Document:

<PAGE>
                                                                   EXHIBIT 10.28

August 6, 2001

Brocade Communications Systems, Inc.
1901 Guadalupe Parkway
San Jose, CA  95131

Attention:  Mr. Patrick Johnston

Subject:  Amendment 4 to SOW#1 of the IBM/Brocade Goods Agreement ROC-P-68

Dear Patrick:

This letter (the "Amendment") serves as Amendment Number 4 to SOW#1, including
all amendments thereto ("SOW#1") of the Goods Agreement ROC-P-68, including all
amendments thereto (the "Goods Agreement") which the parties hereto do mutually
agree to amend as follows:

1.    Modify the first sentence in the first paragraph of the SOW#1 to read as
      follows:

      "This Statement of Work ("SOW") #1 adopts and incorporated by reference
      the terms and conditions of the Goods Agreement # ROC-P-68 ("Agreement")
      between International Business Machines ("Buyer"), and Brocade
      Communications Systems, Inc."

2.    Modify the third sentence in the first paragraph of the SOW#1 to read as
      follows:

      "The term of this SOW#1 shall be effective from April 15, 1999 to December
      31, 2002."

3.    Except for the pricing table in Section 2.1, any reference to "8-port and
      16-port fibre channel switches" in the SOW#1 is modified to read "Product.

4.    Section 1.0, "Product Description", delete in its entirety and replace
      with the following:

"Except as provided in the next sentence, and for so long as this SOW is in
effect, Buyer agrees to purchase from Supplier [*] its SAN cross-divisional
Product Development Team or any successor group or groups [*] for IBM-logoed
versions of 16-port and 32-port fibre channel switches provided, however, that
Supplier's price to Buyer remains competitive with prices charged by others for
comparable products (the term "competitive" meaning [*] of the then current fair
market price of similar products of comparable functionality sold in comparable
quantities to OEM Customers), and that switches provided by Supplier continue to
meet the agreed to quality, schedule and supply requirements specified in this
Agreement. [*] same issue as in the original 1999 agreement re: redacting the
fact that this is a sole source agreement]

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

<PAGE>

                                                                   EXHIBIT 10.28

5.    Delete the table in Section 1.1, "Specifications," and replace with the
      following table:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
IBM SPECIFICATION/ATTACHMENTS     ENGINEERING CHANGE LEVEL       DESCRIPTION
(IF APPLICABLE)
<S>                               <C>                            <C>
-----------------------------------------------------------------------------------------------
NA                                Version 1.0                    SilkWorm 2000 Family
                                                                 Product Specification
                                                                 90-0000001-01
-----------------------------------------------------------------------------------------------
Attachment B                      Dated 8/06/2001                Supplier Quality Attachment
-----------------------------------------------------------------------------------------------
GA-219261-11                      Version 10                     Packaging and Materials
                                                                 Handling Specification
-----------------------------------------------------------------------------------------------
Attachment A                      Dated 10/17/00                 IBM CSP Requirements
-----------------------------------------------------------------------------------------------
NA                                Version 2.0                    Brocade Fabric OS
                                                                 Publication 53-0001487-03
-----------------------------------------------------------------------------------------------
NA                                Version 2.1                    Brocade WebTools Reference
                                                                 Manual Publication
                                                                 53-0001490-02
-----------------------------------------------------------------------------------------------
NA                                Version 2.0                    Brocade Zoning Reference
                                                                 Manual Publication
                                                                 53-0001488-02
-----------------------------------------------------------------------------------------------
NA                                Version 1.0                    SilkWorm 3800 Product
                                                                 Specification --
                                                                 90-0000077-01
-----------------------------------------------------------------------------------------------
                                  Version TBD                    SilkWorm 3900 Product
                                                                 Specification - TBD
-----------------------------------------------------------------------------------------------
                                  Version TBD                    SilkWorm 3250 Product
                                                                 Specification - TBD
-----------------------------------------------------------------------------------------------
</TABLE>

6.    Delete first sentence in Section 2.5, "Supply of Products", in its
      entirety and replace with the following two sentences:

"Supplier shall deliver Products as specified in WA's for forecasted orders.
Unforecasted orders shall be subject to Supplier's acceptance in accordance with
the [*] order acknowledgement period set forth in Section 2.0 of the Goods
Agreement."

7.    Add Section 1.4, "Quality Standards," to read as follows:

        1.4.1  Supplier shall provide to Buyer applicable standard data and
               calculations that support the Products' ability to meet the
               quality standards set forth as Attachment B to this SOW #1.

        1.4.2  Any of Supplier's contract manufacturers shall be approved to an
               ISO 9000 standard or higher.

        1.4.3  Supplier shall perform failure analysis on all failed Products
               returned to Supplier. Upon determining the root cause of the
               failure, Supplier shall establish a corrective action plan to
               remove the Product defect. Buyer will assist Supplier with
               tracking all open failures and will work with Supplier to
               implement appropriate corrective action as reasonably determined
               necessary by Supplier.

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

<PAGE>

                                                                   EXHIBIT 10.28

8.    Delete pricing table in its entirety Section 2.1, "Pricing," and replace
      with the following:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
      IBM P/N / NUMA-Q P/N    BROCADE P/N      DESCRIPTION                                 UNIT PRICE
      --------------------    -----------      -----------                                 ----------
<S>                          <C>              <C>                                          <C>
-----------------------------------------------------------------------------------------------------
[*]                          [*]              8-Port Fibre Channel                               [*]
                                              Switch Single Power
                                              Supply (SW2400) Includes SES, Web
                                              tools, Zoning and Fabric Watch -
                                              whole unit switch Product
-----------------------------------------------------------------------------------------------------
[*]                          [*]              16 Port Fibre Channel                              [*]
                                              Switch Single Power
                                              Supply (SW2800) Includes SES, Web
                                              tools, Zoning and Fabric Watch -
                                              whole unit switch Product
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Silkworm 2000 Power Supply                         [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Mainboard, SW 2400 (8-port)                        [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Fan Tray, SW 2400 (8-port)                         [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Chassis, SW 2400 (8-port)                          [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Mainboard, SW 2800                                 [*]
[*]                                           (16-port)
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Fan Tray, SW 2800 (16-port)                        [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Chassis, SW 2800                                   [*]
                                              (16-port) with operator
                                              panel / LCD
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Quick Loop License                                 [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Fabric Watch License                               [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Extended Fabrics                                   [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Remote Switch                                      [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              16 Port Fibre Channel                              [*]
                                              Switch Single Power
                                              Supply (SW3800) Includes Web
                                              tools, Zoning and Fabric Watch -
                                              whole unit switch Product
-----------------------------------------------------------------------------------------------------
                             [*]              32 Port Fibre Channel                              [*]
                                              Switch Single Power
                                              Supply (SW3900) Includes SES, Web
                                              tools, Zoning and Fabric Watch -
                                              whole unit switch Product
-----------------------------------------------------------------------------------------------------
</TABLE>

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

<PAGE>

                                                                   EXHIBIT 10.28

<TABLE>
<CAPTION>
<S>                          <C>              <C>                                            <C>
-----------------------------------------------------------------------------------------------------
                             [*]              8 Port Fibre Channel                               [*]
                                              Switch Single Power
                                              Supply (SW3250) Includes Web
                                              tools, Zoning and Fabric Watch --
                                              whole unit switch Product
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Fan (SW3800)                                       [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Power Supply (SW3800)                              [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Mainboard FRU (SW3800)                             [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Fan (SW3900)                                       [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Power Supply (SW3900)                              [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Mainboard FRU (SW3900)                             [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              LUN Zoning                                         [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Advanced Security                                  [*]
-----------------------------------------------------------------------------------------------------
[*]                          [*]              Enhanced Bundle                                    [*]
                                              (Trunking and
                                              Performance Monitoring)
-----------------------------------------------------------------------------------------------------
</TABLE>

All prices are in U.S. dollars.

