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Alliance Partner Network Distributor Participation Guidelines BROCADE CONFIDENTIAL for INTERNAL and AUTHORIZED PARTNERS ONLY 1 Alliance Partner Network Distributor Participation Guidelines Welcome to the Brocade Alliance Partner Network (“APN”). As a Brocade Distributor your organization is enabled with certain marketing initiatives designed to help grow your business and strengthen your relationship with Brocade. Requirements and benefits are based on your APN Agreement, and the products you are authorized to sell therein. Program Overview REQUIREMENTS Technical certification - 2 individual SAN - 2-4 individuals IP networking based on company size Sales training - 2 individuals SAN (SAN Distributor) 4 individuals IP networking (IP networking Distributor) Business reviews Report weekly Brocade-branded Point of Sale (“POS”) and monthly OEM-branded POS BENEFITS 1% MDF for IP Networking Products and 0.5% MDF for SAN Products Deal Registration Programs Value Incentive Program Eligibility Demo equipment (discounted or MDF) Technical training (discounted or MDF) Free sales and pre-sales training Dedicated sales and marketing support Exclusive promotions Access to APN Central Sales and marketing tools & materials Access to The Marketing Hub Distributor Requirements: Brocade expects the following requirements to be met in order for Distributors to maintain their relationship with Brocade as a distribution partner. Distributors have a direct sourcing arrangement via their APN Agreement with Brocade, the terms of which are incorporated herein by this reference (the “Agreement”), and are compliant with the terms of such Agreement. Pursuant to the Agreement, Distributors purchase products and services directly from Brocade for resale but are prohibited from BROCADE CONFIDENTIAL for INTERNAL and AUTHORIZED PARTNERS ONLY 2 selling into end-user accounts, without written consent. The following overview of requirements and benefits help define the relationship expectations and provide resources as needed. Brocade reserves the right to withhold any and all benefits of any kind, including but not limited to MDF and/or Value Incentive Program (“VIP”) payouts, if Distributor's account is not in good standing. Technical Training and Certification Brocade offers a number of best-in-class technology courses and certifications. Distributors are required to maintain and report the number of technical personnel on staff and maintain the minimum requirements as outlined by product category. Distributors selling SAN products are required to have two (2) SAN certified personnel. Distributors selling IP networking products with 1-150 employees are required to have two (2) IP networking certified personnel; Distributors with 151-300 employees are required to have three (3) IP networking certified personnel; Distributors with over 300 employees are required to have four (4) personnel who are IP networking certified. At least one (1) individual who is Layer 4-7 certified regardless of company size is required. SAN and IP networking certified personnel can be the same individuals. If technically certified individuals leave the Distributor’s organization, it is the sole responsibility of the Distributor to notify Brocade. The Distributor has 90 days for another individual to acquire necessary certifications. Distributors may use their Marketing Development Funds (“MDF”) to pay for training and certifications, in accordance with the MDF Guidelines. Training and Certification Matrix: Partner Level Distributor SAN Channel Track IP Networking Channel Track Brocade Certified Fabric Professional Brocade Certified Network Engineer AND Brocade Certified Layer 4-7 Engineer Sales Training Sales training is a requirement. Distributors selling SAN are required to have two (2) sales trained personnel. Distributors selling IP networking are required to have four (4) sales trained personnel. Reporting of POS For Distributors, POS data is due on a weekly basis for the Brocade-branded products. All OEM products sales reports are due on a monthly basis by the 10th of each month for the prior month’s sales activity. POS is submitted via [email protected]. Any POS not reported or reported after the 10th of each month will not be recognized for any programs which are dependant on POS submission. Two (2) consecutive months of late POS reporting is grounds for removal from the APN. Distributor Benefits: The following benefits are offered to our Distributor partners: Marketing Development Fund Program Each Brocade fiscal quarter, eligible partners earn MDF based on POS for Brocade purchases in the previous quarter. Only POS reports submitted in a timely and accurate manner will result in an accrual of MDF. The MDF amount is calculated in U.S. Dollars as a percentage of partner’s POS. The POS value for each qualified part number is listed on the APN Calculation List. BROCADE CONFIDENTIAL for INTERNAL and AUTHORIZED PARTNERS ONLY 3 MDF earning percentage is 1% for all IP networking and 0.5% for all SAN Brocade-branded and OEM hardware and software products, excluding support, maintenance, professional services, and education courses. OEM-branded part numbers must have equivalent Brocade-branded part numbers in the APN Calculation List to be eligible to earn MDF. Earned MDF amounts will be posted quarterly for viewing on the online MDF tool (www.ccionline.biz). Earned MDF is available for use for 180 days from the date that it was posted. After the 180-day period, any remaining MDF will expire. Refer to MDF Program Guidelines for usage and eligibility. Brocade Deal Registration Programs The Brocade Deal Registration Programs are designed to encourage the profitability and success of our reseller partners when selling the eligible Brocade-branded products and protect our partner's presales investment. Distributors have access to the Brocade Deal Registration tool and are expected to register new opportunities for all Select resellers. Premier or Elite partners have the option of registering their own opportunities or can ask their Distributors to do so on their behalf. All details pertaining to our current Deal Registration Programs are outlined on the MyBrocadeTM partner portal at http://my.brocade.com. Demonstration Equipment The Brocade Demo Equipment Program is designed to provide equipment for marketing, demonstration labs and testing facilities worldwide at a significant discount off of MSRP. Please see the MyBrocade partner portal for details. Value Incentive Program The VIP is designed to reward signed APN Distributors worldwide for their contributions to growth of Brocade product revenue and individual, mutually agreed upon incentive objectives. Brocade rewards distributors with a rebate based on net product revenue growth (Brocadebranded IP hardware and software product sales, excluding support, maintenance, professional services, and education courses) and attainment of quarterly value incentive objectives. Minimum revenue requirements apply. Program rules and eligibility requirements are subject to change upon notification. Distributors not meeting their certification requirements are not eligible for the VIP program. Dedicated Sales/Marketing/Technical Staff Brocade commits to support our value added Distributors with dedicated sales and marketing support personnel. The account managers will help develop quarterly business plans, marketing activities, and provide sales engagement/enablement. Technical support personnel are also available upon request or as needed for sales opportunities or internal training. Issues or Concerns If you have any questions or concerns please contact your Brocade Channel Sales or Marketing Representative, or email [email protected]. © 2012 Brocade Communications Systems, Inc. All Rights Reserved. 10/12 Brocade and the B-wing symbol are registered trademarks and Myrocade is a trademark of Brocade Communications Systems, Inc., in the United States and/or in other countries. Other brands, products, or service names mentioned may be trademarks of their respective owners. BROCADE CONFIDENTIAL for INTERNAL and AUTHORIZED PARTNERS ONLY 4