Document:

BRCD-10K - FY14 - EX10.140

Exhibit 10.140

IBM and Brocade
Statement of Work
                                
Base Agreement # ROC-P-68
SOW # 7 (Contract Number 4907015087.0)

SOW #7
Amendment # 10

This Amendment # 10 is subject to the terms and conditions and forms a part of Statement of Work 7, as amended, and its related Agreement # ROC-P-68 (collectively, “Agreement”) between International Business Machines Corporation (“Buyer” or “IBM”) and Brocade Communications Systems, Inc. and Brocade Communications Switzerland, SarL (individually and collectively, “Supplier” or “Brocade”).  For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:

PURPOSE:

The purpose of this Amendment # 10 is to add IBM Network Advisor 12.3.x as a Licensed Work under this SOW #7.

NOW, THEREFORE, THE FOLLOWING CHANGES ARE MADE TO SOW #7 BY THIS AMENDMENT #10:

		
	1.
	Delete Table 4, IBM Network Advisor Pricing, to Attachment A,  and replace with the updated Table 4, IBM Network Advisor Pricing, to Attachment A, as set forth in substantially the form attached hereto as Exhibit 2 to this Amendment. 

		
	2.
	Delete Exhibit 1, Attachment F-3, and replace with updated Exhibit 1, Attachment F-3.

                    

(The remainder of this page intentionally left blank)

	
			
	IBM/Brocade
	Page 1 of 4

	Amendment #10 to SOW #7 (Contract Number 4907015087.0)
	 

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

	
			
	ACCEPTED AND AGREED TO:
	 
	ACCEPTED AND AGREED TO:

	International Business Machines Corporation
	 
	Brocade Communications Systems, Inc.

	By:  /s/ Jeffrey W. Miles        
	 
	By:  /s/ Charles Leeming       

	(Authorized signature)
	 
	(Authorized signature)

	Name  Jeffrey W. Miles
	 
	Name  Charles Leeming     

	(Type or print)
	 
	(Type or print)

	Title  Mgr., Networking and Communications Procurement    
	 
	Title  VP, DC Solutions 

	Date  8/29/2014      
	 
	Date  9/3/14  

	 
	 
	 

	 
	 
	 

        
        
	
			
	 
	 
	ACCEPTED AND AGREED TO:

	 
	 
	Brocade Communications Switzerland SarL.

	 
	 
	By:  /s/ Pierre Mattenberger    

	 
	 
	(Authorized signature)

	 
	 
	Name  Pierre Mattenberger   

	 
	 
	(Type or print)

	 
	 
	Title  Director

	 
	 
	Date  9/5/2014

	 
	 
	 

	 
	 
	 

    
                                

	
			
	IBM/Brocade
	Page 2 of 4

	Amendment #10 to SOW #7 (Contract Number 4907015087.0)
	 

Exhibit 1
Attachment F-3

Branding, Description of Licensed Work, and Milestone Schedules
For Network Advisor

1.0  Buyer Branded Version of  Supplier’s OEM Software Product
The Licensed Work will be comprised of a Buyer-branded version of Supplier’s Brocade Network Advisor software product.  The Buyer branded version will be called “IBM Network Advisor.”  Supplier consents to the use by Buyer the name “IBM Network Advisor”, “Network Advisor”.  The Licensed Work will be provided by Supplier to Buyer in Object Code format. 

2.0 Description of Licensed Works

2.1    Description of Licensed Work for IBM Network Advisor 
	
						
	Code Name
	Version
	Description
	Documentation
	Format
	Delivery Requirements

	Network Advisor
	11.1.x
12.0.x
12.1.x
12.3.x
	IBM Network Advisor
	Online
	Object Code
	CD, License key documentation

 
2.1.1  Operating System Requirements
Brocade Network Advisor operating system requirements can be found in Brocade documentation located on line via our partner web portal.  To access, log in to MyBrocade -> documentation -> management software.  Brocade Network Advisor Installation Guide (by version).  Specific document part numbers listed below.