**Supplier shall provide Buyer with SW3900 Mainboard, Power Supply, and Fan
pricing to be effective on the dates referenced in the above table in this
Section 2.1 within [*] prior to Buyer's scheduled General Availability (GA) date
of the SW3900 product and the parties shall mutually agree upon such prices
within [*] following such provision.

9.    Add the following sentence in the last paragraph of Section 2.1,
      "Pricing":

      "Supplier agrees to provide Buyer a minimum cost reduction (as a
      percentage of the then current price of the SilkWorm 3800 and 3900
      integrated switch Products only) of [*] commencing September 1, 2002 and
      continuing through the term of this SOW #1."

10.   Section 2.9, "Warranty Period", delete in its entirety and replace with
      the following:

      "Product warranty period is [*] from the date of shipment, except for
      Products identified as FRU's (Field Replacement Units) in Section 2.1 for
      which the warranty period will commence on the earlier of: (i) [*] from
      the date of shipment, or (ii) upon installation at a customer site;
      provided Buyer notifies Supplier in writing of the date the FRU is
      installed, the serial number of the switch the FRU is installed into, and
      the serial number of the defective FRU. Notwithstanding the foregoing, if
      Supplier fails to include a RMA field return form in a shipment of FRU's,
      Buyer shall be entitled to the extended warranty period set forth above
      for such FRU's, whether or not Buyer has provided the written notice set
      forth above. In the event Supplier had included the RMA field return form
      in the applicable shipment of FRU's and Buyer fails to provide such
      notice, Buyer's warranty period for the applicable FRU's will be [*] from
      the date of shipment."

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

<PAGE>

                                                                   EXHIBIT 10.28

11.   Delete the first sentence in Section 2.10, "Notice of Product Withdrawal,"
      in its entirety and replace with the following two sentences:

      "Supplier will provide Buyer with [*] written notice of its intent to
      withdraw any Product ("End of Life" or "EOL") prior to the last date of
      manufacture of a Product, and Buyer may order such Products up to [*]
      prior to the last date of manufacture.

12.   Delete Section 2.11, "Epidemic Defect Rate", in its entirety and replace
      with the following:

      "The Epidemic Defect Rate is defined as [*] over a [*] rolling average,
      the minimum sample size for the three months shall be [*], for the same or
      similar defect. ([*] rounded to the nearest whole failing unit)."

13.   Add Section 2.12, "Use of Subcontractors," to read as follows:

      "Either party may use subcontractors to perform its obligations hereunder.
      Notwithstanding this subsection, each party's use of subcontractors will
      not relieve such party of the responsibility for the subcontractor's
      performance."

14.   Section 3.0, "Rescheduling/Cancellation", delete table after first
      paragraph in its entirety and replace with the following:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
                     MINIMUM DAYS NOTICE PRIOR TO DELIVERY DATE TO:
------------------------------------------------------------------------------------------
                    MAXIMUM           MAXIMUM
                    PERCENTAGE OF     PERCENTAGE OF
                    EACH ORDER THAT   EACH ORDER THAT
NUMBER OF DAYS      BUYER MAY         BUYER MAY
PRIOR TO DELIVERY   RESCHEDULE        CANCEL WITHOUT    CHANGE
DATE                WITHOUT CHARGE    CHARGE            DELIVERY POINT     DELIVERY EARLY
<S>                 <C>               <C>               <C>                <C>
------------------------------------------------------------------------------------------
0 -- 15 Days        [*]               [*]               2 day notice       1 day
------------------------------------------------------------------------------------------
[*]                 [*]               [*]               2 day notice       1 day
------------------------------------------------------------------------------------------
[*]                 [*]               [*]               2 day notice       1 day
------------------------------------------------------------------------------------------
</TABLE>

Supplier shall provide Buyer with cancellation charges pursuant to this Section
3.0 within [*] of the date of the latest signature below and the parties shall
mutually agree upon such cancellation charges within a reasonable time following
such provision.

15.   Modify the second sentence in Section 8.4, "Right to Manufacture," to read
      as follows:

      "Unless earlier terminated as set forth in Section 8.5 below, except with
      respect to existing Products or Spare Parts that are being manufactured on
      or after such time and except as specified in the next sentence, Buyer
      acknowledges and agrees that the Limited Manufacturing License granted
      under this Section 8.4 shall immediately terminate upon termination of
      this Agreement."

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

<PAGE>

                                                                   EXHIBIT 10.28

16.   Modify first sentence in Section 9.1, "Product Repair -- Field Failures,"
      to read as follows:

      "Supplier shall use commercially reasonable efforts to comply with the
      requirements set forth in the Certified Service Part (CSP) document hereby
      included as part of this Agreement in Attachment A, outlining the Buyer
      requirements of Supplier to bring a field returned, used Product to a
      level that qualifies the Product as a CSP."

17.   Replace the first sentence in Section 9.3, "Post Warranty Services," as
      follows:

      "Post Warranty repair pricing for the mainboard shall be as follows for
      the applicable listed Products. The Post Warranty repair pricing for the
      mainboard for the SW 3800 and SW 3900 Products shall be mutually agreed by
      the parties upon the earlier of (i) [*] from Supplier's general
      availability date of the applicable Product, or (ii) July 31, 2002.

      SW 2400    [*]
      SW 2800    [*]

      Products returned to Supplier will include a description of the failure
      specified on the RMA field return form provided that such form is included
      by Supplier with each FRU shipment. If the total quantity of Product
      returned to Supplier over the previous ninety (90) days exceeds more than
      [*] verified NTF (which shall include both hardware and software
      failures), Buyer will pay Supplier [*] for each verified NTF Product
      returned in accordance with Section 9.2. The reloading of microcode to
      repair a returned Product shall not constitute an NTF."

18.   Modify the first sentence of the paragraph entitled, Packaging and
      Delivery in Section 9.3, "Post Warranty Services," to read as follows:

      "The Products will be individually packaged and labeled according to Buyer
      specification GA-21-9261-11, unless specifically otherwise agreed to."

19.   Add a paragraph entitled, "Product Support," to Section 9.3, "Post
      Warranty Services," to read as follows:

      "Supplier will continue to provide technical support as provided in
      Section 9.4, for a period up to [*] after the termination of this
      Agreement or up to [*] after an End of Life notice provided by Supplier
      pursuant to Section 2.10, whichever is earlier."

20.   Add to the second paragraph prior to the last sentence in Section 9.5,
      "Training," the following:

      "However, in the case of new Products added to this SOW #1, Supplier shall
      provide mutually agreed upon presales training to Buyer to support new
      Products at a mutually agreed upon time, date and location. Each party
      shall be responsible for all costs associated with the attendance of such
      training by such party's personnel."

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

<PAGE>

                                                                   EXHIBIT 10.28

21.   Section 9.6, "Cessation of Post Warranty Service", delete in first and
      second sentence any reference to:

      "the second paragraph of Section 9.3 ("Availability")"

      and replace with the following:

      "Section 9.3, in paragraphs titled Availability and Product Support"

22.   Add Section 9.7, "Field Replaceable Units (FRU) Emergency," and
      subsections, to read as follows:

      9.7.1. Definition

      "CODE A-ALERT EMERGENCY ORDER" or "EO" means WA placed by Buyer with a
      leadtime from Supplier's receipt of the WA to the shipping date not to
      exceed [*].

