Market Development Funds Guide for Unified Partners and Distributors

Transcription

1 NetApp Partner Program: APAC Market Development Funds Guide for Unified Partners and Distributors Version 7 July 2016

2 TABLE OF CONTENTS 1 OVERVIEW ELIGIBILITY ACTIVITY ELEMENTS THE MDF PROCESS ACTIVITY COVERAGE MARKETING ACTIVITY OBJECTIVES PROOF OF PERFORMANCE MARKETING ACTIVITIES WITH LIMITED MDF COVERAGE ELIGIBLE ACTIVITY TYPES AND DEFINITIONS INELIGIBLE MARKETING ACTIVITIES ACTIVITY METRICS EDITING A REQUEST HELD FOR LACK OF FUNDS REQUEST CANCELLATION REQUEST PENDING/ON HOLD STATUS CLAIMING AND REIMBURSEMENT CLAIMING INVOICES BANKING AND BENEFICIARY INFORMATION CURRENCY POLICY AND CONVERSION PAYMENT TAXES PROGRAM GOVERNANCE ANTI-BRIBERY POLICY U.S. OR NON-U.S. GOVERNMENT OFFICIALS PROVIDING BUSINESS COURTESIES DATA PRIVACY RESOURCES USER ACCESS HELP DESK INFORMATION GLOSSARY GENERAL TERMS BUDGET TERMS REQUEST TERMS CLAIM TERMS Market Development Funds Guide for Unified Partners and Distributors

3 1 Overview The NetApp Market Development Funds (MDF) Program provides qualified partners with financial support for marketing and sales initiatives that drive revenue and deliver the highest degree of customer satisfaction and success. Our MDF Program directly reimburses partners for approved, partner-requested marketing and sales activities. These activities are subject to a formal NetApp approval process, as outlined in this guide. This guide explains how to access, use, and claim MDF. 1.1 Eligibility NetApp unified partners and distributors who have a signed and valid contract and who are in compliance with all NetApp Partner Program requirements are eligible to participate in the MDF Program. For information about eligibility requirements and the MDF Program type to which you have access, see your NetApp Partner Program Guide on the NetApp Field Portal (fieldportal.netapp.com). MDF may be used only for approved activities and may not be used for general-purpose spending. Your participation in the MDF Program and use of MDF must be in accordance with the guidelines that NetApp provides. Payment of claims is based solely on your compliance with the program rules in this guide. 1.2 Activity Elements Table 1 describes the three basic elements in the MDF process. Table 1) MDF activity and claim schedule. Budget Request Claim Date Budget available date Budget expiration date Request submit date Request approval date Activity start date Activity end date Claim due date Description The date that NetApp allots funds into a budget. All budgets expire on the budget expiration date that is shown in the Channel Funds Manager. Budget expiration removes all funds from the MDF Program and occurs whether or not there is a commitment against an approved request. Note: You can find the budget expiration date on the Budget Summary page of the NetApp Channel Funds Manager. The date that you submit the request for approval through the Channel Funds Manager. The date that NetApp approves your request. The date that an activity is estimated to begin. Your expenses should be within reasonable proximity to your activity. The date that you anticipate all planning and events to be completed. The Channel Funds Manager limits this date to 120 days from the request submit date. All claims must be submitted in the Channel Funds Manager by the claim due date. If your claim is not submitted by the claim due date, your activity will expire, and your claim will not be paid. 3 Market Development Funds Guide for Unified Partners and Distributors

4 Figure 1) MDF activity elements as defined in Table The MDF Process For all programs, activity requests must be submitted through the Channel Funds Manager (services.netapp.com/sso/mdf/login.html) and must be approved by NetApp before partners begin their activity. Request approval depends on alignment with your NetApp marketing plan, the business objective of the activity, and the availability of funds. To be reimbursed for your costs, you must comply with the rules and policies in this guide. You are responsible for the cost of activities that are not approved. An approved request does not guarantee reimbursement. Verbal or agreements do not constitute approval and will not be reimbursed. Table 2) MDF process overview. Activity 1. Create your business and marketing plan. 2. Submit your MDF request. 3. Conduct your activity. 4. Submit your MDF claim and proof of performance (POP). Description Work with your NetApp channel development manager or distributor to create a quarterly business and marketing plan that supports your NetApp business objectives. Plans are due on the dates that your NetApp contact specifies. The marketing plan must be approved by NetApp before you submit individual activity requests in the NetApp Channel Funds Manager. Before you start the activity, submit a request by using the Channel Funds Manager ( NetApp or your distributor reviews the request and either approves or denies it. You will receive a system-generated indicating the acceptance status of your request. Carry out your approved activity or event. Note: You should not begin your activity until you have received approval of your request. Claims are paid after the activity has been completed. To receive reimbursement for a specific activity, submit a claim request with the required POP and documented costs through the NetApp Channel Funds Manager. To be paid, claims must pass audit. 4 Market Development Funds Guide for Unified Partners and Distributors

