Document:

exv10w4

 

Exhibit 10.4

OEM PURCHASE AGREEMENT

TENTH AMENDMENT

This TENTH Amendment (“Amendment”) is effective as of the date of the last signature hereto (the
“Effective Date”) and amends the OEM Purchase Agreement dated December 16, 2002 (“Agreement”) by
and between Hewlett-Packard Company a Delaware Corporation having its principle place of Business
located at 3000 Hanover Street, Palo Alto, CA, 94304, (“HP”) and Brocade Communications Systems,
Inc., a Delaware corporation having its principal place of business located at 1745 Technology
Drive, San Jose, California 95110 (“Brocade”). and BROCADE COMMUNICATIONS SYSTEMS SWITZERLAND
SARL., a corporation organized under the laws of Geneva, and having its principal place of business
at 29 Route de l’Aeroport Case Postale 105, CH-1215 Geneva 15, Switzerland (collectively
“Supplier”).

RECITALS

WHEREAS, HP and Brocade have entered into the Agreement pursuant to which HP agreed to purchase and
Brocade agreed to sell OEM Products in accordance with the terms and conditions set forth therein;
and

WHEREAS, HP and Brocade desire to enter in this TENTH Amendment to amend certain provisions of the
Agreement; and

WHEREAS, Brocade provides switch products to HP which require SFPs that provide connectivity
between HP arrays/servers and Brocade Fibre Channel (FC) switch products; and

WHEREAS, Brocade additionally provides embedded switch products to HP; and

WHEREAS, SFPs operate as part of a high quality system with Brocade’s Fibre Channel (FC) Fabric
switch products;

NOW THEREFORE, in consideration of the mutual covenants contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, HP and
Brocade agree as follows.

	 	1.0	 	Definitions. All capitalized terms used in this TENTH Amendment that are not defined herein
shall have the meaning given thereto in the Agreement

1.1 “SFP” shall mean small form-factor pluggable transceiver. (Includes SFP+)

	 	2.0	 	Confirmation and Ratification. Except as expressly amended herein all unmodified and
remaining terms and conditions of the Agreement shall remain in full force and effect. In the
event a conflict between the Agreement and this TENTH Amendment, the terms of this TENTH
Amendment shall govern.

	 	3.0	 	Amendments. HP and Brocade agree that the following terms will be added to the OEM Agreement:

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3.1 With the release of the [**] firmware in their 8G FC switch products HP will
procure the Brocade-qualified SFPs from Brocade-defined suppliers for use in Brocade FC
switch products.

	 	3.1.1	 	The terms of this agreement shall apply to
both 4Gb and 8Gb HP “Brocade-specified” SFPs for use in Brocade’s 8Gb
FC switch products.

3.2 HP will purchase and manage the supply of all SFPs on all current and future
programs with Brocade, unless both parties agree to an alternative model.

	 	3.2.1	 	HP will negotiate HP pricing directly with
the SFP suppliers. There will be no Brocade-influenced SFP cost
impacting these negotiations for direct purchases by HP of the SFP
products from the qualified suppliers.

	 	3.2.2	 	Brocade will maintain a minimum of (2) of
the SFP suppliers below in their qualified supplier list for SFPs to
support Brocade Fibre Channel switches. HP and Brocade will continue
to work together to maintain alignment on our qualified supplier
lists.

     3.2.2.1 [**]
     3.2.2.2 [**]

	 	3.2.3	 	For Short Wave Length SFPs, Brocade will
qualify and maintain a minimum of (2) of the suppliers in 3.2.2 for
non-Short Wave SFPs that are low volume or unique in technology,
Brocade will use commercially reasonable efforts to qualify and
maintain a minimum of (2) of the suppliers in 3.2.2. Brocade will
keep HP informed regarding supplier qualification status. If
suppliers in 3.2.2 cannot be qualified, Brocade will work with HP in
determining alternate suppliers to be qualified.

	 	3.2.4	 	Brocade will give HP at least ninety (90)
days notice in order for HP to review and approve any proposed change
to the qualified supplier list. HP and Brocade will mutually agree
on the implementation date of the supplier change. If there is an
urgent business need, a change may occur sooner than ninety (90) days
if mutually agreed.

	 	3.3	 	HP will make no changes to the “Brocade-specified” design without
full evaluation, qualification, and approval by Brocade. Should HP wish to make
changes to the “Brocade specified” design, Brocade will work with HP in good faith
to accommodate these changes.

	 	3.3.1	 	Brocade will give HP and SFP Suppliers
notice of any proposed Engineering Change of the HP
“Brocade-specified” SFP ninety

 

			
	[**]	 	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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	 	 	 	(90) days prior to the first scheduled
release of the affected products. The implementation of the change
will be mutually agreed to by Brocade and HP.

