EXHIBIT 10.76
[IBM LOGO]
3039 Cornwallis Road
RTP, NC 27709
May 12, 2004
Mr. Michael Harrison
Brocade Communications Systems, Inc.
1745 Technology Drive
San Jose, CA 95110
Subject: Amendment 1 to SOW3 (Blazer)
Dear Michael:
This letter (the "Amendment") serves as Amendment Number 1 to SOW#3 4903RL1112
including all amendments thereto ("SOW#3") of the Goods Agreement ROC-P-68,
including all amendments thereto (the "Goods Agreement").
A. The parties hereto do mutually agree to replace [*] in its entirety with the
following:
1.0 PRODUCT [*]
1.1 [*] ARRANGEMENT The parties hereby agree that [*] Product" is defined
as any Supplier Product for which a portion of [*] of such Product are
subject to [*]. The following terms and conditions will apply to any [*]
Product(s) for which an agreement has been executed between [*] Supplier,
Buyer, [*] to allow such [*] Product to be [*] and [*]a [*] party's [*]
(or [*]. The parties agree that, as of the Effective Date of Amendment
Number 1 to the Agreement, the Brocade [*] for IBM [*] will be [*]
Product.
[*] will be established with IBM[*]in [*] and [*]. The parties reserve the
right to discuss the addition of [*] in other [*], subject to the mutual
written agreement of the parties.
The parties will mutually agree to any [*] associated with the [*], such
as [*] to [*] and [*] prior to any performance, which Supplier may [*] in
the Product [*] and update in SOW3 [*] Section [*], and for other products
will be added to the applicable price list. The parties agree to
periodically review a [*] of such [*] to determine if [*] the [*] will
change this [*].
1.2 [*] On a [*] basis Buyer[*] will provide a [*] rolling forecast to
Supplier showing the [*] for the [*] Products to be sent [*] such [*]
shall be identified by the specific [*] of the [*]. Supplier agrees to [*]
quantities of such Product to the [*] sufficient to meet at least [*] of
demand, and at most [*] of demand, both of which are based on the
[*]looking [*]. Should Buyer [*] more than the [*], Supplier will have [*]
to [*] the [*] to the [*]. The [*] will include the balance of the [*] in
the [*] available for [*] ("[*] Balance") plus the [*] to the [*]
scheduled for [*] within the [*] for that [*] ("[*]"). Supplier may [*] to
[*] when there is [*] demand reflected in each [*] of the [*] for the
[*]looking [*] period.
1.3 [*] PERFORMANCE Supplier's goal will be to satisfy a [*] product [*]
at each [*]. Product [*] is defined as [*] Products being [*] for [*] by
[*] Provider at the time a [*] is received. At the beginning of each [*],
Buyer and Supplier may discuss the above [*] goal. Should the parties
agree that the [*] goal was not [*], [*] will immediately [*] the [*].
Within three (3) days of such [*], [*] will begin the [*] Action Process
to determine the [*], and will [*] an appropriate [*] action. [*] Product
[*] requests in [*] of [*] will not be used in the [*] of the product [*],
nor in the determination of [*]. In addition, should Supplier experience
[*] situation, the [*] provisions of SOW3 PUA Section [*] [*] shall apply.
1.4 SHIPPING [*] will be responsible for shipping charges of the [*]
Product from [*] of [*] to the [*]. Pursuant to Section 1.0 of this
Amendment, these [*] may be included in the [*]. All shipments from the
[*] will be [*] the [*], and
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**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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[*] is responsible for all [*] thereafter. [*] will act as the [*] for all
[*] Product shipped from the [*] and will be responsible for associated
[*] administration. [*] to and [*] of the [*] Product will [*] to [*] upon
[*] of such [*] Product from [*] area within the applicable [*].
1.5 PRODUCT [*] FOR PRODUCTS [*]. [*] of any [*]Product shall be in
accordance with the terms set forth in the SOW. The parties agree to work
together to minimize the liability of each party upon [*]of a [*] Product.
2.0 [*] PROCESSES The Parties agree to negotiate in good faith any changes to
these terms and conditions that may be required to support [*] process. Any such
changes will to be added by amendment to SOW3.
