Abila Channel Partner Policies

Transcription

1 Abila Channel Partner Policies

2 Dear Valued Partner: If you are new to Abila, I d like to take this opportunity to say, Welcome. We are glad you are a part of our expert Partner network. For those who have been a part of our successful team, I d like to say thank you for the hard work and dedication you continue to bring every day. Our Partners are integral to the way we do business and we truly believe in a mutually beneficial relationship. We rely on our community of Partners to nurture and provide for our customers at the level they demand, and for valuable feedback on our market and products. We believe that transparency, honest communication and mutual respect is the foundation for any successful partnership. Our doors are always open for our Partner s feedback. This document highlights our policies and procedures for our Partner marketing, certification, and sales efforts. In February, we will be launching certification on netforum Pro and will send out an addendum outlining the certification opportunities and requirements. We currently offer many sales and marketing tools, templates and programs to help you grow your business, build alliances and provide support for our mutual customers. However, we recognize that we don t have all the answers so please bring your ideas and requests to the table. Our mutual success depends on it! In 2013, our name changed to Abila as part of a transition into a new independent company but there is nothing new about the 30-year history of providing great focused solutions and unparalleled support to our customers. We are happy you ve chosen to join that tradition. I look forward to our mutual growth and success as partners. Chris Wicker Vice President of Sales Abila 2

3 Abila Policies for Partnering DEFINITIONS Authorization: Authorizations are held at a company level, not an individual level. Authorizations enable a firm to sell a specific product. Partner firms are reauthorized on an annual renewal basis. Certification: Certifications are based on tested expertise by product competency, and are held by individuals, not organizations. Certification means an individual has been trained and tested by Abila to be a product expert. Certification may include required fees, training and/or assessment testing. Certification requirements differ by product line. Certifications are renewed on an annual basis. Types of Partnerships Abila Authorized Business Partner: Organizations that are authorized to sell and support Abila products and services. Business Partners obtain authorization to sell each product line by continuing to market and sell effectively, and maintaining certified product experts on their staff for every product they sell. Abila Certified Consultant: Individuals who have completed at least one designated Competency Role for Abila products are certified to provide professional services and access Competency Role related support services for Abila customers. Independent Abila Certified Consultant: Independent individuals who are fully certified for Abila products and are certified to provide professional services to end customers Development Partners: Technology firms who have integration with Abila products. Please contact JB Rauch for more information. Authorization Abila Authorized Business Partners sell, implement and support a portfolio of solutions. They enjoy industry-leading products, generous margins, award-winning support services, extensive marketing and sales programs, training and qualified lead distribution opportunities. Program Benefits Authorized Abila Business Partners receive: Authorization to sell selected Abila products Access to the Abila Online Partner Center for valuable sales and marketing tools including customizable brochures, datasheets, online videos and more Competitive margin on Abila products for resale Competitive margin on customer annual maintenance plans Not-for-resale edition of authorized products Access to field-based and online training in the areas of business development, leadership, sales and consulting to ensure continued sales expertise Abila Authorized Business Partner logo for marketing purposes Program Requirements Firm must have one or more Certified Consultant(s) on staff that meet Competency Role requirements for each product that the Partner is authorized to sell Abide by terms and conditions outlined in the Channel Partner agreement Maintain current contact information on your Abila Business Partner account to ensure your firm meets the Certified Consultant requirements for your authorized product lines Meet minimum Business Partner product line sales requirements Pay annual product line and consultant fees Maintain communication with our channel sales and marketing team Authorized Business Partner Fees The initial product line Partner authorization fee is $3000 The annual product line renewal fees are $1000 per product line 3