5 Activity 5. Receive your payment. Description All claims are audited for program compliance and completeness before reimbursements are granted. To keep track of when claims are due and other important dates, use the To Do List feature in the Channel Funds Manager. NetApp has the right to remove uncommitted funds from partner accounts at any time. 2 Activity Coverage 2.1 Marketing Activity Objectives NetApp MDF is available to fund marketing programs that promote both partner and NetApp solutions and brands. MDF can be used for activities that support the objectives that are described in Table 3. Table 3) Eligible marketing activity objectives. Activity Objective Customer acquisition Customer awareness Customer development Partner enablement Partner recruitment Definition Activities with a call to action that are designed to generate leads and move prospects through the sales cycle. Activities that drive and promote awareness of the NetApp brand without a specific call to action. Activities that help partners develop or retain existing NetApp customer relationships. Joint NetApp and partner activities that increase collaboration and help partners become self-sufficient in selling NetApp products and solutions. Activities with a call to action that are designed to attract prospective resellers and vertical systems integrators into NetApp's channel program. Available for distributors only. 2.2 Proof of Performance Validating Activities by Proof of Performance To receive reimbursement, you must submit proof of performance (POP) for an activity. The NetApp MDF Program and documentation must pass an external financial audit review. One of the key criteria for the audit is to validate that the activities for which we reimburse you did indeed take place. POP provides this validation. Following are a few key items that we look for in POP: We check all of your itemized invoices to verify that the types of expenses that you submitted are appropriate for the activity that you requested and are eligible for reimbursement. We check those invoices and receipts to make certain that their dates are reasonable when compared with your activity request. Your POP should give us a clear understanding that the activity did take place. The documentation that you submit should clearly represent the same activity that you requested and should show dates that help us determine that it represents the requested activity. Your POP must also show us the use of our joint brands or solutions. We ask for this proof to verify that you are representing your partnership with us. 5 Market Development Funds Guide for Unified Partners and Distributors

6 Activity metrics are not a component of POP or the claim audit process. Submitting Proof of Performance To submit your claim documentation by post, print a claim form from the Channel Funds Manager and include it with your claim documentation. Your claim form must be signed by an authorized individual at your company. For more information about submitting a claim, see section 3, Claiming and Reimbursement. Proof of Performance for Travel and Entertainment Elements of Activities Section 2.4, Eligible Activity Types and Definitions, describes the required POP for each activity type. In addition, to substantiate reimbursement of entertainment and travel portions of an activity, the following specific POP items are required: To verify travel costs, submit an activity attendee list, including attendee names and titles, company name, and company address. Guest speakers or entertainment must be presented on a detailed agenda with the topic covering cobranded solutions. 2.3 Marketing Activities with Limited MDF Coverage The activities that are covered in this section might qualify for MDF; however, coverage for them is limited. Activity Deposits and Down Payments An advance deposit alone is not a reimbursable expense under the MDF Program. An advance deposit can be reimbursed only after the approved activity has taken place. To include an advance deposit expense in your MDF request: Include the advance deposit expense in the total funding amount that you are requesting. Document the advance deposit in the activity description section of your activity request. For deposits that are required more than 120 days in advance, discuss the issue with your NetApp contact. Entertainment and Meals Activities that include meals, sporting events, concerts, or other events that are primarily social in nature are not covered. All entertainment must be appropriate for the business relationship and must be in accordance with applicable local laws and customs. Unsavory entertainment, such as adult entertainment or gambling expenses of any kind, is not an appropriate business courtesy and consequently is not covered through MDF. Entertainment activities might be eligible for reimbursement under the MDF Program if they meet certain qualifications. They must be part of a wider event that promotes co-branded products and solutions and must be expected to stimulate NetApp demand generation or promote NetApp solutions. Describe the entertainment element and costs in the activity description of your activity request for review and approval. Your request might include details such as: The business purpose or the strategy that justifies the social activity A description of the social activity The social activity cost The estimated total number of attendees Entertainment and Meals Guidelines The primary activity must be business focused, with a lesser entertainment element. The number of NetApp attendees cannot exceed the number of partner and/or customer attendees. The cost per person should be reasonable and modest. 6 Market Development Funds Guide for Unified Partners and Distributors

7 Use of MDF for entertainment must comply with the NetApp Anti-Bribery Policy, which is described in section 4.1 of this guide. Gifts and Giveaways Gifts and giveaways to partners, prospects, or customers must comply with local anti-bribery, taxation, and sweepstakes laws as applicable. If you are requesting reimbursement for costs that are associated with a gift or a giveaway for this overall activity, you must include the gift or giveaway in your activity description. The partner who receives the gift is responsible for payroll and tax implications. Use of MDF must comply with the NetApp Anti-Bribery Policy, which is described in section 4.1 of this guide. Raffles, Drawings, and Sweepstakes Raffles, drawings, and sweepstakes that choose a winner for a prize might be eligible for reimbursement under the MDF Program. To be eligible for reimbursement, the winner must: Be part of an approved eligible MDF activity that promotes co-branded products and solutions Be expected to stimulate NetApp demand generation or promote NetApp solutions Winners of raffles, drawings, and sweepstakes that are incorporated into an approved MDF activity must not be NetApp employees or government officials. Prizes that are given to partners, prospects, or customers must comply with local anti-bribery laws, applicable payroll tax laws, and local sweepstakes laws. They must also comply with the NetApp Anti-Bribery Policy, which is described in section 4.1 of this guide. When you request approval, describe the raffle, drawing, or sweepstake prize and its associated costs. Proof of Performance In your POP, you must include: A description of and a receipt for the prize given A list of winners, including their name and company Any other required POP for the overall activity Travel Travel and accommodations are not covered by MDF except in rare cases. To qualify for reimbursement, travel and accommodation expenses must be part of an approved eligible MDF activity. Table 4 shows examples of appropriate and inappropriate use of MDF for travel. When you seek travel approval, describe the travel costs in the activity description of your activity request. The use of MDF for travel purposes must comply with the NetApp Anti-Bribery Policy, which is described in section 4.1 of this guide. If you have questions about the appropriateness of travel expenditures or the NetApp Anti-Bribery Policy, contact the NetApp Integrity & Compliance Office at ng-integrity@netapp.com. 7 Market Development Funds Guide for Unified Partners and Distributors

