Document:

ARUN-EX 10.1-2013.10.31

Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
AMENDMENT #3 TO DISTRIBUTION AGREEMENT
Contract Number: SPA0307-00006461
 
THIS AMENDMENT #3 is to the Distribution Agreement dated June 4, 2007 and modified in Amendment 1 dated March 17, 2008 and Amendment 2 dated May 27, 2009 by and between ScanSource, Inc., (“ScanSource”), a South Carolina Corporation having its principal place of business at 6 Logue Court, Greenville, South Carolina 29615, and Aruba Networks Inc., (“Aruba”) with an address at 1344 Crossman Avenue, Sunnyvale, California 94089 (the “Agreement”).  The Effective Date of this Amendment #3 shall be as of the date signed by the last signatory.
    
WITNESSETH:
Background.  The parties desire to expand the Territory to include the country of Brazil.

Whereas, Aruba and ScanSource wish to amend the Agreement to include terms applicable to ScanSource in the expanded Territory;

NOW, THEREFORE, in consideration of the mutual covenants and premises hereinabove and hereinafter set forth, the parties hereby agree as follows:

		
	A.
	The parties agree to the following amendments:

		
	1.
	The following sentence is added to the end of Section 1.1(k):

“In addition, the parties agree that the Territory shall also include Brazil.  Solely in Brazil, ScanSource may market and sell Products to Customers. The parties agree that the purchasing and distribution in Brazil will be performed by CDC Brasil Distribuidora de Tecnologias Especiais Ltda., (“CDC Brasil”), a Brazilian corporation  having its principal place of business at Av. Rui Barbosa, 2529, Módulo 12, São José dos Pinhais/PR, Brazil. CDC Brasil is Scansource’s affiliate in Brazil.  Scansource agrees that it shall be responsible for all acts and omissions of CDC Brasil.”

		
	2.
	The following sentence is added to the end of Section 5.1:

“Notwithstanding any terms to the contrary, for any transactions that occur in the Territory of Brazil, ScanSource shall use the Aruba North America price list as the basis for the resale.”  

		
	3.
	The parties agree that for any transaction that occurs in the Territory of Brazil, Section 5.8 (Advertising, Co-op, MDF and Training) shall not apply.

		
	4.
	The parties agree that the following Section 5.9 shall be added to the Agreement and that this new Section 5.9 shall be applicable solely for any transaction that occurs in the Territory of Brazil:

“5.9  CO-OP for Transactions in Brazil.  Solely for transactions that occur in the Territory of Brazil, Aruba shall provide Distributor with marketing development funds (“CO-OP”) equal to [* * *] of gross purchases of Products by Distributor in Brazil. 

The CO-OP funds are to be used only as agreed between the Parties to promote Aruba’s Products in Brazil and in accordance with Aruba’s published Guidelines for Joint Marketing Funds.  All CO-OP funds must be 

Contract Number: SPA0307-00006461    Page 1

Amendment #3
***  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

Exhibit 10.1

used within [* * *] of the date they are accrued.  To be eligible for CO-OP funds Distributor must (i) provide a business and marketing plan to Aruba; (ii) have a good payment history; (iii) provide a report following the activity that outlines performance and/or return on investment.  Additional CO-OP funds will be allocated by Aruba on a case by case basis, as mutually agreed.”

		
	5.
	The parties agree that the terms specified in Exhibit A shall not apply to any transactions that occur in the Territory of Brazil.  Notwithstanding any terms to the contrary, the parties agree that the following pricing shall apply to all transactions that occur in the Territory of Brazil:

“Product Discount (Categories - MC, AP, MX, SW, MR, MAS, IAP and OT):  
		
	◦
	Product – [* * *] off NA Price List

Aruba Support Services Pricing Discounts (Categories – SP, PS and TR):    
		
	◦
	ArubaCare (Aruba-branded support service)

		
	▪
	[* * *] off  NA Price List 

		
	▪
	ArubaCare is mandatory on AirWave and Amigopod products”

		
	6.
	The parties agree that Exhibit B shall not apply to any transactions that occur in the Territory of Brazil.

		
	7.
	The parties agree that the terms specified in Exhibit C shall not apply to any transactions that occur in the Territory of Brazil, and agree that the following Delivery, Freight Charges and Risk of Loss paragraph shall apply solely to all transactions that occur in the Territory of Brazil:

“Delivery, Freight Charges, Risk of Loss.  In its acceptance of Purchase Orders, Aruba shall notify CDC Brasil of Aruba’s targeted shipment dates for the Products.  Aruba shall provide the Products Ex-Works, Aruba’s designated facility or place of manufacture (Incoterms 2000) and title to Hardware and all risk of loss shall pass to CDC Brasil  upon tender of shipment.  CDC Brasil shall be responsible for all freight, handling and insurance charges from the Ex-Works point, as well as all customs duties and import and export fees.  In the absence of specific instructions from CDC Brasil , Aruba shall select the carrier and arrange for in-transit insurance, all at CDC Brasil’s expense.  Notwithstanding the foregoing, ScanSource shall remain responsible for all acts and omissions of CDC Brasil.”