4 Each Partner must maintain one or more Certified Consultant(s) on staff to maintain authorization for each Abila product that they sell. Initial Competency Role training fees vary by product. Fee Details The initial enrollment fee and annual authorization renewal fee are applicable for each product line that a Business Partner maintains. The enrollment fee is due upon acceptance into the program and the annual renewal fee is at the beginning of the calendar year. Product Initial Fee Annual Fee MIP Fund Accounting $3000 $1000 Authorization Fees by Product Grant Management $3000 $1000 Fundraising 50 $3000 $1000 Fundraising Online NA - if Partner approved NA - if Partner approved Multiple Office Locations Although maintaining a unique business account for each office is not required, if an Abila Authorized Business Partner has multiple office locations and wants to keep the accounts separate, the standard product line authorization and renewal fees apply to each additional office location that maintains a unique account. In addition, each location that maintains an Abila account must comply with the product line certification requirements by having at minimum one Certified Consultant achieve and maintain the Competency Role training for authorized product lines in order to be qualified for lead distribution to that office and to be listed on our website. New Partnerships Abila respects the relationships we have developed with our Authorized Business Partners and the investment Partners have made in consultants. Therefore, if a currently Certified Consultant that has been immediately associated with another Abila Authorized Partner applies to become an Authorized Business Partner there will be a 30-day application and market review process. Abila reserves the right to survey its current Partners in the geography on the addition of new partnership. All currently Certified Consultants who wish to become Authorized Partners will be responsible for all the fees associated with becoming an Abila Business Partner. For more information on certification and training, visit De-authorization Abila strives for an open, honest and transparent relationship with our customers. As representatives of Abila, our Business Partners are held to the same regard. We expect all Authorized Partners to conduct their business ethically, always striving for an excellent customer experience. At any time, if Abila determines that a Business Partner is not operating their business in this manner, we reserve the right to begin the de-authorization process. Customers will be reassigned and the Business Partner will no longer receive any commission for any product. 4

5 Certification Authorized Business Partner Certification Requirements Authorized Business Partners must have a minimum of one designated Abila Certified Consultant on their Online Partner Center account to sell a given product. Each consultant must complete all courses in a Competency Role and pass the associated assessment to achieve certification status. New Partners must successfully achieve the required product line certifications within 120 days to validate the Business Partner authorization. Partners who lose their consultant have 120 days to hire a replacement, and, if not currently certified, must send them to the next scheduled Partner certification training. Keep in mind, training schedules vary by class. It is important to plan ahead and check current schedules. The initial Austin workshop is scheduled twice a year, so planning and attendance are critical to maintaining authorization. Designated consultants are either staff employees or independent contracted consultants. All consultants must be listed as a contact on the Business Partner s NetSuite account in order for the consultant s certifications to count toward the fulfillment of the Business Partner s authorization requirements. Independent consultants (if allowed) may only be designated as a contact for one Business Partner s Abila account at a time. Certification Compliance It is always to the benefit of Abila, our Partner s businesses, and our customers that certifications are in place and up to date. Certification is a critical component of ensuring that our clients receive high quality service. Abila will work with individual consultants to help them be aware of any status at risk. Abila will work with our Business Partners to help them be aware when authorization may be at risk, and will work with any Partner through the retraining or replacement process if a consultant leaves an active Partner firm. However, it is ultimately the individual consultant s responsibility to maintain their certifications, and Business Partner firms responsibility to communicate with their employees to ensure that the required certifications are in place for their business authorizations. Business Partners have 120 days from the start of authorization to complete certification requirements. During this period, the Partner is eligible to receive full margin on all software sales. If an implementation requires greater knowledge and assistance from Abila during this time, the Partner s margin can be reduced and Abila s Professional Services may be utilized for a fee. Margin adjustments are at the discretion of Abila, and will be communicated to the Business Partner prior to any changes being made. If certification is not met within 120 days, or if the Partner becomes non-compliant due to the loss of a Certified Consultant status, the Business Partner will be placed on probation for 90 days for the product line in which they have not met the certification requirements. During this probationary period, the Partner will earn a 20 percent margin on all software sales and 0 percent margin on all Maintenance and Support sales related to the product line for which they are on probation. Once the Partner meets certification, the Partner will not have the ability to earn back any lost margin as a result of their probationary status. 5