8 Table 4) Examples of travel that meet or do not meet MDF guidelines. Travel Expenses That Meet MDF Guidelines Covering the cost for an end customer to travel to a NetApp Executive Briefing Center (EBC) Travel for a third-party guest speaker (not a NetApp or partner representative) to a partner event that is focused on demand generation for a joint solution Travel Expenses That Do Not Meet MDF Guidelines Travel for account planning with a NetApp sales team Covering local travel to a NetApp event Travel Guidelines Travel expenses are reimbursable only after the primary activity has occurred, as substantiated by that activity s POP. All travel expenses must be supplied as itemized costs against the overall activity that they support. If the overall activity fails audit, travel expenses as part of the overall activity will not be reimbursed. Eligible Travel Expenses Eligible expenses for authorized travel are limited as follows: Travel and accommodation are allowed for end customers and prospects to attend a NetApp briefing that is held at NetApp facilities or at designated off-site locations. Off-site locations are limited to briefings for NetApp only. Travel expenses encompass the days of the activity and the day immediately preceding or immediately following the activity. Travel costs for partners do not qualify for MDF coverage unless they are directly authorized by NetApp. NetApp will reimburse only economy fares. Travel reimbursement is for plane or train travel only; car travel, other transportation, and meals are not eligible expenses. Travel within APAC is not to exceed US$1,500 per person. Travel beyond APAC is not to exceed US$2,000 per person. The hotel room rate is not to exceed US$250 per night (this rate excludes relevant taxes). Ineligible Travel Expenses Ineligible expenses include: Travel expenses for NetApp employees Travel expenses for guest speakers who are affiliated with NetApp Travel expenses for guests of the end customer and reseller Travel side trips Cash payments; cash equivalents; or per-diem incidentals, such as minibar items, wireless access, movies, and so on 2.4 Eligible Activity Types and Definitions NetApp MDF can be used for the activities that are described in the following sections. Your activity request may include limited-coverage elements such as meals and entertainment, activity down payment and deposits, travel, gifts and giveaways, prizes, drawings, and sweepstakes. For more information about activities with limited coverage, see section 2.3, Marketing Activities with Limited MDF Coverage. NetApp s MDF Program is activity based. If your plan includes more than one activity type, you must submit one request for each activity. The use of MDF must comply with the NetApp Anti-Bribery Policy, which is described in section 4.1 of this guide. If your activity includes any of the limited-coverage activities, you must list it in your activity description. 8 Market Development Funds Guide for Unified Partners and Distributors

9 Account Planning Account planning includes a partner-driven activity in which the partner, NetApp, and possibly alliance partners meet to build joint end-customer strategies. It also includes an activity in which a distributor and NetApp meet to develop NetApp reseller or end-customer strategies. Proof of Performance For most activities, you must submit a minimum of one sample that shows both branding and messaging. If one sample does not show both of these elements, then additional samples are required. Itemized third-party supplier receipts are required to show out-of-pocket expenses for all claims. Your POP must also include: A copy of itemized third-party invoices showing all eligible expenses A copy of the invitation, agenda, or equivalent that states the purpose of the meeting An attendee list that includes the contact name and company for all participants Advertising and Branding Advertising and branding include campaigns that are designed to create awareness of the partner and NetApp brands, including, but not limited to: Advertisement in print media and catalogs Public relations Editorial materials Broadcast media such as radio and TV networks Online media, including web-based banners, buttons, brand microsites, site search keywords, social media, and so on Proof of Performance Your POP must include: A copy of itemized third-party creative and production invoices that show all eligible expenses A sample of the advertisement; a screenshot of the webpage that features the branding, URL, and advertisement; or a press release All submissions must show co-branded solutions, messaging, and/or branding. Branded Merchandise This category includes NetApp branded and NetApp and partner co-branded merchandise, such as T- shirts, sweatshirts, pens, key rings, computer bags, calendars, and balloons. A branded-merchandise activity covers only the purchase of branded items. If the items are to be used as a giveaway as part of a different activity (such as a training or trade show), then the costs should be included in that activity request. Purchases through the NetApp Gear Store ( or through similar agencies might be eligible for MDF coverage. This activity type is not meant to cover incentive awards. Merchandise without branding is not covered under this activity type. Proof of Performance Your POP must include: A copy of itemized third-party invoices that show all eligible expenses An electronic sample or diagram of the branded merchandise that shows the integration of cobranding 9 Market Development Funds Guide for Unified Partners and Distributors

