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U.S. Lenovo 2008 Channel Programs Overview

U.S. Lenovo 2008 Channel Programs Overview. July 1, 2008. Key Programs Summary. 2008 New Customer Bonus Program (LEN 08-209) Receive a 4% rebate for selling eligible Lenovo product to an approved Lenovo New Customer. No cap on earnings. New Customer Acquisition (LEN 08-410)

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U.S. Lenovo 2008 Channel Programs Overview

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  1. U.S. Lenovo2008Channel Programs Overview July 1, 2008

  2. Key Programs Summary • 2008 New Customer Bonus Program (LEN 08-209) • Receive a 4% rebate for selling eligible Lenovo product to an approved Lenovo New Customer. No cap on earnings. • New Customer Acquisition (LEN 08-410) • Provides aggressive pricing and customer-ready eflyers that can be used by authorized Solution Partners to win new business. • Partner Network Incentives Program: Business Partner Bonus Program (LEN 08-234) • Bonus of up to $2,500 on purchases or sales of TopSeller (Think and 3000) systems during the quarter. • You must purchase $1,000 of options/services in order to qualify for the program ( monitors and 3rd party options do not count towards $1,000 ) • Partner Network Incentives Program: Premium Level Lenovo Advocate Bonus (LEN 08-234) • Access to additional funding up to $10,000 per quarter for naming a Lenovo Advocate. • Advocate meets minimum education requirements, participates in education calls, assists in creating quarterly forecasts, and acts as a focal point within their organization for Lenovo. • Partner Network Incentives: Premium Quarterly Growth Bonus Program (LEN 08-234) • Premium Partners can earn up to 0.5% rebate on Lenovo sales for achieving growth targets on Lenovo Products. • Achieve Level 1 Target(s): Earn .25% of sales of qualifying sales • Achieve Level 2 Target(s): Earn an extra .25% of qualifying sales • 2008 Technology Access Program (LEN 08-210) • Discounts of 35% on up to 8 units per quarter for Solution Partner - Resellers to purchase Lenovo products and options for internal use or demonstration purposes. • Influencer Program for Solution Partner-Resellers (LEN 08-243) • Earn fees up to 6% for influencing End Users to purchase Lenovo product(s) directly from Lenovo when the Lenovo Solution Partner-Resellers Location ID (LOCID) is included on the End User purchase order. • Lenovo Services Attach Rate Program (LEN 08-409) • Earn up to 3% of your services purchases by achieving 19% or greater attach rate • Options and Software Attach Rate Program (LEN 08-412) • Earn up to 3% of your options and software purchases by achieving 19% or greater attach rate.

  3. 2008 Lenovo New Customer Bonus Program (LEN 08-209) • What is it? • Receive a 4% rebate for selling eligible Lenovo product to an approved Lenovo New Customer. • No cap on earnings. • Lenovo 3000 qualifies in the program. • ThinkStation does NOT qualify • Opportunities $250,000 or less can earn up to $10,000 and rebates begin at $1. • Opportunities greater than $250,000: rebates begin at $1. No earnings cap!! • Rebate Opportunity (no clip levels) Opportunities up to $250,000 Opportunities > $250,000 Revenue RebateRevenue Rebate $ 10,000 $ 400 $ 10,000 $400 $ 30,000 $ 1,200 $ 50,000 $2,000 $ 60,000 $ 2,400 $ 100,000 $4,000 $ 100,000 $ 4,000 $ 150,000 $6,000 $ 250,000 $ 10,000 $ 300,000 $12,000 $ 500,000 $20,000 $ 750,000 $30,000 $1,000,000 $40,000 NO CAP • Lenovo Solution Partners must nominate their customers by going to http://www.pcnewcustomerbonus.com and filling out the nomination form. Only approved new customers are eligible for program. • Sales to an end user will be valid for a period of six months after the approval date of the nomination. • Only one Solution Partner nomination per customer opportunity. • Solution Partners will be limited to fifteen nominations per week. • New Customer Definition: An end-user enterprise that has purchased less than $25,000 of Lenovo Think or 3000 family Notebooks, Desktops, and Lenovo Options from any authorized source in the last (24) months prior to the nomination date. • While participating under the Fee Offering program, Lenovo Influencers and Resellers must notify Lenovo via email to request payment (ncbp@tradeonemktg.com). • EDI sales reporting must reflect the customer's name EXACTLY as the Lenovo Solution Partner has nominated it in the end user section (Segment N102), or EXACTLY in the Ship To section for web-based reporting. • When nominating a commercial opportunity, you will be asked to identify if the opportunity is less than or equal to $250,000, or greater than $250,000. Bonus payments will start once sales are reported. • Please refer to Announcement letters LEN 08-209 for full terms and conditions. Programs subject to change.