6 If after the probationary period the Partner has not satisfactorily completed all certification requirements, the Partner will become de-authorized and customers will be reassigned. If a deauthorized Partner wishes to become authorized again, the Partner must go through the enrollment authorization process again and pay all appropriate fees. This includes paying the New Partner Authorization Fee as well as re-taking all applicable certification requirements. Payments and Terms Abila Business Partners are required to submit their product line authorization fee(s) for each location with an Abila account when they join the program. The annual renewal fee is due 12 months from the original enrollment date. Partners may renew their product line authorization status if one or more of their Abila Certified Consultants have completed the required product line Competency Roles. Certified Consultant Program Certified Consultants are highly specialized individuals who have taken advanced training courses and whom Abila has tested and confirmed as product experts. Certified Consultants are primarily employees of Authorized Business Partners, but may be independent consultants. Independent consultants may serve as the required Certified Consultant for a Business Partner if approved by Abila. In this event, the independent consultant must be designated on a specific Partner s NetSuite account as a contact, and may only satisfy competency requirements for that specific Partner. A consultant may not serve as the required consultant for more than one Authorized Business Partner. Certified Consultant Benefits Certified Consultants receive the following benefits: Access to certification training Abila technical support call entitlement for achieved Competency Roles Access to authorized product re-certification training on Abila Partner University for competency re-certification, when required Access to select non-certification courses on Abila Partner University at a discounted rate CPE credits for approved courses and conference workshops Abila Certified Consultant logo Independent Certified Consultants may receive Not-for-Resale software for in-house use for a fee. Independent Certified Consultants must also pay the annual product line renewal fee, in addition to the consultant renewal fee. Otherwise, Independent Certified Consultants, when designated on a Business Partner Account, may have access to the Business Partner s Not-for- Resale software. Certified Consultant Program Requirements Upon acceptance into the program, abide by program terms and conditions 6

7 Successful completion of Competency Role training and achievement of accompanying assessment, if provided, with a score of 80%+ One free second attempt at an assessment per Competency Role is provided at no cost. Additional assessment attempts incur a $200 fee (pre-approval from Abila is required for additional attempts). Competency Role requirements must be completed within 120 days of initial enrollment in the Competency Role. Competency Roles not completed within 120 days of initial enrollment will lapse If a Certified Consultant decides to re-start after the 120 day period, the Certified Consultant must be re-accepted into the program, pay the initial Competency Role fee, and complete all Competency Role requirements as would a new consultant. Certified Consultants must complete annual renewal of Competency Role. Certified Consultants must complete re-certification and testing, when required. Abila Certified Consultant Fees New Product Line Competency Roles Upon acceptance into the program, Certified Consultants pay an initial enrollment fee for each required product line Competency Role. This fee provides the consultant with: First year access to Abila Partner University for defined learning roles All courses in the Competency Role, initial assessment and a second assessment retake, if necessary Ability to contact Abila Support for questions related to achieved competency Access to select non-certification courses on Abila Partner University Initial Certification Fees by Product Competency Role Product MIP Fund Accounting Initial Training Costs Financial Application Consultant $2000 Human Resource and Payroll Application Consultant $1000 Grant Management Application Consultant $1000 Fundraising 50 Application Consultant $2000 Fundraising Online Application Consultant $1000 7

8 Annual Product Line Renewal Certified Consultants pay a single annual product line renewal fee, regardless of the number of achieved product line Competency Roles. This fee provides the following benefits: Unlimited access to re-certification curriculum and assessments for all achieved competencies (an additional charge for annual renewal certification provided in either a classroom or virtual classroom format may apply) Access to select non-certification courses on Abila Partner University at a discounted rate Entitlement to call Abila Support for questions specific to achieved competencies o o Unlimited calls to Abila Support when assisting customers on an Abila Support plan (total calls per customer are based on the customer s Support Plan case count) Unlimited complimentary Certified Consultant support cases per product line and achieved competencies Ability to call as necessary when requesting product enhancements or reporting product issues Note: Abila may introduce new product line Competency Roles during the renewal year and require Partners and Certified Consultants to earn certification on the new role. In this event, new Competency Role fees and the requirement must be achieved within 120 days. Annual Product Line Renewal Fees by Product Product MIP Fund Accounting $650 Grant Management Application Consultant $350 Fundraising 50 Application Consultant $650 Fundraising Online Application Consultant $350 Annual Renewal Fee Payments and Terms Abila Certified Consultants pay the initial Competency Role fee when they register for the Competency Role on Abila Partner University. The Certified Consultant product line annual renewal fee is also paid on Abila Partner University each year. The Abila Certified Consultants annual renewal product line fee must be current in order to gain access to re-certification training, related training on Abila Partner University, and maintain Abila Support assistance. Payment notification for both programs will begin 1 month prior to the established due dates. The Certified Consultant annual renewal fee will increase to $850 if not paid within 30 calendar days of the established due date and increase to $1,000 per product line if not paid within 45 calendar days of the established due date. 8