10 Briefings and Seminars Briefings and seminars are meetings that are intended to drive demand and sales for joint partner and NetApp solutions. They can be focused on one or more customers and may include, but are not limited to, customer Executive Briefing Center (EBC) visits that the partner organizes. Briefings and seminars are by nature geared toward a customer audience. Customer EBC visits may take place at either a NetApp facility or an off-site location with an approved EBC format. Proof of Performance Your POP must include: A copy of itemized third-party invoices that show all eligible expenses A copy of the invitation, agenda, or equivalent that states the purpose of the meeting and demonstrates the integration of co-branded solutions, messaging, and/or branding If travel is a component of the request, submit the travel Itinerary for each attendee and an activity attendee list that includes both attendee and company names. Guest speakers or entertainment must be presented on a detailed agenda with the topic covering co-branded solutions. Collateral and Sales Tools MDF might cover collateral or sales tools that aid in the understanding and selling of joint NetApp and partner solutions. This category includes, but is not limited to, brochures, product guides, competitive matrixes, training presentations, newsletters, and partner presentations. Proof of Performance Your POP must include: A copy of itemized third-party invoices that show all eligible expenses, such as total production, printing, and mailing costs A sample of the literature piece or tool that shows the integration of co-branded solutions, messaging, and/or branding Direct Communication Direct communication includes partner-led activities, such as direct mail, , or webcasts, with a call to action to drive awareness and consideration for joint partner and NetApp solutions. Proof of Performance Your POP must include: A copy of itemized third-party invoices that show all eligible expenses An electronic version or a printed sample of the communication (direct mail piece, , invitation, agenda, or equivalent) that shows the integration of co-branded solutions, messaging, and/or branding Equipment and Solution Development This activity includes NetApp demonstration equipment and the associated costs that are necessary to demonstrate NetApp solutions to customers. Production equipment is not eligible for reimbursement. Proof of Performance Your POP must include: A copy of itemized NetApp or distributor invoices that show all eligible expenses 10 Market Development Funds Guide for Unified Partners and Distributors

11 Incentives These activities include partner-led sales incentives programs that are designed to create demand and increase sales for partner and NetApp solutions. Incentive Guidelines Incentive activities must comply with local anti-bribery laws, applicable payroll tax laws, and local sweepstakes laws. In addition, if the incentive award is a prize, the incentive rules must offer the winner the option to select a monetary equivalent. A sales performance incentive fund (SPIF) can be organized by a distributor for reseller partner companies. In such a case, the SPIF should be offered at the company level only. The reseller partner is then responsible for distributing the award to its employees. To be eligible, a SPIF program must target several companies or several employees as possible winners. Travel can be an incentive award and should follow the spirit of the NetApp travel policy (section 2.3 of this guide). Travel and prizes should not be lavish in nature. In your activity request, include a description of the program, the start and stop dates, the incentive award, and how an individual qualifies for the award. The incentive must be offered by the distributor to a reseller company. The distributor cannot offer an incentive directly to individuals who are employed by the reseller. The reseller company determines which individual or individuals will receive the incentive and handles payment of the incentive to employees. The partner who receives the incentive is responsible for payroll and tax implications. Incentives are not transferrable; in particular, transferring an incentive award to end users is not allowed. The use of MDF for incentives must comply with the NetApp Anti-Bribery Policy, which is described in section 4.1 of this guide. Incentives can be paid in the form of a check, wire transfer, or credit note. Cash incentives of any kind are not covered by the MDF Program. For more information, see section 2.5 of this guide. Proof of Performance Your POP must include: A copy of itemized third-party invoices that show eligible expenses for marketing creative, communications, and noncash prize costs. A copy of the incentive program that shows the date parameters; the objectives of the incentive; the incentive award; co-branding; and joint integration of solutions, messaging, and/or branding. Incentives must include a performance-tracking report that shows the metrics leading to the incentive requirement and that documents the award given, the award winner, and the name of the winner s company. If travel is included, provide a list of participating attendees. Partner Sales Kickoffs This category includes third-party expenses that are associated with partner-driven activities at a partner internal sales event. These activities are intended to build awareness of and a preference for NetApp among the partner s sales and technical staff. Eligible Expenses for Partner Sales Kickoff Third-party expenses that are associated with conducting a partner sales kickoff are eligible. Examples could include logistics, room rental, AV equipment rental, catering, and so on. Ineligible Expenses for Partner Sales Kickoff A NetApp contractual obligation to sponsor a partner event is an ineligible expense. 11 Market Development Funds Guide for Unified Partners and Distributors

