Ship and Debit Updates

1
Ship and Debit Updates

• Ship and debits under 50K EAU - valid for 1 year
• 87 of current quotes are under 50K EAU
• Ship and debits over 50K EAU - valid for a
  minimum of 6 monthsup to 12 months at LF Product
  Manager discretion
• Process change for LF Inside Sales to
  automatically renew pricing for existing business
  unless PM has made proactive change
• Need to Revisit Into Stock pricing
• Identify which items could be on Equote or MPP
  instead of Ship Debit based on number of
  Customers and Debits

2
Ship and Debit Program Effective 11/15/08

• Ship and Debit Intent
• The Ship and debit program is intended to
  maximize market share opportunities while
  mutually optimizing Littelfuse and distributor
  profitability
• Ship and Debit Guidelines
• All ship and debits will be valid for a twelve
  (12) month period.
• Upon review, product managers may limit ship and
  debits over 50,000 to six (6) months
• It is the responsibility of the distributor to
  keep all ship and debits valid.
• In order to avoid bill backs, renewals may be and
  should be obtained from the Littelfuse 30 days
  prior to expiration.
• How to Apply for a Ship Debit
• To apply for a Ship Debit, the distributor
  salesperson or (FSR) must supply the rep with the
  following information
• The Customer name, project name if known, part
  number, annual quantity, target price as well as
  a competitive assessment. Who are the
  competitive suppliers and or distributors. Is
  this project supported by a CM and if so what is
  the CM location.
• The rep will review the request along with
  historical sales for that customer. If rep
  determines the request is valid and is unable to
  approve with their pricing they will elevate to
  the LF ISR.
• If the ship debit is Accepted the LF Rep will
  return the request the the distributor with a
  Ship Debit number.
• If the ship debit is Rejected, the
  Littelfuse Rep will return the request to the
  distributor with the reason as to the rejection.

3
Design Registration Program Effective 1/1/08
Design Registerable Parts List

• Design Registration Program Intent
• The intention of this program is to compensate
  and reward our distributors for creating new
  opportunities on specified Littelfuse products.
  This will be done through design win opportunity
  registration and through enhanced margin. It is
  the responsibility of our distributors to
  maintain the relationship with the customer both
  in engineering and at the buyers desk in order
  to earn the margin enhancement.
• Registration Approval Guidelines
• Registrations are classified as Approved or
  Rejected by Littelfuses local Manufacturer
  Representatives. Registration disputes are
  resolved by Littelfusess RSMs (Regional Sales
  Managers) and/or CDMs (Corporate Distributor
  Manager) in conjunction with the distributor GMs
  (General Managers).
• Registration are available for the product groups
  identified in Exhibit A
• Registrations apply for new designs only with
  first year sales potential of 5000 or greater.
  . Package changes or conversion to lead free do
  not constitute new design.
• It is Littelfuses intent to support all approved
  registrations at a gross profit margin of 25.
• If a production order is booked by a distributor
  that does not hold the registration, they will
  receive book cost.
• Registrations apply for OEM customers only, EMS
  customers do not qualify
• Registrations will remain in Approved status
  for a total of twenty-four (24) months beginning
  upon Littelfuses approval date. If no orders
  have been placed after twelve (12) months,
  Littelfuse will review the design registration.
• The distributor with the approved registration is
  responsible for notifying Littelfuse and the
  receiving branch of any existing registrations
  that are transferred to a new location.
• The receiving distributor location must contact
  their local Littelfuse representative to formally
  request an amendment to their registration

4
How to Apply for a Registration

• How to Apply for a Registration
• To apply for a registration, the distributor
  salesperson or (FSR) completes the industry
  standard NEDA form electronically in the
  distributors electronic registration tracking
  system.
• The form must be completely legible or it will be
  rejected.
• The part number, project, customer, project
  engineer, quantity per board, product quantity
  per year, CM and CM location if applicable, and
  branch location.
• If the registration is Approved, the
  Littelfuse Rep will issue a registration number
  to the distributor.
• If the registration is Rejected, the
  Littelfuse Rep will return the registration
  request to the distributor with the reason as to
  the rejection.