IBM Network Advisor v11.1.x:
Brocade Network Advisor
Installation Guide
PN: 53-1002320-01
Date:  May 13, 2011

IBM Network Advisor v12.0.x
Brocade Network Advisor
Installation and Migration Guide
PN:  53-1002699-01
Date:  December 17, 2012

IBM Network Advisor v12.1.x
Brocade Network Advisor
Installation and Migration Guide
PN:  53-1002950-01
Date:  July 26, 2013

IBM Network Advisor v12.3.x
Brocade Network Advisor
SAN Installation and Migration Guide
PN:  53-1003158-01
Date:  July 11, 2014

	
			
	IBM/Brocade
	Page 3 of 4

	Amendment #10 to SOW #7 (Contract Number 4907015087.0)
	 

2.2  Documentation :  Supplier will provide Buyer with IBM branded customer documentation.
      a) Internal (standard Supplier documentation)
      b) External (on-line documentation)
      c) No other related written materials          

2.2.1  Other Materials:
a)    Quality Plan:  Supplier will provide Buyer with quality plan upon Buyer’s request
b)    Test Results:  Supplier will provide Buyer with available test results upon Buyer’s request
c)     Test Cases:    Supplier will provide Buyer with available test cases upon Buyer’s request.       
d)    Maintenance and Support Reports (including information required and format) 
e)     Promotional Materials:  Buyer and Supplier will mutually determine what promotional materials are needed for the Licensed Works.
f)     Education/Training material:  Buyer and Supplier will mutually determine what Education and Training materials are needed for the Licensed Works.

2.2.2  Code deposited on CD media and shipped to Buyer as directed on Buyer’s purchase order. Beginning with v12.3, Code is available on IBM’s support download site only.

3.     Identification of Tools 
No tools are provided for the Licensed Works.

	
			
	IBM/Brocade
	Page 4 of 4

	Amendment #10 to SOW #7 (Contract Number 4907015087.0)
	 

4907015087 (SOW-7) - AMENDMENT 10
Product Price List and Description
DATE:  August 20, 2014  Final

TABLE 4 - IBM NETWORK ADVISOR PRICING

	
									
	BROCADE
	IBM
	IBM (End-Customer P/N)
	IBM NETWORK ADVISOR

	Brocade p/n
	IBM Hub 
Stock P/N
	US 
Feature Code
	LA/EMEA Feature Code
	AP/
Canada Feature Code
	Feature Description
	Unit Price
	 Software Maintenance 
	  TOTAL UNIT PRICE

	IBM Machine Type / Model:   5639-NAT
	IBM System Storage 
Data Center Fabric Manager v12.x

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	NA v12 Media Kits

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	NA v12.1 Media Kits

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	NA v12.3 Paperpack

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	[***]
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	IBM Machine Type / Model:   5639-NA2
	IBM NETWORK ADVISOR
[***] Yr Renewal

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	IBM Machine Type / Model:   5639-NA3
	IBM NETWORK ADVISOR
1 Yr After License

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	IBM Machine Type / Model:   5639-NA4
	IBM NETWORK ADVISOR
3 Yr Registration

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	IBM Machine Type / Model:   5639-NA5
	IBM NETWORK ADVISOR
3 Yr Renewal

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	IBM Machine Type / Model:   5639-NA6
	IBM NETWORK ADVISOR
 3 Yr After License

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***] 
	 [***] 
	 [***] 

	
			
	Amendment #10 to SOW #7 (Contract Number 4907015087.0)

	Page 1 

	Table 4
	IBM/Brocade

	 
	 
	 

	[***] 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.