      9.7.2 Code A-Alert Emergency Order Placement

      Supplier will accept and respond to EO from Buyer 8:00 A.M. to 5:00 P.M.
      Pacific Standard Time, Monday through Friday, except Supplier holidays.
      Order confirmation time period begins at the time Order is received by
      Supplier. Supplier will provide a telephone service number for EO
      coverage. Supplier will use commercially reasonable efforts to respond to
      all EO within the time periods designated below. Buyer will place and
      Supplier will respond to all EO with Supplier via fax, EDI (or other
      electronic commerce approach) and/or telephone, such EO to be confirmed by
      Buyer with a written WA mailed or electronically transmitted to Supplier
      within two (2) Calendar Days of EO placement. Supplier will acknowledge EO
      back to Buyer via fax or telephone within the specified order confirmation
      time periods stated below.

      9.7.3. Code A-Alert Emergency Order Work Authorizations WAs will include
      Buyer's Purchase Order number, Buyer's part number, part number
      description, quantity, unit Price, order type (short lead time, in the
      event a short lead time order is placed, are orders with requested
      Delivery Dates in less than the agreed to Lead Time), Delivery Date and
      ship to address.

      9.7.4. Code A-Alert Emergency Order Shipments

      Supplier will use commercially reasonable efforts to ship Code A-Alert
      Emergency Orders within 24 hours of receipt of WA, unless specifically
      designated otherwise by Buyer, to arrive at the Buyer specified receiving
      location. If requested by Buyer in writing, Supplier will use commercially
      reasonable efforts to ship EOs via "Next Flight Out" and "Air Charter" to
      arrive at Buyer's specified receiving location on the same day of the WA.

      9.7.5. Code A-Alert Emergency Order Delivery and Cancellation Supplier
      will deliver EOs directly to the address specified in the WA and in
      accordance with this SOW. Code A-Alert Emergency Order(s) are
      non-cancelable, however Buyer may contact Supplier anytime prior to time
      of shipment to make changes to the specified receiving location.

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

<PAGE>

                                                                   EXHIBIT 10.28

23.   Modify the title of Attachment A, modify to read:

      "IBM CSP Requirements"

24.   Delete the table in Section 10.0, "Communications Coordinators" and in
      Attachment A, delete the paragraphs entitled "Key IBM Contacts" and
      "Brocade Contacts" in their entirety. Replace in both Section 10.0 and the
      foregoing paragraphs in Attachment A with the following:

      KEY IBM CONTACTS

      Technical Coordinator
      Ruoyi Zhou
      Program Manager
      Phone: (408) 256-4479
      Fax: (408) 256-6843
      Email: ruoyi@us.ibm.com

      Business Coordinator
      Karen Takahashi
      Procurement Commodity Manager
      Phone: (408)256-0111
      Fax: (408)256-0111
      Email: ktakahas@us.ibm.com

      BROCADE CONTACTS

      Technical Coordinator
      Jim Baldyga
      Sr. Systems Engineer
      Phone: (408)487-8005
      Fax: (408)603-584-8110
      Email: jbaldyga@brocade.com

      Business Coordinator
      Patrick Johnston
      OEM Sales Executive
      Phone: (408) 487-8193
      Fax: (208) 275-1497
      pjohnsto@brocade.com

Please have your authorized representative indicate acceptance thereof by
signing both copies of the Amendment and returning one copy to the attention of
Karen Takahashi at 5600 Cottle Road, San Jose, California 95193.

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

<PAGE>

                                                                   EXHIBIT 10.28

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.

<TABLE>
<CAPTION>
<S>                                                <C>
ACCEPTED AND AGREED TO:                            ACCEPTED AND AGREED TO:
INTERNATIONAL BUSINESS MACHINES CORPORATION        BROCADE COMMUNICATIONS SYSTEMS, INC.

By: _______________________________________        By: ______________________________________
Authorized Signature         Date                  Authorized Signature           Date

___________________________________________        __________________________________________
Type or Print Name                                 Type or Print Name

___________________________________________        __________________________________________
Title & Organization                               Title & Organization
</TABLE>

<PAGE>

                                                                   EXHIBIT 10.28

                                  ATTACHMENT B

                           SUPPLIER QUALITY ATTACHMENT

This Supplier Quality Attachment ("SQA") adopts and incorporates by reference
the terms and conditions of SOW #1 ("SOW") and Goods Agreement # ROC-P-68
("Agreement") between Buyer and Supplier.

1.0   INCORPORATION OF SQA DOCUMENTS

The SQA consists of this document, and applicable product specification
documents and specifications as referenced in Section 1.1 of SOW#1, which were
in effect upon execution of this SQA.

2.0   QUALITY REQUIREMENTS

The requirements of this SQA shall constitute Supplier's quality program which
must be implemented and maintained during the term of the SOW.

Supplier will set forth the yearly quality and reliability performance
commitments for the current year and through the remainder of the initial term
of the SOW in a product quality report ("PQR"). The PQR shall include the
mutually agreed product monitoring plan to be used to validate the effectiveness
of process control limits and the Product meets the quality and reliability
defined in such PQR. It is Buyer's expectation that Supplier will use e-business
platforms (Web based applications) for ongoing real time quality management,
including but not limited to information associated with Supplier Quality
Management Systems ("SQMS") and Product Change Notification ("PCN"), etc. or as
specified in the PQR.

3.0   ISO REQUIREMENTS

For ISO compliance, Supplier's contracted manufacturer is ISO 9001* compliant
("Compliant").

* Note: ISO 9001 & 9004 have been developed as a consistent pair of quality
management system standards. ISO 9001 is considered the standard by which the
Supplier is expected to be compliant with; it is understood ISO 9004 provides a
wider range of guidelines of objectives than ISO 9001, particularly for the
continuous improvement of an organization's overall performance and efficiency.
ISO 9004 is recommended as a guide to assist those suppliers who wish to move
beyond the basic requirements of ISO 9001.

4.0   AUDITS

On a periodic basis, upon reasonable written notice, the Buyer or Buyer's
quality representative shall conduct audits/visits at the Supplier's and
Supplier's contract manufacturer's manufacturing locations. The Supplier shall,
at Buyer's request, permit access to the auditors to manufacturing operations
and/or inspection of Products for Buyer, including access to the contract
manufacturer's facilities. Periodic audits shall include process control,
quality inspection test data, internal audit reports, and other information
related to Products to verify compliance to the terms of this SQA. Under normal
circumstances, Supplier shall be given at least a two weeks advance notice by
Buyer's representatives of their intent to visit. Buyer's inspection of Product
at the Supplier or contract manufacturer shall not relieve the Supplier's
responsibility to furnish Product compliant with the applicable specifications
as set forth in the SOW. Any Confidential Information exchanged in connection
with the audit shall be handled in accordance with Section 14.6 of the Goods
Agreement.

5.0   DOCUMENT CONTROL

Supplier shall use commercially reasonable efforts to ensure that all documents
such as software/firmware, engineering drawings, specifications, contracts,
policies, procedures, manufacturing process flow chart, and

<PAGE>

                                                                   EXHIBIT 10.28

work instructions (including test procedures) to be under revision control and
available to all necessary Supplier personnel in Supplier's manufacturing
environment. Supplier shall have a system for the effective updating/removal of
any obsolete documentation from all manufacturing areas.

6.0   RECORDS

Supplier shall establish and maintain procedures for identification, collection,
indexing, filing, storage, maintenance, and disposition of all quality records
including, but not limited to: Statistical Process Control ("SPC") data. This
includes raw data or control charts, Cp and Cpk for critical/identified process
parameters, and all records which provide evidence of sub-tier supplier
activity, such as source inspections and First Article inspections, and records
of all inspection and test activity to provide objective evidence that Products
have passed acceptance criteria. Records shall be maintained for the life of the
SOW plus the entire warranty period, as set forth in the SOW. All records shall
be maintained in a central location and shall upon request be made available to
Buyer's quality representative for review only. All such documents shall be
deemed to be the Confidential Information of Supplier.

