Sample Business Contracts


Goods Agreement ROC-P-68 - Statement of Work No. 1 [Amendment No. 16] - International Business Machines Corp. and Brocade Communications Systems Inc.

Manufacturing Forms



                                                            [IBM LOGO]
                                                            3039 Cornwallis Road
                                                            RTP, NC 27709

May 14, 2004

Brocade Communications Systems, Inc.
1745 Technology Drive
San Jose, CA 95110

Attention: Mr. Michael Harrison

Subject: Amendment 16 to SOW#1 of the IBM/Brocade Goods Agreement ROC-P-68

Dear Michael:

This letter (the "Amendment") serves as Amendment Number 16 to SOW#1, including
all amendments thereto ("SOW#1") of the Goods Agreement ROC-P-68, which the
parties hereto do mutually agree to amend as follows:

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



IBM P/N / NUMA-Q
      P/N          BROCADE P/N         DESCRIPTION          UNIT PRICE
----------------   -----------   ------------------------   ----------
                                                   
[*]                [*]           8-Port Fibre Channel              [*]
                                 Switch Single Power
                                 Supply (SW2400) [*]-
                                 whole unit switch
                                 Product

[*]                [*]           16 Port Fibre Channel             [*]
                                 Switch Single Power
                                 Supply (SW2800) Includes
                                 [*]- 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                  [*]

[*]                [*]           Extended Fabrics                  [*]


"-------------------
**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."

                                        1

<PAGE>


                                                   
[*]                [*]           Remote Switch                     [*]

[*]                [*]           Remote Switch                     [*]

[*]                [*]           8 Port Fibre Channel              [*]
                                 Switch Single Power
                                 Supply (SW3200) [*] (to
                                 be included prior to
                                 10/28/03 for
                                 availability for Buyer
                                 customer shipments)

[*]                [*]           8 Port Fibre Channel              [*]
                                 Switch Single Power
                                 Supply (SW3200) [*]               [*]

[*]                [*]           Full Fabric Upgrade               [*]
                                 Includes [*]

[*]                [*]           16 Port Fibre Channel             [*]
                                 Switch Single Power
                                 Supply (SW3800) Includes
                                 [*]- whole unit switch
                                 Product

[*]                [*]           Fan (SW3800)                      [*]

[*]                [*]           Power Supply (SW3800)             [*]

[*]                [*]           Mainboard FRU (SW3800)            [*]

[*]                [*]           32 Port Fibre Channel             [*]
                                 Switch Double Power
                                 Supply (SW3900)
                                 Includes[*]- whole unit
                                 switch Product

[*]                [*]           Fan (SW3900)                      [*]

[*]                [*]           Power Supply (SW3900)             [*]

[*]                [*]           Mainboard FRU (SW3900)            [*]

[*]                [*]           Secure Fabric OS                  [*]
                                 (SW3200)

[*]                [*]           Secure Fabric OS                  [*]
                                 (SW3800)

[*]                [*]           1Gb Secure Fabric OS              [*]

[*]                [*]           Secure Fabric OS                  [*]
                                 (SW3900)

[*]                [*]           Secure Fabric OS                  [*]
                                 (SW12000)                         [*]

[*]                [*]           Performance Bundle                [*]
                                 ([*])

[*]                [*]           Performance Bundle                [*]
                                 ([*])

[*]                [*]           32 Port Fibre Channel             [*]
                                 Core Switch (SW12000)
                                 [*]                               [*]

[*]                [*]           Rack Mounting Kit                 [*]


"-------------------
**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."

                                       2

<PAGE>


                                                   
                                 14U, FRU

[*]                [*]           Switch Blade 16 port,             [*]
                                 2GB

[*]                [*]           Switch Blade 16 port,             [*]
                                 2Gb, FRU

[*]                [*]           Chassis Door, Includes            [*]
                                 [*]

[*]                [*]           Control Processor Blade           [*]

[*]                [*]           Stiletto Port Blade Slot          [*]
                                 Filler Panel, SW12000,
                                 FRU

[*]                [*]           Power Supply ,                    [*]
                                 180-264VAC, 1000W, FRU

[*]                [*]           Blower Assembly, FRU              [*]

[*]                [*]           Cable Management Pillar,          [*]
                                 FRU

[*]                [*]           WWN Card                          [*]

[*]                [*]           Power Plug, Switch and            [*]
                                 Distribution Panel

[*]                [*]           Chassis FRU,                      [*]
                                 includes [*].

[*]                [*]           Rear WWN Bezel Assy               [*]

[*]                [*]           Cable Management Tray             [*]

[*]                [*]           AC Power Cord, FRU                [*]

[*]                [*]           AC Power Cord,                    [*]
                                 UK/Ireland, 250V, FRU

[*]                [*]           AC Power Cord, Cont.              [*]
                                 Europe CEE7/7, FRU

[*]                [*]           AC Power Cord, AUST/INZ,          [*]
                                 250V

[*]                [*]           AC Power Cord, Intl IEC           [*]

[*]                [*]           Remote Switch software            [*]

[*]                [*]           Extended Fabric software          [*]

[*]                [*]           Fabric Manager 3.x                [*]

[*]                [*]           ISL Trunking (SW3200)             [*]

[*]                [*]           ISL Trunking (SW3800)             [*]




                                                                                   **[*]SOFTWARE
BUYER                                                                               MAINTENANCE
PART     SUPPLIER PART                                                             ([*]UNIT PRICE
NUMBER      NUMBER       PRODUCT DESCRIPTION               UNIT PRICE OF PRODUCT    OF PRODUCT)
------   -------------   -------------------               ---------------------   --------------
                                                                       
[*]      [*]             Fabric Manager 4.x-Enterprise                       [*]   [*]
                         ([*])

[*]      [*]             Fabric Manager 4.x - 3.0 to 4.x                     [*]   [*]


"-------------------
**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."

