Common use of Rebate Calculation Method Clause in Contracts

Rebate Calculation Method. The rebate for Internet physical cards consists of three parts: local consumption rate, market share and channel manager evaluation. The weights of local consumption rate, market share and channel manager evaluation are 60%, 20% and 20%, respectively. i. e.: Rebate = Quantity shipped for current month × (rebate percentage obtained for local consumption rate + rebate percentage obtained for market share + rebate percentage obtained for channel manager evaluation) (1) Rebate percentage calculation method for local consumption rate Local consumption rate is the quotient obtained through dividing the consumption within the local region of Mimi cards sold by an agent during a certain period of time by the consumption of Mimi cards sold by the same agent during the same period of time. 60%£ local consumption rate<85% Base rebate percentage (4%) × X × 60% 85%£ local consumption rate Base rebate percentage (4%) × 60% Note: For the local consumption rate (X× 100%) ranges 0-60%, 60%-85% and 85-100% in the rebate percentage calculation table, the boundaries are temporary and determined by Taomee Network on the basis of the market conditions. Taomee Network will adjust the local consumption rate for every agent on a monthly basis. If the local consumption rate is found to be lower than 60% for one time, Taomee Network will alert the agent of this. If the local consumption rate is found to be lower than 60% twice, Taomee Network will warn the agent. If the local consumption rate is lower than 60% for three consecutive months, this Agreement will be regarded as unilaterally terminated by the agent. (2) Rebate percentage calculation method for market share Market share is the quotient obtained through dividing the consumption within the local region of Mimi cards sold by an agent during a certain period of time by the total consumption of Mimi cards within the region of the same agent during the same period of time. When the local market share of the agent is lower than a certain percentage, we may consider degrading or replacing the agent. 60%£ market share <85% Base rebate percentage (4%) × X × 20% 85%£ market share Base rebate percentage (4%) × 20% Note: For the market share (X× 100%) ranges 0-60%, 60%-85% and 85-100% in the rebate percentage calculation table, the boundaries are temporary and determined by Taomee Network on the basis of the market conditions. (3) Rebate percentage calculation method for channel manager evaluation The full score for channel manager evaluation is 100 marks, including the following parts: (a) Information collection evaluation: Agent shall cooperate with the relevant department of Taomee Network in collecting various kinds of related information. Agents at various levels must feed important information back to the Channel Department of Taomee Network as soon as possible. If any agent fails to report any related information in a timely manner or if it reports any untrue information which causes any serious impact, Taomee Network shall have the right to rescind the agent relationship at any time and, depending on the severity of the circumstance, deduct the agency fee. If any information provided by an agent is indeed valuable and positively promotes the development of Taomee Network, Taomee Network will grant the certain reward to the agent. (b) Work attitude evaluation: Distributor shall actively carry out related jobs and cooperate with Taomee Network in performing activities within the region for which it is responsible, including submitting routine work reports, collecting market information, organizing team building, etc. (c) Non-disclosure system evaluation: Distributor shall not, for any reason whatsoever, disclose any of Taomee Network’s business secrets to any third party, especially Taomee Network’s competitors, failing which it will be subject to severe penalty and, if the circumstance is serious, legal liability. (d) Routine work.