Exhibit 10.3

3039 E CORNWALLIS RD

RESEARCH TRIANGLE PARK NC 27709-2195

December 15, 2009

Mr. Mike Harrison

Brocade Communications Systems, Inc.

1745 Technology Drive

San Jose, CA 95110

Subject: Amendment 39 to SOW#1 of the IBM/Brocade Goods Agreement ROC-P-68

This letter (the “Amendment”) serves as Amendment Number 39 to SOW#1, including all amendments thereto (“SOW#1”) of the Goods Agreement ROC-P-68 (the “Agreement”), which the parties hereto do mutually agree to amend as follows

1. Replace the last paragraph of Section 2.1, Price Modifications, with the following paragraph:

The parties agree to review price changes, including but not limited to changes in market conditions, support variances, and the business relationship. Such reviews shall occur as mutually agreed upon between the parties. An authorized representative of Supplier, or the authorized designee, must provide Buyer with notice of all price changes (“Price Change Notices”) and such Price Change Notices must be accepted by an authorized representative of Buyer, or the authorized designee. Authorized Representatives of Supplier and Buyer are listed in Section 10, Communications Coordinators, Pricing Notices. Any pricing changes which may result from such reviews and activities shall become effective on the date listed on the updated Products/Pricing Attachment. Notices may be sent and accepted by electronic mail.

2. Delete Section 10, Communications Coordinators, with the following Section 10.

10. COMMUNICATIONS COORDINATORS

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

BUSINESS COORDINATORS

 

FOR SUPPLIER				FOR BUYER
Name		[**]		Name		[**]
Address		[**]		Address		[**]
Phone		[**]		Phone		[**]
Email		[**]		Email		[**]

TECHNICAL COORDINATORS

 

FOR SUPPLIER				FOR BUYER
Name		[**]		Name		[**]
Address		[**]		Address		[**]
Phone		[**]		Phone		[**]
Email		[**]		Email		[**]

 

[**]	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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 1 of 40

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PRICING NOTICES

 

FOR SUPPLIER		Authorized Representative		FOR BUYER		Authorized Representative
Name		[**]		Name		[**]
Address		[**]		Address		[**]
Phone		[**]		Phone		[**]
Email		[**]		Email		[**]

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

LEGAL NOTICES

 

FOR SUPPLIER				FOR BUYER
Name		General Counsel Legal Department		Name		[**]
Address		[**]		Address		[**]
Phone		[**]		Phone		[**]
Fax		[**]		Email		[**]

3. Exhibit A of the SOW#1 is hereby deleted in its entirety and replaced with Exhibit A attached hereto.

4. Exhibit B of the SOW #1 is hereby deleted in its entirety and replaced with Exhibit B attached hereto.

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

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

 

Accepted and Agreed To:

Accepted and Agreed To:

International Business Machines Corporation

Brocade Communications Systems, Inc.

By:

/s/ Michelle B. Wright                12/22/09

By:

/s/ Matt Taylor                12/17/09

Authorized Signature                                Date

Authorized Signature              Date

Michelle B. Wright

Matt Taylor

Type or Print Name

Type or Print Name

GCM –Storage OEM Procurement

Sr. Director OEM Sales/Service

Title & Organization

Title & Organization

 

Address:						Address:		1745 Technology Drive
								San Jose, CA 95110

 

*	[**] 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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 2 of 40

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Amendment 39 to SOW 1 Brocade Confidential Information		Page 3 of 40

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AMENDMENT 39 TO SOW-1

EXHIBIT A Updated as of December 15, 2009

 

Supplier Part Number

Buyer Part Number

Brocade Model

Brocade P/N

IBM Model or FC #

IBM PN / NUMA-Q PN

Description

Unit Price

**[**] months Software Maintenance (included in unit price of product)

Out of Warranty Pricing

1Gbit/sec Switch Products and Software

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 4 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 5 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 6 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 7 of 40

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4Gbit/sec Switch Products and Software

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 8 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 9 of 40

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BROCADE 5000

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 10 of 40

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8Gbit/sec Switch Products and Software

BROCADE 300

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BROCADE 300 BUNDLED WITH SFP’S

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 11 of 40

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BROCADE 300 FRU’s

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BROCADE 300 SFP’S

NOTE: For SFP pricing, reference Director Section - BROCADE DCX (DATA CENTER BACKBONE)