12 Proof of Performance Your POP must include: A copy of itemized third-party invoices that show all eligible expenses A copy of the invitation, detailed agenda, or equivalent for the event that shows the integration of NetApp solutions and messaging Telemarketing This activity includes demand-generation call campaigns that are conducted by a third party on behalf of the partner. Proof of Performance Your POP must include: A copy of itemized third-party invoices that show all eligible expenses A copy of the telemarketing script that shows co-branding and the integration of NetApp solutions, messaging, or branding Trade Shows and Sponsorships This category includes third-party costs that are associated with or a sponsorship of a third-party industry event where partners represent co-branded NetApp solutions. Note: Any tax-deductible amount of the sponsorship will not be reimbursed with MDF. Proof of Performance Your POP must include: A copy of itemized third-party invoices that show all eligible expenses A copy of the invitation, agenda, or equivalent that states the purpose of the meeting and demonstrates the integration of co-branded solutions, messaging, and/or branding Third-party sponsorship contract documents if contracted sponsorship is included Training This activity includes partner training and partner-focused meetings that enable partner employees to better understand and represent NetApp products and solutions. MDF Coverage When Hosting Training Classes Costs that are incurred for hosting training, such as logistics costs, room rentals, AV equipment rentals, and on-site catering for food and beverages, are covered under the MDF Program. MDF Coverage When Attending Training Costs for attending training are covered under the MDF Program. The training must either be NetApp specific or incorporate NetApp content in the course. Costs that are incurred for training must be directly associated with the entry fee for the NetApp training course, including training units. Proof of Performance Your POP must include: A copy of itemized third-party invoices that show all eligible expenses Note: When a NetApp training course is purchased without training units (TUs), a copy of the credit card receipt or credit card statement will act as proof of costs incurred. A summary of the course information, including the course title, date, agenda, or equivalent that shows the integration of NetApp solutions, messaging, or branding An attendee list that includes the contact name and company for all participants 12 Market Development Funds Guide for Unified Partners and Distributors

13 2.5 Ineligible Marketing Activities The following activities are not eligible to receive MDF reimbursement, even if the activity supports the objectives. Cash Incentives and Rebates Cash incentives, including end-user and reseller incentives, additional reseller or end-user discounts, and reseller margin enhancement and rebates, are not covered by the MDF Program. For eligible noncash incentives, see Incentives in section 2.4 of this guide. Charitable Contributions Charitable contributions are not covered by the MDF Program. Consulting Expenses Expenses that are incurred by partner sales engineers and partner consultants are not covered. NetApp Directed Activities NetApp driven activities, including NetApp events, partner sponsorships of NetApp events, and events that are sponsored by NetApp, are not eligible for MDF reimbursement. Partner Operating Expenses The MDF Program is intended for market development activities and cannot be used to cover the partner s day-to-day operating expenses, including salaries of regular or alternative workers or the cost of travel and entertainment. Exceptions to this policy require approval by a NetApp vice president. If you have questions about the validity of a marketing activity, consult your NetApp channel marketing manager, channel development manager, or vertical partner manager or distributor. Production Equipment The MDF Program is not intended for the purchase of a partner s production environment or equipment that is not associated with the partner s ability to demonstrate NetApp solutions. Rebates A rebate is defined as a deduction from an amount to be paid or a return of part of a payment amount. Rebates are not covered by the MDF Program. Team Building Team-building activities are not covered by the MDF Program. Team-building activities are associated with developing relationships and are considered primarily social in nature. 2.6 Activity Metrics We use activity metrics to measure the effectiveness of our MDF investments. NetApp asks you to supply the metrics that are listed in Table 5 through Table 9 for the activities that you organize. It is important to provide an accurate representation of the outcome of your activities. NetApp uses this data to determine funding approval for your future activities. NetApp bases continued approvals for your requests on the accuracy and completeness of this information. If you are in arrears in completing your activity metrics or have provided us with inaccurate data, you might not be approved for future activity requests. 13 Market Development Funds Guide for Unified Partners and Distributors

14 You have the opportunity to provide metrics to NetApp, by using the Channel Funds Manager, three times during the process: Initial metrics estimate. NetApp asks for this estimate at the time that you submit the request. It is used by NetApp during the request approval process. Preliminary (near-final) metrics data. NetApp requests this data at the time that you submit the claim. Final metrics data. NetApp requests that you submit this data within 90 days after you receive your final claim payment. During the approval of future marketing plans and activity requests, NetApp may consider the accuracy and completeness of your activity metrics. Use your activity metrics to measure your own campaign and activity success. If you need assistance in completing this section, contact your NetApp channel development manager. For example, most customer acquisition and development activities call for three metrics: Number of qualified leads. This metric includes the raw leads whom you have contacted and who you have confirmed to have a current budget and a purchasing project that is open, with a delivery date within one year. Number of appointments. This metric is the number of initial sales appointments that have been derived from the list of qualified leads. Sales value. This metric is a realistic sales value for the opportunity that is equivalent to the value that you would report to your management for this opportunity. Payment of claims does not depend on activity metric submission. Customer Acquisition Table 5) Customer acquisition activity metrics. Activity Metric 1 Metric 2 Metric 3 Advertising and branding Number of qualified leads Number of appointments Sales value Briefings and seminars Number of customer attendees Number of qualified leads Sales value Direct communication, incentives, telemarketing, trade shows, and sponsorships Number of qualified leads Number of appointments Sales value Customer Awareness Table 6) Customer awareness activity metrics. Activity Metric 1 Metric 2 Metric 3 Advertising and branding Circulation size Number of publications covering story Number of inquiries Trade shows and sponsorships Number of impressions 14 Market Development Funds Guide for Unified Partners and Distributors