4907015087 (SOW-7) - AMENDMENT 10
Product Price List and Description
DATE:  August 20, 2014  Final

TABLE 4 - IBM NETWORK ADVISOR PRICING
END OF LIFE PRODUCTS

	
									
	BROCADE
	IBM
	IBM (End-Customer P/N)
	IBM NETWORK ADVISOR

	Brocade p/n
	IBM Hub 
Stock P/N
	US 
Feature Code
	LA/EMEA Feature Code
	AP/
Canada Feature Code
	Feature Description
	Unit Price
	 Software Maintenance
	  TOTAL UNIT PRICE

	IBM Machine Type / Model:   5639-NA1
	IBM System Storage 
Data Center Fabric Manager v11.x

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***]
	 [***]
	 [***]

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***]
	 [***]
	 [***]

	[***]
	 
	[***]
	[***]
	[***]
	[***]
	 [***]
	 [***]
	 [***]

	[***]
	[***]
	[***]
	 
	 
	[***]
	 [***]
	[***]
	 [***]

	[***]
	[***]
	[***]
	 
	 
	[***]
	 [***]
	[***]
	 [***]

	[***]
	[***]
	[***]
	 
	 
	[***]
	 [***]
	[***]
	 [***]

	
			
	Amendment #10 to SOW #7 (Contract Number 4907015087.0)

	Page 1 

	Table 4
	IBM/Brocade

	 
	 
	 

	[***] 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.BRCD-10K - FY14 - EX10.141

Exhibit 10.141
Amendment Number 7
to
OEM Purchase and License Agreement
Between EMC Corporation and Brocade Communications, Inc.
OEM Agreement Number OEM 051208 Dated May 20, 2008
This Amendment Number 7 ("Amendment 7") to the OEM Purchase and License Agreement ("Original Agreement") dated May 20, 2008 BROCADE Communications Systems, Inc., a Delaware corporation with an office located at 130 Holger Way, San Jose, California 95134, and Brocade Communications Switzerland SarL., a Geneva corporation with principal offices at 29 Route de l'Aeroport, Case Postale 105, CH-1215, Geneva 15, Switzerland, (collectively, "Brocade"), and EMC Corporation, 176 South Street, Hopkinton, MA 01748 together with its designated Subsidiaries ("EMC"), and commences on the last date signed below ("Effective Date").  The Original Agreement, as amended by Amendments 1 through 6, is collectively referred to herein as the “Agreement.”
RECITALS
WHEREAS, the parties wish to amend the Agreement to add further products to the Agreement;

NOW THEREFORE, in consideration of the above and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.    Additional Product. The parties hereby amend the definition of Products to include the Brocade VDX Ethernet Switch family of products (“VDX Products”), subject to the terms of this Amendment7.

2.    Term and Termination.  The term of this Amendment 7 will be coterminous with the Agreement.  It may be terminated in accordance with the termination provisions of the Agreement.

3.    Terms Specific to VDX Products.

		
	a.
	Gross Margin Calculation.  For a period of [***] months, Brocade agrees to align to EMC’s Gross Margin target goal of [***]%.  As used in this Amendment7, “Gross Margin” will be calculated as follows:

([***]). 
  

		
	b.
	Optics.  EMC may source optics for use with the VDX Products from Brocade or direct from suppliers consistent with those used in EMC’s own Storage Products. Use of optics as described above will not void the warranty on the VDX Products, and, Brocade will continue to support the VDX Products.  The optic quality and part numbers will be reviewed on a quarterly basis. 

		
	c.
	Review Period for Gross Margins; Rebate Payments.  In the event the average Gross Margin over each calendar quarter period of this Amendment (each a “Review Period”) falls below EMC’s target of [***]%, Brocade will provide EMC a rebate on the next calendar quarter net revenue on VDX sales Brocade receives from EMC (i.e., VDX sales net of other rebates and transactional discounts).  The eligibility for the rebate is represented in the table below::

[***] 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.

	
			
	EMC and Brocade Confidential
	 
	Page 1 of 4

	
		
	Gross Margin Calculation Target 30%
	Rebate %

	[***]
	[***]

	[***]
	[***]

		
	i.
	Deal Exception Process.  Brocade and EMC agree to leverage a Brocade VDX deals Exception Process to be mutually agreed and operationalized by the parties to address competitive opportunities that require better pricing to win customer deals or opportunities where the Gross Margin falls below the [***]% of Target level in the chart above. Brocade and EMC will evaluate each opportunity on a case by case basis and Brocade will use commercially reasonable efforts to apply additional discounting or other methods to bring the Gross Margin to the [***]% level.