B. The parties hereto do mutually agree to replace Section 4 of PUA "Product
Price List and Description" in its entirety with the following:
4.0 PART NUMBER UNIQUE TERMS
4.1 PRODUCT PRICE LIST AND DESCRIPTION
BUYER SUPPLIER UNIT
PART PART [*] (IF PRICE OF TOTAL
NUMBER NUMBER REQUIRED) PRODUCT DESCRIPTION PRODUCT [*] [*] **[*] PRICE
- ------ -------- --------- --------------------------------- -------- --- --- ----- -----
[*] [*] [*] Option, FC Switch Module, [*] [*] [*] [*] [*]
includes [*]
[*] [*] [*] Option, FC Switch Module, [*] [*] [*] [*] [*]
includes [*]
[*] [*] [*] Option, FC [*] [*] [*] [*] [*]
Switch Module, [*]
[*] [*] [*] CRU, Value line FC Switch Module [*] [*] [*] [*] [*]
[*] [*] [*] Asm, FC Switch Module, includes [*] [*] [*] [*] [*]
[*]
[*] [*] [*] Option, Value Line Module [*] [*] [*] [*] [*]
[*] [*] [*] Option, Value Line Module [*] [*] [*] [*] [*]
[*] [*] [*] Option, Value Line Module [*] [*] [*] [*] [*]
[*] [*] [*] Asm, Value Line Module [*] [*] [*] [*] [*]
[*] [*] [*] Performance Bundle (Performance [*] [*] [*] [*] [*]
Monitor and Trunking)
[*] [*] [*] ISL Trunking [*] [*] [*] [*] [*]
[*] [*] [*] Advance Performance Monitor [*] [*] [*] [*] [*]
[*] [*] [*] Extended Fabrics [*] [*] [*] [*] [*]
[*] [*] [*] Fabric Manager v4.x [*] [*] [*] [*] [*]
[*] [*] [*] Remote Switch Activation [*] [*] [*] [*] [*]
[*] [*] [*] Advanced Security Activation [*] [*] [*] [*] [*]
[*] [*] [*] Full SAN Scaling [*] [*] [*] [*] [*]
INTEL SUPPLIER UNIT
PART PART [*] (IF PRICE OF
NUMBER NUMBER REQUIRED) PRODUCT DESCRIPTION PRODUCT [*] [*] [*] TOTAL PRICE
- ------ -------- --------- --------------------------------- -------- --- --- --- -----------
[*] [*] TBD Option, FC Switch Module, [*] [*] [*] [*] [*]
includes [*]
[*] [*] TBD Option, FC Switch Module, [*] [*] [*] [*] [*]
includes Fabric OS, Fabric Watch,
Advance Zoning, Web Tools, and
ship Group
[*] [*] TBD Option, FC [*] [*] [*] [*] [*]
Switch Module, includes [*]
[*] TBD CRU, Value line FC Switch Module [*] [*] [*] [*] [*]
[*] TBD Asm, FC Switch Module, includes [*] [*] [*] [*] [*]
[*]
[*] [*] TBD Option, Value Line Module [*] [*] [*] [*] [*]
[*] TBD Asm, Value Line Module [*] [*] [*] [*] [*]
[*] [*] TBD Performance Bundle ([*]) [*] [*] [*] [*] [*]
[*] [*] TBD ISL Trunking [*] [*] [*] [*] [*]
[*] [*] TBD Advance Performance Monitor [*] [*] [*] [*] [*]
[*] [*] TBD Extended Fabrics [*] [*] [*] [*] [*]
[*] [*] TBD Fabric Manager v4.x [*] [*] [*] [*] [*]
[*] [*] TBD Remote Switch Activation [*] [*] [*] [*] [*]
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**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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[*] [*] TBD Advanced Security Activation [*] [*] [*] [*] [*]
[*] [*] TBD Full SAN Scaling [*] [*] [*] [*] [*]
**FOR PURPOSE OF CALCULATING THE FEES FOR THE [*]AS DESCRIBED IN [*], THE [*]FOR
EACH PART NUMBER WHERE IT IS APPLICABLE IS AS FOLLOWS:
SUPPLIER
BUYER PART SUPPLIER PART [*] PART PART
NUMBER NUMBER NUMBER NUMBER PRODUCT DESCRIPTION [*]
- ---------- ------------- -------- -------- -------------------------------------- ---
[*] [*] [*] [*] Option, FC Switch Module, includes [*] [*]
[*] [*] [*] Asm, FC Switch Module, includes [*] [*]
[*] [*] [*] [*] Fabric Manager v4.x [*]
[*] [*] [*] [*] Advanced Security Activation [*]
[*] [*] [*] [*] Option, Value Line Module [*]
[*] [*] [*] Asm, Value Line Module [*]
4.2 PRODUCT UNIT TERMS & REPAIR PRICING