9 If a Certified Consultant opts out of the annual renewal for a Competency Role when the renewal is due, and decides to re-join after 60 calendar days, the Certified Consultant must be re-accepted into the program, pay the initial Competency Role fee, and complete all Competency Role requirements as would a new consultant. If a consultant wants to attend a certification class, and not become a Certified Consultant, they pay the list price for each course (not the discounted Competency Role price). 9

10 Partner Sales Policies Prospect/Client Contact Protocol At Abila, we have seen a significant increase in sales when our trained and experienced sales professionals work with prospects and clients. Therefore, all Abila Business Partners should have the expectation that our team will be calling directly into our mutual prospects and customers during the sales process to confirm the sales environment, client commitment and bolster forecast accuracy. Discounts Abila does not discount its products outside of specific targeted marketing campaigns. Partners can use their margin to offer ad-hoc discounts. Business Partners have the right to discount from their margin without asking Abila for consent. If an additional discount is necessary to earn business, they must speak to their Partner Advocate, who will work with the Vice President of Sales to grant approval for discount. Requesting a Demo Partners are generally expected to be experts on the product and in sales, and therefore are expected to provide their own sales demonstrations for most deals. Field-Sales Engineers (FSEs) are available to provide training or demonstrations to customers on a special basis, such as for a new Partner or for a new product where the Partner is still completing certification requirements. Partners who wish to utilize these services must provide a Pre-Call Plan to Abila to initiate the request. The form provides critical information to the success of the call. Partners may find the form on the Partner Resource website or by requesting one from their Partner Advocate. Multiple Entities in a New License deal When a Business Partner registers a lead, Abila will stop marketing to the lead and will not offer it to any other entity to pursue, including any Abila direct sales reps. If another Business Partner enters a deal already in the sales process, the second Business Partner may compete for the business. However, Abila will not support the second Partner entering the deal other than recognizing them as an authorized Abila Partner. Once an order is placed, the official Reseller of Record status is assigned to the Partner placing the order, regardless of which Partner registered the lead first. If Abila is actively engaged in an opportunity due to direct solicitation by the prospect and a Business Partner enters the deal, Abila will not disengage from an opportunity already in process. Where an Abila Business Partner is offering Abila products AND a competing product, Abila may engage another Partner or entity to sell Abila products against the competing product line. This will be done aggressively where the competing product is deemed to be winning the business. Lead Distribution Requirements Pipeline Reviews and Forecasting By having insight into your current opportunities, your Partner Advocate can help align resources to help you close more business faster. It also helps Abila have better insight into future business so that we can help design plans to smooth out the revenue cycle. If we know the 90-day outlook, we can better plan marketing spend to achieve our mutual objectives. 10