                            3
<PAGE>


                                                                       
                         Upgrade to Enterprise ([*])

[*]      [*]             Fabric Manager 4.x with 10                          [*]   [*]
                         Domains

[*]      [*]             Fabric Manager 4.x [*]                              [*]   [*]

[*]      [*]             Secure Fabric OS                                    [*]   [*]
                         (SW12000/24000) [*]

[*]      [*]             32 Port Fibre Channel Director                      [*]   [*]
                         (SW24000) Includes [*]

[*]      [*]             Meteor, 16 Port [*]                                 [*]   [*]

[*]      [*]             Meteor Upgrade kit. Includes[*]                     [*]   [*]

[*]      [*]             8 Port Fibre Channel Two Domain                     [*]   [*]
                         Switch Single Power Supply
                         (SW3250), Includes [*]

[*]      [*]             8 Port Fibre Channel Two Domain                     [*]   [*]
                         Switch Single Power Supply                          [*]
                         (SW3250), Includes [*]

[*]      [*]             16 Port Fibre Channel Four                          [*]   [*]
                         Domain Switch, Two Fixed Power
                         Supplies (SW3850), Includes [*]

[*]      [*]             16 Port Fibre Channel Four                          [*]   [*]
                         Domain Switch, Two Fixed Power
                         Supplies (SW3850), Includes [*]                     [*]   [*]

[*]      [*]             Secure Fabric OS (SW3850)                           [*]   [*]

[*]      [*]             Secure Fabric OS (SW3250)                           [*]   [*]

[*]      [*]             Meteor FRU Chassis , includes                       [*]   [*]
                         [*],

[*]      [*]             Meteor FRU, Chassis Door.                           [*]   [*]
                         Includes [*]

[*]      [*]             Meteor Switch Blade 16 port,                        [*]   [*]
                         2Gb, FRU

[*]      [*]             Meteor Control Processor Blade,                     [*]   [*]
                         FRU

[*]      [*]             FRU, Power Supply Filler Panels                     [*]   [*]

[*]      [*]             Extended Fabric                                     [*]   [*]

[*]      [*]             Remote Switch                                       [*]   [*]

[*]      [*]             Performance Bundle ([*])                            [*]   [*]

[*]      [*]             Four Domain to Full Fabric                          [*]   [*]
                         Upgrade

[*]      [*]             Extended Fabric                                     [*]   [*]

[*]      [*]             Remote Switch                                       [*]   [*]

[*]      [*]             Performance Bundle ([*])                            [*]   [*]

[*]      [*]             Two Domain to Full Fabric                           [*]   [*]
                         Upgrade [*]

[*]      [*]             8 port Switch FRU [*]                               [*]   [*]

[*]      [*]             16 port Switch FRU [*]                              [*]   [*]


**For purpose of calculating the fees for the [*]as described in Section [*],
the [*] per Unit for each part number where it is applicable as follows:

"-------------------
**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."

                                        4

<PAGE>



IBM
PART     BROCADE PRODUCT
NUMBER    PART NUMBER                          PRODUCT DESCRIPTION                        [*] PER UNIT
------   ---------------   ------------------------------------------------------------   ------------
                                                                                 
[*]      [*]               32 Port Fibre Channel Director (SW24000) [*]                            [*]

[*]      [*]               Meteor Upgrade kit. Includes[*]                                         [*]

[*]      [*]               8 Port Fibre Channel Two Domain Switch Single Power Supply              [*]
                           (SW3250),
                           Includes [*]

[*]      [*]               8 Port Fibre Channel Two Domain Switch Single Power Supply              [*]
                           (SW3250),
                           Includes [*]

[*]      [*]               16 Port Fibre Channel Four Domain Switch, Two Fixed Power               [*]
                           Supplies (SW3850),
                           Includes [*]

[*]      [*]               16 Port Fibre Channel Four Domain Switch, Two Fixed Power               [*]
                           Supplies (SW3850),
                           Includes [*]

[*]      [*]               Fabric Manager 4.x-Enterprise ([*])                                     [*]

[*]      [*]               Fabric Manager 4.x  - 3.0 to 4.x Upgrade to Enterprise ([*])            [*]

[*]      [*]               Fabric Manager 4.x with 10 Domains                                      [*]

[*]      [*]               Fabric Manager 4.x [*]                                                  [*]

[*]      [*]               Secure Fabric OS (SW3850)                                               [*]

[*]      [*]               Secure Fabric OS (SW3250)                                               [*]

[*]      [*]               Secure Fabric OS (SW12000/24000)                                        [*]


OUT OF WARRANTY REPAIR PRICING:

[*]
[*]

ACCEPTED AND AGREED TO:
INTERNATIONAL BUSINESS MACHINES           ACCEPTED AND AGREED TO:
CORPORATION                               BROCADE COMMUNICATIONS SYSTEMS, INC.

By: /s/ Robert J. Tice    5/26/04         By: /s/ Michael Klayko       5/24/04
    ---------------------------------          ---------------------------------
    Authorized Signature     Date              Authorized Signature    Date

"-------------------
**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."

                                        5

<PAGE>

         Robert J. Tice                             Michael Klayko
-------------------------------------      -------------------------------------
         Type or Print Name                         Type or Print Name

         OEM Procurement Team Lead                  VP, WW Sales
-------------------------------------      -------------------------------------
         Title & Organization                       Title & Organization

                                        6


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