  4. New Customer Bonus Program: Public Sector and Educational Institution Enhancement (LEN 08-233) • What is it? • Receive rebates for selling eligible Lenovo product to an approved Lenovo New Customer. • Earn 4% per approved account. • Opportunities less than $250,000, can earn up to $10,000 and rebates begin at $1. • Opportunities over $250,000: rebates begin at $1. No earnings cap!! • ThinkStation does NOT qualify • Rebate Opportunity (no clip levels) Opportunities up to $250,000 Opportunities > $250,000 Revenue RebateRevenue Rebate $ 10,000 $400 $ 10,000 $400 $ 30,000 $1,200 $ 50,000 $2,000 $ 60,000 $2,400 $ 100,000 $4,000 $ 100,000 $4,000 $ 150,000 $6,000 $ 250,000 $10,000 $ 300,000 $12,000 $ 500,000 $20,000 $ 750,000 $30,000 $1,000,000 $40,000 NO CAP • Lenovo Solution Partners must nominate their customers by going to http://www.pcnewcustomerbonus.com and filling out the nomination form. Only approved new customers are eligible for program. • Sales to an end user will be valid for a period of six months after the approval date of the nomination. • Only one Solution Partner nomination per customer opportunity. • Solution Partners will be limited to fifteen nominations per week. • When nominating a Public Sector or Educational Institution opportunity, you will be asked to identify if the opportunity is less than or equal to $250,000, or greater than $250,000. Bonus payments will start once sales are reported. • All other terms of LEN 08-209 apply to this enhancement. • Please refer to Announcement letter LEN 08-233 for full terms and conditions. Programs subject to change.

  5. Lenovo 2008 New Customer Acquisition Program (LEN 08-410) • What is it? • On a quarterly basis, Lenovo will provide aggressive pricing and customer-ready e-flyers that can be used by authorized Solution Partners to win new business with approved customers. • Resellers MUST submit the End User nominations by the specified deadline in order to get pre-approved for the subsequent quarter. • How to apply Please send your Lenovo Representative a spreadsheet containing all nominated accounts by the cutoff dates listed below. The file should contain the nominated Company Name, Address, City, State, and Zip Code, your Distributor of preference, as well as your LocID and e-mail address. Approval will take 5-7 business days. • Solution Partners can nominate an unlimited number of end users. However, the nominations must be made in a single batch. For example, a Solution Partner may nominate 1,000 customers but must nominate all 1,000 customers in a single batch by the nomination deadline date. The end user nominations must be submitted by the dates listed below. • First Phase Nominations must be submitted by July 31, 2008 Approvals will be valid through January 31, 2009 • Second Phase Nominations must be submitted by September 30, 2008 Approvals will be valid through March 31, 2009 • Third Phase Nominations must be submitted by November 30, 2008 Approvals will be valid through May 31, 2009 • Fourth Program Nominations must be submitted by January 31, 2009 Approvals will be valid through July 31, 2009 • All End User nominations must include the following: End User company name, address, city, state, zip. • New End User nominations may be added after the deadlines listed above only if the end user has been newly approved for the New Customer Bonus program. Forward the NCB approval to the Lenovo Program Administrator Denise Parker (denisep@lenovo.com). • End User nomination must have less than $25K of overall revenue in the past 24 months for Lenovo ThinkPad notebooks, ThinkCentre desktops, ThinkStation, Lenovo options and Lenovo services. • Please refer to Announcement letter LEN 08-410 for full terms and conditions. Programs subject to change.

