matter what race, religion, age or gender you are, if you make the calls and make the sales, you will determine the amount of income you make. There have been people in the industry who have never made anything....to people who make high incomes. To be successful in your business is to keep the needs of your customer as a top priority. You will build your business on repeat orders. If you keep their best interest in mind, they will realize that and continue to do business with you for years to come. As you continue to grow, you will develop solid business relationships with your customers. Some of these business relationships may even develop into friendships. When this happens, you will start to reap the rewards other than commissions. This is a fun business that rewards you in direct proportion to your efforts.

NO PURCHASE REQUIRED

No person is required to purchase ConServ Flag Co. products, services or sales aids. No person is required to pay any charge or fee in order to become a sales representative. The company suggests a starter kit be purchased in order to help the representative start his or her business.

Recommended starter kit List price 1 3x5' Nylon US Flag $25.00 1 3x5' Cotton US Flag $25.00 1 3x5' Poly US Flag $35.00 1 4x6' Endurance US Flag $49.00 1 3x5' Nylon State Flag $29.00

Catalogs Flyers Order Forms

Total List Price...............................................$163.00 Representative Cost at 18% Discount.........$133.66 S&H................................................................ $6.95 Net Amount $140.61 The starter kit represents the different types of flag fabrics. These items could be sold at a profit or if you choose you could return any or all of the items in their original condition for a full refund. OTHER PRODUCTS

Representatives are not restricted from participating with other companies.

NO EXCLUSIVE TERRITORIES

There are no exclusive territories held by any sales representative of ConServ Flag Company, and no representative shall indicate otherwise.

INDEMNITY AGREEMENT

Each and every representative agrees to indemnify and hold harmless ConServ Flag Company, it's officers, agents, and directors against any claims, demands, liability, loss, cost, or expense including, but not limited to attorney's fees.

SALE OR TRANSFER

A representative may not sell, assign, or otherwise transfer his/her business, marketing position without written approval by the company. TERMINATION BY COMPANY ConServ Flag Company reserves the right to terminate any sales representative at any time for cause when it is determined that the sales representative has violated the provisions of the Independent Representative Application and Agreement, including the provisions of these "policies and procedures" as they may be amended or the provisions of applicable laws and standards of fair dealing. Such involuntary termination shall be made by the company at it's discretion. Upon an involuntary termination, the terminated representative agrees to immediately cease representing him or her self as a sales representative. Where applicable state law on termination of a sales representative is inconsistent with company policy, such state law of termination procedures shall be in force.

TERMINATION BY REPRESENTATIVE

The Representative Application and Agreement may be canceled at any time and for any reason by the sales representative. The sales representative must submit his/her resignation in writing to ConServ Flag Company.

The company will repurchase any products and sales aids that are currently marketable and in sellable and in original condition, minus a 10% restocking fee, if returned within one year of purchase.

RECORD KEEPING

ConServ Flag Company requires all sales representative to keep complete and accurate records of all their business transactions and promotional activities.

EARNED COMMISSION

Representatives will earn commission on net sales as follows:

All flags and sets on our website at the rate of 18% Exclusions: Commercial Flagpoles earn 11% Any Flag 30x50' or larger earn 11%



COMMISSION PAYMENT CYCLES

ConServ Flag company has chosen to reward it's sales representative as quickly as possible by creating bi-weekly commission cycles. All sales orders must be received, with payment, by 5:00 PM (Mountain Time) on Friday of each week to be processed as a commissionable sales order for that week. The commissions will be computed for the qualifying customer orders received, then checks will be mailed a week later.

Commissions for orders received and processed on open account, will be paid when customers make payment in full.

Virtually all our products are featured and available on our website. Sales representatives can process all sales orders on our website online by using any major credit card for payment.

If customer credit card used for sales order payment, the commission will be computed for the qualifying customer order received, then checks will be mailed to the representative according the commission payment cycle plan.

If the representative uses his/her own credit card for payment when customer order is placed and processed online on our website, the sales representative will be able to use his/her own code assigned by Conserv Flag Company to collect the full amount of commissions instantly.