11 Without accurate forecasts, Abila cannot reliably predict revenue and may resort to mechanisms (such as discounting) intended to accelerate business when it is not necessary, hurting profitability for both Business Partners and Abila. Therefore Abila Partners are required to send a monthly forecast and pipeline of the anticipated deals for the month and the quarter by the 10 th business day of each month. Forecast should include dollar amount of total new license orders, net of margin that will be ordered in the month, and an accuracy calculation of the likelihood of bringing in the forecasted amount. (Example: Forecast $10K, Actual $8K which results in 80% Accuracy) A pipeline template is available on the Marketing Portal under Sales Tools. Pipelines should typically include the following information for each deal: Company/Organization Product Estimated Users Estimated Software License (excluding M&S) Stage Forecast Month Probability Competition Current System Primary Contact Next Step / Comments Lead Qualification and Partner Distribution All Business Partners should plan on generating their own leads to drive their businesses. Abila s channel marketing team will provide support programs, templates and consulting to help Partners generate the new business that they need. In addition, Abila invests significantly to generate leads, and distributes these leads to active selling Partners in appropriate geographies who meet our requested guidelines. Abila gives Partners a monthly update on their status for receiving leads via our Partner Scorecard program. Business Partner Scorecard Program The Business Partner scorecard program is designed as part of a larger strategy to help drive communication and a better working relationship with our reselling Partner channel. The scorecards feature current sales data and cite a Partner s status on various requirements in the Abila lead agreement. These are the requirements that are weighed by Abila before distributing leads. A monthly business scorecard helps Partners understand and review the same business progress and metrics we review. Lead Distribution Processes and Policy Abila pre-qualifies all initial prospect inquiries using a scorecard that weighs key qualification factors such as urgency of need, budget availability, etc. Leads that do not reach the threshold number in the weighing process are not passed to Partners or any sales entity, and are put into a lead nurturing program to help hasten the sales process. The Partner Advocate will make an initial call to assess a prospect s needs and set an expectation for a Partner call, and then 11

12 passes lead to the Partner. Individual Partners should call within 24 hours to start working on project plan with the prospect. Lead Registration and Updates The best sales situation for Abila and our Partners is when we have a single sales entity pursuing each deal, and not competing against each other for the business. Therefore we ask that Partners protect their leads by registering them to ensure that if a second lead is generated via other Abila lead generation activities, it is not inadvertently distributed to a second entity. Without lead registration, Abila doesn t know that the deal is already being worked. Lead registration is rejected if a given lead is already aligned to another Partner. However, a second Partner can continue to work the deal, even if they are not the official Partner for the lead. If the deal is not in the system, it is aligned to the Partner and Abila marketing ceases. Dealer registered leads should be updated in the Abila Online Partner Center system weekly. Leads not followed up are subject to reassignment. Maintenance and Support Abila handles all Maintenance and Support invoicing. Business Partners should not be billing M&S after the sale. Additionally, Abila s standard business practice is always to sell software with a Maintenance and Support (M&S) agreement. Software-only sales create frustration and confusion with customers and disrupt our normal business practices. If there is a special situation which might require flexibility, the Business Partner must notify the Vice President of Sales. Add-on Sales and Working with Your CAM Unparalleled customer support is part of our mission and we are dedicated to ensuring that our customers have the resources they need to solve their problems. It s our goal to lay the foundation to have a customer for the life of our company, and our Business Partners are a key component of that relationship. Abila actively encourages the ongoing relationship between a client and their Partner. Partners typically maintain the closest relationships with our mutual customers and are a vital part of an excellent customer experience. However, to ensure our customers have the best experience, Partners should also work closely with their Customer Account Manager (CAM). Partners and the Abila CAM team should periodically call clients to build customer loyalty, and ensure a positive customer experience. The Abila CAM can be an extended part of a Partner team. For example, CAMs can cover accounts during vacations. Utilizing this resource can be a best practice for your business. If during the course of a client communication, an opportunity for an add-on sale is uncovered, CAMs must first refer customer business to the Reseller of Record immediately when possible and always within 24 hours of uncovering the opportunity. Partners must then attempt to contact the customer lead themselves, preferably immediately, but certainly within 24 hours. In turn, the Partner must make every attempt to contact the client within the next 24 hours. If the Partner fails to contact the customer within 24 hours and the client s needs and interest have not been addressed, the CAM will work with the customer to close the business to maintain customer service levels and minimize the risk of losing the sale. The Partner on record will receive 20% set margin and tier on business that CAMs close. 12

