Rotovac Distributor Policy

1.  The new Rotovac 360i is sold exclusively through distributors to the
professional industry in all areas of the country where we have “Active
Stocking Distributors”

Definition of Active Stocking Distributors

• Must have a 360i in stock on showroom floor
• Sell an average of at least 2 per month
• Effective follow up on leads we furnish

Active Stocking Distributor Benefits

• All leads from professional industry will be furnished
  directly to distributor
• Distributor will receive commission on sales made to
  professional industry that are in distributor’s defined territory. This
  includes all factory direct sales also.

2.  If a distributor does not sell the minimum number of 360i’s to
retain their Active Stocking Distributor status, they become Semi Active
Distributors

Definition of Semi Active Distributors

• Must have a 360i in stock on showroom floor
• Sell an average of at least 6 per year

Semi Active Distributors Benefits

• Distributor will receive full commission on any and all 360i
  sales if they had actually demonstrated the machine to the prospect. In
  other words, if the prospect buys direct from Rotovac after being
  demonstrated by distributor, the distributor will still receive the full
  commission just as if they sold it themselves.

3. If a distributor does not sell the minimum number of 360i’s to retain
their Semi Active Distributor status, they become Barely Active
Distributors

Definition of Barely Active Distributors

• Sells less than 6 per year
• Does not stock or demonstrate the 360i and yet wants the
  commission on any and all machines sold in their huge area.

Barley Active Distributor Benefits

• We still give you the distributor price

TERRITORIES

In order to protect Rotovac distributors from being undersold after they
have taken the time and effort to demonstrate, all Rotovac distributors
are authorized to sell only in their own geographic area. Sales made
outside of a distributor’s area must be pre-approved by Rotovac
Corporation. We ask that distributors do not advertise discount pricing
or infer discounts with “Call us for the best price” type of message in
any forum which goes beyond their own defined geographic area
(internet). Rotovac distributors need to be able to demonstrate, train
and service without the fear being undersold by someone that is simply
broadcasting a lower price.