INCOME CLAIMS

Income projections, including those based solely on mathematical projections without regard to probable sales success, will not be made to prospective representatives. The income possibilities are substantial enough without having to exaggerate or misrepresent the potential.

PAYMENT POLICY

Customer order pyments must be made out to ConServ Flag Company and sent directly to the company along with the company order form. Checks, money orders, major credit cards are acceptable forms of payment for immediate order processing.

Open account terms of net 15 days are extended to schools, government agencies, pre-approved accounts or satisfactory rated by Dunn & Bradstreet.

PARTIAL INVALIDITY

Should any portion of the "policies and procedures" of the Independent Representatives Application and Agreement, or of any other instruments referred to herein or issued by the ConServ Flag Co be declared invalid by a court of competent jurisdiction, the balance of such ruled, applications or instruments shall remain in full force and effect.

WAIVER

ConServ Flag Company never gives up it's right to insist on compliance with these rules or with the applicable laws governing the conduct of a business. This is true in all cases, both specifically expressed and implied, unless an officer of the company who is authorized to bind the company in contracts or agreements specifies in writing that the company waives any of these provisions. In addition, anytime the company gives permission for a breach of rules, that permission does not extend to futures breaches. This provision deals with the concept of "waiver", and the parties agree that the company does not waive any of it's rights under any circumstances short of the written confirmation alluded to above.

AMENDMENTS ConServ Flag Company shall have the right to amend these "policies and procedures" in such ways as it deems necessary

PURCHASES BY REPRESENTATIVE

When you first become an Independent Sales Representative for ConServ Flag Company, you are authorized to purchase products and retail those products to customer at a profit. The main function the Representative will have to have is to make ConServ Flag Company's products available to the customer utilizing his/her personal product experience. When you purchase products at Representative cost and sell at retail, the difference is profit and it's all yours.

CUT PRICE POLICY

There may be a time, when on a sales call, you run across a price sensitive situation. You must remember you are providing a service and the listed published prices are fair, competitive prices. However, maybe your customer needs a certain item, but also has only a certain amount budgeted. You may offer on the spot discounts off published list prices on any order. ConServ Flag Company will honor those orders under the following guidelines:

Order size at Discount Representative Published Prices allowed Commission % Normal Commission 18% $100-$500 5% 15% $501-$1000 7.5% 13% $1001 and up 10% 12% Discount prices mean this is the lowest price level ConServ Flag Company will accept as far as profits are concerned. This policy gives you the flexibility in the field to offer a discount and maintain a high level of commission for sales representatives. Remember, when a price cut or discount is offered to a customer, what you are really doing is cutting the profits on that order. A discount or a price cut really means the sales representative, and ConServ Flag Company, are both giving up part of their profits to offer the customer a better selling price.

Excluded from the cut price policy are commercial grade flag poles and any flag 30x50 ft and larger. BONUS PROGRAM

Each year ConServ Flag Company offers a generous Bonus Program which is paid over and above all regular commissions earned during the year. It is designed to reward those who concentrate on profitable sales and encourage growth in sales volume.

Or bonus rate is based upon volume and pays on all orders processed. A minimum of $25,000 in sales entered during the sales year, beginning January 1 and ending December 31, qualifies a representative for participation. A representative must be active with our product line throughout the year to qualify. The Bonus is as follows:

$25,000 Bonus of $250.00 $25,001-$50,000 Bonus of $250+2% of amount above $25,000. $50,001-$100,000 Bonus of $750+3% of amount above $50,000. $100,001 and up Bonus of $2,250+4% of amount above $100,000 PROSPECTING Most of our products are featured and available on our website. Prices published on our website are the prevailing prices. Virtually all orders could be processed on line on our website. Representatives need to get familiar with our website and how to locate products, quote prices and how to write and process a customer's order. Catalogs, flyers, brochures, order forms will be furnished to help in that process. The next step is to make the call. Before you make that call you need to know who you will be calling on. We suggest at this point you begin by writing down your prospect list.