13 Successful partnering activities between Partners and CAMs are encouraged, but there is no substitute for a Partner calling their own customer base to maintain their client relationships and uncover client needs. Reseller of Record Protocols Abila assigns Partner accounts by using a Reseller of Record designation for the official Partner servicing any given client. Abila establishes a ROR for each customer through: The initial customer software purchase A specific customer request to change to a new reseller The consolidation of Partner accounts after a merger and acquisition Authorized Business Partners may not place product orders (including add-on modules or user licenses) or renewal orders for Subscription Plans or Support Plans, or make payment to Abila for such orders on behalf of a customer unless they are the Reseller of Record for the customer. Only the Partner who is the Reseller on Record may invoice a customer for products and services from Abila. It is important that ROR information be accurate because the information is essential for Abila to provide commission credit on all future Subscription Plans or Support Plan renewals to the right resource. To request a change to their Reseller of Record (ROR), customers are required to submit the Abila Reseller of Record Change Request Form with their company letterhead signed by an officer of their company. After receiving the request, Abila will notify the current ROR and allow a seven-day grace period before changing the ROR. After the grace period has expired, if there is no additional instruction from the customer and upon verification that the new Partner is certified for all Abila products the customer owns, Abila will make the ROR change. Abila will use its discretion in connection with processing orders to ensure no interruptions to customer service levels, including but not limited to waiving the seven-day grace period. Requests for a change in Partner that result in a customer being serviced by a new Partner that does not have a local presence where the customer is located, shall be permitted by Abila in its sole discretion on a case-by-case basis. Requests for change in ROR initiated by a Business Partner shall follow the same procedures set forth above (i.e., requests need to be submitted with a ROR Change Request Form with customer letterhead executed by the applicable customer). In the event a customer refuses or is unable to submit the required form, Abila shall permit such requests from Business Partners in its sole discretion on a case-by-case basis. Reseller of Record (ROR) Misuse Abila does not approve of the practice of requiring customers who are not assigned to a given Partner to sign a Reseller of Record change form to participate in local activities such as training sessions, presentations or User Groups. Often the signing Abila customer does not understand what the Reseller of Record form signifies that it is a formal change of Partner beyond the given activity. This practice creates frustration and confusion with customers who often want to maintain their relationship with their original Business Partner. Abila considers this activity to be a deceptive business practice that can diminish the trust in the Abila Partner channel. We strongly discourage this unethical practice. 13

14 Notwithstanding the foregoing restrictions, in the event a ROR is not certified to sell to a customer a specific software component of the product line for which the ROR is otherwise authorized (e.g., Millennium), Abila will allow the customer to engage another Business Partner who is certified to sell such software to order such software component for the customer. No change in ROR will take place. Inactive Customers When a software customer lapses off their maintence and support plan for over two years, they are no longer considered an active customer and are unable to simply reinstate their maintenance and support plan. Business Partners are not allowed to log support cases on behalf of customers who are off plan. If clients want to activate their software at this point, the account is required to become a repurchase, or New License Sale. As a new deal, the account has no Reseller of Record, and any Authorized Abila Partner or entity can sell it. However, the Partner may create a dealer registered lead if they are actively working with the organization to sign as a New License. If the prospect calls into Abila, the lead will always be aligned to the Partner that the lapsed client states they are working with. If they are not working with a Partner, we will use the Abila Lead Agreement Score Card requirements for the current fiscal year to distribute the lead appropriately. See Multiple Entities in a New License Deal for further information. Marketing Event Protocols In order to maintain a comfortable environment and reduce Partner conflict and prospect confusion, Abila Partners are not invited to Abila lead-generating marketing events, and may not attend. Partner registrations will not be accepted and Partners who attend will not be invited into the seminar room. Abila holds sale seminars and distributes resulting leads in the same manner as other lead activities those that originate at the local seminar will be distributed as is typical from any lead generation activity for that geography to Authorized Partners with the lead scorecard. Please respect this process. Marketing and Business Plans Abila focuses on national awareness building and lead generation programs. Local businesses can be more effective at building relationships and leads in their own market. Therefore at Abila, all Partners must work to generate their own leads in their territories. Abila Business Partners are required to submit an annual business plan and marketing calendar. We provide a marketing calendar template and other tools to assist in the process. Partners should review your calendar with your Partner Advocate early in the fiscal year to ensure that your marketing efforts are in line with your sales goals. Online Partner Center With NetSuite, Business Partners access their sales and client data and register and update leads. Within NetSuite, you will notice a tab called Support. This is not for product support. It is support for NetSuite. You may utilize the self-help knowledge base, but are unable to log tickets. For all product support needs, see Technical Support in this document. How to get access: Visit Enter your user name and password. If you do not know your logon, contact OnlinePartnerCenterSupport@abila.com. 14