7.0   CONTINUOUS IMPROVEMENT PROCESS

Supplier shall develop and implement a continuous improvement process that will
provide for a cost-effective reduction in process-related excursions. The
program, at a minimum, shall include: the supplier management strategy;
manufacturing process controls (i.e., Maverick Product Elimination); a
documented, systematic approach for identifying focus areas for continuous
improvement for the current year, through the end of the term of the SOW, or for
three years from the start of the SOW, whichever is shorter; and Early Failure
Rate, Intrinsic Failure Rate, Shipped Product Quality Level and Failure Rate
commitment and reduction plans to achieve Buyer goals. Supplier shall provide,
at Buyer's request, status of the continuous improvement process and results.

8.0   QUALITY PROBLEM NOTIFICATION TO BUYER

Supplier must notify Buyer of any quality or reliability problem which may
affect Products, that have been identified by Supplier's internal testing (i.e.,
process control data, internal test data, burn-in data, etc.), by contract
manufacturers which produce Products on behalf of Supplier, or by another
customer (see ISO 9001). In case of problems, Supplier shall provide Buyer with
the requested traceability data (p/n, lot number, date code, volumes, ship to
locations, etc.) within 24 hours. The notification should include an immediate
containment plan and a schedule for definition and implementation of permanent
corrective actions. After the notification there shall be no shipment of suspect
Products to Buyer without prior approval from Buyer's quality representative.

9.0   PRODUCT RE-QUALIFICATION COSTS

Following Buyer qualification of the Product, Buyer reserves the right to
re-qualify any product if the Supplier changes the manufacturing process or
product, or; raw materials or specifications which may affect performance,
function, quality or reliability. Supplier shall bear the reasonable costs of
any re-qualifications required for changes made without Buyer's approval in
accordance with Section 6.0 of the SOW.

10.   PART HISTORY

Supplier shall maintain a history file for each Product part number manufactured
that tracks: materials and/or design changes controlled by the supplier; design
changes controlled by Buyer (engineering changes, etc.), and; and purchased part
manufacturer source changes.

11.   PART QUALITY

Unless otherwise specifically agreed upon within the SOW, Supplier shall be
responsible for the quality levels of each of Supplier's components that
comprise the Product or final assembly, except with respect to

<PAGE>

                                                                   EXHIBIT 10.28

GBICs or SFPs, if any. If applicable, Supplier agrees to make available to Buyer
third party warranties for GBICs or SFPs, to the extent Supplier is permitted to
pass through such warranties to Buyer.

12.   CORRECTIVE ACTION PROCESS

Following a lot rejection by Buyer under Section 6.0 of the Goods Agreement, or
a quality problem notification under Section 8 of this SQA, Supplier shall
implement a corrective action process which shall provide documentation to
identify the following: a) Specific defect description and failure mechanism; b)
Containment of affected Product; c) Technical investigation/root cause analysis;
d) Corrective action plan and preventive actions to preclude a recurrence, and;
e) Verification of effectiveness of actions. With the exception of safety
defects which Supplier shall provide a complete failure analysis not to exceed
forty-eight (48) hours from notification, failure analysis response times from
Supplier will be within forty-eight (48) hours of Buyer's lot rejection or the
quality problem notification for preliminary analysis and fourteen (14) days for
detailed analysis. The corrective action process shall include a checkpoint to
determine if additional Products are exposed and the corrective action process
and documentation specified within this Section.

13.   EXCEPTION APPROVAL PROCESS

Supplier shall not knowingly ship nonconforming Product to Buyer without written
approval from Buyer's quality representative. In certain cases, Buyer's quality
representative may approve shipment of suspected nonconforming Product if an
evaluation plan pre-approved by the quality representative is executed with
results acceptable to the representative.

14.   REVIEW AND DISPOSITION OF NONCONFORMING PRODUCTS

If Supplier intends to ship nonconforming Product to Buyer, then Supplier shall
implement a Material Review Board ("MRB") to review and determine the
disposition of nonconforming materials. At a minimum, the MRB shall consist of
representatives from Manufacturing, engineering and Quality Engineering. The
Supplier's process shall include the following dispositions: a) Rework - Product
reworked to meet specified requirements; b) Use As Is - No actions taken on
Product, Product does not meet specified requirements but is functional; c)
Repaired - Product has been reworked to be functional but does not meet
specified requirements; d) Scrap - Product not useable and does not meet
specified requirements, or; e) Screen -- additional product test/inspection to
meet specification. Any plans to rework or repair nonconforming materials shall
be subject to final approval by Buyer's quality representative, such approval
not to be unreasonably withheld. Any plans to use as-is must be pre-approved by
Buyer's quality representative. All MRB records shall be maintained by Supplier
and upon request, made available to Buyer for review. All MRB records shall be
deemed the Confidential Information of Supplier.

15.   PRODUCT IDENTIFICATION AND LOT TRACEABILITY

Supplier shall establish and maintain procedures and processes for the
identification and lot traceability of critical components during all stages of
production, delivery, and installation per applicable ISO standards.
Identification must be traceable through to the finished Product by serial
numbers or equivalent methods. Both forward and backward traceability shall be
available. Response time for traceability requests shall not exceed 24 hours.

16.   QUALITY REPORTING

Monthly executive summary reports in a format mutually agreed upon format shall
be forwarded to Buyer at a mutually agreeable time or as specified in specific
PQRs. Continuous quality reporting real time will be via SQMS or as specified in
specific PQRs.

17.   SUPPLIER QUALITY & RELIABILITY ("SQR") REVIEW MEETINGS

Buyer requires regular Supplier quality/reliability meetings determined by a
mutually agreeable schedule, to

<PAGE>

                                                                   EXHIBIT 10.28

increase visibility into product and field performance. The intent is to conduct
timely meetings in preparation for future business reviews/contractual
negotiations. The agenda for the meeting shall be as set forth in exhibit 1
unless otherwise mutually agreed by the parties.

18.   APPLICABLE PRODUCT SPECIFICATIONS & TESTS

      A.  ISO 2859-1 (SAMPLING PROCEDURES FOR INSPECTION BY ATTRIBUTES)

      B.  ISO 3951 (SAMPLING PROCEDURES FOR INSPECTION BY VARIABLES)

<PAGE>

                                                                   EXHIBIT 10.28

                       SUPPLIER QUALITY ATTACHMENT (CONT.)

                    EXHIBIT 1. QUALITY REVIEW MEETING AGENDA

The following typical meeting agenda has been formulated to address all the
pertinent quality/reliability topics.

a) Supplier facility and subcontractor locations where BUYER product is
fabricated, assembled and tested
Physical addresses and line id's
Review Group A, B, C test results

b) Average Outgoing Quality (AOQ) fallout for SUPPLIER and total customer
database
Defect and root cause analysis
Pareto distribution of fails
Corrective action and data verification
Point of origin and incidence contributions associated with internal, assembly
and final test operations.

c) Field Return data for BUYER and total customer database
EFR/IFR estimates
Defect and root cause analysis
Pareto distribution of fails and associated POH distribution for Buyer and total
customer database
Failure mechanism driven corrective actions

d) In-Process monitoring data
Defect monitoring, elimination and analysis results
Modeling techniques - Experimental, Analytical Analysis
SPC parameter and control limits - data review
Maverick Product Elimination occurrences (if applicable) and related data
Yield cut limit compliance

e) Internal Audit Results
Last internal audit findings and corrective action of one manufacturing location
& future audit plans

f) PCN activity since last BUYER meeting
Product, process, materials or specifications affecting form, fit or function
Traceability history for date code inception

g) Continuous Improvement Program for entire fab, assembly, test and field
performance
AOQ and Failure Rate Improvement targets for next 3 years

h) Specification Compliance/Commitment to " BUYER Specifications"
Any deviations/exceptions? If so, provide details and traceability information.

i) Joint discussion followed by a summary wrap-up and activities<PAGE>
                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

        This Statement of Work ("SOW") # 2 adopts and incorporates by reference
the terms and conditions of Goods Agreement # ROC-P-68 ("Agreement") between
International Business Machines Corporation ("Buyer") and Brocade Communications
Systems, Inc. ("Supplier"). Transactions performed under this SOW will be
conducted in accordance with and be subject to the terms and conditions of this
SOW and the Agreement. The term of this SOW #2 shall be effective from March 24,
2000 to March 24, 2002. Unless otherwise provided, capitalized terms shall have
the meaning as set forth in the Agreement.