As part of the quarterly Gross Margin Calculation and only when agreed to by both parties, some transactions will be identified as special cases and will not contribute to the overall accounting for gross margin calculation.  This will be determined on a sales order by sales order basis. A maximum of  two (2) deals will be allowed per  Review Period.

		
	ii.
	EMC Gross Margin Reporting.  Within thirty (30) days of the end of each Review Period, if the Gross Margin for that Review Period is less than [***]% of the target Gross Margin level, EMC will provide Brocade with a statement identifying the average Gross Margin EMC obtained on sales of VDX Products for the preceding Review Period.  The Gross Margin review process and average discount for the Product will be reviewed annually for terms and conditions at the request of either party.

		
	d.
	Audit of Gross Margin.  Brocade may elect at its own expense to audit EMC’s calculation of average Gross Margin once per calendar year with the audit covering the immediately preceding year’s sales of VDX Product.  Such audit shall be conducted by an independent third party designated by Brocade and approved by EMC, which approval shall not be unreasonably withheld.  The auditor shall be retained on other than a contingent fee basis and operate under a confidentiality and nondisclosure contract in a form reasonably acceptable to EMC.  At least thirty (30) days before an audit, Brocade shall notify EMC of its intent to conduct an audit and shall provide EMC with a proposed audit plan.  EMC shall only be obligated to disclose information related directly to the sale of VDX Products including optics not procured from Brocade in the immediately preceding calendar year.  EMC may reasonably object to the scope and/or specific items to be audited on the grounds that it oversteps the audit rights in this Section. Any reports created by the third party auditor shall be treated as Confidential Information under this Agreement. The auditor may disclose to Brocade whether there is an over- or under-calculation of average Gross Margin and by how much. The auditor shall provide EMC with a copy of any written report or other results of the audit at the same time it provides its report to Brocade.  In any quarter , if the results of the audit show that EMC’s calculation of the average Gross Margin based on the following - Gross Margin reported by EMC - Gross Margin determined by the audit > [***]% - then EMC shall reimburse Brocade for the rebate from the audit period consistent with the payment terms of the Agreement, after notice from Brocade.

[***] 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.

	
			
	EMC and Brocade Confidential
	 
	Page 2 of 4

		
	e.
	MDF Funds to Promote VDX Products.  VDX Product sales will fund the MDF account, consistent with the Agreement.  The parties will mutually agree regarding spending MDF funds to promote VDX Products.

		
	f.
	Training and Support Plan for VDX Products.  The parties will agree to a training and support plan for EMC’s sale of the VDX Products that can scale consistent with sales.  The plan will include, but not be limited to, escalation processes, training, shadowing, onsite support, and other mutually-agreed topics.  Such plan will be an amendment to this Agreement.  The parties will review the training and support plan annually to determine whether to extend and/or modify as appropriate.

		
	g.
	Pricing for the VDX Products. The prices applicable to EMC’s purchase of VDX Products are stated in Exhibit A (“VDX Product Pricing”) attached to this Amendment 7 and incorporated herein by reference.

4.    No Other Changes.  Except as modified in this Amendment 7, the Agreement and current operations processes remain in full force and effect. If any of the terms of the Agreement conflict with this Amendment 7, then the terms of this Amendment 7 will control for VDX Products only.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment 6 to the Agreement by their duly authorized representatives. 
	