15 From Partners can access key partnership documents and marketing collateral, tools and program information to help them market and sell our products. Partners can access Partner logos, and marketing materials, scripts and slide decks, and review other marketing and sales program details. The Online Partner Center is accessible via abila.com Partners Online Partner Center. Your log in information is the same as your log in information for NetSuite. If you have trouble accessing the Online Partner Center, contact 15

16 Sales Tiers The Business Partner Tier Program outlines the qualifications and details for authorized Business Partners to earn tier margins. Tier Levels and Fees Two qualifying thresholds, New License and Total Product, will determine tier level based upon the Business Partner s net revenue to Abila. Business Partners must achieve both New License revenue and Total Product revenue thresholds to attain the tier level. To attain the designated tier level, the minimum threshold for both New License and Total Product must be met; otherwise, the tier associated with the lower of the two thresholds achieved will become the prevailing tier. The associated margin at each tier level for New License (NL), Installed Base (IB), and Maintenance and Support (M&S) is earned based upon the attainment of each of the two qualifying thresholds (New License and Total Product). The minimum threshold for Bronze tier is two deals and $10,000. Tier & Margin for Abila Product Lines Threshold Margin Tier New License Total Product NL/IB% NL% + 2% Abila Select Subscription% M&S% SFO Diamond $200,000 $295,000 58% 60% 35% 20% 20% Platinum $95,000 $199,000 53% 55% 30% 15% 20% Gold $60,000 $95,000 45% 47% 25% 10% 20% Silver $30,000 $60,000 35% n/a 20% 5% 20% Bronze $10,000 $25,000 25% n/a 10% 0% 20% New License revenue includes: Product revenue associated with: o Customers who are new the company o Existing customers who buy a new product Product sold to new customers within the first 120 days of original purchase date: o Additional modules o User licenses o Platform upgrades Total Product revenue includes: New license Installed base (add-on modules, user licenses and upgrades) 16

17 Note: M&S, reinstatements, reseller fees, software for Business Partner s internal use, forms, professional services, and authorized training center (ATC) fees (signup fees and renewals) do not qualify for New License or Total Product revenue. Tier Calculation Rules Tier levels for a Business Partner can improve or decrease (called move up or down ) during tier calculation measurement periods, of which there are four throughout the year. The range of data used for the tier calculations will be based upon a rolling 12 months of total qualifying sales for both New License revenue and Total Product revenue. The total qualifying sales will be measured against the respective tier thresholds. Calculation Dates The tier level achieved by the Evaluation Date will become the effective tier level until the following Evaluation Date when the tier level will be re-calculated. Calculation Cycle Evaluation Date Tier Level Movement Calculation 1 December 31 Move up or down Calculation 2 March 31 Move up or down Calculation 3 June 30 Move up or down Calculation 4 September 30 Move up or down New Business Partner Tier Movement New Business Partners are those who have represented products within a business unit for less than 12 months. New Business Partners will not move down from their starting tier level for the first 12 months. The Vice President of Sales will determine starting tier. After this initial 12-month period, the standard tier movement calculations referenced above will apply. For Business Partners who merge their companies, or acquire other Business Partners: Tier credit is not merged for 6 months after contract execution. Tier margin will change during the first Tier Calculation Period after the contract has been executed. Tier Subscription Tier Diamond 35% Platinum 30% Gold 25% Silver 20% Bronze 10% Subscription Tier Guidelines To receive margin, Business Partners must have certification at the product level and be active in good standing. Sales in the first 120 days count toward the New License Tier. After 120 days, sales become part of the Total Product revenue. The Reseller of Record is guaranteed 36 months of subscription margin unless the customer cancels their subscription contract or the Partner is no longer certified/authorized to 17

18 sell the specific product. Subscription sales count toward attainment of New License and Total Product tier thresholds Partners earn 2 years of New License tier credit up front for each new subscription order The initial first month will be multiplied by 24 Abila reserves the right to change the Business Partner Tier Benefit Program at its sole discretion. 18 Policies contained herein effective Jan. 1, 2014 Revision Date 11/25/2013 Abila Partner Use Only Confidential