Quarterly Wholesale Partner Pack Terms & Conditions
Abzorb reserves the right to modify any aspect of the Business Partner Payplan, as a result of changes in market conditions, or otherwise, as its sole discretion, without notice. Ts & Cs relating to Connection bonus (section 1) Sim cards are charged at 10 each; Volume Targets are eligible connections in the calendar month Customers who are disconnected and reconnected with the same telephone number will not constitute an Eligible Connection For the early Disconnection of an Eligible Connection, a clawback charge will be levied The first month of operation is deemed to be the month in which the first Eligible Connection is made Abzorb will bill all Price Plans attracting a negative tariff bonus on a monthly basis Payment of these bonuses will be made by way of a credit note that will be issued immediately after the end of each month. This credit note may be deduced from the next wholesale invoice due for payment Bureau Billing Service Abzorb can provide a fully managed bureau billing service where required, incorporating the following services: 1. Abzorb will raise a monthly bill to the end user on behalf of the Reseller. 2. The monthly bill will be fully branded in the Reseller trading name. 3. Abzorb will collect the cash on behalf of the Reseller. 4. Any non-payment debts arising from the end user bills will be the responsibility of the Reseller 5. Wholesale costs must be paid to Abzorb on a monthly basis including when an end user (Reseller Customer) defaults The service charges of providing the bureau billing service are 3% of the total retail monthly billing or minimum charge of 125 per month, whichever is the greater. All other standard commercial terms apply. Page 2
Clawback A bonus clawback on disconnections will operate under the Business Partner Payplan. The clawback will be dependent on the period for which the customer has been on a Vodafone contract price plan when disconnected. This bonus clawback applies to all upfront bonus/commission payments including corporate support and retention payments. The clawback (in calendar months) will be as follows: Voice Connection Bonus & 24 month Price Plan Bonus Disconnection During % Clawback Months 0 12 100% Months 13 16 75% Months 17 20 50% Months 21 24 25% Page 3
Abzorb will monitor the usage of customers connected in each month. If, after the Month of Connection, no significant chargeable usage is detected within any 3 consecutive months Abzorb reserve the right to clawback 25% of the basic connection bonus and price plan bonus. This clawback process will apply for up to 12 months following the Month of Connection. Therefore, it is possible that 25% of the original bonuses paid may be clawed back on 4 occasions, equalling 100% of the original bonuses paid. It is not Abzorb s intention to apply this clause in the normal course of business, but reserves the right to do so if, in Abzorb's opinion, any suspicious or fraudulent activity is detected. Please also refer to Section 7 Reservation of Rights. Clawback will also operate on the Price Plan Bonus for all downward Price Plan migrations under the Programme. The clawback will be dependent on the period for which the customer has been connected to the relevant Vodafone Price Plan and the difference in Price Plan Bonus between the initial price plan and the final Price Plan The applicable clawback on the Price plan Bonus will be calculated as: (Connected Price plan Bonus - Migrated Price plan Bonus) x Clawback % 2-Year Price Plan Bonus. Migration during % Clawback 1-Year Price Plan Bonus. Migration During % Clawback Months 0-12 100% Months 0-3 100% Months 13-16 75% Months 4-6 75% Months 17-20 50% Months 7-9 50% Months 21-24 25% Months 10-12 25% Page 4
Net Value Metric The net value metric will measure the 3 months average Managed Base revenue on a rolling basis and will affect the amount of airtime discount payable to a partner as follows:. If a partner has a monthly revenue reduction greater than -1.5% for 3 consecutive months, we will reduce airtime discount by 5% to 35% for a minimum of the 3 following consecutive months. If the monthly revenue reduction continues at a rate greater than -1.5% for a further 3 consecutive months, we will reduce airtime discount by an additional 5% to 30%. If the monthly revenue continues to fall by greater than - 1.5% for a further 3 consecutive months, so 9 months in total, airtime discount will be reduced to 0%. In order for the airtime discount percentage to increase, a partner must have positive revenue growth for 3 consecutive months. Please note, the growth needs to be greater than 1 in order to qualify, it does not need to be the actual percentage lost. This is best demonstrated with the following example Example 1: Month Nov-10 Dec-10 Jan-11 Closing Base 270,796 259,012 268,755 266,187 Page 5