		
	8.
	The parties agree that promptly following execution of this Amendment, ScanSource shall authorize CDC Brasil to provide directly to Aruba shipping information for all transactions that occur in the Territory of Brazil.  The shipping information shall be in a format similar to what is currently specified in Exhibit C of the Agreement.

		
	9.
	The parties agree that upon request, every quarter or as needed, Aruba shall provide: 1) a list of Products and their approval status in Brazil; and 2) the relevant certificates for such Products.

		
	10.
	The parties agree that Exhibit D shall not apply to any transactions that occur in the Territory of Brazil. The parties further agree that all products shipped to Brazil will adhere to the same labeling guidelines as products shipped in the US.  

B.    This Amendment constitutes the entire agreement between the parties with respect to the subject matter hereof, and 

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Contract Number: SPA0307-00006461    Page 2

Amendment #3
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Exhibit 10.1

shall supersede any prior agreements or understandings between the parties, whether written or oral, with respect to the subject matter hereof.

C.    This Amendment may be executed using facsimile signature pages and/or in counterparts, each of which shall be deemed an original and legally binding signature.

IN WITNESS WHEREOF, the parties hereto by their duly authorized representatives have executed this Agreement upon the date first set forth above.

        
ARUBA NEWORKS, INC.    SCANSOURCE, INC.

By: ______/s/ Ava Hahn___________    By: ____/s/ Michael J. Ferney___5/6/13____        

Print Name: _AVA HAHN__________    Print Name: _MICHAEL J. FERNEY______        

Title: _GENERAL COUNSEL  4/19/2013    Title:___VP OF MERCHANDISING______    

ACKNOWLEDGED BY: CDC BRASIL DISTRIBUIDORA DE TECNOLOGIAS ESPECIAIS LTDA

By: ____/s/ Alexandre Conde_________        

Print Name: __ALEXANDRE CONDE_

Title: _PRESIDENT SCANSOURCE BRAZIL_
                  5/6/2013

Contract Number: SPA0307-00006461    Page 3
Amendment #3ARUN-EX 10.2-2013.10.31

Exhibit 10.2

CONFIDENTIAL TREATMENT REQUESTED
CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
Amendment #4
to ScanSource, Inc.
Distribution Agreement

This Amendment #4 to the Distribution Agreement  dated June 4, 2007 (the “Agreement”) and modified in Amendment #1dated March 17, 2008, Amendment #2 dated May 27, 2009 and Amendment #3 dated May 6, 2013 is made and entered into as of November 1, 2013 (“Effective Date”) by and between Aruba Networks, Inc., having its principal place of business at 1344 Crossman Avenue, Sunnyvale, CA 94089 (“Aruba”), and ScanSource, Inc., with an address at 6 Logue Court, Greenville, South Carolina 29615 (“ScanSource”).  Capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms in the Agreement.  

WHEREAS, Aruba and ScanSource entered into a Distribution Agreement dated June 4, 2007; and 

WHEREAS, Aruba and ScanSource now desire to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein, the parties hereby agree as follows:

A.   In Exhibit A of the Agreement, the Section entitled “PRODUCT & PRICE LIST” is hereby removed in its entirety and replaced with the following:

PRODUCT & SERVICES PRICING/DISCOUNTS

For reference, below are the price list categories: 

MC – Mobility Controllers
AP – Access Points
IAP – Instant Access Points 
MX – Access Multiplexers
SW – Software
HW – AirWave & ClearPass Appliance
MR – Mesh Router
MAS – Mobility Access Switches
CL – Central Software
SP – Support
PS – Professional Services
TR – Training
OT – Other Product
Any additional categories shall be as designated by Aruba subsequent to this Agreement. 

		
	•
	Instant Product Discount: (Categories – IAP, MAS, and CL): 

		
	◦
	Standard Pricing  for Product – [* * *] off Price List

		
	◦
	For Product sold to Aruba’s Platinum level partners – [* * *] off Price List

		
	▪
	The additional discount above standard will be processed through the rebate for non-standard pricing process.