1.0 PRODUCT DESCRIPTION AND REQUIREMENTS

1.0.1 GENERAL DESCRIPTION.

Managed Hub per Brocade 2010/2050 Entry Level Fibre Channel Switches Product
Specification; Revision A; 01/06/00.

1.0.2 PRODUCT SPECIFICATIONS & CERTIFICATIONS:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
BUYER SPECIFICATION      ENGINEERING
# (IF APPLICABLE)        CHANGE LEVEL #
                         (IF APPLICABLE)        DESCRIPTION
<S>                      <C>                    <C>
--------------------------------------------------------------------------------------------------------------
Not Applicable           Version 1.5            SilkWorm 2000 Entry Family Product Specification
                                                90-0000048-01 Revision A; 01/06/00
--------------------------------------------------------------------------------------------------------------
Not Applicable           Version 2.0            Brocade Fabric OS Reference Manual Publication 53-0001487-03
--------------------------------------------------------------------------------------------------------------
Not Applicable           Version 2.1            Brocade WebTools User's Reference Manual Publication
                                                53-0001375-01
--------------------------------------------------------------------------------------------------------------
Not Applicable           Version 2.0            Brocade Zoning Reference Manual Publication 53-0001488-02
--------------------------------------------------------------------------------------------------------------
Not Applicable           Version 2.0            Brocade QuickLoop Reference Manual Publication 53-0001491-02
--------------------------------------------------------------------------------------------------------------
GA21-9261-10             GA21-9261-10           Buyer's  "Supplier Packaging and Materials Handling
                                                Specification"
--------------------------------------------------------------------------------------------------------------
Not Applicable           Dated 06/10/99         IBM Quality Specification
--------------------------------------------------------------------------------------------------------------
M-H 6-4523-001           M-H 6-4523-001         IBM Materials Specification: Decorative Coatings, All
                                                Textures
--------------------------------------------------------------------------------------------------------------
M-B 6-6112-003           M-B 6-6112-003         IBM Materials Bulletin: Decorative Waterborne Coatings
--------------------------------------------------------------------------------------------------------------
M-H 6-4500-003           M-H 6-4500-003         IBM Materials Specification: Decorative and Non-decorative
                                                Finishes Acceptance Procedure
--------------------------------------------------------------------------------------------------------------
CORSAF-10-025440         12/22/98               Solectron Corporate Disaster Response and Recovery
--------------------------------------------------------------------------------------------------------------
Attachment A                                    CSP Requirements Document
--------------------------------------------------------------------------------------------------------------
Attachment B                                    2010 Managed Hub Quality Plan
--------------------------------------------------------------------------------------------------------------
</TABLE>

1.0.1   COO PRODUCT CERTIFICATION.

        Supplier certifies that the Products have the following country(ies) of
origin. If there are any changes to this information, Supplier will notify Buyer
by providing a new country of origin certification signed by an authorized
Supplier representative before shipping any Products other than those with the
country of origin listed below for such Product. If any part number listed has
more than one country of origin, Supplier certifies that each country of origin
is listed below, and Supplier agrees to deliver to Buyer, as soon as possible,
instructions regarding how Buyer can distinguish each country of origin for part
numbers with more than one country of origin:

   ------------------------------------------------------------------------
   Buyer Assigned Part      Product                 Country of Origin and
   Number                   Description/Model Type  Complete Street Address
   ------------------------------------------------------------------------
   35L1649                  Managed Hub/3534        United States of
                                                    America
                                                    Brocade Communications
                                                    1901 Guadalupe Parkway
                                                    San Jose, CA  95131
   ------------------------------------------------------------------------

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

1.4 FAA CERTIFICATION:

Supplier certifies that Products and their packages shipped as directed by
Supplier do not contain explosives, hazardous materials, incendiaries and/or
destructive devices as defined by the United States Federal Aviation
Administration.

2.0 PART NUMBERS, PRICES AND OTHER TERMS

2.0.2 PRICING:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
 IBM Part #   Brocade Part #  IBM FRU     Brocad FRU
                              Part #      Part #           Description               Date: Unit Price
-----------------------------------------------------------------------------------------------------
<S>           <C>             <C>        <C>         <C>                             <C>
    [*]            [*]          [*]      [*]         8 Port FC-AL Loop Switch With   [*]
                                                     7 Fixed Optical Ports and 1
                                                     GBIC Slot, Fixed Power Supply   [*]
                                                     (Includes Webtools 2.1,
                                                     Zoning 2.1, and QuickLoop 2.1   [*]
                                                     software).
-----------------------------------------------------------------------------------------------------
</TABLE>

All prices are in U.S. Dollars

The parties agree to meet as required from time to time, but at least once each
quarter, to discuss any changes in market conditions and if warranted, agree to
negotiate in good faith any price adjustments necessary to have the Products
remain competitive.

Any managed hub repaired through CSP that is in warrant is at [*].

1.0.2 TAXES AND DUTIES.

Product prices are exclusive of all taxes. Buyer shall be responsible for all
taxes that may be levied as a result of the sale of any Product sold under this
Agreement, unless Supplier receives a valid tax exemption certificate from
Buyer. Supplier will be responsible for all legal, regulatory, and
administrative requirements associated with importation of Products into the
United States and the payment of all associated duties, taxes, and fees.

1.0.3 EPIDEMIC DEFECT RATE.

The Epidemic Defect Rate is defined as [*] the Normal Annualized Failure Rate
for the same or similar defect.

Reference Attachment A, section 4.1.

2.4 PAYMENT TERMS: Terms for payment on all invoices will be net [*] from
receipt of an acceptable invoice by Buyer.

2.5 LEAD TIME: With the exception of the initial volume order of products, for
which lead time shall be [*], the product lead time is [*] prior to Delivery
date.

2.6 WARRANTY PERIOD: The product warranty period is[*] from the date of shipment

2.7 ACCEPTANCE TERM: Buyer will inspect each delivery of Products and ensure
that the Products conform to the applicable specifications. Acceptance period is
[*] from the date of receipt by Buyer. Buyer shall be deemed to have accepted
the Products only in the event that; (i) Buyer fails to accept or reject the
Products on or before the expiration of the [*] expiration period, (ii) accepts
the Products in writing, or (iii) delivers the Products to any customer of
Buyer. Buyer's acceptance of any Product shall in no way negate any warranty
provided under this SOW or the Agreement, and Buyer's remedy in the event of
nonacceptance is a warranty return of such Product pursuant to Section 6.0 of
the Goods Agreement. Verified line fallouts from Buyer that have been returned
to Supplier for repair and test No Trouble Found (NTF) will not be returned to
Buyer.

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

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

2.8 SUPPLY OF PRODUCTS: Supplier shall deliver Products as specified in WAs.
Notwithstanding any other provision of this Agreement (except force majeure), if
due to a shortage Supplier is unable to deliver Products as specified in WAs,
Supplier will give Buyer prompt written notice of such inability to deliver
Products along with an estimate of the duration of such shortage. During such
shortage period, the parties agree that Supplier will use an allocation method
for fulfilling Buyer's WAs providing Buyer, at a minimum, an equivalent share of
available capacity. If Supplier fails to correct such inability to supply
Product or fails to develop a plan, acceptable to Buyer, to correct such
inability to supply Product within [*], Buyer will have the right to cancel such
WA(s) or portions thereof by written notice. If Buyer cancels WAs under this
Subsection 2.8, Buyer's only obligation is to pay for Products already delivered
at the time of Buyer's cancellation notice. If Buyer elects not to cancel WAs or
portions thereof under this Subsection 2.8 in the event Supplier notifies Buyer
that the agreed to Delivery will not be met, Supplier agrees to discount the
price of Products appearing on such WAs [*] if such Products are delivered more
than [*] after the agreed to Delivery.

