Distributor Advantage Program - Eaton …

1 A powerful partnershipDistributor Advantage ProgramEaton Distributor Advantage Program2017 Eaton is more focused and capable than ever before, providing solutions to today s and tomorrow s most critical electrical power management Distributor Advantage ProgramBetterAdvancing industry, new technologies, and complex processes are all driving a growing demand for, and the cost of, electrical power. Our experience and commitment to our distributer partners lets us see more possibilities and better opportunities to enable our customers to more effi ciently manage their energy consumption, increase uptime, lower costs and help keep personnel, equipment and data your commitment to customersIt s not enough to just provide products and services; we intend to earn your business by helping you grow your business, profi tably.

2 With Eaton , you ve chosen a partner committed to your success helping you increase productivity, manage cash fl ow and build your the largest fi eld sales force in the market, we leverage our broad customer relationships to bring you added value. Plus, the Eaton Distributor Advantage Program not only provides the financial incentives to keep your business growing, but also offers you access to the experts, promotional programs and a robust planning process that helps strategically align our with training programs and advanced project management support, you need access to tools and resources that increase productivity up-to-date information on your orders, new product introductions, promotions and more are readily available through our secure, self-service representing some of the electrical industry s most respected names.

3 You have access to a portfolio of solutions that deliver exceptional customer benefi ts unmatched in the industry. Our continued investment enables us to create a positive mix of opportunities and solutions for a broad range of customer demand creationEfficiency for greater productivityMarket leadership driven by premier brandsPlus, you have the support of an organization focused on serving you as well as a comprehensive annual planning guide and process designed to drive programs that grow your focus is on helping you Eaton Distributor Advantage ProgramEaton s Distributor Advantage Program helps you use our market-leading brands, product innovation and strong sales support organization in combination with your market knowledge.

4 Customer relationships and local inventory to grow your business. The Program recognizes and rewards you for your volume of business, your commitment and loyalty to our broad range of products and the growth you focused channel organization and robust financial incentive platform combined with strong planning and marketing programs proves our dedication to helping you maximize your growth and qualify for the Program you must:Stock, promote and sell the products included in the programPurchase a minimum of $100K in Program -eligible productsMeet 80% of prior year s sales Be in good standing with Eaton s accounts receivable departmentsUse Eaton s eCommerce platforms including EDI, Vistaline on the Web, Bid Manager, and/or C3 The five incentive elements of the Program are.

5 Base volumeLoyaltyGrowthBusiness developmentBid Manager order entryA powerful advantageA powerful advantage4 Eaton Eaton Distributor Advantage ProgramA powerful advantageA determination of your eligible categories will be provided as part of your individual Program at the beginning of each year and evaluated throughout the year. Any changes to supportive product categories must be made prior to October 1st of the Program seriesBolted framing Electrical enclosures FastenersFlextrayMeteringSeismicWireway( excludes cable tray)Bussmann seriesBussmann series electrical fuses and fusible platformsEdison electrical fuses and fusible platformsCircuit breakers and control productsBolt-on/Plug-on miniature circuit breakersDefinite purpose controlOI, PLCs and SmartWire-DTIEC power control and accessories IEC pushbuttonsIndustrial and IEC miniature circuit breakersNEMA power control and accessoriesSensors and limit switchesSeries C molded case circuit breakersSeries G molded case circuit breakersSoft startersStandard enclosed controlStandard pushbuttonsVariable frequency drivesCrouse-Hinds seriesCommercial: Excludes solar combiner boxes and solar wiring harnessesIndustrial.