Net Value Metric Month Dec-10 Jan-11 Feb-11 Closing Base 259,012 268,755 259,290 262,352 Calculation for March Net Value Metric = 262,352 / 266,187-1 = -1.44% In the example above a partner would continue to be eligible for full airtime discount, i.e. 40%. If the percentage difference had been greater than -1.5, the first of 3 months would have been counted as being in revenue decline in excess of -1.5%. After 3 consecutive months of revenue decline in excess of - 1.5%, airtime discount will be reduced by 5% to 35% for at least the 3 subsequent months, and so on. Page 6
Example 2 Month Nov-10 Dec-10 Jan-11 Closing Base 74,822 70,638 73,467 72,975 Month Dec-10 Jan-11 Feb-11 Closing Base 70,638 73,467 68,594 70,900 Calculation for March Net Value Metric = 70,900 / 72,975-1 = -2.84% This is month 1 of revenue decline greater than-1.5% Month Jan-11 Feb-11 Mar-11 Closing Base 73,467 68,594 67,200 69,754 Month Dec-10 Jan-11 Feb-11 Closing Base 70,638 73,467 68,594 70,900 Calculation for April Net Value Metric = 69,754 / 70,900-1 = -1.62% Page 7
Net Value Metric This is month 2 of revenue decline greater than -1.5% Month Jan-11 Feb-11 Mar-11 Closing Base 73,467 68,594 67,200 69,754 Month Feb-11 Mar-11 Apr-11 Closing Base 68,594 67,200 65,036 66,943 Calculation for May Net Value Metric = 66,943 / 69,754-1 = -4.03% This is month 3 of revenue decline greater than -1.5% Therefore, from May, partner would receive airtime discount of 35% for at least 3 months, May-11, Jun-11, and Jul-11 inclusive. In order to recover the 5%, the partner would have to be revenue positive for 3 consecutive months. If they do not achieve this, airtime discount will continue at 35%. Should the revenue decline continue in excess of -1.5% for a further 3 consecutive months, the airtime discount will decrease by 5% to 30% and then down to 0% after 9 consecutive months. Performance Criteria 25 net connections must be achieved each month i.e. gross connections minus disconnections = net connections (excluding migrations). If 25 net connections per month are not achieved as an average in any one quarter then Abzorb reserves the right to reduce the airtime discount by 5%. Page 8
Definitions and Meanings Reservation of rights Under the terms of the Business Partners Payplan the following definitions and meanings shall apply: Month shall mean each calendar month. Disconnections shall mean customers disconnected, or ported from the Vodafone Network, excluding transfers on contract price plans between Vodafone Service Providers and including customers migrating to pre-pay services. Total Disconnections shall mean all the Disconnections for the relevant Service Provider. Connection shall mean the connection or port of a genuine customer with a genuine handset to Vodafone. Eligible Connection shall mean a connection, or port, using a new (meaning not previously used unless refurbished and tested to an as-new standard) Vodafone-approved terminal, to a Vodafone Price Plan. Customer Base shall mean the total number of customers connected to any Vodafone contract price plan. Where a Business Partner is operating more than one Customer Base under a group structure, then those Customer Bases shall be deemed to be one, for the purposes of this programme Under the terms of the Business Partners Payplan the following definitions and meanings shall apply: Month shall mean each calendar month. Disconnections shall mean customers disconnected, or ported from the Vodafone Network, excluding transfers on contract price plans between Vodafone Service Providers and including customers migrating to pre-pay services. Total Disconnections shall mean all the Disconnections for the relevant Service Provider. Connection shall mean the connection or port of a genuine customer with a genuine handset to Vodafone. Eligible Connection shall mean a connection, or port, using a new (meaning not previously used unless refurbished and tested to an as-new standard) Vodafone-approved terminal, to a Vodafone Price Plan. Customer Base shall mean the total number of customers connected to any Vodafone contract price plan. Where a Business Partner is operating more than one Customer Base under a group structure, then those Customer Bases shall be deemed to be one, for the purposes of this programme Page 9