2.9 NOTICE OF PRODUCT WITHDRAW: Supplier will provide Buyer with [*] written
notice of its intent to withdraw any Product ("End of Life" or "EOL") prior to
the last date of manufacture of a Product, and Buyer may order such Products up
to [*] prior to the last date of manufacture. Subject to Product availability,
Supplier will accept orders for Products which have been notified for EOL for an
additional [*] after the last date of manufacture.

2.10 DELIVERY: Delivery means delivery of Products to a carrier designated by
Buyer, F.O.B. Supplier's contracted manufacturer's (Solectron) Milpitas,
California facility.

2.11 FORECAST: Buyer will provide Supplier with a monthly, non-binding [*]
rolling forecast. ANY PRODUCT QUANTITIES CITED IN OR PURSUANT TO THIS AGREEMENT,
EXCEPT FOR QUANTITIES CITED IN A "WA" AS FIRM, ARE PRELIMINARY AND NON-BINDING
ONLY. BUYER MAKES NO REPRESENTATION OR WARRANTY AS TO THE QUANTITY OF PRODUCTS
THAT IT WILL PURCHASE, IF ANY.

1.0 3.0 RESCHEDULING/CANCELLATION

The ordering location may reschedule the Delivery Date of any undelivered
Product multiple times without incurring a charge by giving notice to Supplier
in accordance with the table below. Any such rescheduled date will not exceed
the originally scheduled Delivery Date by more than 3 months or fall outside of
Supplier's current fiscal Quarter, whichever is less. Supplier's fiscal year
ends on October 31st. If Supplier changes current fiscal year, Supplier agrees
to negotiate in good faith to establish new scheduling/cancellation terms within
this subsection 3.0 with Buyer.

      MINIMUM NUMBER OF DAYS NOTICE PRIOR TO A SCHEDULED DELIVERY DATE TO:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
NUMBER OF DAYS
PRIOR TO ORIGINALLY
SCHEDULED DELIVERY   RESCHEDULE         CANCEL WITHOUT     CHANGE DELIVERY
DATE                 WITHOUT CHARGE     CHARGE             POINT             DELIVER EARLY
-----------------------------------------------------------------------------------------------
<S>                  <C>                <C>                <C>               <C>
0-15 Days            [*]                [*]                1.02 day notice   1.01 day
-----------------------------------------------------------------------------------------------
[*]                  [*]                [*]                2.02 day notice   1 day
-----------------------------------------------------------------------------------------------
[*]                  [*]                [*]                3.02 day notice   1 day
-----------------------------------------------------------------------------------------------
[*]                  [*]                [*]                2 day notice      1 day
-----------------------------------------------------------------------------------------------
</TABLE>

4.0 REPLENISHMENT LOGISTICS ATTACHMENT

Supplier agrees to negotiate in good faith to establish the terms and conditions
under which the parties would enter into a Replenishment Logistics Attachment
for the Products, which will be incorporated into this Agreement when signed by
both parties.

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

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

5.0 DOCUMENTATION

"Documentation" shall mean the OEM Manual and the Users Guide which Supplier
generally makes available to its customers containing descriptive, operating,
installation, engineering and maintenance information for Products, as such
documents may be amended from time to time and any updates, modifications and
enhancements made to them, during the term of this SOW.

Supplier shall provide Buyer with a master copy and one copy of all
Documentation for each Product, in both hardcopy format and electronic format,
suitable for dissemination by Buyer. Solely in conjunction with Buyer's sale,
installation, service and support of Products purchased under this Agreement,
Supplier grants Buyer a nonexclusive, royalty-free right and license to copy,
use, modify, translate and otherwise prepare derivative works of the
Documentation and distribute the Documentation and derivative works to its
customers, provided that Buyer keep Supplier's copyright and other proprietary
notices as may appear on such Documentation and refrain from doing anything that
would jeopardize Supplier's proprietary and other rights in the Documentation.
Should Buyer require Supplier to make modifications to said Documentation, the
cost will be at Buyer's expense.

6.0 ENGINEERING CHANGES:

Engineering Changes shall not be applied to any Product under this Agreement
unless implementation is conducted in accordance with the following engineering
process:

Supplier Changes: Supplier will notify Buyer (through the Technical Coordinator)
of any engineering change proposed to be made by Supplier to the Product and
will supply Buyer with a written description of the anticipated effect the
engineering change will have on the Product, including price (savings),
performance, reliability, serviceability, manufacturability and any cost impact
to Buyer as a result of the implementation of the engineering change. Buyer has
the right to approve or disapprove of such engineering change, which approval
shall not be unreasonably withheld. Buyer may elect to evaluate and test the
prototype, parts and/or designs specified as part of the proposed change and
Supplier shall provide such parts to Buyer at no charge for such evaluation and
testing. Buyer (through the Technical Coordinator) shall approve or disapprove
Supplier proposed changes within [*] of receipt of a written request, except for
changes required to satisfy governmental standards or safety for which Buyer
shall respond within [*], unless extended by mutual consent. Failure to respond
shall be deemed to be Buyer's acceptance of such proposed change. If such change
affects price, the Buyer Business Coordinator must also provide approval. If
Buyer approves the engineering change, the Product Specification and unit
pricing will be amended as required. Buyer will not unreasonably refuse to
approve Supplier's engineering changes into the Product. If the Buyer requires
more than [*] to approve a change that Supplier has proposed to guarantee the
continuity of supply, the [*] provision in Section 2.8 shall be extended by the
number of additional days that it takes Supplier to receive Buyer's approval for
such change.

Buyer Changes: Buyer may request in writing (through the Technical Coordinator)
that Supplier incorporate an engineering change into the Product. Such request
will include a description of the proposed change sufficient to permit Supplier
to evaluate its feasibility. Within 30 Days of such request (or extended by
mutual consent), Supplier will advise Buyer of the conditions under which it
would make the engineering change. Supplier's evaluation will be in writing and
will state the increase or decrease price adjustment (if any) and the effect on
the performance, reliability, safety, appearance, dimensions, tolerances,
manufacturability and serviceability of the Product. Buyer's Technical
Coordinator shall approve or disapprove the engineering change based on
Supplier's written evaluation. If such change affects price, the Buyer's
Business Coordinator must provide approval prior to implementation. If Buyer
approves the engineering change, the Product Specification and unit pricing will
be amended as required. Supplier will not unreasonably refuse to incorporate
Buyer's engineering changes into the Product.

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

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

In the event a change/improvement initiated by either party shall result in a
cost decrease, it is understood and agreed the parties shall mutually agree to a
price decrease effective immediately upon complete implementation of such
change/improvement.

7.0 DISASTER RECOVERY PLAN

Supplier shall maintain throughout the term of this SOW a formal disaster
recovery plan which covers Supplier's ability to continue Product shipment and
maintain contracted commitments in the event of a disaster.
(Reference Brocade Document #CORSAF-10-025440)

8.0 MANUFACTURING RIGHTS:

8.1 CESSATION OF PRODUCT BUSINESS: If, during the term of this Agreement:

[*]

[*]

[*]

[*]

[*]

[*] it

(each such event shall hereafter referred to as a "Trigger Event").