15 Customer Development Table 7) Customer development activity metrics. Activity Metric 1 Metric 2 Metric 3 Account planning Number of NetApp attendees Number of partner attendees _ Briefings and seminars Number of customer attendees Number of qualified leads Sales value Direct communications, incentives, telemarketing Number of qualified leads Number of appointments Sales value Partner Enablement Table 8) Partner enablement activity metrics. Activity Metric 1 Metric 2 Metric 3 Account planning Number of NetApp attendees Number of partner attendees _ Partner sales kickoffs, training Number of partner attendees Partner Recruitment Table 9) Partner recruitment activity metrics. Activity Metric 1 Metric 2 Metric 3 Incentives, telemarketing, training Number of qualified leads Number of appointments Number of new NetApp resellers contracted 2.7 Editing a Request You can edit your request in the Channel Funds Manager until it is approved. You can make changes to any field except for the activity type. To change the information in this field, you must cancel your request and submit a new one. 2.8 Held for Lack of Funds Although it is unlikely, there might be instances in which the budget is not sufficient to pay your approved claim or value-added tax (VAT). In that case, your claim will be held for up to six months for future payment and will be paid as soon as new allotments are entered into the budget. 2.9 Request Cancellation You can cancel both approved and unapproved requests at any time before a claim is submitted by using the Channel Funds Manager. A cancellation releases NetApp s obligation to reimburse for any activityrelated expenses. A cancellation also releases the funds that were reserved for the request. NetApp cannot guarantee that funds will be available for another activity that you request. 15 Market Development Funds Guide for Unified Partners and Distributors

16 2.10 Request Pending/On Hold Status Requests that NetApp puts on hold require you to edit, update, or correct information online and to resubmit the request before it can be approved. 3 Claiming and Reimbursement 3.1 Claiming Claiming Your Request NetApp uses this guide to audit each claim for completeness. All claims require third-party cost validation, with converted currency if necessary (see section 3.4, Currency Policy and Conversion ), as well as proof of performance (POP), as described in section 2.2 of this guide. If you incur expenses for an activity that is not approved by NetApp through the Channel Funds Manager, then you are responsible for the cost of the activity. Note: You can submit your entire claim package, including POP and receipts or invoices, through the Channel Funds Manager or by fax or post. Activities with Multiple Partial Claims NetApp recognizes that sometimes multiple marketing components make up a single activity or MDF request and that some of these components incur costs. In these situations, you may submit multiple partial claims against the activity as the components are performed. If you submit partial claims, they must be based on the costs incurred for the completed component within the activity and must be supported by POP that shows completion or delivery. Requests or claims for prepayments for a component or activity will not be approved. Requests cannot be canceled if they have been partially paid. Example: You hold a seminar that requires sending an invitation three weeks before the event. After you send the invitation, you can create a claim for the costs that are associated with creating and mailing it. In this case, proof of performance is identical to the POP for an . Claim Auditing The NetApp MDF Program administrator, Birch Worldwide, audits activities and claims for compliance with the MDF Program terms. If an activity or a claim does not meet the program requirements, NetApp will not reimburse that activity or claim. Any such decision is at NetApp s sole discretion and is final. For example, if the POP that you provide does not match the activity that is listed on the claim, the costs for the activity will not be reimbursed. Claim Incomplete Status If NetApp determines that your claim is incomplete, you must submit further information, either receipts or additional POP. If the incomplete status is not resolved before the claim expiration date, the claim will not be paid. Payment of Claims Over the Approved Request Amount NetApp expects you to accurately represent the not to exceed value of your request during the request submission process. We do understand, however, that occasionally you might exceed the original approved request amount or that currency fluctuation might cause you to claim more than the original approved request amount. NetApp will reimburse you up to 10% over the approved request amount to cover eligible activity expenses or currency fluctuation. For information about currency fluctuation, see section 3.4, Currency Policy and Conversion. 16 Market Development Funds Guide for Unified Partners and Distributors