Amendment #4 to the Distribution Agreement    Page 1
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Exhibit 10.2

		
	•
	Non-Instant Products Discount: (Categories – MC, AP, MX, SW, HW, MR, and OT)

		
	◦
	Standard Pricing  for Product – [* * *] off Price List

		
	◦
	For Product sold to Aruba’s Platinum level partners – [* * *] off Price List

		
	▪
	The additional discount above standard will be processed through the rebate for non-standard pricing process.

		
	◦
	For non-instant Products sold to unauthorized and Aruba’s Authorized level partners – [* * *] off Price List

		
	§
	The reduced discount below standard will be processed as a negative through the rebate for non-standard pricing process.

		
	•
	All Products: (Categories – MC, AP, IAP, MX, SW, HW, MR, MAS, CL, and OT)

		
	◦
	Non-Standard Pricing (NSP) – For Product being sold to Customers using non-standard pricing agreed to between Aruba and Customer, unless otherwise negotiated between Aruba and ScanSource, Aruba will offer ScanSource a discount equal to [* * *] off of price list above the non-standard pricing being offered to the Customer.  All non-standard deals must be approved by Aruba’s VP Channel Operations or VP Sales – Americas.

		
	◦
	Deal Registration (DR) – For Product being sold through Aruba’s PartnerEdge partners to End Users, Aruba may offer additional discount above standard pricing.  The additional discount above standard will be processed through the rebate for non-standard pricing process.

		
	◦
	Demonstration Product sold to Customers will be treated as non-standard pricing.  Customers are eligible to purchase up to [* * *] list price of for demonstration/lab purposes at [* * *] off Price List.  ScanSource will use reasonable efforts to assist in  the [* * *] maximum annual purchase limit.

		
	•
	Advanced Services Discount: (Category – PS)

		
	◦
	[* * *] off Price List (Implementation and Consulting Services).

		
	•
	Aruba Provided Training: (Category – TR)

		
	◦
	Training (End User – Resale) –[* * *] off Price List (onsite training is based on a custom quote by Aruba Education Services).

		
	◦
	Training (Internal ScanSource Training Only) – [* * *] off Price List.

		
	◦
	Onsite End User training is based on a custom quote by Aruba’s Education Services.

		
	•
	Aruba Support Services Pricing Discounts: (Category – SP)

		
	◦
	ArubaCare (Aruba-branded support service)

		
	▪
	[* * *] off Price List

		
	▪
	The Aruba Support Services are provided under and governed by the ArubaCare Terms and Conditions, which are set forth at https://partners.arubanetworks.com/.

		
	▪
	If Customer elects to cancel or terminate ArubaCare Services for a Product, Customer must give Aruba thirty (30) days advance notice and then Provider shall be liable only for payment of ArubaCare Services for that Product through the date of such termination and Aruba shall pay to Provider a refund of any unused prepaid fees, pro-rated over the period for which such payment was made. 

		
	▪
	Any Customer or End User that has not paid all applicable renewal fees at time of expiration of the term for which such services are then being rendered will only be permitted to subsequently reinstate the Aruba support services if it first pays all renewal 

Amendment #4 to the Distribution Agreement    Page 2
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Exhibit 10.2

fees that would have been due from the expiration date through the date that the Customer or End User desires to renew the Aruba support services.
		
	▪
	Fifteen (15) days prior to the expiration of any ArubaCare agreement Aruba may directly pursue renewal of ArubaCare services with any End User.

		
	•
	Internal Use Products for ScanSource

		
	◦
	[* * *] off Aruba List Price (for Products purchased for demonstration and lab purposes only, and not for ScanSource’s operational IT infrastructure).

		
	◦
	ScanSource can purchase up to [* * *] list price of demonstration and lab equipment at this discount each year.

DEMONSTRATION CAPABILITIES
ScanSource is responsible for establishing a fully functional demo capability, containing Products reasonably specified by Aruba, within sixty (60) days after the Effective Date of this Agreement. Aruba from time to time will modify the items required to be contained in the ScanSource demo equipment, and ScanSource shall be responsible for updating demo equipment to meet such requirements within sixty (60) days after Aruba notifies ScanSource of a requirements modification.

B.   This Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

C.   Except as provided herein, all other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective authorized representatives as of the Effective Date.

        
ARUBA NEWORKS, INC.    SCANSOURCE, INC.

By: ____/s/ Ava Hahn______________    By: _______/s/ Ansley Hoke______________        

Print Name: __/S/ AVA HAHN_______    Print Name: __ANSLEY HOKE___________        

Title: ___GENERAL COUNSEL______    Title:__VICE PRESIDENT, MERCHANDISING_    

Date: _____11/15/2013______________    Date:___November 1, 2013_________________    

Amendment #4 to the Distribution Agreement    Page 3
***  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

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