			
	Brocade Communication Systems, Inc.
	Brocade Communication Switzerland, SarL
	EMC Corporation

	Sign: 
/s/ Charles Leeming              
Print Name: 
Charles Leeming                    
Title: 
VP, OEM Data Center                Solutions                                
Date: 
10/28/14                                  
	Sign: 
/s/ Pierre Mattenberger     
Print Name: 
Pierre Mattenberger            
Title: 
Director                               
Date: 
October 30th, 2014                
	Sign: 
/s/ Patrick Dennis                  
Print Name: 
Patrick Dennis                       
Title: 
SVP                                        
Date: 
10/31/14                                 

	
			
	EMC and Brocade Confidential
	 
	Page 3 of 4

EXHIBIT A
VDX Product Pricing
See separate Excel spreadsheet

	
			
	EMC and Brocade Confidential
	 
	Page 4 of 4

EMC VDX OEM Pricing - 10/22/14
	
								
	EMC MODEL#
	EMC PN#
	BROCADE PN#
	CATEGORY
	DESCRIPTION
	CURRENT PRICE
	ANNUAL MAINT.
	OOW FEE

	[***]
	[***]
	EM-VDX6740-24-F24-F
	SWITCH
	VDX-6740 24P/48P 10GbE Switch FTR Air
	[***]
	[***]
	[***]

	[***]
	[***]
	EM-VDX6740-24-R24-F
	SWITCH
	VDX-6740 24P/48P 10GbE Switch RTF Air
	[***]
	[***]
	[***]

	[***]
	[***]
	EM-VDX6740-64F
	SWITCH
	VDX-6740 48P 10GbE  4-40GbE Switch FTR
	[***]
	[***]
	[***]

	[***]
	[***]
	EM-VDX6740-64R
	SWITCH
	VDX-6740 48P 10GbE  4-40GbE Switch RTF
	[***]
	[***]
	[***]

	[***]
	[***]
	EM-VDX6740-8X10G-POD
	POD KIT
	VDX-6740 8X10GBE POD Upgrade License
	[***]
	[***]
	[***]

	[***]
	[***]
	EM-VDX6740-2X40G-POD
	POD KIT
	VDX-6740 2X40GBE POD Upgrade License
	[***]
	[***]
	[***]

	[***]
	[***]
	EM-VDX6740-FCOE
	SOFTWARE
	VDX-6740 FCoE License
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-R000291
	FRU, RACKMOUNT
	VDX-6740 27-31 Rack Mount Kit
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-E1MG-SX-OM-8
	FRU, OPTIC
	BRCD LBL SFP 1GbE SX OPTIC 8PACK
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-E1MG-LX-OM
	FRU, OPTIC
	BRCD LBL SFP 1GbE LX OPTIC 1PACK
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-E1MG-LX-OM-8
	FRU, OPTIC
	BRCD LBL SFP 1GbE LX OPTIC 8PACK
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-10G-SFPP-ER
	FRU, OPTIC
	BRCD LBL SFP 10GbE ER 40KM OPTIC 1PACK
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-40G-QSFP-SR4-INT
	FRU, OPTIC
	BRCD LBL 4x10GbE SR 40G QSFP 1PACK
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-40G-QSFP-QSFP-C-0101
	FRU, OPTIC
	BRCD QSFP 40G DIRECT ATTACH 1 METER
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-40G-QSFP-QSFP-C-0301
	FRU, OPTIC
	BRCD QSFP 40G DIRECT ATTACH 3 METER
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-40G-QSFP-QSFP-C-0501
	FRU, OPTIC
	BRCD QSFP 40G DIRECT ATTACH 5 METER
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-40G-QSFP-ESR4
	FRU, OPTIC
	BRCD QSFP 40G SR4 QSFP 300M
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-000245
	FRU, OPTIC
	BRCD LBL 4X16GB SHORT WAVE QSFP 1PACK
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-250WPSAC-F
	FRU, PSU
	VDX-6740 AC FTR Pwr Supply FAN FRU
	[***]
	[***]
	[***]

	[***]
	[***]
	XEM-250WPSAC-R
	FRU, PSU
	VDX-6740 AC RTF Pwr Supply FAN FRU
	[***]
	[***]
	[***]

[***] 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.

	
			
	EMC and Brocade Confidential
	 
	Page 1 of 4

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