17 The total combined overage cannot exceed 10% of the total approved request amount. This coverage applies if the total converted invoice value exceeds the approved request amount and if the associated budget has enough uncommitted funds to cover the incremental cost. Approval is solely at the discretion of the NetApp MDF Program administrator. If you submit multiple claims, the 10% coverage benefit for all claims will not exceed 10% of the approved request amount. 3.2 Invoices Summary Invoices (Japan Only) In addition to the third-party receipts and invoices that are described in the following section, Itemized Third-Party Receipts and Invoices, the claim package for each activity must include an original summary invoice. This invoice is from your organization and includes a bill to NetApp that lists all the costs and applicable taxes for the total amount of all your third-party invoices. Your summary invoice must include your tax identification number and the items that are listed in Table 10. Summary invoices that you submit with claims should be billed as listed in Table 10. NetApp can accept an original summary invoice in the following formats: A soft copy that is downloaded directly from the invoicing system as a PDF (not scanned) A printed invoice sent by post NetApp cannot accept a scanned copy of the summary invoice. Table 10) Summary invoice instructions. Partner Country Summary Invoice Billing Send Original Summary Invoices To Japan Bill to: NetApp BV P.O. Box Sunnyvale, CA Invoice description: Marketing Services Partner summary consumption tax: Include consumption tax on your summary invoice. Invoice: NetApp BV Remittance: NetApp MDF Program C/O Birch Worldwide (Asia Pacific) Pte Ltd 3 Raffles Place #09-02 Bharat Building Singapore Itemized Third-Party Receipts and Invoices Itemized third-party supplier receipts are required to show out-of-pocket expenses for all claims. Receipts validate the amount to be reimbursed. Third-party receipts must: Provide sufficient detail to allow NetApp to determine that the costs are appropriate for the requested activity. Include dates on the receipt or invoice that correspond to the activity request. Capture the partner named in the request as the billing party. Invoices showing NetApp as the bill-to party are not acceptable. NetApp reviews all MDF claims and documentation for completeness and accuracy based on the guidelines described in this guide. 17 Market Development Funds Guide for Unified Partners and Distributors

18 3.3 Banking and Beneficiary Information MDF reimburses you only for your approved claims. You must pay your suppliers directly for the marketing services that they provide on your behalf. If you are a new partner to the program, you must provide NetApp with your company s beneficiary details (banking information), which will be used to issue reimbursements. The user designated as the primary NetApp contact is the only person in your company who can update this information during your first claim process. You are allowed to have multiple beneficiaries, but they all must be bank accounts that your company uses. 3.4 Currency Policy and Conversion NetApp s policy is to reimburse claims in the same currency in which NetApp transacts its business in each country. The Channel Funds Manager might designate a currency for a country that is different from the standard currency that is used in that country. In that case, you must convert the value of your requests and invoices to the currency that is supported by the tool. Determining the Value of Your Requests and Claims When determining the value of requests and claims, partners should use the information at The date of the exchange rate to be used is based on the third-party invoice date and not the date of the activity. NetApp recommends that you use the process described in Table 11 to determine your request and claim amounts. This process helps you to accurately plan and estimate your costs and reimbursements. Table 11) Determining your request and claim amounts. Activity Calculate the value of your request Calculate the value of your claim Description Convert the estimated cost of your activity from your local currency to the currency that is listed in the Channel Funds Manager for your country and submit your request by using that amount. NetApp recommends that you use the online currency conversion tool at Be sure to use the exchange rate that is in effect on the date that you submit your request. Convert the cost of your invoices from your local currency to the currency that is listed in the Channel Funds Manager for your country and submit your claim by using that amount. NetApp recommends that you use the online currency conversion tool at Be sure to use the exchange rate that is in effect on the dates of each of your invoices. If you have more than one invoice, you must calculate each invoice separately and total them for your claim amount. Table 12 through Table 14 provide examples of the treatment of currency in the MDF Program. Table 12) Typical currency fluctuation example. Typical Currency Fluctuation Example Local Currency Yen Transaction Currency USD Exchange Rate Request approved amount 935, , Invoice total (for submitted claim) 935, , Difference due to currency fluctuation (187.68) 10% currency allowance (maximum) 1, Claim amount paid 10, Market Development Funds Guide for Unified Partners and Distributors

19 Table 13) Extreme currency fluctuation example. Extreme Currency Fluctuation Example Local Currency Yen Transaction Currency USD Exchange Rate Request approved amount 935, , Invoice total (for submitted claim) 935, , Difference due to currency fluctuation (4,216.47) 10% currency allowance (maximum) 1, Claim amount paid 11, Table 14) Reverse currency fluctuation example. Reverse Currency Fluctuation Example Local Currency Yen Transaction Currency USD Exchange Rate Request approved amount 935, , Invoice total (for submitted claim) 935, , Difference due to currency fluctuation % currency allowance (maximum) 1, Claim amount paid 9, Payment Submitting a Claim Package by Post or by Fax In addition to submitting your claims and POP through the Channel Funds Manager, you can also submit them by post or by fax. Be sure to include receipts and POP in your claim package. Claim Package Postal Address NetApp MDF Program C/O Birch Worldwide (Asia Pacific) Pte Ltd 3 Raffles Place #09-02 Bharat Building Singapore For proper handling of your claim, be sure to write NetApp MDF Program on the fax cover page of the claim package. 3.6 Taxes NetApp works with you to minimize the financial outlay of all costs that are associated with the marketing activities that you perform on NetApp s behalf. Tax treatment for marketing services varies from country to country, as does our ability to reimburse you directly for your tax outlay. NetApp s tax policy is to reimburse partners for taxes that are associated with NetApp marketing activities if the partner, because of its country s tax laws, does not have an alternative reimbursement mechanism: When you submit a request or a claim, include the tax amount that your country does not allow you to reclaim directly. Payment includes any taxes that partners are not otherwise able to reclaim, up to the approved request amount. 19 Market Development Funds Guide for Unified Partners and Distributors

