Dept: WEU Channel Sales Version: V1.0 WEU EBU Channel Program 2014

1 Go-To-Market Model: A 100% Indirect Channel Model Carrier Resale Partners (CRPs) and Global Partners (GPs) are incorporated into the certified channel partner system of the country they belong to and are managed centrally by the country. For CRPs and GPs that have signed a global framework agreement with Huawei, in principle, their local entities can apply for being certified as Value Added Partners (VAPs) in the country they belong to and are managed in the same way as local VAPs in terms of commercial authorization. After passing the certification, they are entitled to the incentive policy for VAPs.

2 Partner Program Key Benefits Key BenefitsDistributorValue Added Partner Authorized Reseller Gold PartnerSilver PartnerAuthorized Partner Access to Promotion  Huawei Deal Registration (HDR)  Special Pricing Quotation (SPQ)  Huawei Demo Program (HDP)  Sales Rebate  Specialty Based Sales Rebate  MBO Incentive  Joint Marketing Fund (JMF)  Partner Development Fund (PDF)  Training Fund (TF)  Funded Head  Sales Performance Incentive Fund (SPIF)  HUAWEI Trademarks  Account Management  Qualified Customer Leads  Access to Huawei Demo & Testing Equipment Pool  Eligibility to Purchase HiCare(Huawei Branded) Services  Eligibility to Purchase CoCare(Co-branded) Services   Eligible revenue procured from Huawei only  Eligible revenue from the specialized product family(ies) (with the valid Specialization certificate) and procured from Huawei Authorized Distributor only  3: Discretionary

3 Certification Standards Distributor

4 Certification Standards Value Added Partner + 5 Star CSP

5 Certification Standards Authorized Reseller + CSP

6 Certification Standards Certified Service Partner (CSP) Only

7 Channel Partner Certification and Authorization

8 Huawei Partner Specialization

9 Sales Rebate Schedule

10 Sales Rebate Ts&Cs for Distributor

11 Sales Rebate Ts&Cs for Value Added Partner

12 Management By Objectives (MBO) Incentive Schedule

13 MBO Rules for Distributor

14 MBO Rules for Value Added Partner

15 Joint Marketing Fund Schedule

16 Joint Marketing Fund Eligible Activities The JMF can be used to purchase demo equipment and support the employees of channel partners in participating in training after approval from the director of the Enterprise Business Dept of the region is obtained. Channel partners are prohibited from using the JMF to fund the following activities:  Purchase large-amount gifts; if the JMF is to be used to purchase door gifts or for lottery purposes in large channel marketing activities, the total amount of rewards cannot exceed 15% of the total budget of the activity.  Pay entertainment expenses. In principle, Huawei bears a maximum of 50% of the total amount of a JMF activity and the part exceeding the available amount is borne by the channel partners themselves. The amount applied for by the channel partners for one activity cannot exceed US$10,000. After approval from the director of the Enterprise Business Dept of the region is obtained, the reimbursement proportion and maximum amount reimbursed for each activity can be adjusted. The valid JMF amount for each incentive period must be used in 180 days. The JMF amount cannot be transferred.

17 WEU EBU Authorized Products Eligible for Sales Rebate, MBO and Joint Marketing Fund Incentives

18 WEU EBU Authorized Products Eligible for Sales Rebate, MBO and Joint Marketing Fund Incentives:

19 WEU EBU Authorized Products Eligible for Sales Rebate, MBO and Joint Marketing Fund Incentives

20 WEU EBU Authorized Products Eligible for Sales Rebate, MBO and Joint Marketing Fund Incentives

21 WEU EBU Authorized Products Eligible for Sales Rebate, MBO and Joint Marketing Fund Incentives

22 WEU EBU Authorized Products Eligible for Sales Rebate, MBO and Joint Marketing Fund Incentives

23 Specialty Based Sales Rebate Program (SSRP)

24 Scope and Incentive Amount of Products Eligible for SSRP The scope of products eligible for incentives are simple enterprise networking, UC&C, and IT products that are suitable for the independent sales of tier 2 partners. These products include low-end and middle-range box-shaped Ethernet switches, AR routers, network security, TP&VC, and storage products. The specific products and unit incentive amount are as follows:

25 Scope and Incentive Amount of Products Eligible for SSRP_contiuned The scope of products eligible for incentives are simple enterprise networking, UC&C, and IT products that are suitable for the independent sales of tier 2 partners. These products include low-end and middle-range box-shaped Ethernet switches, AR routers, network security, TP&VC, and storage products. The specific products and unit incentive amount are as follows:

26 Marketing Development Fund (MDF)  MDF is a special fund that is set up to support the market activities of channel partners so as to attain sales and market targets  The MDF budget is prepared annually, granted on a quarterly basis, and managed flexibly.  The upper limit of the annual budget for MDF excluding training fund shall be 2% of Channel Sales Net to Huawei Revenue target  The budget for the TF is listed separately and used for training only.  The use of MDF shall be decided by country

27 Rules for Managing the Use of the MDF

28 PDF Eligible Activities and Claim Requirements

29 PDF Eligible Activities and Claim Requirements _ continued

30 Huawei Demo Program (HDP)  Only certified channel partners (Distributors, VAPs and Authorized Resellers) are eligible  Can’t be stacked/combined with any other programs/discounts offered by Huawei  HDP products may not be resold until one year after purchase  The maximum unit per product/bundle per partner as stated in the Huawei Demo Program (HDP) Eligible Products and Discounts file and subject to Huawei approval  In principle, the channel partners that purchase demo equipment from Huawei must be capable of installing and commissioning Huawei equipment  The products with quality problems shall be handled in accordance with the Dead on Arrival (DOA) process or the Return Material Authorization (RMA) agreement. In other cases, the demo equipment cannot be returned or exchanged after PO placing  HDP revenue excluded from actual rebate calculation  Huawei is entitled to validate presence and appropriate use of HDP products  The HDP quote is valid for 3 months from date of HDP approval

31 Huawei Deal Registration (HDR)  Only Value Added Partners, Authorized Resellers are eligible  The minimal value of the deal registered is US Dollar 10,000 or higher and the maximal value of the deal registered is US Dollar 500,000 both based on Huawei List Price  The Registration is valid for 6 (six) months and the registration will expire automatically without further notice  Partner can request Huawei to extend this period, and Huawei may extend the period on a case-by- case basis at its sole discretion for a period of maximum 3 (three) months per extension and with a maximum of 2 (two) extensions, hence a total maximum extension of 6 (six) months, and conditional to the Partner actively working on the deal and providing satisfactory evidence thereof to Huawei upon Huawei’s request  As of Registration of the deal, the Partner shall update Huawei in writing as a minimum every 2 (two) weeks on the progress of the deal

Copyright©2012 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice. HUAWEI ENTERPRISE ICT SOLUTIONS A BETTER WAY