BROCADE 300 OPTIONAL SOFTWARE

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BROCADE 5100

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 12 of 40

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BROCADE 5100 BUNDLED WITH SFP’S

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BROCADE 5100 FRU’s

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BROCADE 5100 SFP’s

NOTE: For SFP pricing, reference Director Section - BROCADE DCX (DATA CENTER BACKBONE)

BROCADE 5100 OPTIONAL SOFTWARE

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 13 of 40

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BROCADE 5300

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BROCADE 5300 BUNDLED WITH SFP’S

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BROCADE 5300 FRU’s

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 14 of 40

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BROCADE 5300 SFP’S

NOTE: For SFP pricing, reference Director Section - BROCADE DCX (DATA CENTER BACKBONE)

BROCADE 5300 OPTIONAL SOFTWARE

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FCoE Switch Products and Software

BROCADE 8000 (Accessories, FRU’s, Optional Software)

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 15 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 16 of 40

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BROCADE 8000 CEE Only (Accessories, FRU’s, Optional Software)

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BROCADE 8000 CEE Only FRU’s

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EXTENSION PRODUCTS

BROCADE 7800 (Accessories, FRU’s, Optional Software)

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BROCADE 7800 FRU’s

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BROCADE 7800 OPTIONAL SOFTWARE

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 17 of 40

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MULTI-PROTOCOL ROUTER

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DIRECTOR PRODUCTS AND SOFTWARE

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 18 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 19 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 20 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 21 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 22 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 23 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 24 of 40

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BROCADE DCX (DATA CENTER BACKBONE)

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 25 of 40

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DCX BLADE - BUNDLED WITH SFP’S

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 26 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 27 of 40

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DCX - FRU’s

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 28 of 40

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BROCADE FX8-24 DCX EXTENSION BLADE

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BROCADE FX8-24 DCX EXTENSION BLADE - FRU’s

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BROCADE FX8-24 DCX EXTENSION BLADE - OPTIONAL SOFTWARE

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 29 of 40

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BROCADE FCoE 10-24 DCX Blade

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BROCADE FCoE 10-24 DCX Blade - FRU’s

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FABRIC MANAGER

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 30 of 40

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Supplier Part Number				Buyer Part Number
Brocade Model		Brocade P/N		IBM Model or FC #		IBM PN / NUMA-Q PN		Description		Out of Warranty
DIRECTOR PRODUCTS (part numbers for DCX RMA purposes only)
[**]*		[**]		[**]		[**]		[**]		[**]
[**]		[**]		[**]		[**]		[**]		[**]
[**]		[**]		[**]		[**]		[**]		[**]
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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 31 of 40

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** For purpose of calculating the fees for the annual Software Maintenance Support Program as described in Section 9.4, the annual Software Maintenance Fee per Unit for each part number where it is applicable as follows:

 

Supplier Part Number				Buyer Part Number
Brocade Model		Brocade P/N		IBM Model or FC #		IBM PN / NUMA-Q PN		Product Description		Annual Software Maintenance Fee per Unit
[**]*		[**]		[**]		[**]		[**]		[**]
[**]		[**]		[**]		[**]		[**]		[**]
[**]		[**]		[**]		[**]		[**]		[**]
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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 32 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 33 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 34 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 35 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 36 of 40

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 37 of 40

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Amendment 39 to SOW 1 Brocade Confidential Information		Page 38 of 40

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AMENDMENT 39 TO SOW-1

EXHIBIT B

 

Supplier Part Number

Buyer Part Number

Brocade Model

Brocade P/N

IBM Model or FC #

IBM P/N

Description

Unit Price

Defect Based SW Support – [**] Years (included in unit price of product)

Non Defect Based SW Technical Support & SW Upgrades – [**] Year (included in unit price of product)

Out of Warranty Pricing

BROCADE DCX-4S

[**]*

[**]

[**]

[**]

[**]

[**]

[**]

[**]

[**]

BROCADE DCX-4S MAINTENANCE RENEWALS

[**]

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BROCADE 8000

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BROCADE 8000 - MAINTENANCE RENEWALS

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BROCADE 8000 (CEE Only)

[**]

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BROCADE 8000 - MAINTENANCE RENEWALS

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 39 of 40

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BROCADE 7800 Extension Switch

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BROCADE 7800 MAINTENANCE RENEWALS

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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.

 

Amendment 39 to SOW 1 Brocade Confidential Information		Page 40 of 40