20 Tax Reimbursement Policy Tax Process Overview Submit your claim and include the tax amount that NetApp allows you to claim based on Table 15. Your claim amount, including tax, must not exceed the total approved request amount plus the allowable 10% overage. The NetApp program administrator audits the claim and confirms that the taxes are not reclaimable. Table 15 summarizes the tax obligation for partners by country. Payment from NetApp includes any taxes that partners are not able to reclaim and any taxes to which the reimbursement transaction is subject. Any portion of the payment that exceeds your available budget, whether it is part of your claim or VAT, will be placed on held for lack of funds status. (This status is summarized in section 2.8, Held for Lack of Funds. ) The amount will be paid to you when the budget receives its next allotment. These payments reduce the available allotment. Table 15) Tax reimbursement overview by country. APAC Country Which VATs Are Partners Able to Reclaim? Which VATs Should Partners Include in Claims to NetApp? Summary Invoice Subject to VAT? Australia All None No None China None All business taxes that are included in third-party invoices Hong Kong No VAT tax levied None No None India State VAT on transactions Central VAT that is not eligible for reimbursement Indonesia All None No None No No Which Taxes Will NetApp Reimburse? Business taxes included in the claim Allowed VAT that is included in the claim Japan None All consumption tax Yes All consumption tax New Zealand All goods and services tax (GST) None No None Singapore All GST None No None South Korea None All VAT that is included in third-party invoices Taiwan Other APAC countries Tax on lodging outside Taipei and parking All other taxes that are included in thirdparty invoices All None No None No No VAT that is included in the claim Allowed taxes that are included in the claim Tax Policy Review Process If partners disagree with the position that is stated in the NetApp tax reimbursement policy for a given country, they can request a NetApp policy change. Partners should have their company s tax advisor send an to the NetApp program administrator (NetAppAPACMdfSupport@channelfundsmanager.com) explaining their justification for a policy change, along with a copy of their local tax policy. The NetApp finance team will review the request and respond as soon as possible. 20 Market Development Funds Guide for Unified Partners and Distributors

21 4 Program Governance The information in this Market Development Funds Guide for Unified Partners and Distributors is effective beginning July 5 th This guide describes all MDF Program rules. Inappropriate use of funds could result in program forfeiture and may cause your removal from the NetApp Partner Program. NetApp is not liable for any expenses that you incur for unapproved requests. NetApp reserves the rights to modify, cancel, or eliminate the MDF Program, in whole or in part, at any time. 4.1 Anti-Bribery Policy NetApp s policy is to conduct its business activities in compliance with applicable anti-bribery and anticorruption laws, including the U.S. Foreign Corrupt Practices Act ( FCPA ) globally and other applicable anti-bribery and anti-corruption laws in countries where NetApp conducts business such as the United Kingdom s UK Bribery Act ( Applicable Anti-Corruption Laws ). NetApp employees or third parties shall not make, give, pay, offer, promise, authorize, or accept directly or indirectly, including through a third party, a bribe, a kickback, or anything of value in exchange for obtaining (or retaining) business or an improper advantage. NetApp is committed to winning business based on the merits of its products and not on unethical or illegal business practices. While most of this policy focuses on avoiding improper payments to non-u.s. Government Officials, this policy also restricts improper payments in the course of commercial, nonpublic sector related business. NetApp and its employees can be held criminally liable for payments to third parties, and other representatives and consultants (including channel partners, suppliers, and vendors), if such payments are made with awareness of a high probability or belief that all or part of the payments will be used by the third party or other representatives and consultants, in whole or in part, to make an improper payment to a non-u.s. Government Official, a U.S. Government Official, or a private person. Consequently, NetApp s channel partners must comply with all applicable Anti-Bribery Laws and their obligations as stated in the underlying Partner Agreement between NetApp and the partner. Therefore, no gift or entertainment should be offered or provided to third parties such as actual or prospective customers or others, related to any transaction involving NetApp, in order to encourage a person to perform his or her functions improperly or to reward the person for having done so. While public sector bribery (that is, involving government officials or employees of state-owned enterprises) is a significant area of compliance concern, NetApp reminds its partners that bribery of private customers is forbidden in many countries and jurisdictions and is also inconsistent with NetApp s policies and values. With respect to the public sector, nothing of value (including but not limited to gifts, entertainment, and travel) should be offered or provided to non-u.s. Government Officials (including those employed at any level by state-owned enterprises and corporations), without the prior approval from NetApp s Integrity & Compliance Office. 4.2 U.S. or Non-U.S. Government Officials A U.S. or non-u.s. Government Official means anyone who works for or represents a government, including Employees of government departments and agencies, regardless of rank; Employees of government-owned or controlled entities, including government-owned or controlled commercial enterprises, such as hospitals, banks, telcos, and universities; Employees of public international organizations, such as the World Bank, the International Monetary Fund, and the United Nations; Any political party official or candidate; Any judge or legislator; 21 Market Development Funds Guide for Unified Partners and Distributors