Instruction of purchasing discount Demo device for H3C partner in 2008

Purpose:

1.         To improve partners' understanding of H3C network products and their familiarity with H3C technologies through this program, to help partners to be more efficiently in selling H3C products.

2.         To enable partners to be more confident and convincing in promoting H3C products through partners' field use of H3C products.

3.         To strengthen the partnership between H3C and partners.

Applicable object:

This document is applicable to all certified partners of H3C in all representative offices of H3C outside China.

Content:

1.         Scope of purchase of Demo devices: Partners should choose the solution to be purchased according to the Summary List of Demo Packages and the solution cannot be splited.

2.         For details on the solutions available for Demo devices and the prices, refer to the Summary List of Demo Packages.

3.         Total sum of the Demo devices that can be purchased per year: No more than List Price USD 150K [the validity period is 12 months].

4.         Demo devices can be resold six months later after being put into use.

5.         The discount purchase program of Demo devices does not cover the services product. Demo devices only have the basic warranty service.

6.         Means to purchase Demo devices: An AD/ACPD can directly place an order to H3C. The ACPs or CPs can entrust the purchase to the AD or place an order to H3C directly by using the H3C Demo PO Template.

7.         The orders revenue will be counted in the performance results of partners after delivery but the Stock Rotation policy does not apply to them.

Note:

1.         Partners can purchase the products included in the Summary List of Demo Devices at the discounted prices and install them at their own laboratories or use them for demonstration.

They can use the Demo devices they purchase from H3C for the following purposes:

l           Lab use

l           Solution demonstration

Partners shall not use the Demo devices they purchase from H3C for any of the following purposes within six months after the purchase:

l           Providing managed services for customers

l           Constructing networks for Internet telecommunication operators

l           Using Demo devices as spare parts in a maintenance contract

2.         The Plan for Discount Purchase of Demo Devices is only applicable to the hardware products of H3C and does not cover the service product H3Care.

3.         All the orders submitted by partners must be reviewed and approved by H3C.

Flow chart:

Process Description:

1.         Certified distributor: A partner that has been certified by H3C and signed a formal agreement with H3C. Certified partners include ADs, ACPDs, ACPs, and CPs.

2.         Review: The International Channel Management Dept. is responsible for organizing the review.

3.         Order reception: If the order is placed by an AD or ACPD, it is processed according to the trade terms currently effective. If the order is placed by an ACP or CP, the Commercial Dept. can accept the PO and shipment would be made after the payment is collected based on the trade term Exw2000.

Activity Rule for Certified Partners of H3C

l           A partner must fill in a Demo Application Form for any purchase request it submits to H3C. The order can be executed only after the Demo Application Form is approved by the related departments of H3C.

l           A partner can entrust the order for discounted Demo devices to the AD, or can directly place an order to H3C by using the H3C Demo PO Template.

l           The purchase order entrusted by an ACP/CP through AD to H3C will be counted in the performance result of AD. The AD can benefit the quarterly rebate from such orders.

l           A partner shall not return the ordered Demo devices but can resell those products six months after the purchase. H3C shall be entitled to check the usage of the Demo devices sold to a partner within six months after the partner purchases such Demo devices.

l           An order approved by H3C is irrevocable and not modifiable once it gets valid.

l           H3C shall reserve the right to change this promotion program at any time.

H3C International Channel management Department.

2008-05-20

Attachments:

1.         Demo Application Form

2.         Summary List of Demo Packages

3.         H3C Demo PO Template for ACPs/CPs

4.         H3C Demo Package Guide