Buyer shall notify Supplier in writing if Buyer is aware or becomes aware of the
occurrence of such a Trigger Event, or Supplier shall notify Buyer in writing if
Supplier is aware or becomes aware of the occurrence of such a Trigger Event,
and Supplier shall have [*] after the date of such written notification or from
the date of the occurrence of such a Trigger Event in which to remedy such
condition or conditions, or such longer period as is mutually agreed to by the
parties in writing (hereafter referred to as the "Cure Period").

8.2 ELECTION OF REMEDIES BY BUYER:
If Supplier is unable to remedy the Trigger Event during the Cure Period, within
[*] after the end of the Cure Period, Buyer shall select one of the following
options to ensure an adequate supply of the model 3534 Managed Hub (i) exercise
the right to manufacture (or have manufactured) Products pursuant to Sections
8.3 through 8.6 inclusive, or (ii) purchase the model 3534 Managed Hub from
third parties. If Buyer fails to provide Supplier with written notice of such
election within such thirty (30) day period, the parties agree that Buyer will
be deemed to have selected option (ii) of this Section 8.2.

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

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

8.3 KNOW-HOW TRANSFER:

If Buyer selects the right to manufacture (or have manufactured) pursuant to
option (i) in Section 8.2 above, Supplier will promptly deliver to Buyer the
following "Manufacturing Assistance Items": [*] These Manufacturing Assistance
Items are to be provided by Supplier in order to enable Buyer to make or have
made Products and/or Spare Parts. In addition, Supplier shall, upon Buyer's
request and payment by Buyer of Supplier's then-current standard rates therefor,
provide such technical assistance as may be reasonably requested to enable Buyer
to make or have a third party make Products and/or Spare Parts, subject to the
reasonable availability of Supplier personnel. Nothing contained herein shall
obligate Supplier to disclose to Buyer any confidential information of a third
party, the disclosure of which requires permission of such third party, provided
that Supplier agrees to use commercially reasonable efforts to obtain such
permission if such confidential information is necessary for Buyer to make or
have made Products and/or Spare Parts. All Manufacturing Assistance Items and
non-public information of any kind that is required to produce the Products and
Spare Parts, whether in written or oral form ("Supplier Confidential
Information") shall be deemed to be confidential to Supplier and shall not be
disclosed to any employee or agent without a need to know such information to
manufacture the Products and Spare Parts as authorized in Section 8.4 below,
both during the term of this SOW and thereafter. Buyer shall ensure that it has
obtained or will obtain from its employees and agents, and the employees and
agents of its Subsidiaries and authorized third parties, who will receive
Supplier Confidential Information a written agreement to hold such Supplier
Confidential Information in confidence and to use the same care and discretion
to avoid disclosure of such information as Buyer uses with its own similar
information which it does not wish to disclose, but in no event less than
commercially reasonable measures to protect such information. All such Supplier
Confidential Information shall be maintained in a locked facility accessible
only by authorized personnel.

8.4 RIGHT TO MANUFACTURE:

If Buyer selects the right to manufacture (or have manufactured) pursuant to
option (i) in Section 8.2 above, Supplier will grant to Buyer a non-exclusive,
non-assignable, royalty-free, worldwide license under all Supplier's and
Supplier's Subsidiaries' patents, copyrights, mask work rights, and trade
secrets and all information, such license being sufficient to allow Buyer to use
the Manufacturing Assistance Items and other information provided by Supplier
pursuant to Subsection 8.3 above (the "Manufacturing Know-How") and to make,
have made, use, lease and/or sell Products, successor Products and/or Spare
Parts, together with the right of Buyer to sublicense to its Subsidiaries or a
third party to make, have made, use, lease and/or sell Products, successor
Products and/or Spare Parts, subject to the limitation set forth in Section 8.5
below ("Limited Manufacturing License"). Unless earlier terminated as set forth
in Section 8.5 below, except with respect to existing Products or Spare Parts
that are being manufactured on or after such time and except as specified in the
next sentence, Supplier acknowledges and agrees that the Limited Manufacturing
License granted under this Section 8.4 shall immediately terminate on March 24,
2002. Notwithstanding the foregoing, as to successor Products, Supplier agrees
that provided Buyer has used commercially reasonable efforts to discontinue the
use of Supplier's Confidential Information after the termination of the Limited
Manufacturing License, Supplier hereby grants to Buyer an immunity from suit
with respect to the usage of any Supplier Confidential Information that has been
mentally retained in the unaided memory of the employees and agents of Buyer,
its Subsidiaries and any third parties authorized by Buyer and its Subsidiaries.

8.5 TERMINATION OF MANUFACTURING RIGHTS:

If Buyer selects the right to manufacture (or have manufactured) pursuant to
option (i) in Section 8.2 above, and, during the term of Limited Manufacturing
License, begins to make substantial volume purchases of any model 3534 Managed
Hub from any third party, the parties agree that the Limited Manufacturing
License granted to Buyer under Section 8.4 shall terminate effective two (2)
months after the commencement of any such substantial volume purchases. Upon any
termination of the Limited Manufacturing License, Buyer shall use commercially
reasonable efforts to return to Supplier or destroy all Supplier Confidential
Information to Supplier, retaining no copies in any tangible form or medium, and
provide to Supplier a certificate from a Buyer executive attesting to such fact.

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

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

8.6 CANCELLATION OF PURCHASE ORDER(s) (WAs):

Upon the date of the transfer of "Manufacturing Assistance Items" under
Subsection 8.3 above, any WAs of Buyer for Products issued by Buyer on or after
the date of any of the Trigger Events, may be canceled by Buyer, by a written
notice to Supplier, and Buyer will have no further obligations thereunder except
Buyer's obligations in connection with acceptable Products already delivered
prior to such cancellation, including but not limited to, payment obligations
for such delivered Products, unless otherwise agreed to by the parties.

9.0 SUPPLIER SERVICES

9.1 PRODUCT REPAIR - FIELD FAILURES: The Certified Service Part (CSP) document
(attached) outlines the Buyer requirements of Supplier to bring a field
returned, used Product to a level that qualifies the Product as a CSP. Supplier
agrees to repair and/or upgrade field returned, used Products in accordance with
this CSP document.

9.2 NO TROUBLE FOUND (NTF) CHARGES: Buyer agrees to test and verify suspected
faults in failed Products before returning such parts to Supplier. Supplier
agrees to reasonably assist Buyer in the development and documentation of
testing and verification methods that will be used by Buyer for this purpose.
Supplier may request charges for verified NTF Products that exceed the mutually
agreed to percentage of the total quantity of Product returned to Supplier over
the previous ninety (90) days. In the event Buyer is charged for a NTF Product
that is returned to Buyer and such Product continues to fail, Supplier agrees to
reverify the failure in a similar configuration and to refund any NTF amounts
paid by Buyer with respect thereto.

9.3 POST WARRANTY SERVICES

Definitions:

"Post Warranty Products" means Products for which the original warranty period
has expired. "Turn Around Time" or "TAT" means the elapsed time from Products
arriving at Supplier to shipment date back to Buyer.

Availability: Supplier will maintain the capability to supply spare parts of
Products ("Spare Parts") for a period of five (5) years after withdrawal of such
Products as specified herein. Supplier may assign its rights to warranty
replacement Spare Parts or EOL Spare Parts to an Buyer approved third party.
Buyer will have no obligation to have any Products repaired by Supplier.

Pricing: Post Warranty repair pricing for any units returned to the Supplier
from the Buyer shall not exceed [*] of the then-current model 3534 Managed Hub
unit price.

Planning: Buyer may periodically issue not binding forecasts for post warranty
repair service. The Supplier will implement an auditable process for Products
sent to the Supplier for repair and Supplier will inform Buyer of receipt of
Products from Buyer. Supplier will use commercially reasonable efforts to
achieve a maximum Repair Yield and will inform Buyer if it is unable to achieve
the Yield.

