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Partner Incentive

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Partner Incentive

Overview

The following table shows the framework of the incentive policy for 2015.

Margin

Rebate

Marketing Support

Channel Program

Performance Rebate

Specialty-
based Rebate

Joint Marketing Fund (JMF)

Market Develop-ment Fund (MDF)

Sales Rebate

Annual Catch-up

MBO Rebate

Applicable Incentive Programs

The incentive programs apply to Tier 1 partners (distributors and VAPs) and Tier 2 partners (gold, silver, and authorized partners).

Not all products are included in the incentive program. Huawei's List of Authorized Products Eligible for Channel Partner Incentives (LAPI) is included as an attachment to the sales letter to channel partners sent twice a year

Incentive Implementation Requirements Rebates

To receive rebates, a partner must meet the following requirements:

  • The channel partner's certification must be valid throughout the incentive program period.
  • The partner must meet or exceed the minimum sales performance requirement within the incentive period.
  • Tier 1 partners (including distributors and VAPs) must complete payment collection for orders within the incentive period. For JMF reimbursement, the channel partner must complete the activity acceptance.

Incentive Implementation Requirements MDF

To qualify for use of the Market Development Fund, a partner must meet the following requirements:

  • The channel partner must execute activities as required and complete acceptance according to the standards.
  • The channel partner must provide correct and valid corporate bank information and bank account.
  • The channel partner must provide original copies of invoices that comply with the local requirements or other documents that have the same effect as the invoices.

Detailed Incentive Program Rules

For Tier 1 partners (including distributors and VAPs), Huawei will provide the latest detailed rules in sales letters sent twice a year.

For Tier 2 partners (gold, silver, and authorized partners), Huawei will provide the latest detailed rules through emails sent twice a year, and will make the rules available on eChannel.

Incentive Implementation Requirements MBO Incentive

After executing specific actions and completing objectives, you will receive an MBO incentive. The amount of this incentive depends on your MBO score, which is calculated on a quarterly basis by your local Huawei branch. The incentive is issued to you after the incentive period ends.

Rules for Management by Objectives:

  • Applicability: distributors and VAPs
  • Assessment period: quarterly
  • Rebate period: six months; two times per year
  • Score on which the incentive is based: the MBO score of a channel partner is the average value of scores in both assessment periods of the incentive period.
  • Failure to achieve the objective or committing partner violations will reduce your MBO score.
  • MBO threshold: distributors and VAPs whose sales performance in each incentive period exceeds the threshold are entitled to MBO rebates.
  • The formula for calculating the MBO rebate is:X% of MBO score in the incentive period divided by 100
  • Note: X% is the MBO incentive percentage forecast by Huawei and released to partners at the beginning of each year.
  • Your MBO is issued as a Credit Note that can be used to decrease your accounts receivable