3.4 Brocade and HP will develop a methodology for HP to create and procure a
HP-specific part numbered SFP that is branded with a HP label which calls out the HP
“Brocade specified” SFP design. HP will create a HP purchase specification for the HP
branded SFP that calls out the “Brocade specified” SFP, and defines the HP unique label
and HP unique EEPROM settings. HP will have revision control for the HP SFP purchase
specification.

3.4.1 Brocade agrees to work with HP to understand HP’s specific requests for
changes to the SFP, and will work in good faith to accommodate such requests
where commercially feasible.

3.4.2 HP will own the packaging design of the HP “Brocade-specified” SFP.

3.5 Brocade will continue current and future support of HP requirements for SNMP and
SMI-S protocols for SFP reporting.

3.6 Subject to a Confidential Disclosure Agreement, technical teams from HP and Brocade
will meet as necessary to discuss specifications, quality requirements, and related
issues.

3.7 Brocade will be responsible for all ongoing supplier quality maintenance and
support as defined in Section 8 and Exhibit D of the OEM Agreement as it relates to the
HP “Brocade-specified” SFPs, used in Brocade switches.

3.8 Brocade will be in the lead position to resolve technical field issues as they
relate to the Brocade SFP/System design as defined in Exhibit D of the OEM Agreement.

3.9 Brocade will be responsible for securing all Regulatory certifications relevant to
the “Brocade-specified” SFPs. Brocade will provide certification data to HP for the
“Brocade-specified” SFP’s with the Brocade products. Brocade will allow HP to obtain
SFP certifications of “Brocade-specified” SFPs directly from the SFP supplier.

3.9.1 Brocade agrees to provide reasonable assistance to SFP suppliers to
ensure that all Regulatory certifications required by HP will be in
country-specific compliance within HP’s timelines for product launches.

3.10 Brocade agrees to provide the OEM qualification report to HP for the Brocade
specified SFPs with the Brocade products.

3.11 Brocade will include a reference to unique HP-branded “Brocade-specified” SFPs in
all HP-specific Training materials and Marketing collateral provided to HP.

3.12 To help enable a successful 4Gb to 8Gb transition, [**].

3.12.1 [**].

 

			
	[**]	 	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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3.13 As it relates to the Brocade-specified SFPs, Brocade will not sell directly to HP
End Users as defined in Section 13.2 Distribution Rights of the OEM Agreement.

3.14 HP agrees to an 8Gb Technology Value Recovery fee of [**] per active port on 8Gb
switches and 8Gb POD software licenses. [**].

The parties have caused this Amendment to be executed by their duly authorized representatives as
indicated below.

	 	 	 	 	 	 	 	 	 	 	 
	AGREED:	 	 	 	 	 	 	 	 
	BROCADE COMMUNICATIONS

SYSTEMS INC. (“SUPPLIER”)	 	 	 	HEWLETT-PACKARD COMPANY
(“HP”)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BROCADE COMMUNICATIONS

SWITZERLAND, SARL. (“SUPPLIER”)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

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Exhibit 10.5

December 30, 2007

Mr. Michael Harrison

Brocade Communications Systems, Inc.

1745 Technology Drive

San Jose, CA 95110

Subject: Amendment 31 to SOW#1 of the IBM/Brocade Goods Agreement ROC-P-68

This letter (the “Amendment) serves as Amendment Number 31 to SOW#1, including all
amendments thereto (“SOW#1”) of the Goods Agreement ROC-P-68 (the “Agreement”), which
the parties hereto do mutually agree to amend as follows:

	1.	 	The third sentence in the first paragraph of the Goods Agreement, and Section 1,
of Amendment #24, is modified as follows:

“The Term of this SOW #1 shall be extended from [**].”

The effective date of this Amendment shall be the date on the top of this Amendment (the
“Effective Date”).

The parties acknowledge that they have read this Amendment, understand it, and agree to
be bound by its terms and conditions. All capitalized terms not defined herein shall
have the meaning set forth in the Goods Agreement or the SOW #1. All other terms and
conditions of the Goods Agreement and SOW#1 that are unaffected by the revisions set
forth in this Amendment shall remain in full force and effect. Further, the parties
agree that this Amendment and the Goods Agreement and SOW#1 are the complete and
exclusive statement of the agreement between the parties, superseding all proposals or
other prior agreement, oral or written, and all other communications between the parties
relating to this subject.

	 	 	 
	ACCEPTED AND AGREED TO:

	 	ACCEPTED AND AGREED TO:
	International Business Machines Corporation

	 	Brocade Communications Systems Inc.
	 
	By:

	 	By:
	 

	 	 
	Authorized Signature

	 	Authorized Signature
	 
	 	 
	 

	 	 
	Type or Print Name

	 	Type or Print Name
	 
	 	 
	 

	 	 
	Title & Organization

	 	Title & Organization
	 
	 	 
	 

	 	 

 

			
	[**]	 	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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