  6. Lenovo Partner Network Overview • Overview of Partner Levels: Authorized Solution Partner – Resellers in the Lenovo Partner Network will be classified at one of two levels: the Business Partner level and Premium level. The Business Partner level is open to all authorized Solution Partner – Resellers. The Premium level is for partners who invest in developing their skills and growing their Lenovo revenue. In return, Premium level partners are eligible for incremental rewards and incentives. Both levels benefit from Lenovo’s expanded product line targeted to small businesses and enhanced ThinkVantage Technologies, which enable partners to offer expanded services and more solutions for new and existing customers. • Requirements for Premium Status: Lenovo reviews the requirements to achieve Premium status on April 1st each year. The criteria includes meeting a skills requirement and meeting a minimum revenue requirement of $250,000 in either the previous year or current year. Please visit http://www.pc.ibm.com/partner/us/criteria.html for further details. LTS Course Path for Premium Partners: For partners interested in achieving or maintaining Premium status with Lenovo, the following courses qualify towards Premium status. Premium partners must have a minimum of 6 current skills. At least 2 of the 6 skills must be eligible Sales skills, and at least 2 of the 6 skills must be eligible Technical skills. One employee may not count towards more than 2 of the 6 skills required. Qualifying Sales Skills for Premium Status (April 1, 2008 to March 31, 2009) SXW201 Selling ThinkPad and ThinkCentre products SXW215 Selling Lenovo ThinkVantage Technologies and Intel Advanced Technologies SXW220 Selling Lenovo 3000 Notebooks and Desktops Qualifying Technical Skills for Premium Status (April 1, 2008 to March 31, 2009): TXW114 Intro to ThinkVantage Technologies: Security TXW115 Intro to ThinkVantage Technologies: TXW116 Intro to ThinkVantage Technologies: Migration & Recovery

  7. Partner Network Incentives Program: Business Partner Bonus Program (LEN 08-234 and LEN 08-411) • What is it? • ‘Business Partner’ and ‘Premium’ Level Resellers qualify to receive up to $2,500 for achieving targets tied to purchases or sales of TopSeller desktops and TopSeller notebooks, and achieving targets tied to purchases or sales of Lenovo options each quarter. • TopSeller consists of select ThinkCentre desktops and ThinkPad notebooks, as well as 3000-series desktops and notebooks. Level 1 Target TopSeller: Buy $5,000 Total opportunity $500 / quarter *must purchase $1K of options/services to qualify Level 2 Target TopSeller: Buy $10,000 Total opportunity $750 / quarter *must purchase $1K of options/services to qualify Level 3 Target TopSeller: Buy $20,000 Total opportunity $1,000 / quarter *must purchase $1K of options/services to qualify Level 4 Target TopSeller: Sell $75,000 Total opportunity $2,500 / quarter* *must report sales to achieve Level 4 Target and *must purchase $1K of options/services to qualify OR OR OR • For a list of list of TopSeller model types, please visit the TopSeller section found at http://www.lenovo.com/partner/us. • You will earn bonuses based on achieving any of the level targets. • Business Partner must purchase at least $1,000 of Lenovo desktop options, mobile options, software and services in order to quality for the TopSeller Target Bonus Program. Monitors and 3rd party options do not apply towards the $1,000. • Attainment against Level 1, Level 2, and Level 3 targets are measured by purchases from an authorized Lenovo distributor, based on the partner's Location ID (LOCID). • Purchases of TopSeller Think and 3000 family products will be counted in the quarter in which product was shipped and invoiced. • Bonuses for the Level 4 target are paid based on reported end-user sales. • Full program details can be obtained from the Lenovo Reseller Website found at http://www.lenovo.com/partner/us/ • Please refer to Announcement letters LEN 08-234 for full terms and conditions. Programs subject to change.

  8. Partner Network Incentives Program: Lenovo Advocate Bonus (LEN 08-234) • What is it? • Premium Level Resellers who assign a Lenovo Advocate would have access to additional funding up to $10,000 per quarter. • Advocate must meet minimum education requirements, participate in education calls, and assist in creating quarterly forecasts. • Rebate Schedule Quarterly RevenueRebate $ 500,000 $ 1,000 $1,000,000 $ 2,500 $2,000,000 $ 5,000 $5,000,000 $10,000 • Lenovo Premium Level Business Partners could earn up to $10,000 based on sales of Lenovo 3000 and Think family desktops and notebooks and related options during the current quarter. • Lenovo Reseller provides the name, e-mail address, mailing address, phone number, and LocID for the designated Lenovo Advocate. Please send Advocate information to lenovo1@lenovo.com with the subject line: "Partner Network Incentives - Advocate Program" • Education calls to be conducted monthly, replays available. Participation is mandatory. • Advocate to assist Lenovo by disseminating education materials from monthly calls. • Program details can be obtained from the Lenovo Reseller Website found at http://www.lenovo.com/partner/us/ • Please refer to Announcement letter LEN 08-234 for full terms and conditions. Programs subject to change.

