BACKSON SOAP INDUSTRIES

MOUNT SQAURE , SINGAPORE

22nd June, 20

Dear Sirs,

We thank you for your letter of 11th June. We are aware that owing to recent competition created by German firms, you are passing through a challenging stage and appreciate that you are still doing well with your sales. We, however, wish to inform you that this is a temporary phase and in the long run the quality of our goods and their competitive prices have to win the race. At the same time we fully realize that you have to incur some extra expenditure for improving your sales and it is but fair on our part to share the same with you.

A flat increase in commission by 2 1/4 % as suggested by you may not be workable as this would upset our accounts with other agents. However, to start with, we shall credit your account with $ 10,000 in the current year to enable you to meet extra expenditure on advertising and publicity. The position will be reviewed next year and adjustments made according to then prevailing circumstances.

We hope you will find this arrangement to your satisfaction.

Thanking you,

Yours faithfully,

Managing Partner