PROSPECTS

First of all you must identify your prospects. Where you see a flag flying, there is a potential customer. The following is a partial list of prospects. Apartment complex Amusement parks Auto dealers--New and Used Banks Bowling centers Business developments Camp, Campgrounds Churches Commercial Buildings Community Centers Clinics, Medical Centers City Offices Civic Clubs and Organizations--i.e. American Legion-Country clubs-Eagles-Elks-Jaycees- Knights of Columbus- Lions- Masons- Shriners- VFW. Carnivals Courthouses Judges Chambers Colleges & Universities Community Colleges Conference Centers Consulate & Foreign Government Representatives Convenience stores Convention facilities County Government Buildings Department stores Estates Factories Factory Outlet Stores Fairgrounds Federal Government Buildings Funeral Homes General Contractors Golf Courses Post Offices Guest Ranches High Schools Hospitals Hotels-Motels Industrial Developments Corporate Headquarters Manufacturing Facilities National Monuments Office Buildings Parks-City, County, Public Police Departments Race Tracks Religious Organizations Resorts Rest Homes Restaurants-Family-Fast Food Chains Retirement Communities Schools—Private & Public Sheriff Departments State Government Supermarkets Shopping Centers and Malls Truck Dealers Truck Stops Universities Veteran and Military Organizations

Hopefully now you should have a good start on your prospect list. Remember to continually add to the list. A prospect list is never meant to be finished.

PRODUCT CATEGORIES

OUTDOOR US & STATE FLAGS INDOOR & PARADE FLAG AND SETS ACCESSORIES HISTORIC, SPORT & CORPORATE FLAGS CUSTOM FLAG AND BANNERS FLAGPOLES- RESIDENTIAL AND COMMERCIAL

THE PRESENTATION

Now you are able to develop your own prospect list, the object is to take those names off the prospect list and put them on your customer list. By getting in front of your prospects and telling your story of how you can help them, you will begin to develop customers. Honesty and sincerity goes a long way in developing business relationships. By operating with a high level of integrity, you will have success for years to come.

MAKING THE APPOINTMENT There is no right or wrong way of making appointments. Some sales representatives work only with prearranged appointments, others simply cold call on prospects and make presentations. The key is be considerate of your customers time. If you make a cold call, the first step is to find out who the decision maker is. It may be the purchasing manager, the marketing director, the president, or in the case of smaller businesses, the owner.

CLOSE THE SALE

The close is one of the most fun and possibly, one of the most exciting parts of sales. It's rewarding because as the customer is buying, you realize you did your job and your customer will benefit from you doing your job. Don't be afraid to ask for the order. We're not in a high pressure sales business. If you can show the benefits, closing should be easy.

SALES TAX

Sales tax is required to be added to the customers invoice where applicable. The majority of our sales are taxable. If the items purchased are for "re-sale" or tax exempt, this should be indicted on the order form. A copy of your customers' resale or exemption certificate should be enclosed with the order.

ACCOUNTS STATUS

Occasionally, a summary of past due accounts will be sent to you. This summary shows the same information that was sent on the customers invoice. This is information that may be important for you to know, should the customer have a question. Many times a follow up call will help to clear the accounts status.

SPECIAL QUOTES Special quotations, involving custom made items or stock items involving larger quantities, can be obtained by contacting the Pre-Sales Department. Be sure to clearly state all specifications to be considered on the quote. Quotations must be in writing to be binding. Quotations handled by phone are not binding but are subject to review and adjustments at the time the order is received.

Complete Custom made quote requests fully and accurately with all the specifications. Art work is required in almost all cases, with placement of the order.

GENERAL INFORMATION

Write up an order:

It is important to fill out the order form completely and accurately. It is simple and self explanatory how to write up an order. A quick check will ensure the orders get through correctly.

The preferred and most accurate and efficient method is to process customers order on line on our website.

You may also mail or fax completed orders for prompt processing.

Communications: ConServ Flag Company 1003 Illinois Street PO Box 649 Sidney NE 69162

PHONES: 308-254-4720 Toll Free 888-369-7636 Toll Free Fax 888-302-8812