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Microcap & Penny Stocks : ALYA Cost cutting system via software as well as security -- Ignore unavailable to you. Want to Upgrade?

To: John S. Baker who wrote (1361)	7/21/1998 3:04:00 PM
From: Willing2	Read Replies (1) \| Respond to of 2534

Distributor Agreements: I do not know what the details of ALYA's distributor agreements are. Typically the distributor agrees to sell $XXXX worth of product in order to receive a purchase price discount of Y%. If the agreed upon minimum purchase amount isn't met, the distributor is billed for the discount difference at the end of the agreement term (usually a year). This doesn't happen very often for a couple reasons: the minimum purchase agreement is usually the least the distributor can negotiate and still get a good discount; and there is usually an additional discount if a the next higher level of product purchase is achieved. The VARs I was familiar with protected themselves with the minimum they felt comfortable that they could sell and drove their sales force like mad if there was any chance of getting to the next level.