  9. Premium Quarterly Growth Bonus Programs (LEN08-234) • What is it? • Quarterly Target Program for Partners Who Achieve Premium Level Status in the Lenovo Partner Network. • Lenovo Rebate Schedule Target Rebate Achieve Qtrly Rev. Target Earn up to 0.5% of all your Lenovo sales • There will be two levels of targets assigned to Premium Partners. Achieving the first level target will earn a .25% rebate of sales and achieving both will earn a 0.50% rebate of sales of eligible products. • Must have a minimum of $250,000 in Lenovo revenue in the previous year to earn target. • Earnings above $50,000 for the quarter will be put into marketing development fund. Solution Partner can submit a marketing plan to their Lenovo sales representative to utilize the funds. • All sales must be reported back to Lenovo via EDI or the Lenovo Reseller Website in order to be eligible. • Program details can be obtained from the Lenovo Reseller Website found at http://www.lenovo.com/partner/us/ • Please refer to Announcement letters LEN 08-234 for full terms and conditions. Programs subject to change.

  10. 2008 Technology Access Program (LEN 08-210) • What is it? • Gives Lenovo Solution Partner – Resellers aggressive discounts on Lenovo purchases for internal use or for demonstration or evaluation purposes. • All partners qualify for 1 unit each quarter. Additional units (up to a maximum of 8 units) are earned for every $10,000 of purchases of Lenovo product in the prior quarter. • Discount Schedule 35% for up to 8 units during the quarter and 50% for options • Eligible Product: ThinkCentre Desktops, ThinkStation, ThinkPad Notebooks, 3000 Desktops, 3000 Notebooks, and up to 5 options per system. • Up to 8 select Lenovo Products demo units and monitors per Enterprise are eligible. • A maximum of 5 options per TAP system purchase are entitled to program discount, and must be ordered in at the same time as the TAP system purchase. • Options carry discount of the system. No more than 3 monitors or 1 Lenovo projector can be used as part of the 5 options sold along with the system unit. • TAP units may be sourced from either a Lenovo Authorized Distributor or Lenovo PartnerChoice. • PartnerChoice Net Bills the discount. • Back-End rebate on purchases from Authorized Distributors. Request Forms must be submitted within 30 days after the close of the quarter in which TAP units were purchased. See http://www.tappcproducts.com for the distributor claim form. • Program details can be obtained from the Lenovo Reseller Website found at http://www.lenovo.com/partner/us/ • Please refer to Announcement letter LEN 08-210 for full terms and conditions. Programs subject to change.

  11. Lenovo Services Attach Rate Program (LEN 08-409) • What is it? • An attach rate bonus program based on purchases of qualifying services. • Based on purchases from an authorized Lenovo Distributor or PartnerChoice invoiced between July 1st through September 30th, 2008. • Rebate Opportunity Attach Rate Incentive Earned 13% - 15.99% greater of 1% rebate or $100 (or) 16% - 18.99% greater of 2% rebate or $175 (or) 19% or more greater of 3% rebate or $250 • Must purchase a minimum of $10,000 of Lenovo systems units to qualify • Attach rate is calculated as follows: Lenovo services unit purchases divided by Total Lenovo System unit Purchases • Rebate % is multiplied by your Lenovo services purchases • Lenovo Solution Partners who are authorized to remarket Lenovo products to end users are eligible for this program. • Attainment will be based on your purchases from an authorized Lenovo Distributor or PartnerChoice as reported against your LOCID. • Please note that returns of previously reported purchases will result in a reduction of your attainment. • Please refer to Announcement letter LEN 08-409 for full terms and conditions. Programs subject to change.