Packaging and Delivery: The Products will be individually packaged and labeled
according to Buyer specification GA-21-9261-10, unless specified otherwise
agreed to. Packaging may be reused only with Buyer's written authorization. The
terms of delivery for Products will be as stated under Section 2.10 (Delivery)
and Supplier will notify Buyer of discrepancies between the shipping documents
and received Products. The TAT for Serviced Products will be 30 Days after
receipt of said Products, unless specified otherwise.

Materials: All Products and associated spares, including scrap materials, will
be returned to the owning affiliate as specified in the relevant WA. Buyer may
request a quarterly inventory report of AFR Products and associated spares or
may designate a third party to conduct such activity. All consigned materials
supplied on a consigned basis will remain property of Buyer and Supplier will
provide a quarterly inventory report of such materials. Supplier will use all
parts supplied by Buyer solely for the performance of this Agreement unless
otherwise agreed.

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

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

Repair Warranty: For a period of 90 days or the remainder of the original
warranty period for the Product, whichever is longer, from the date of repaired
Product is Delivered to Buyer, Supplier will repair or replace Products without
charge if the Product fails to conform to the specifications specified in this
SOW. The warranty period for repaired Post Warranty Products will be determined
based on the out of warranty repair price listed under pricing in this Section.

9.4 TECHNICAL SUPPORT: Buyer will provide first and second level support for the
Products to Buyer's end users. Supplier will provide third level support to
Buyer (at no additional charge). Third level support includes (but is not
limited to) emergency support (via pager) on [*] basis for priority 1 issues.
Supplier agrees to use commercially reasonable efforts to assist Buyer in
solving problems within the following timeframes, based on notification of
problem from Buyer: Severity 1 problem within [*]; Severity 2 problem within
[*]; Severity 3 and 4 problem within [*].

Routine support and problem logging, to be provided during normal business hours
(Monday through Friday, 8:00 AM to 5:00 PM PST). Typical duties include, but are
not limited to, providing reasonable levels of technical assistance to Buyer's
support organization and timely delivery of determination and correction of a
defect, error or other problem (including failure analysis) and associated
documentation.

In order to minimize Buyer's cost of maintenance services and technical support
for Products, Supplier agrees to promptly provide and share with Buyer relevant
failure and other technical information.

Supplier will provide on-site technical support as mutually agreed at Buyer's
designated facility to supplement and facilitate the qualification.

9.5 TRAINING: Supplier agrees to provide Buyer all current marketing and sales
training materials. Supplier agrees to actively assist in the marketing and
sales training of a reasonable number of Buyer personnel, such quantity to be
mutually agreed to.

Technical training requested by Buyer will be made available by Supplier at its
San Jose facility at Supplier's standard rates, as accepted and agreed to by
Buyer. Buyer acknowledges that the materials distributed by the Supplier during
the technical training are protected by copyright, and that the Buyer shall have
no rights to reproduce such materials without the prior written consent of
Supplier.

9.6 CESSATION OF POST-WARRANTY SERVICE:

Should Supplier fail to provide post-warranty services as specified in the
second paragraph of Section 9.3 ("Availability") or, during the term of this
SOW, technical support as specified in Section 9.4 with respect to a Product
that has been withdrawn as specified in this SOW, then Buyer shall notify
Supplier if Buyer becomes aware of such occurrence and Supplier shall have [*]
after the date of Buyer's notification in which to remedy such condition or
conditions, or such longer period mutually agreed by the parties in writing. If
an applicable failure by Supplier to provide services to Buyer is not remedied
as specified in the preceding sentence, then Buyer may, upon written notice to
Supplier, obtain from Supplier Manufacturing Assistance Items required to make
or have made Spare Parts and to provide warranty and technical support services
solely: (i) for the affected Product, (ii) under the terms of the Limited
Manufacturing License set forth above in Section 8.4, and (iii) for the
remainder of the [*] specified in the second paragraph of Section 9.3
("Availability"). Notwithstanding the foregoing, the parties agree that Supplier
shall only be required to deliver to Buyer Supplier Confidential Information and
Manufacturing Assistance Items which are strictly required for the manufacture
of the Spare Parts and for Buyer's provision of warranty and technical support
services for the affected Product, and that upon the termination of the Limited
Manufacturing License with respect to such items, Buyer shall use commercially
reasonable efforts to return to Supplier or destroy all Supplier Confidential
Information, retaining no copies in any tangible form or medium, and provide to
Supplier a certificate from a Buyer executive attesting to such fact

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

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

1.0 10.0 COMMUNICATIONS

All communications between the parties will be carried out through the
designated coordinators:

All procurement, business and administrative communications between the parties
will be conducted through the following "Business Coordinators":

--------------------------------------------------------------------------------
 Buyer                                        Supplier
--------------------------------------------------------------------------------
 Attention: Nathan Dickerman                  Attention: Patrick Johnston
 IBM Corporation                              Brocade Communications, Inc.
 5600 Cottle Road                             1901 Guadalupe Parkway
 San Jose, CA  95193                          San Jose, CA  95131
 Phone: (408) 256-5287                        Phone: (408) 487-8193
 Fax:     (408) 256-9729                      Fax:     (408) 487-8091
 E-Mail:  njd1@us.ibm.com                     E-Mail:  pjohnsto@brocade.com
--------------------------------------------------------------------------------

Technical communications between the parties will be conducted through the
following "Technical Coordinators":

--------------------------------------------------------------------------------
Buyer                                         Supplier
--------------------------------------------------------------------------------
Attention: Dennis Fazzio                      Attention: Scott Jensen
IBM Corporation                               Brocade Communications
5600 Cottle Road                              1901 Guadalupe Parkway
San Jose, CA  95193                           San Jose, CA  95131
Phone: (408) 256-0538                         Phone: (408) 487-8145
Fax:     (408) 256-6843                       Fax:     (408) 487-8091
E-Mail:  fazzio@us.ibm.com                    E-Mail:  TBD
--------------------------------------------------------------------------------

All legal notices will be sent to the following addresses and will be deemed
received (a) 2 days after mailing if sent by certified mail, return receipt
requested or (b) on the date confirmation is received if sent by facsimile
transmittal, to the party set forth below.

--------------------------------------------------------------------------------
Buyer                                         Supplier
--------------------------------------------------------------------------------
Attention:  Nathan Dickerman                  Attention:  Michael Byrd
IBM Corporation                               Brocade Communications
5600 Cottle Road                              1901 Guadalupe Parkway
San Jose, CA  95193                           San Jose, CA  95131
Phone: (408) 256-5287                         Phone: (408) 487-8184
Fax:  (408) 256-9729                          Fax:     (408) 487-8091
E-Mail:  njd1@us.ibm.com                      E-Mail: mbyrd@brocade.com
--------------------------------------------------------------------------------

Each party may change its designated coordinators and/or addresses any time by a
written notification to the relevant Coordinator.

1.0 11.0 SURVIVAL

Any provisions of this SOW which by their nature extend beyond its termination
or expiration will remain in effect until fulfilled, and apply to respective
successors and assignees.

1.0

ACCEPTED AND AGREED TO:                       ACCEPTED AND AGREED TO:
IBM Corporation                               Brocade Communications
By:                                           By:
--------------------------------------        ----------------------------------
Buyer                                         Supplier
Signature                         Date        Signature                     Date
Steve Jennings                                Charles Smith
--------------------------------------        ----------------------------------
Printed Name                                  Printed Name
Director, America's Procurement               V.P. Worldwide Sales

<PAGE>

                                 GOODS AGREEMENT
                              STATEMENT OF WORK #2

                                                                   EXHIBIT 10.29

--------------------------------------        ----------------------------------
Title & Organization                          Title & Organization

--------------------------------------        ----------------------------------

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