Repair Price
Buyer P/N Supplier P/N [*] Description Lead Time Warranty Period (USD)* TAT Yield
- --------- ------------ --- --------------------------- --------- --------------- ------------ --- -----
[*] [*] [*] Option, FC Switch Module [*] [*] [*] [*]
[*] [*] [*] Option, FC Switch Module [*] [*] [*] [*]
[*] [*] [*] Option, FC [*] [*] [*] [*]
Switch Module
[*] [*] [*] CRU, Value Line Switch [*] [*] [*] [*] [*]
Module
[*] [*] [*] Asm, FC Switch Module [*] [*] [*] [*]
[*] [*] Option, Value Line Module [*] [*]
[*] [*] Asm, Value Line Module [*] [*]
[*] [*] [*] Performance Bundle ([*]) [*] [*]
[*] [*] [*] ISL Trunking [*] [*]
[*] [*] [*] Advance Performance Monitor [*] [*]
[*] [*] [*] Extended Fabrics [*] [*]
[*] [*] [*] Fabric Manager v4.x [*] [*]
[*] [*] [*] Remote Switch Activation [*] [*]
[*] [*] [*] Advanced Security Activation [*] [*]
[*] [*] [*] Full SAN Scaling [*] [*]
*Repair Price applies only to Products sent to Supplier for Repair, which are
not covered by the warranties in the Agreement.
Repair Price
Buyer P/N Supplier P/N [*] Description Lead Time Warranty Period (USD)* TAT Yield
- --------- ------------ --- --------------------------- --------- --------------- ------------ --- -----
[*] [*] TBD Option, FC Switch Module [*] [*] [*] [*]
[*] [*] TBD Option, FC Switch Module [*] [*] [*] [*]
[*] [*] TBD Option, FC [*] [*] [*] [*]
Switch Module
[*] TBD CRU, Value Line Switch
Module [*] [*] [*] [*] [*]
[*] TBD Asm, FC Switch Module [*] [*] [*] [*]
"-------------------
**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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[*] [*] TBD Option, Value Line Module [*] [*]
[*] TBD Asm, Value Line Module [*] [*]
[*] [*] TBD Performance Bundle ([*]) [*] [*]
[*] [*] TBD ISL Trunking [*] [*]
[*] [*] TBD Advance Performance Monitor [*] [*]
[*] [*] TBD Extended Fabrics [*] [*]
[*] [*] TBD Fabric Manager v4.x [*] [*]
[*] [*] TBD Remote Switch Activation [*] [*]
[*] [*] TBD Advanced Security Activation [*] [*]
[*] [*] TBD Full SAN Scaling [*] [*]
*Repair Price applies only to Products sent to Supplier for Repair, which are
not covered by the warranties in the Agreement.
Please have your authorized representative indicate acceptance thereof by
signing both copies of the Amendment and returning one copy to the attention of:
Rob Tice
Bldg 060/A119
3030 Cornwallis Road
RTP, NC 27709
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#3. All
other terms and conditions of the Goods Agreement and SOW#3 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#3 are the complete and exclusive statement of the agreement between the
parties, superseding all proposals or other prior agreements, 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: /s/ Robert J. Tice 5/20/04 By: /s/ Jack Cuthbert
------------------------------------------- --------------------------------------------
Authorized Signature Date Authorized Signature Date
Robert J. Tice Jack Cuthbert
- ----------------------------------------------- ------------------------------------------------
Type or Print Name Type or Print Name
OEM Procurement Team Lead VP, OEM Sales
- ----------------------------------------------- ------------------------------------------------
Title & Organization Title & Organization
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**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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