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2015 Business incentive agreement


Party A: Zhejiang Dayuan Pumps Industrial Co., Ltd.
Party
B:__________________________
Faced with increasingly fierce market competition, in order to raise party B positivity
of selling product of party A, enhance market share and consolidate cooperation
further. Both parties on the basis of the principal of equality, mutual benefit, and
voluntary to sign sales target and reward agreement of year 2015. Details as below:
1. Sales amount reward
On the base of two years average sales amount on 2013 and 2014 and escalate according to regional growth
situation, XX RMB would be as 2015 sales base for B. Set three divisions out surrounding the sales base.
On the end of year, A calculate reward amount as below method based on actual sales amount of B.
1.1 Annual sales amount is less than 90% of sales base, xx RMB, no sales reward.
1.2 Annual sales amount is higher than 90% of sales base( xx RMB) but less than
115% ( xx RMB), according to below list to calculate. Calculation formula is annual
actual sales amount multiply by reward ratio.
sales
figures

10-30

30-60

60-90

90130

130175

175220

220270

270330

2.3

2.6

2.9

3.2

3.5

3.8

4.1

480570

570670

670790

790950

9501150

1150

5.3

5.6

5.9

6.2

6.5

reward
ratio%
sales
figures

330400

reward
ratio%

4.4

400480
4.7

1.3 When the actual sales amount 115% above the base sales amount (more than XX RMB), , according to
the preceding paragraph give reward, then add an additional reward, which is calculated as follows: annual
actual sales (reward ratio + additional reward ratio).
Rewa
%
rd
rate

sales
(%)
figur
es
50

Over
rate
15-20

20-25

25-30

30-35

35-40

1.6

2.13

2.53

2.8

3.1

3.4

50-100

2.1

2.5

2.85

3.25

3.5

100-180

2.2

2.66

2.92

3.1

3.35

180-270

2.28

2.75

3.15

3.4

3.7

270-380

2.4

2.86

3.1

3.2

3.45

3.8

380-450

2.58

3.2

3.33

3.55

3.9

450-600

2.63

3.12

3.3

3.4

3.64

600-800

2.7

3.2

3.42

3.45

3.76

4.1

800

2.76

3.27

3.5

3.62

3.94

4.3

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3.6

2. Payment collection reward


2.1 When annual payment collection amount is no less than sales amount ( or no
debt), A will use fixed ratio of annual actual total collection give B reward. Calculation
method is: collection amount x corresponding reward ratio listed below.
2.2 Reward settlement based on actual received capital before closing account.
2.3 No payment collection reward if there is debt.
Capital return award criteria table
capital return

50

50100

100200

200350

350550

% reward
rate

0.3

0.5

0.65

0.8

0.9

550800
1

800
1.05

3 . Return and repair rate rewards


3.1. Return and repair reward refer to return goods rate based on annual total
amount which caused by product failure. To reduce loss for two parties, A encouraged
B to repair at local site and give award for outstanding achievements and make
penalty for poor maintenance. Award way is annual actual sales amount multiply by
corresponding reward rate listed below:
3.2 Due to As mistake and recall not take into return rate.
3.3 When return rate over 11%, end the cooperation.
3.4 Pumps which need repair or return need back to factory before November 30 th
2015. A will not receive pumps in December 2015. If dealers return pumps in
December 2015 can not enjoy return and repair rate rewards show on the table.
Award criteria retreat pump failure rates table
return
rate%

01

1-2

23.5

3.55

56.5

6.58

89.5

9.511

11

% reward
rate

2.
2

1.
7

1.3

0.9

0.5

-0.5

-0.9

-1.3

-1.7

4. Sales awards
4.1 Sales awards show as product price discount;
4.2 Annual sales awards deadline is December 29th 2015;
4.3 To encourage B, A will use estimate rate give B this discount in advance.
4.4 if Bs date (sales base, the growth rate, return the pump rate, return of funds) exactly the same
circumstances show in the table, maximize Bs benefits.
5. Return and repair rules
After A checked the returned pumps send by B, based on the production day and according to the following
standard to account the cost.
5.1 When production date is after 2014, under warranty period, no maintenance fee.
5.2 When production date is 2013, deduct 10% of pumps price as maintenance fee;
5.3 When production date is 2013, deduct 20% of pumps price as maintenance fee;
5.4 When production date is before 2011 (include 2011), A will not provide repair
0576-86441288 0576-86444168

service. If indeed need repair service will deduct 50% of pumps price as
maintenance fee;
5.5 The repair pumps price based on the current selling price (repair and return is the
same price), accessories also need take into account;
5.6 If the pumps lose it value to repair, deduct 70% of pumps price as maintenance
fee;
5.7 the first day of the next calendar year, the production date is automatically adjust
(for example: 2011 Change to 2012)
6. Operational risks
B shall not put the products in warehouse for long time, should be based on the principle of FIFO
operation. Due to Bs poor management, goods returned to A will not accept. If B indeed need As
assessment, A will charge fees (5% -40% ex-factory price of the pump). Due to the production and delivery
errors caused by A to B, B has the right to return to A. B shall not return accessories, unless wrong delivery.
7. Advertising
Bs advertising investment need As agreement. Advertising demand, shall apply to regional business
manager then regional business manager submit a written application to the department. If need reimburse
should provide written application and advertising contracts (include TV, walls, large-scale inkjet ads). All
the ads invoice should not be reimbursed after December 20th.
8. Product acceptance
B should advise A in writing( in three days after the goods received) if there is any problem, A should help
to check and solve the problems, otherwise, A will not admit those problems.
9. Regional distribution and fleeting goods punishment
Penalty for selling across region
Two parties are mutual agreed sales region, B much sale at designed region, could not sale across the
region. If the behavior verified by sales of A, A have right to order B to withdraw goods and would punish
1 to 3 times penalty upon good across amount. Otherwise, B is considered as breach of contract, at the
same time A would stop delivery goods to B. Total distribution qualification would be cancelled if goods
across action found again, no sales reward will be given, and B undertake all relative handling expenses
10. Dealers qualification
Bs dealer qualification should be annual audit by A.
A have the right to abolish Bs Distribution qualifications or reduced distribution area,
if significant drop in sales operations (Sales is lower than 20% of base sales) , high
annual return rate or engage in activities to damage to the reputation and the
interests of party A.
If A want abolish Bs Distribution qualifications (end the cooperation), need notify B in
writing at least one month in advance.
11. Account reconciliation and expenses
Party B must be complete checking annual accounting treatment before final settlement.
Party A will not confirm if reimbursement did not transmit to party A before December 20th.
Advertising, quality processing cost and other fee during the operations what company commit to
reimburse must be done before the end of this year's sales bonus settlement, other fees (including verbal
commitment of leaders at all levels) not take in to consideration.

0576-86441288 0576-86444168

12 . Zhejiang Dayuan Pumps Industrial Co., Ltd reserves the final


interpretation of this Agreement

13. This Agreement in duplicate, each party holds one.

2015 1 1

0576-86441288 0576-86444168

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