6 Industrial fittings, Control and apparatus, Cable glands, Plugs and receptacles (excludes Interconnect), Industrial lightingLighting solutionsRecessed: Halo, Halo Commercial, Halo Track, Iris, All-Pro and Portfolio Outdoor: Lumark, All-Pro Outdoor Security and Worklights, McGraw-Edison, Streetworks, and PolesAmbient: Metalux, Lumark and All-Pro Exit and emergency: Sure-Lites, Atlite and All-Pro Lighting controls: Greengate sensors, room controllers and distributed low-voltage power modules and cablesPower quality productsSingle- and three-phase UPS <200 kVAThe ePDU (enclosed power distribution units)G3 platform of productsePDU G3 Basic modelsePDU G3 Metered Input modelsePDU G3 Managed modelsSurge/power conditioningStandard distribution equipment and residential productsAir conditioning disconnects BR loadcenters and breakers CH loadcenters and breakers Control and encapsulated transformersDTDT ventilated transformersEnclosed breakers Pow-R-Stock panelboards Residential advanced products (surge suppressors, generators, transfer switch)

7 Residential metering Switching devices Wiring devicesCommercialIndustrialResidentialA powerful advantageThe participating product categories:5 Eaton Eaton Distributor Advantage ProgramThe Distributor Advantage Program has five main incentive elements base volume, loyalty, growth, business development and Bid Manager order entry. Provided you meet Program qualifiers, incentive is paid on all product categories that are supported. The incentive is calculated on both stock and drop shipments, provided a minimum 40% stock-to-total sales ratio is maintained across all supported categories. This same ratio and calculation applies to all incentive categoriesIncentiveStock factorDrop factorB-Line breakers and control series series quality distribution equipment and residential devices Commercial and devices Base volumeCalculated at the Distributor parent-level and based on net invoiced sales as defined power ful incentiveA power ful incentive6 Eaton Eaton Distributor Advantage ProgramA power ful incentiveA power ful incentive2.

8 LoyaltyBased on the commitment level by branch in each supportive product category, loyalty is calculated based on net invoiced sales. Loyalty is determined at the beginning of the year and validated throughout the year. Any changes to loyalty levels must be made prior to October 1st of the Program Tiers All Distributor locations will begin the new year in the same loyalty tier categories they finished in the prior year. If your commitment to any of our product categories changes during the year, the loyalty tiers will be adjusted accordingly. In some product categories, such as Lighting solutions, you will be required to make an annual commitment in order to retain that 1 Tier 2 DescriptionIncentiveDescriptionIncentive B-Line series80% stock support on 2 or more stock support on 1 series> 90% stock 90% stock breakers and control products> 95% of the shelf> 95% of > 75% of shelf> 75% of the series Commercial> 75% sales 75% sales in series Industrial> 90% sales 90% sales in solutionsSupport 4 of 5 categories* 3 of 5 categories* quality products> 75% of > 50% of distribution equipment and residential products> 95% of the shelf> 95% of > 90% of shelf> 75% of the devices Commercial and industrial80% shelf space in

9 At least 1 category; 50% shelf space in * Lighting categories include: Recessed, Outdoor, Ambient, Exit and emergency and Lighting controls7 Eaton Eaton Distributor Advantage ProgramEaton calculates BDF based on the current year purchases of Program -eligible products. Distributors who invest these funds wisely to drive growth will have even more BDF to use throughout the year. BDF should be spent on activities that foster development and create demand, including local marketing, training, and promotions. BDF funds are reimbursed to the Distributor based on submitted invoices for approved expenditures. At the beginning of each year, a fund is created based on planned current-year purchases of Program -eligible products.

10 A minimum of 40% of a Distributor s BDF total must be spent and claimed prior to June 30. Any unspent balance of the 40% will be forfeited. No further adjustments will be made to the fund after June scheduleReimbursement percentageAMP meeting expenses10 0%Co-branded signage with approved Eaton branding A10 0% Eaton calendar program10 0% Eaton -developed marketing campaigns10 0% Eaton training: tuition for learning and development courses, local Eaton product training and associated travel expenses10 0%ECCN enrollment of sponsored contractor10 0%Product demos for training and/or promotional displays10 0%Promotional merchandise via s merchandising page10 0% Eaton product advertising A75% Eaton -exclusive open houses / local events A60%Tradeshow participation with exclusively Eaton products A60% Distributor branch-based promotions60%Calendars via a local vendor A60%IDEA/IDW annual subscription fee50%Promotional merchandise via a local vendor A50%Special customer events (approval required from channel manager)50%4.