  12. Options and Software Attach Rate Program (LEN 08-412) • Rebate Opportunity Attach Rate Incentive Earned 13% - 15.99% greater of 1% rebate or $100 (or) 16% - 18.99% greater of 2% rebate or $175 (or) 19% or more greater of 3% rebate or $250 *monitors, services and 3rd party options do not count toward the attach rate goal • What is it? • An attach rate bonus program based on purchases of qualifying options and software. • Based on purchases from an authorized Lenovo Distributor or PartnerChoice invoiced between July 1st through September 30th, 2008. • Must purchase a minimum of $10,000 of Lenovo systems units to qualify • Attach rate is calculated as follows: CDT Option purchases + Mobile Option purchases + Software purchases divided by Total Lenovo Purchases • Rebate % is multiplied by your CDT Option Purchases + Mobile Option purchases + Software purchases • Lenovo Solution Partners who are authorized to remarket Lenovo products to end users are eligible for this program. • Attainment will be based on your purchases from an authorized Lenovo Distributor or PartnerChoice as reported against your LOCID. • Please note that returns of previously reported purchases will result in a reduction of your attainment. • Please refer to Announcement letter LEN 08-412 for full terms and conditions. Programs subject to change.

  13. 2008 Lenovo Influencer Program for Lenovo Solution Partner-Resellers (LEN 08-243 and LEN 08-398) • Rebate Opportunity BrandFee Structure ThinkPad Notebooks, ThinkStation, ThinkCentre Desktops: 6% up to list minus 20% (or) 3% at >20% ThinkVision(R) Products, ThinkPlus(TM) Services, and PC Options: 6% up to list minus 15% (or) 3% at >15% Wyse Thin Clients: 5% up to list minus 10% (or) 3% at >10% Think TopSeller Models: 6% up to list minus 6% (or) 3% between 7% and 12% (or) 0% at >12% Lenovo 3000 Products: 3% based on sales price to end user 3rd Party Vendor Logo Hardware Options: 3% up to list minus 5% (or) 1% at >5% • What is it? • Earn fees for influencing End Users to purchase Lenovo product(s) directly from Lenovo when the Lenovo Solution Partner-Resellers Location ID (LOCID) is included on the End User purchase order. • Combinable with New Customer Bonus program. • Direct sales counts towards Partner Network for attainment of Premium status. • Fees range from 1% to 6% of the net End User sales price, depending on products sold and discount off of list. • Partners engage with Phoenix sales reps for quotes/questions at 1-866-609-5193 . • End Users place orders by calling Lenovo at 1-866-609-5193 OR contact their assigned Phoenix sales rep. • End Users provide the Partners LOCID on each PO at the time of each purchase for the Partner to earn fees. • Fees are not paid when: • “Bill To” is the partner or for partner purchases for internal use. • Lenovo engages the partner vs. the partner bringing the opportunity to Lenovo. • Special bid pricing is not approved for the end user prior to price quotation. • Fees are earned based on date Lenovo invoices the End User and are paid in the following calendar month. • Fees are based on percentage of net price charged by Lenovo to End User for each eligible Product(s) purchased. • See Announcement Letters for full program details and exclusions. • Influencer sales may qualify for eligible New Customer Bonus. • Please refer to Announcement letters LEN 08-243 for full terms and conditions. Programs subject to change.

  14. Lenovo Solution Partner Support Resources Lenovo Home Page http://www.lenovo.com/us Solution Partner Portal http://www.lenovo.com/partner/us Mail in Rebates www.lenovo.com/rebates Pre Approved Bids http://www1.partnerinfo.lenovo.com/src/fpages.nsf/HTML/United+States.PSG/$FILE/preapproved.html Content Warehouse http://partner.lenovo.co.uk/lpn_mcw.nsf?open&lang=EN Lenovo Partner Programs http://www1.partnerinfo.lenovo.com/src/fpages.nsf/HTML/United+States.PSG/$FILE/programs.html Online Product Catalog http://www1.partnerinfo.lenovo.com/src/uscat.nsf/CurrAllBrands?open&nav=Index&style=pc Lenovo Training Solutions http://www.pc.ibm.com/training/index-bp.html Recycling http://www.pc.ibm.com/ww/lenovo/about/environment/Product_Recycling_Program.html Lenovo Blogs http://www.lenovoblogs.com/ Options Matrix http://www2.partnerinfo.lenovo.com/src/fpages.nsf/HTML/United+States.PSG/$FILE/options_tool.pdf Trade In Program http://www2.partnerinfo.lenovo.com/src/fpages.nsf/HTML/United+States.PSG/$FILE/trade_in.pdf Lenovo Technical Support 1-800-426-7763 Lenovo Solution Partner Sales 1-877-536-9955, Option 5 Services Information Email Idcs@us.lenovo.com for more Information

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