Attached files
Exhibit
10.6
AGREEMENT
ON SALES INCENTIVE OF REGIONAL
DISTRIBUTORS
OF DAMBON COMPANY IN 2010
Agreement
No.:____________
Party A: Jiangsu Dambon
Mechanical & Electrical Co., Ltd. (“Dambon”)
Tel:
Party B:
Tel:
In order
to further promote the sale initiative of the regional distributors of Dambon,
enhance the cohesion and teamwork of the regional distributors, actively adopt
the objective management system and standardize and improve the marketing
policies of Dambon. Dambon decides to carry out “sales incentive” policy among
its regional distributors. The parties hereby agree as follows with respect to
the sales incentive after mutual negotiation:
Article
1. Within
the territory of Chongqing municipality, Party B sells Dambon’s Products under
Party A’s brand. Party B, if only selling the products of Dambon, shall be
classified as Class A, and then Class B if Party B simultaneously sells products
of other brands.
Article
2. The
requisite conditions for Party B to obtain the reward are as
follows:
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1.
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Party
B shall sign this Agreement with Party
A;
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2.
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Party
B shall accomplish the monthly assignment stipulated
herein;
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3.
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The
dealer affiliated with Party B must sign with Dambon an Agreement on Rebate on Sales
for Franchise Stores of Dambon Products in 2010 with the signature
rate of up to 80%, namely, the sales volume of the franchise stores shall
account for 80% of that of Party B;
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4.
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Party
B shall observe the marketing (pricing) policies of Party A and the
dealers affiliated with Party B shall also comply with the relevant rules
of Dambon;
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5.
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Party
B shall have its own store, and the decoration of the store or the
exhibition of the sample products (the sample of the new products in
particular) shall be in compliance with the relevant rules of Party
A;
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6.
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Party
B shall fully settle the payment of the products with Party
A;
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1
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7.
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Party
B shall submit to Party A a written report showing the sales volumes of
the preceding month of the dealers affiliated with Party B prior to the
10th
of the current month; and
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8.
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For
Class B regional distributors, the sales volume of Dambon’s products shall
be no less than 70% than as is stipulated
herein.
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Article
3. Sales
Incentive Scheme
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1.
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Reward
for accomplishment of the monthly sales quota: for Class A regional
distributors who accomplish the sales objective of the current month, the
reward shall be given on the basis of the actual sales volume, to be
specific: RMB 1,000.00 for sales of less than 500 units; RMB 2,500.00 for
sales of more than 500 units but less than 1,000 units; RMB 5,000.00 for
sales of more than 1,001 units. For Class B regional distributors
accomplishing the sales objective of the current month, the reward shall
be given as follows: RMB 600.00 for sales of less than 500 units; RMB
1,500.00 for sales of more than 500 units but less than 1,000 units; RMB
3,000.00 for sales of more than 1,001
units.
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2.
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Reward
for over-fulfillment of the monthly sales quota: where the quotient of the
actual sales volume divided by the current monthly quota is more than
1.20, the reward is RMB 2,000.00; for the said quotient of more than 1.30,
1.40 and 1.50, the rewards are RMB 4,000.00, RMB 7,000.00 and RMB
10,000.00 respectively.
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3.
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Progress
Reward for the current month: for distributors accomplishing the monthly
quota for two successive months and undergoing the biggest sales growth
[calculation method: (the sales volume of the current month + the sales
volume of the preceding month) ÷ the quota of the current month], the
reward will be RMB 10,000.00.
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4.
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Reward
for biggest contribution of the current month: for distributors
accomplishing the monthly quota of the current month and undergoing the
biggest sales growth, the reward will be RMB 15,000.00. (Note: the rewards
set for the current month may be obtained
simultaneously).
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5.
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Quarterly
rolling reward: for distributors accomplishing the monthly quota of for
three successive months of one quarter, the reward will be RMB
10,000.00;
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6.
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Annual
comprehensive reward: a) for distributors accomplishing the monthly quota
of for twelve successive months of the year, the reward will be RMB
30,000.00. b) For distributors from top of the list down to the 5th in
terms of sales volumes, the rewards will respectively be RMB100,000.00,
RMB 60,000.00, RMB 30,000.00, RMB 20,000.00, RMB 10,000.00. c) for Class A
distributors participating in the examination of 2009, the one on top of
the list down to the 3rd in terms of sales increase [calculation method:
(actual sales volume of 2010- actual sales volume of 2009) ÷the annual
quota of 2010] shall be given rewards respectively of RMB 30,000.00, RMB
20,000.00 and RMB 10,000.00. (Note: the rewards set for the current year
may be obtained simultaneously).
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2
Article
4. Quota
for Party B
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1.
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The
principle for setting the quota: the quota shall be set on basis of the
average sales volume of the three successive months (October, November and
December) of the fourth quarter of 2009 and the actual market situation of
the region where the distributor is
located.
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2.
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The
specific quota for each month:
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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11
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12
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Total
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1,000
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600
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1,000
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1,000
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1,000
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1,000
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1,100
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1,100
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1,100
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1,200
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1,200
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1,200
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12,500
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Article
5. Method
to Grant the Reward
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1.
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Party
A may estimate the sales volume of the regional distributors of the
preceding month between the first day and the fifth day of the current
month and grant the reward between the 20th
and the 30th
day of the current month.
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2.
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If
Party A financially supports Party B in Party B’s decoration of the stores
as of January 2010, the reward for Party B shall be used to set off the
expenses for decorations.
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3.
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Party
A may deposit the reward directly into Party B’s bank account or use it to
set off the payment for Party A’s
products.
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Article
6. This
Agreement shall take effect on January 1st 2010 and expire on December 31
2010.
Party A: Jiangsu Dambon
Electrical Machine Co., Ltd.
Authorized Representative:
Wang Cunshen
Date: January 10,
2010
Party B:
Date: January 10,
2010
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